compare the price drop and the volume to today and the volume associated with it. the one who understands the business the most, outside of mgmt, is the bank that just increased a credit limit with no draw. c'mon man, its so obvious. games, games, games.
the boa/merrill note was pretty clear on this issue. there is no dispute amongst investors as to it happening, its all just a matter of time and when the mkt rewards the stock. its a good hold at this price, but it may be 2 more q's before any stock movement occurs. that being said, i suspect some buyers will want get in early before fy17 earnings explode, so the question is how long do you wait? the stock will move nicely in fy16 and 17. do you want to wait until it starts, or just buy and hold now? becuase of the technology involved, buyers will accumulate shares in advance of when a stock price would typically lead earnings growth, imo. too much opportunity for people to risk not being long. also think a buyout could happen anytime.
my take, stock price trades sideways for the next 3-6 months. come 2nd half of fy16, stock will be in double digits. i plan to add on dips below 6 if a mkt correction prices it that low.
So whats your take on increased marketing and sales expenses from working with several carriers and big box retailers?
Read the PR from March, then think about how you would finance the project with a high stock price or a low stock price. Now consider you're working with certain carriers and big box retailers... Can you just up and tell everyone the details because the stock is down? And when would you lead turn the launch with increased marketing, sales, and insurance expenses?
hopeful, we are both asking the same question obviously....let's ignore the top and bottom lines from Mar to Jun, and the stock price reaction today, and form our assessment off of this: "Contributing to higher operating expenses was an increased level of marketing support given to certain carrier and big box retail customers" and this from the credit line pr: "Increase Maximum Advances from $4,000,000 to $7,000,000, 2. Extend the Maturity Date from September 27, 2015 to September 27, 2017, 3. Reset the Minimum Tangible Net Worth covenant to $15,000,000 effective June 30, 2015."
I've said it several times already, and can see no other justifying reason for all of the above besides a large contract on the horizon.
arent they just buying technology, packaging it together to form a product, and then contracting the mass production out? i dont see infosonics in the same realm as these other R&D increasers...its why the phones have the price point they do. could be wrong, but based on what they are coming to market with, clearly they are getting it somewhere. Perhaps the R&D you are referencing is the transition of the business model. i'd have to do a lot of homework to confirm.
My concluding thought is, with sales moving in the fashion that they are, the increasing awareness of the product (see amazon), and the increase by 75% on a credit line with no current draw, i am only left with one reasonable determination to make. They have signed an NDA, or about to sign a contract, and the credit increase is a necessary move to produce the scale their customer is requesting.
If someone has any insight as to why a credit increase would be made absent of a current draw, that can be explained a different way, i'd love to hear it.
i'm not referencing a direct one for one on the price moves. rather speculation leading to share price growth coupled with optimism and positive commentary from the company, only to be followed by a stock decline and then a lack of news...only to conclude on the follow through of the speculation once the news was finally releasable, which was preceded by a quarterly report that left much to be desired and caused investors to question whether they shoudl put their money where their mouth is on the stock. forest through the trees pal.
lets brainstorm this for the sake of countering arguments becuase i dont want to convince myself of something.
so, for the credit line increase, would the bank have access to view and NDA or at least know some things about it that we are not? what would be the reason for the duration extension? if they needed financinc for continuing operations, is there any justifiable reason why the bank would increase from 4 to 7m?
this is very similar to the way himx behaved in the months leading up to the google nda release
hopeful, they have to have scored a major deal. the credit line can only be explained that way. talking about how great things are....well, if i knew i had a major contract upcoming but potentially a weak quarter, i wouldnt speak in terms of a 3 month context. to go on the record saying how great things are and reaching scalability, only to have not, huge liability. i bet its killing them to watch this action right now. if there is one thing ive learned in 15 years of investing, you have to be able to see the forest through the trees.
Reminds me of himx before the Google announcement. Same kind of price action in the stock too. It's either fraud, or there NDA for a major contract.
The only explanation I can have is that there is an agreement to supply with a major retailer or carrier. An NDA would drive this kind of silence and the credit line increase. I'm sure other people are thinking the same thing. Only plausible explanation I can think of for the credit increase.
I think increased marketing expense to big box retailers will provide enough hope. It's no doubt the brand is gaining popularity. Problem is, find me one person outside of mgmt who isn't shocked with this. They couldn't provide a little more depth to things? I'm beginning to wonder because rams comments only to result in this today don't add up.
Yeah, my obvious question too. Down horrendously but on just 200k volume after an hour. Seems fishy. And now retails are just dumping to dump so that won't help the share price. Great day to take a long position if someone was waiting.
Only positive I see is increased marketing expense to certain box box retailers. I cant remember, is this a traditionally weak q? I'll certainly pay more for marketing to the right people now so that the holiday q is huge, but damn, I am just completely shocked by this report.
This is a disastrous quarter. I don't even see any guidance to be optimistic about. Did we all just get taken? Doesn't make sense with the bank's recent move.
Fake pr possibly? I have no explanation. Volume should be higher imo.
Holding, without a doubt. Verykool is gaining traction and ifon is an explosive stock. Could make serious coin here.