I still follow MCHX. Kind of a no brainer to buy it at $3.25. The issue is why does it keep revisiting these price levels which are close to its cash per share. With regard to YP, my expectation is that the relationship continues after this year but will slowly decrease over time. I think that is the best way to think of it at this point. That could change and they are in discussions with YP, but based on conversations I have had with Pete C. (CEO) that is the impression I am left with.
I spoke with Gary Nafus, Chief Revenue Office, yesterday. He has been there about 7 months and I think he is building a focused enterprise sales force that MCHX has never really had. He has completed 80% of his hires but it takes time for the sales force to spool up. There should be some signs in the third quarter but I think fourth quarter will show the real power of the new sales force. They are signing top enterprises like GM recently. It takes some time for the new customers to work with the products and increase spend but the product is very sticky. Very little churn.
Time will tell. Same old story in that regard. I do think they have the right business model, products and sales focus for the first time in a long time. There is risk, especially considering the history, but at this price I would be a buyer and definitely not a seller.