So this is reiterating 1st quarter (3/31/16) reporting which according to the Nasdaq, MIFI has only 15% Institutional Ownership. For all we know, they could have sold their position by 6/30/16 similarly to how George Soros bought 2 million shares and sold the position within 6 months. It's hard to gleam any insight on these based on the lag from real-time. I tend to look at the institutional interest percentage as companies like FLTX and CAMP have much higher percentages.
Sue is still making money, don't be fooled. Let's not forget the 960,000 restricted stock units she received on 3/1/16. That's been a frustration for shareholders back since Peter was running things. MIFI Executives & the Board have been handing themselves restricted stock units (which are free shares) all the time. When MIFI was trading near $5, they would give themselves 200,000 share grants. Now that it's near $1, they give themselves 1,000,000 share grants. Do the math? They still are giving (handing) themselves $1M payouts over time. The true shareholders are the only ones at risk and have lost money on MIFI.
Stop talking about the shorts.....For institutions, this is chump change. So if someone shorted 500,000 shares last April and got lucky at the peak around $6.60 and now sees MIFI trading at $1.60, we're talking about a $3.3M investment now worth $5.8M or a gain of $2.5M. Major institutions invest 10's, if not 100's of millions of dollars in companies.
Sej said it right, this is about MIFI growing revenue and earnings. At a market cap that is half of Fleetmatics, MIFI would increase by 10X to $16 per share or $850M. MIFI had 534,000 subscribers as of Q1 and Fleetmatics had 737,000 (about 38% higher). Yes, MIFI has higher debt and less cash, but a $1.7B vs. $85M market cap difference won't last long.
Not to dwell on the negative but I didn't like the fact that IoT revenue fell by $5M QoQ and breaking out the SaaS & Services revenue showed only a $200K increase QoQ. Also, guidance for Q2 is disappointing.
MIFI revenue seems to have saved the quarter with an increase of $10M QoQ even though it's the lowest margin business. Probably never a better time to consider selling the MIFI business.