no matter how you dice or slice it. this company doesn't just worth a little over 10 million dollars. why is it priced so low? FEAR and UNCERTAINTY were the dominant reasons driving this stock from $20 to $0.055 per share. Liability of the Mobclix and Greece crisis could not be understood and the CEO Moukas was nothing short of being an idiot for trying to communicate with investors every step of the way. Moukas allowed the company to spun out of control by not directly addressing problems every quarter or every chance he had, he sugar coated them in such way that any idiot could tell something was wrong. So he lacked credibility and so FEAR sets in ... stock became a dog and no legitimate investors wanted to hold it for the long term. If you are in for the long term, you are in for betting on Moukas will either get outsted or someone will take over and reinsert integrity back to the organization. Ross was the transforming agent. Last quarter, he came out and completely reported the worst case scenario and took a huge loss of $110 million... that spooked the investors and the long term investors waited... wanting the merky picture to clarify. Indeed it did and my thoughts on this was brilliant maneuvers by Ross and management to rescue Velti. Minimizing debt and obtain new cash to operate what remains. The key in this business is about technology. Velti PLC still owns its technology and a good chunk of market in Europe, Asia and Russia. A clear picture is emerging and when the conference call takes place next week, we will really see what is going on. In any event, "Clarity" in its situation, good or bad, will only propel this stock upwards. Its intrinsic value is great than $10 million all together. I am holding and I see increasing clarity in its future. This stock is no MM and it is not Google, but it definitely has a piece of the pie in this play ground. Good luck to longs.
Sentiment: Strong Buy
I don't trust Moukas, but I do believe in the new CFO. He blew up the company by taking that huge loss of $100 million dollars write off. If he did not do that, he would have a very hard time convincing everyone and including the share holders, the debt holders to make dramatic changes to the company operation. Moukas has no choice, but to let the smarter people run the company, if Moukas refuses to, the whole ship will go down. So lets hope Moukas is "smart" enough to step out of the way. Looks like he is just smart enough to step out of the way ... the earning call will be a boost to the stock price. Because they will get a chance to provide more clarity to the changes that are taking place. The headline can not get any worse. The word "bankruptcy" scared everyone out of the stock.
Sentiment: Strong Buy
I think today is the worst for velti. They cleverly re-organized and minimized the debt. So this is a healthy company going forward. Looks like Ross completely blow this puppy up so they can re-energize. This is often a great sign for a company stock. If you can survive its cliff and hangon, you will be rewarded.
I saw the headline ... velti declares bankruptcy! wow, the race is on to get out!!!! so I immediately went to the computer premarket and then try to sell everything at 7 cents to 8 cents ... my average was way up there!!! outch, sucks... ain't it? And then, I took a deep breath and say... let me read some more about the news. Below is what I found:
1) Only the US entities that belong to velti either going through re-organization or being sold.
2) Looks like through this maneuver, Velti wiped out most of its debt and received cash to operate its re-focused market, which is mainly in Europe and Asia.
Not too bad, I said to myself. Yeah, stock price sucks... but then I realize, how many read the initial headline and rushed to sell and refused to get back in. So, I said to myself, what the heck, lets double down at 0.08 - 0.09 per share ... so I did.
Honestly, I think this is great news. This means, Velti has found a solution to stay in business. Now do you believe whatever it has left over deserves a merely $7 million market cap? If you do, then you should be glad that you sold it. I don't, I think this company should be at least around $25 million dollars in market cap. So that means 3.5x at its current trading price. Conservatively speaking, I think it should be trading at around $0.25 / share. Still much below my entry price. But when this puppy gets hot .. with growth and without debt, this stock can run in a few months.
This is my 2cents and I wish all longs prosper. Today is the worst for velti and that means if you get in today, it can only get better.
Sentiment: Strong Buy
You guys, writing is on the wall. Softbank wants MM....
1) Luo bought 6.1% of the stocks.
2) Softbank essentially owns Sprint.
Most Chinese investor and business operators have close ties to Japanese investors (i.e., Alibaba and Softbank). News leaked out that Softbank was working something out with MM, so guess what, Chinese investors like to make money (like everyone else) and so Luo placed the bet before it all becomes too clear.
MM is going to run up massively.
If this puppy goes down again, I am going to scoop up a boat load. Good luck to all longs.
Sentiment: Strong Buy
exactly my point. it is only about time someone buys out renren. the problem with renren is that it has good business model and management, but horrible CTO. Technology is a bit behind the bigger dogs. But intrinsic value is there. market discounted it because it doesn't have the best technology.
exactly, that is why I am saying it is worth approximately 5 billion market cap and not 115 billion. at the same time, renren has multiple business models.
renren has 2.2 per share cash position. Bidu buys it out for 6 dollars per share. so it is really only 3.8 dollars per share spent, making it close to 4 billion out of pocket or stock swap. lets look at it, it is possible. what do you think?
this stock is range bound. that was my point. if you can swing and make money that way, good for you. i am buy and hold kind of guy. i bought in gluu thinking that it can climb quickly. And it did up to $3 from $2.10 in a week. I held on, because I want to see it keep going up. Recent znga denouncing gambling as their part of business direction got to make you wonder ... znga has deep pocket and much better networked then the gluu management. there got to be a very clear reason they thought by getting into gambling business will hurt their overall business. so they cut the cord. in a strange way, management that is willing to take drastic changes can adapt quickly to changing wind. I don't see that from gluu. The recent pricing at $2.10 with a stock recently IPOed at much higher price is a clear sign of quickly deteorating business. So for that reason, I can not hold on to Gluu. ZNGA is looking good is because it has been very aggressive in cost cutting and also very aggressive in restructuring. I think Gluu's best bet is for someone to take it out soon. Otherwise, this stock will keep going down. I like to think otherwise because I actually thought this is a good long term stock. i wished you all good luck. I have been wrong many times over ... so don't read my opinion and take it too seriously. This is just how I see it.
