personally I would be happy to get rid of Palmieri as he tended to very much overpromise and underdeliver so far. The new CEO has a promising track record at least.
sure - issuing convertible debentures at a 40% discount to current share prices is indeed a great way to build investor confidence.
so maybe it took them 13 months to close on this deal because of their dismal financial condition but clearly the wording of today's press release is designed to make investors believe that something brand new and exciting just happened.
in fact they might be finally able to close on a deal that has been agreed on more than a year ago - and when looking at the terms of the debentures it clearly looks outright fraudulent. The owners of the debentures will be able to convert at any time and get an immediate $4 cash gain per share while current shareholders will be diluted even more.
and given the information from the 2012 acquisition press release it is quite clear that this company (if they really exist - there's no web presence noted in the press release) isn't growing at all as both 2012 and 2013 (gross) revenues are expected to be roughly $25 mln. Actually I would like to know what the company does mean with gross revenues here.
Yeah - they are pretty busy picking up tiny little rat-shops which most likely belong to former companions and old college buddies so everyone can make some money at the expense of bona FIDE shareholders. Clearly the company is something between sham and fraud trying to lure in new bagholders by using the most sexy buzz phrases for their business description. This has got nothing to do with software as a service subscriptions - it is just some rip off artists trying to create a hype without any substance behind it. Buyers beware.
and you will find out that Intercloud already announced this acquisition 13 months ago - so do they acquire the same company every year or is there something really really wrong with this company ?
will do some dd over the weekend and come up with the results here on Monday morning - if there's enough evidence for a fraud case I might publish my findings on seekingalpha
clearly - I would have hedged my entire gains into this morning's momentum buying frenzy - great deal for the sellers of this strange company and a bad deal for current ICLD shareholders.
actually it would have been easy to structure the deal way more shareholder friendly by consumating an all share transaction which would have appeared like a smart move given the meteoric rise in the share price within the last few weeks.
the published deal actually looks like an all share deal but with the debenture owners getting close to 50% discount.
tempered FY revenue expectations
still no customer diversification in sight
clearly analyst estimates will have to be cut further going forward making the stock even more expensive than it is already.
ICLD is a fraud and you will learn about it very soon - and getting shares of an red hot stock exchange listed entity in exchange for my closely held little rat-shop is as good as cash (or sometimes even better if the shares continue to rise).
but of course it is even better when I get those shares at a 50% discount
there was no need to structure this dubious deal this way except for defrauding current shareholders
even an uneducated investor should easily figure out that the company is designed solely for one purpose - to attract money by using red hot buzz phrases while indiscriminately collecting unattractive and sometimes even unrelated businesses which have one thing in common: they got nothing to do with cloud computing companies using a software as a service subscription business model. Their businesses are all low margin contract work and reselling agreements. Uninspiring and as far from the cloud as Microsoft from being the dominant player in the smartphone space.
actually he was the CEO of red hot ISP biznessonline (Nasdaq: BIZZ) which had the same ultimately ill-fated "strategy" - acquiring weak businesses pretending to build a strong telco.
The company managed to go bust BEFORE even before the dotcom bubble bursted - since then the company was renamed several times until its remains were picked up by Birch Communications some years ago (which itself is a troubled undercapitalized telco).
after the failure he tried to run Broadmoor Capital Partners LLC a now equally defunct privat investment company through which he tried to unsecussfully ride the data protection hype some years ago.
and today he is trying to capitalize on the cloud buzzphrase by setting up another ill fated ponzi acquisition scheme which will be dead once it becomes clear that the numbers of the acquired businesses don't live up to initially communicated expectations.
so I guess they are out at Kodak
same old same old
so what about UNXL
- no guidance because of further delays in carrier spending
- cash flow break even target for Q1 2015 might not hold up
- operating expense structure won't come down further
- NSN termination fee still will have to be paid in FY15 - around $9 mln
cash burn in Q4 will be consistent with Q3 (around $5 and $7 mln)
given the cloudy outlook I won't put new money to work at this point
"The size of our pipeline in both North America and Europe continues to increase, but more importantly we have made significant progress towards closure on a number of multi-megawatt projects in the pipeline," said Chip Bottone, President and Chief Executive Officer, FuelCell Energy, Inc"
obviously they are still progressing - lol
while I am sharing a negative view of the company your posting is of course utter nonsense.
the Mercury deal will go through in January as last week's vote just failed because of a formality - this is a done deal no matter what uneducated investors might think about the delay
cash burn isn't a problem as the company just took in another $20 mln just a few weeks ago - actually I wouldn't see cash as concern going forward at all anymore. And of course they would be able to access the capital markets again if needed although the conditions might become much worse.
so I don't see this going under anytime soon - if management will be able to leverage the new scale and reach they might grow their tiny market share going forward and become profitable on a quarterly basis.
That said all these things doesn't make the stock an attractive investment compared to fully integrated players like Sunpower.
Given the purchase conditions Intercloud is actually defrauding current shareholders - convertible debt usually would be priced at a low interest rate with the conversion price way above current market prices.
But the purchasers of the Intercloud debenture will be able to convert into Intercloud shares at a price not hugher than $6.36 (which means the buyers realize an IMMEDIATE profit of $5 per share).
So what are they trying to build ? Snapping up underperforming, non-growing little rat-shops using dubious financing methodes at the expense of shareholders doesn't look like a great deal rather than sham to me.
By the way: Did you find out about the "gross revenues" from the new IPC takeover press release ? They did not use that term last year. And this time they made no projection for next year either...
this is no software / cloud company. Actually this is not even a company rather than an aggregation of completely separate and mostly even unrelated businesses somewhere at the very bottom of the cable / telco space which all have been acquired by generously issuing shares to the owners of that little rat-shops. The acquired businesses aren't growing either.
This whole thing is a sham designed to fill the pockets of Intercloud's senior management and their buddies who own(ed) the acquired businesses. I would bet the house that this will trade below $1 just twelve months from now.