photon- I'm pretty sure we will either get an opportunity to buy more shares at a lower price or be able to re enter with plenty of room to participate in a run up.
I used to love it , made a nice profit and would have no hestitation about re entering if I'm ever proved wrong. You current holders can certainly disagree with me, this is a venue to share opinions and the reason I continue to post my views for you to consider is my total and sincere belief that managment has selfishly ruined the possibility of common shareholders to ever participate in the future growth of this company. The issuance of so many cheap shares was totally uneccessary and would be cause for a lawsuit if ever attempted by a US or European based company. In my opinion it was only done so to benefit Raju Vegesna and only Raju Vegesna. That's my opinion formed over seven years of ownership and continued monitoring of the activity concerning SIFY.
pk I bought a small portion back for similar reasons, remembering the price of the shares traded in the aquisition, the price of options awarded and also the analysts recommendation, with lower target perhaps but still strong buys. How much of this is manipulation or pessimism on the economy or earnings I don't know but when we finally get some positive news either at earnings or at the end of the year we should see a strong recovery.
I don't disagree with anything you have posted but I have to ask, if you are convinced we have another 15% drop ahead of us why haven't you sold yet with the goal of replacing those shares at a much lower price?
I disagree and think the retail investor is much more susceptable. Funds usually take a longer view and are more confidant in their judgement, they also tend to add when their choices go on sale, assuming nothing material has changed since they originally took a stake.
I personally have made a lot of money with SIFY however I would have had made a great deal more if I had paid more attention to the facts rather than be ruled my hopes and expectations. The facts as I interpret them is that managments interests are not aligned with shareholders and they have done absolutely nothing to attract any significant Institutional investment . However I continue to monitor both analyst's coverage and Institutional Ownership and should I see positive interest from those then in my opinion the facts have changed and I would re enter. Optimism is always better than the other option but only when the facts dictate that optimism is justified.
First I'm not sure how many shares the ADR represents, often they represent more than one share per ADR. Secondly if he floats a portion of his privately held shares it solves his problem but not the ADR holders problem, too many shares. There are thousands of stocks trading in the USA many with as good or better prospects than SIFY with both transparency and vigorous law enforcement, at least compared to emerging markets. Incidentally have you ever thought why SIFY and REDF were never issued in India? Maybe the Indian's are too smart to buy them?
srsjohn. I don't know but it's a very interesting question. My take is that his long term plan has been to do an Indian IPO or take the company private well before selling out. If he does have to lower his holdings, maybe a sale to his brother but my big fear if I were a stock holder would be a sale of a portion of his listed shares in the US. A sale of 23m shares on the open market would drop them back to way under $1 I would guess. The other option might be to just take the company private for now, buy the balace of shares he does not own but for how much? or perhaps how little!
Let me ask you again? Why is there no longer any Institutional ownership, it has been as high as 30% in the past ?(when there were 53m shares) Why are there no analyst covering the stock, there were four? If you think you can see potential that Hedge Funds etc. (that have owned in the past and made money) haven't yet you're deluding yourself. I made a $300k profit exiting a little early in 2011 when I realized the implications of the new shares, the same time the Institutions and many long term holders took a profit and fled and the analysts through in the towel.
You totally miss the point. Nobody is arguing the future of the the company, but you still fail to understand that ONLY Raju will benefit, he will take the company private way before the value rises. He doesn't give a damn about shareholders, proven by issuing so many cheap shares. Nothing to loose you say? He could force you to sell your shares for .79c for example or $1. He can do whatever he wants, get it? He already owns 88% and the company is in India NOT in the USA get it? You don't own US shares you own ADRs starting to understand yet?
It's dead simple, Raju issued himself more shares at .79c. While they are not traded in the US they are still shares he can sell to whoever he wants for whatever they will bring. He diluted the shares to his benefit, he owns 88% of the company now not 30%. Think about this, he has invested about $250m in SIFY the float is 20m shares he could easily take the company private and he probably will without paying any premium, remember he virtually owns the company now. That's why he issued all those shares in India, he could never get away with it here, he has screwed the ADR holders and most of you still haven't figured it out yet. You're right, the company has great potential but unfortunately for you the only person who will benefit is Raju when he owns and sells the whole company to somebody like Reliant in India or does an Indian IPO as he has already said he will do.
PKT: Faruqi & Faruqi, LLP Launches an Investigation against Procera Networks, Inc. (PKT) for Potential Breaches of Fiduciary Duties by Its Board of Directors - Business Wire
This is old news and the reason all the Instututions sold out after this news came out. Also if you do some more investigation you will see Raju has already stated he is going to sell out or do an Indian IPO. The company has no future for US stockholders. I owned it from 2004 until I sold out two years ago and know this company inside out.
Take a remedial reading course because it's obvious you do not understand the details you posted.
The Indian shares are privately held, not traded but listed on the NASDAQ site. To put it bluntly Raju screwed ADR holders by issuing himself 120m shares at .79 Share count went from 53m to 179m overnight. He will probably take SIFY private when the build out is complete.
Yes such incredible potential that all the big Institutions sold out years ago and have not come back. If SIFY does get sold Raju will take it private himself first then sell it for a profit.
Remember he owns 88% of the company he can sell off part of his ADRs drive the price down and buy you out. What are you goIng to do sue him?
pk there are a number of things I think you have failed to grasp. Firsty a companies first responsibility is to run their business with growth and sustainability foremost in mind, even at the cost or sacrifice of near term profit or stock price. Insiders are free to buy and sell stock as they wish, just as you are and in fact those sold shares have already been replaced at a much higher than previous cost in the form of options that would indicate they expect, in time, for the share price to recover. With the very high Institutional Ownership and low float we enjoy, any one of, or combination of those Institutions could move the stock up in price significantly, when they WANT to. While I can understand your frustration and dissapointment with the stock price continually dropping you seem to think that you are entitled to be bailed out of a (possible) loss by any means neccessary. The stock market is very liquid and that liquidity can create volatility, stock moves in price constantly and Procera is not the only listed company that has fallen by fifty or sixty percent the last six months and it won't be the last. Sorry, when you CHOOSE to buy stock you take on risk and the total responsibility for any loss is yours and yours alone.