Znga looks better everyday... is based on piincus stepped down, msft Xbox chief took it over, abandoning gambling (massive appeal), and these are major events and many drastic changes coupled with 1 billion dollars in cash reserve. Znga has fire power and strategic connections that it will be out of the woods soon. I recall looking at groupon at 4 and wondering when it was going go up, so didn't get in. A couple days later, new CEO and the stock is now close to 12. GLuu is at a ad place, it raises money just to get by. With deteorating business and increase competition, its best hope is to be taken out. Price at 2.10 will put pressure on this stock, I believe in the next few months, gluu will trade between 1.5 to 2.5. If more bad news come out, this is headed for 1. I am out for now, but I will stick around and look for an entry point. I wish you do well.
apple is out of touch. steve jobs used to build stuff that people didn't know they wanted and when they see them.. they got to have them. that is why apple had explosive growth. now cook is just making the same old thing that people already have and do not want. he can not even try to copy samsung's success which they have simply copied and improved on apple's success. apple is a titanic ... watch it sink. tech companies do not go by valuation. cash burns quickly ... so Icahn is wrong about this one. this is a different beast.
This company blew itself up ... they could ease the pain by incrementally write off the non-collectible and spread it over the course of a few quarters. They opted not to and declared all debts are not collectible and declared the loss of $110 million. BOOM... investors were scared because this showed that they were not making sound decisions when working with dead beat clients. Also, they lost the control of mobclix. the very thing that should have been an asset turned into a nightmare. The management is in question ... you see it trading at $0,35 is really a vote of no confidence on the management... not so much the value of the company. My view is that if this drastic write off and self-admiting defeat on mobclix were not pressured into the report in the second quarter by a potential buyer, then this management is #$%$. I think the potential buyer could have easily said, "look, according to our due diligence, you guys have noncollectable debt and you are bleeding money with moclix, I want you to disclose it and see how the market react before we can settle with a price. Otherwise, we walk." So velti did just that ... sadly .. the overreaction is going to drive the sales price for velti ... extremely low. You are looking at a $1 from here, the most. However, if velti ended up changing its CEO ... the value may double overnight from here and up. Good example would be like Groupon. They have more than doubled since the ceo departure. In any event, you got to roll the dice and hope for hte best. I am holding and accumulated somemore at $0.35. I would not recommend it. But I did it ... to average down .. gambling? perhaps. One thing you should keep in mind is that many lawsuits will be thrown out of the court ... just because lawyers want to sue, it doesn't mean they have a case. good luck to all longs ... i hope by holding, you will all get rewarded.
sold 15000 shares, break even and call it a day. horrible pricing at $2.10. watch it goes down to $1.80 and if more bad news... it will drive it down to $1.50. I see this stock has $1.50 written all over it. look at Velti, both in similar markets.... velti is now trading at $0,35 after it raised money at $1.50 per share short ago. This ought to tell you something. I am out and znga looks better everyday.
why? getting ready to buy Yahoo. since Yahoo has all the contents. Make msft strictly a device and software company. run Yahoo as it is. Yahoo with Alibaba and Yahoo Japan holdings should be sold at least $40 per share, possibly $45. Jerry Yang was right, $32 was too low. People did not see Alibaba and Yahoo Japan value, while Jerry did and everyone gave Jerry grief for it. Meanwhile, Jerry was the one who invested in Alibaba and Yahoo Japan for YAHOO.
yes.. msft took the bleeding arm from nokia. watch nok move up from here .. i see 12 and then 15. after that, will need serious growth to push it past 20. good luck to longs.
This is just a pure speculation. Isn't that what everything is about in the market? you have to be able to read between the lines to be a good investor. NO FACTS here, pure speculation based on the facts made known to public. It just doesn't make anysense for velt to just decide to blow itself up on the second quarter by doing the worst possible. The only reason for this is that someone else is standing over them and breathing down their back with a very good reason .... so I speculate that reason is a buyer. That is all.
ok, some of you may think this write down of $110 million too drastic ... and I thought so too. Now, lets think about this ... if the management wants to continue so called "fraud" by all people screaming foul.... don't you think they can "manage this bad news better?". It is obvious that they come out with this horrible write down to drive down the stock price. Now, the $110 million write down is probably the worst case scenario... and they opt to present the worst case scenario. Now, don't forget that they placed a private equity sale at $1.50 per share just not long ago. Ok.. I admit, I am a long and I got burned. But company usually announce the "worst" case scenario ... say... when there is another company / buyer wants to pursue it? The huge loss could be a large tax write off. Also, by driving down the stock, it will eliminate resistance for another to come in and buy it say at $2 to $3 per share. In any event, I think the talk of being taking over has been in for at least a year ... it is just the taker wants velti board to bring its stock price way below its real value so the process can be smooth. They probably have a price for Velti already, even if velti stock price is at zero, they still will buy it at that price. It is for sure that they don't want the mobclix's liability and so they want it to be sold before buying velti. I think velti right now operates on coinciding what the buyer wants. I think they also secure an outside consultant to ensure that just incase the "buyer" drops everything, whoelse will be interested.... in any event, velt is looking to sell ... and I believe this has been on going for a while.