This is like story repeating all over.
Velti cmo sold a company to yahoo and then joined velti.
Basically yahoo looks like a bad company buying bad companies.
First and foremost @ 65million revenues, mm is going to burn at-least 15million.
Yes they have 100million cash but it makes no sense to keep burning 60million a year.
That is not my question, if PT does not agree to the revised terms then what happens?
At the same time FB and GOOG are not MM competition like wrongly pointed here.
FB\GOOG supply platforms which companies can directly go to advertise.
At the same time companies can go to MM\Fuel\mrin demand platforms and place their ads on any number sites not just FB\Goog.
Programmatic buying (MMX) is cannibalizing their traditional high margin business.
With Fuel mrin and others having far advanced algorithms it looks like these companies are eating up MMs traditional business not MMX.
You are going to revenues decline faster as the year progresses, programmatic buying is the future but MM has very good competition there.
If you look at their cost structure they have 42million in R&D+SGA.
IF long term margins are say 35% then you would need 120million to cover those.
They will need layoffs right sizing the company and finally increase the sales.
So OI increased it share count from 1.6b to 8b.
Now all that proceeds is with PT.
Now PT backs away what is going to happen to OI still over leveraged.
I told myself that If this hits 52 week lows Iam out.
This POS stock permanently taken me out of the market.
With a 50% loss, I dont now whether I can take on anymore risk.
I dont know whether to laugh or cry at your post.
I am an unfortunate soul who invested at $1.1, since I dont diversify Iam down close to 50% in my portfolio.
Iam of two minds just take my loses and call it a day.
Or hold until end of this year and see what happens.
But the way it trades it looks more like it has lot lower to go.
PT just cannot provide this money to Oi when Oi is in need of it now.
Oi debt is long term.
Read the cc transcripts.
Oi lists Angola assets as available for sale
Friday 8 August 2014 | 11:09 CET | News
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Brazilian operator Oi's quarterly report submitted to the Securities Market Commission lists assets that Portugal Telecom owns in Angola as "available for sale", reports Teletime. With the merger, Oi inherited operations of PT in Africa, where it operates indirectly through Africatel Holding BV in Namibia, Mozambique, Cape Verde, Sao Tome and Angola. Oi included the indirect share of 18.75 percent the group has in Angolan operator Unitel (through PT Portugal) in its list of assets for sale with a fair value of around BRL 3 billion, calculated by Banco Santander.
Unitel has not paid dividends to PT for several years. Angolan businesswoman Isabel dos Santos and the remaining Angolan shareholders of Unitel have informed Portugal Telecom of their intention to exercise their option to buy PT's stake in the operator, but PT has yet to give a formal reply.
This is not in much danger as my analysis proves.
Reason to hold but this needs to double for me to breakeven.
Current Assets + Long term Assets= 51b reals.
Current Liabilities+Long term debt = 61b reals
So net debt = 10b reals + 6b market cap.
Revenue = 38b
EV\Revenue = 0.5
VIV ev\revenue= 1.5.
This could triple and be actually comparable to viv.
I am thinking of stopping to watch this stock until December 25th and see where it takes me.
If make my money then fine r else sell and take the loss.
Portugal Telecom may get cash, not stock from Oi option
SAO PAULO, July 28 Mon Jul 28, 2014 7:35pm EDT
(Reuters) - Portugal Telecom SGPS SA may get cash rather than additional shares in a new Brazilian company if it exercises a call option under a revised merger agreement with Brazil's Oi SA that was released on Monday.
The new company, called CorpCo, does not need to hold the shares in its treasury over the next six years, while Portugal Telecom has the option. If CorpCo sells or cancels the shares, it can pay the Portuguese company the difference between the strike price in the contract and the share price at the time, according to securities filings late on Monday.
In that case Portugal Telecom could be left with about 25 percent of CorpCo under the new accord, first announced on Aug. 16, rather than the 38 percent stake established in October.
The Portuguese company was forced to cut its share of the new company after a holding company of the Espirito Santo family failed to repay more than $1 billion it owed to the telecom.
Portugal Telecom will submit the new terms to a shareholder assembly by Sept. 8 and Oi's board of directors will take a vote, the filing said. (Reporting by Cesar Bianconi and Brad Haynes)
I think the shares are extremely manipulated.
4b shares out of 6.7b were issued at .90 so who is doing the selling.
This cannot be below .90 so just hold.