He is selling out his share. Took it down from 6.7 to 4.4. That's the selling pressure on any good news. You should probably do the same if you feel that way about management. If he's getting rid of it all we could see 1.5 again before we see 4. I'm pretty sure we will see much higher later in the year.
I have not looked to deep into old financial statements but just read a bit into what was said on the conference call. I am assuming that one the the suppliers was having a cash crunch issue and gave Novatel Wireless a good discount for an upfront payment on supplies. Accounts payable and accounts receivable are just a normal part of business as bills are paid by suppliers and customers. Novatel Wireless is just owed $22 or so million more in the shorter term than they owe. It did not sound from the CC like this will be a consistent trend with suppliers so the accounts should level off and the difference should roll back into cash or cash equivalents in the near term.... That is what I took from what I heard.
Cash of $20 million is a bit off. Accounts receivable are about $20 million more than accounts payable. That should result it a cash gain in future quarters. I am a bit concerned that this may be artificially set up to subtly cover up the insider lawsuit settlement. But none the less $15 million of it should come back and cash should increase to about $35 million soon. That will include a deduction if they use $5 million to pay off the bank note that resulted from the settlement on top of the dilution to shares and $5 million cash payment right off the bat. The thing is that the lawsuit is over and they made this quarter look really bad so the next will look better.
Settlements like this are not gaining any friends on Wall Street which is needed to get a good valuation but I think by the end of the year M2M growth of 30% should gain Wall Streets attention and with a substantial share price gain all will be forgiven.
The turn can come at any time but the momentum is down right now. The odds are against a big gain tomorrow (due to momentum) or probably before the next conference call but are very good for some time before years end.
It will probably stay around here until the next M2M news. Then NVTL will start trading like a M2M stock and get all and then some back. At the end of the year NVTL will be double or more as long as projections stay for a profitable Q4. I'm adding to my position tomorrow allowing two days for the sellers to get out.
BLDP FCEL PLUG are all burning shorts and are up around 1000% or so. Shorts said fuel cells would not make it either. Alternative energy sources are heating up big time.
Shai has a history of raising capital at a hefty premium and add warrants. Say the stock is trading at 2.50 he usually sells off 10 million shares or so at 1.50 with warrants to buy another 10 million at 2 bucks. That completely kills the price and it falls to about 50 cents where they reverse split to start the process all over again. Protect yourself and learn from history. Executives and the board completely disregard shareholders and I dont know how what they do is legal.
I think Novatel WIreless has one of the worst. There are so many ways to increase shareholder value and as of yet nothing has been done.
I would have dropped the CEO and anyone else insider trading and let them fight the insider trading lawsuits with their own green. They made enough on the trades in the first place.
Hopefully they start making good decisions and we hear more on today's call.
I do not expect too much for results. Maybe the large seller is already out and the stock is ready to move. What I expect is a plan to come out in how Novatel Wireless plans on bringing shareholders value. Splitting the company, selling off the Mifi business and going straight M2M or something of that sort. The company could double on anything of that sort. NVTL is seriously undervalued and the same old thing is not cutting it. The stock market is putting a hefty premium on competitor stock prices and it wont cut it for too much longer without a change.
Apple seems to be stepping in the MIFI car market with the new product. At some point in time you figure it would be worth fighting over patents. Though it is doubtful that anyone can beat apples lawyers except for Samsung occasionally. I hope they just dump the MIFI business off to someone else for about the current market cap in cash.
They always raise cash early. Its smart if you have yourselves in mind. If the cash was almost out the stock would be trading at a few pennies with the cash burn. Dilute and reverse split. that is how the stock has gone from relatively thousands to a few bucks.
Don't trust management... their have their own interest and salaries in mind. The company draws in suckers over and over and pay enormous salaries compared to revenue.. I just don't know how they sleep at night.
Novatel is setting its sights on Q4 profitability. I want to see low cash burn and get sleazy insider trading settlement out of the way. It appears the the company had enough accounts receivable that covered most of the cash handed out so I would hope for little cash burn. The shares given out in conjunction with the 5 million in cash are probably causing the current selling pressure. I'm not so sure why Novatel Wireless went with a bank note as part of the settlement but its better than shares and more selling pressure. Its all a mess and I believe it is causing this temporary opportunity (that could get better). Novatel Wireless lost a lot of Wall Street fans hence the valuation. I think they will do something over the next year to get them back.
Don't you get it? Someone wants out at any cost. Probably the shareholders that won the insider trade lawsuit. Why would they want to go long? The stock may still take a hit since there are sales into any strength. Once it's over the stock will take off. Reasonable guidance would bring volume and do it. Bad guidance and the hurt lasts. I'll buy the first 20000 shares if the report is good. I've gotten burnt a few times recently testing the waters hoping for a pre earnings rally. I've given up on that now. I think the seller will give me a chance to buy still low on a good report and stay out on a bad one. They MM sees more about orders than I do and I think there is another million or so shares of selling interest to get rid of.
Auto commercialization is here at the end of the year with a infrastructure build out. Bus is inevitably coming. Revenue could ramp into the billions quickly as orders come in the 20s and not 1 to 3 anymore . Today's market cap will look like Pennys compared to where BP is a few years from now. Ballard is the leader. Why else would VW throw a 100 million at them. BLDP is comparable to First Solars leadership.
The Marc Oczachowski interview from September 2013 sums it up. He states something like this in his closing statement. "The stock is low. Largely due to the drawn out FDA approval. He is hoping for a 2014 approval. After approval the stock will be much higher. So the time to buy is now"
You find quotes that the Sonoblate or Ablatherm are the best technology all over the web. Whenever you see the quote from a doctor you can be assured that they are biased based on the equipment they use at the practice they are trying to promote. Ablatherm HIFU has much more clinical data than the Sonoblate procedure and has a better chance at first approval. Ablatherm HIFU has also had many more advances since data was first collected. If you bundle all the data and average then the Sonoblate looks better. After all the advances the Ablatherm has better results. You can spin either side based on your bias but they are comparable but in the newest equipment Ablatherm pulls ahead.
I think the market has played into SMSI's sweet spot. We could see a really good year from here. Especially if SMSi can go profitable for the year. Q1 looks like it will be great on revenues but under profitability. The company is moving quickly in the right direction though.
True but expectations are what leads to long run results. If M2M comes in light in Q4 and expectations are given for a good Q1 the stock would go up. At the current market cap vs competitors M2M is valued as a failing company. Any guidance that counters that and Novatel trades above $4.00 quickly.
New 10% on chip customer
Possibly first profitable quarter
Building revenue momentum
Increasing need for wireless security
SMSI will be over 2 pretty soon going into earnings
be_accurate can you give it a rest for a day? I like where SMSI is going but the message board is a bit obnoxious.