Wondering if anyone here is following VELT, I have not given them enough attention. In their press release today, the ceo states, "we made key investments into our sales and marketing organization, primarily in the U.S. market, in order to maximize the significant regional opportunity that we see here. We believe that these investments in top talent will allow us to continue to drive excellent results from this region." His positive sentiment on growth prospects in the US should be reflected in Augme's numbers. I have to say, I hope that Augme wins the injunction against Velti so we can take a big piece of all that pie they are currently eating!
"we made key investments into our sales and marketing organization, primarily in the U.S. market, in order to maximize the significant regional opportunity that we see here. We believe that these investments in top talent will allow us to continue to drive excellent results from this region."
That statement from the CEO seems to contradict hugely what someone stated a few days ago that VELT is pulling out of the U.S.
No it doesn't at all. Listen to what I said, Velti is now only focussing on its Ad network and has stopped trying to compete in mobile marketing. Their mobile marketing platform was horrible, a compilation of failed acquisitions and technology. Remember the short rec I posted from a hedge fund that said the exact same things I was saying. They are now only focussing their growth on their ad network. Everything said in todays release just confirms all I've been saying and concerns others expressed about the inability to collect receivables. I hope now some see my warnings were more accurate than some here wanted to give me credit for. Remember I was saying to sell the shares at $13. Augme is directly benefitting by Velti's innability to compete and subsequent exit from mobile marketing here in the states. I've said it a dozen times, Velti reports numbers for the America's. This includes South America and other regions. In the US, they do less than Augme does right now in revenues and they can't compete. They did just recently let a mass of people go and they have lost customers because they are fed up with customer service being located in Greece which causes a major lack of accountability. At the end of the day, Velti's main revenue driver is international SMS porn distribution and mobile gaming. Both of these business's can't be executed here in the US.
It was nice to see Augme shares move up slightly on such an ugly day. Considering the shares have no real business trading under their fair value of at least $2 just for the mobile business alone, it's hard for me to get overly excited about the small move. The stock has no business being this cheap to begin with. Like I've said, love or hate the company, it's undervalued by at least 200%-250% at the current price just based on their mobile business. There's some really good stuff happening with this company. It would be nice if the company would communicate a little better and let investors know. Maybe if they were better informed your stock wouldn't be trading at a fraction of what it should be.
That is a good point, a couple days ago it was said that Veliti is "pretty much out of the mobile marketing business" in the US, that does conflict with the ceo's statement today. Not sure what his source was but it would be interesting to hear his thoughts on today's news.