talked about declining medallion values due to Uber; $240K in Chicago. Not the $150K Hickman cites. Compared the other companies and their losses and finished with a positive view of TAXI as the only lender in the space that is "well-positioned to withstand the downturn".... "Analysts expect it will show a healthy capital cushion for any potential losses"
FYI - you should want IDSY to succeed as they are listed as a key partner in ORBC's 10K. That they are switching customers to cellular is bad news for ORBC. Take that for what you will. That cellular can do monthly rates for less than $1 should be of concern
just read the transcript. It will be funny to see Hickman spin his lies. He said Chicago Medallions should be valued at $150k. They sold 7 at $240k. Big discrepancy.
They used $800K for corporate Medallions in NYC and could have used slightly higher based on sales. So based on those numbers, barely any write down from TAXI.
IDSY 2.0 seems to have paid dividends for TAMs. TAMs sales are way up.
VMS sales seem to be non-existent due to bugs. I believe they have firmware over the air fixes that have been installed. Can one assume that going forward IDSY 2.0 will pay dividends for VMS sales?
some were from Knight who was previously a satellite customer (via ORBC) of IDSY. Cellular costs IDSY less than $1/month. I have to believe satellite is multiples of that cost
Q4 in 2014 saw a previous high of 7,000 TAM units shipped. Revenue was $12.7M that quarter and included a WalMart spare parts order. The extra 3,000 TAM units would mean an additional $1.3M in revenue
at $450 upfront for hardware, that is $4.5M in TAMs revenue alone. $8/month thereafter. Did not break out what were new sales vs renewals so can't figure out a growth rate.
OEM customers? They have been in business over 20 years and their OEM customers amount to about $1M/qtr in sales. Big whoop. They have never been able to gain traction with OEMs and the margins are less anyway. If Toyota wants to move to CAMP or TotalTrax then so be it. If Toyota was serious, they would have taken a stake and agreed to minimum amounts of sales. Even CAMP said their Toyota agreement will get them less than $1M in sales in the first year and CAMP is 6X larger than IDSY.
ORBC is getting more traction by bundling comms and apps. Maybe it would have been a better approach to partner with Verizon or Sprint or Iridium or someone like that.
Why would an OEM want to bundle software that tells customers they can buy less forklifts and/or forgo maintenance? An OEM relationship never made sense to me. It's like Hershey or Pepsi bundling a FitBit with their products; eat our fattening, sugary stuff and watch how many pounds it puts on you.
unless the deal does not go through in the next 2+ days, then the value of SABMiller will fall. So maybe 3% upside and a 20% downside. what is the smart play?
I have mentioned this a while back so I will give more detail in this. To foil the shorts, make a tender offer for 1.5M shares at $9. Make the offer for 4 months in the future. That still leaves some for future buybacks, significantly reduces the share count, buys back shares well below book value, and adds a no win time constraint to current shorts. They would have no choice but to cover and would easily push the share price to double digits.
At that point, there is a $9 floor on the stock, the company doesn't have to go through with the tender because no one would tender below the current share price, shorts are thwarted. Simple plan that essentially costs them very little.
If the shorts call managements bluff and short more to hold the line at $9, the share count will be signicantly reduced, short interest will probably have to swell to 30% of outstanding to maintain the $9 price, this creates interest from funds that seek out highly shorted stocks
The share price is being manipulated by shorts and their shorting. Add in the 17.5% of shares that are short and the share price is over $10 easily.
essentially this low float stock is manipulated downby massive shorting. Over 15% of the outstanding shares are short now. The almost 1M increase came on the heals of the Barrons article and was most likely added in the $8's. Those folks are near underwater now.
A short squeeze could literally put this to $15