been away for awhile after letting go of my shares in the low 2's........just checked in today to see how big a mistake i made and wow.......whats going on here seriously? ....this looked pretty promising at the first of this .year........does it have any potential to make a comeback or is it abandon ship?.....would like to hear from someone with some knowledge of the situation.....thanx
No one here has any true knowledge of the situation. We're all speculating here. The reason the shares dropped so much is because Arena duped us good. He basically said a lot of stuff and never delivered any of it. Now we have Hussey who has announced cost cutting measures and has basically started clearing out any trace of Arena. He is focusing on the core HC business and is reevaluating everything Arena did. At these prices, as long as HC keeps growing revenues at 15-20% quarter/quarter it seems like a good place to enter. Then again, we are on a pretty good slide down day after day after day....no one knows where the bottom will be. At this point for me, I'm down enough in my shares that it doesn't matter to me much anymore. I just find it interesting that a CEO can mess up a company so much and get such a nice golden parachute...especially in a small company. I guess you don't get to be CEO by being honest right? Haha.
Concerning Arenas golden parachute, i reckon this is why true professional investors that are successful like Buffett and such read every line of the prospectus and financial statements. They would have caught that and it would have been a real red flag. For instance, during the Facebook IPO its standard procedure for company officers and large investors to have lock up periods so they cant dump their shares the first day. Yet, for all to see if they had eyes to see it, Suckerberg and some of the others had the right to dump up to 10% of their holdings the very first day or anytime they felt like it, it was right there in the prospectus. So they did, selling out at 40 plus a share and locking in billions. Now its at 19, but they made out well. So we should heed the lesson.
I just noticed this is posted twice, so I will answer here as well:
We are still heading down by selling from those that got in mostly based on patent litigation expectations. The patent and IP side has not gone anywhere except into a state of limbo for the time being, so most of the selling is bottom sellers that are not really knowledgeable about the core, or do not care about the core business which is growing at 15% - 20% per quarter (90+% per annum). The current share-price is very disconnected from the fundamentals of the core ad business.
The company in general is in pretty good shape with recent round of financing, a new CEO (Arena is gone), cost cutting measure to total $6mm, projection of CF positive by mid 2013, still zero debt, closing deals at a record pace, and in the right time at the right place for a market that is taking off, so do not expect the price to stay here long.
You were right about it still being promising, but the stock is broken for now, and the company is being punished for some of Arena's miscalculations/misstatements. We will heal soon, and be on a much better track than now.
I'm sure others will have a different perspective than what i have stated.