The total number of options is about 4% of the outstanding shares. This is actually lower than most companies, so suggest you go back to Remedial Finance for another lesson.
I doubt if you will se $8.50. The dividend will put a $9 floor on this stock until/unless there is concern that it may be lowered or suspended, which I don't see in the cards. Also, I doubt if they will be subject to any tax-loss selling.
I am a long-time investor and think that the next 4-6 months could be "dreary" for EVOL as it will continue to show soft revenues and profits. Too many impatient investors who can't see past the next quarter. The key, however, is that not only is their backlog growing but they will be able to take advantage of Telespree over time with a classic two-pronged strategy...namely selling what they have to new customers (since Telespree has many more domestic accounts) and selling new product (Telespree's Cloud-based) to their existing accounts.
I don't understand your comment about tax-loss selling, as EVOL's shareholders most certainly almost all have huge gains for this year, and even over shorter periods except the past month??
There are plenty of profits that will have been taken and I DO expect to see the real losers for the year get hammered starting on December 18-20 (depending on the clearing calendar this year)...but don't expect EVOL to be part of that play.
This quarter and probably next quarter also, are somewhat lackluster. However, that should not hide the strong underlying growth in their business for the future. It will just take till early-mid 2014 before that translates into meaningful increases in revenue and profit. If it should weaken on any dips due to impatient investors, will be a good time to re-load.
Better to sell and find something that is moving than stick with this. It is clear they are bleeding cash badly if their were willing to dilute up to 26% of the company and the conversion period at $10 is SEVEN YEARS!!!!!
I think you are making a mistake. The company they are acquiring has $23mm in revenue and they are paying $1.6mm up front (half in cash and half in stock valued at around $10.50) and another $.5 in a year and then payouts each year for three years based on performance. This deal may double the value of the company and gives them a large U.S. client base as they have Best Buy, Virgin Mobil etc. etc.
Great deal and basically only $800k in cash up front. Company has a great reputation and top venture people behind it and they realize that under EVOL's management they can earn a good payout over time and cash in their chips. Minimal downside for EVOL. If the company doesn't perform to their expectations it is $2.1mm or less (as the $.5mm in one year has some hooks to it also). Actually the stock behavior today is fine and the downside action this past week was probably others taking money off the table. I don't think you will see the stock in the $8 again since their dividend provides 5% at $9 and I perceive that as the rock bottom downside...and doubt we will see that. I think it is up from here as more people realize the magnitude of what this can mean.
YES...$23mm in revenue, 200 employees and 34 million phone accounts they service for customers like Best Buy, Virgin Mobile, Spring, Cox, Clearwire etc. This is BIG!!!!!!!
I expect that the "headline" numbers (sales and profits) will be soft this quarter (and possibly next) and so that could be seeping out to the quarter-to-quarter jockeys who can't wait for the expect large increase in backlog to materialize in 6+ months. Great buying opportunity if this should drop to $9, as that would represent a 5% yield and probably act as a floor. Upside is huge with the M2M market being the real sleeper here in the long run. They could get picked up by one of the M2M plays.
It is a relatively thin stock and I expect that the "headlines" from the upcoming earnings release may be weak (sales and profits) even though the future-pointing number (backlog) will probably show big growth. If this gets down to $9.00 you have an effective 5% yield, so I think that puts a realistic floor under this.
Actually they are a pretty sharp group and have a lot of experience in restructurings. Check out the credentials of the top people and you will not dismiss them readily. Effectively they are saying they don't think they can recover.
Evolving Systems Granted Fourth Patent for Dynamic SIM Allocation™ Solution
Addresses challenges posed by growing numbers of M2M devices connected over mobile networks
ENGLEWOOD, Colorado – Evolving Systems, Inc. (NASDAQ: EVOL), a leading provider of strategic solutions to telecom operators worldwide, today announced that it has been granted a further US patent for its Dynamic SIM Allocation™ (DSA) solution.
“This is the fourth patent Evolving Systems has been granted for our DSA technology,” said Bill Chard, VP Product Management. “We are expanding the capabilities and relevance of DSA, and these patents reflect the evolution of our solution.”
DSA enables just-in-time provisioning of SIM cards, activating them only when they are first used in the network and eliminating the unnecessary costs incurred when pre-provisioning. This latest patent covers the use of DSA to grant repeated, temporary connections to classes of devices used in machine-to-machine (M2M) applications, recycling resources such as telephone numbers or MSISDNs.
Just a clown...best to ignore him, as any posts about him just encourage his axxhole behavior.
Definitely a huge positive and certainly will create more interest in the stock since this is not only well-read, but well-regarded since people pay thousands for the right to read their stuff!!
Agreed. Before and after hour trades are thin and in most cases meaningless. They are also highly inefficient for those trading as the spreads can become enormous.
The current contract was affirmed but if you read the details it says "However, the battle over the tender could be the last as the South African Social Security Agency (Sassa) announced last week that it would be able to pay social grants in-house when the current contract with CPS expires in April 2017."
If they pay in-house then Net1 UEPS is out in less than 4 years.
Actually she owns 23.2% and has owned this and added for years. Very astute investment group also has owned many other winning telecom-space stocks.
Evolving Systems initiated at Buy by D.A. Davidson
D.A. Davidson initiates Evolving Systems (EVOL) at Buy with a PT of $12.Analyst Donna Jaegers: "We think that as cheaper smartphone handsets and the roll-out of LTE networks increase competition for customers in the developing world, EVOL's Activation and Dynamic SIM products are well positioned to gain more traction with wireless carriers. With orders from MTN Group and another Mid-Eastern carrier announced in Q3, and with a presence in several large developing world carriers, we expect EVOL to win more orders in Latin America, Africa, India, and China in the next two years."