I shorted a significant amount of shares when the deal was announced and might add to the position as the numbers released today only confirm my initial take that the transaction is mainly done to eliminate outside shareholders.
it is pretty easy to extrapolate that the combined company will still lose significant amounts of money and will remain an underperformer compared to competition.
But the biggest problem remains the purchase price of the Q-Cells unit which looks overprized by at least three times. The new shares issued almost eliminate current HSOL shareholders (with the exception of the controlling shareholder of course).
What about results per 09/30/14 ? Would have been no problem but I guess things would look even worse then. There's nothing in today's set of data which justifies the takeover price for the Q-Cells business. The transaction is overprized by at least three times to the disadvantage of outside shareholders. Sell
would expect the shares at new 52-week-lows going into the next conference call. The board should consider some management reshuffling
There's NO growth in the overall business and management has done a bad job of overpromising and heavily underdelivering. Investors should avoid the shares.
the conference call was disappointing as they had to admit their false projections for the insurance business and refrained from giving any meaningful colour about next FY business trends making investors think they have no clue (again).
Management's ability to forecast the business looks pretty poor which is never a good sign.
Valuation looks stretched at almost 3x of revenues here. The overall business lacks growth and management seems to have no real idea how to accurately forecast a business. Bad sign.
Nothing new here at CAMP - management continues to overpromise and underdeliver - this time they finally had to admit that their projections for the insurance business were far from reality (actually they confirmed those expectations just a few weeks ago). This time the high end of the guidance doesn't even reach the current analyst consensus estimate. Satellite business continued its slow dying.
On a more positive note the core wireless datacom business looks quite healthy with increased gross margins and good cash flow.
But given management's ongoing inability to adequately forecast the business I would continue to avoid or even short the shares here as analysts at some point will lose patience with the company.
And given current analyst estimates for next FY I doubt that the company's forecast next quarter will be anywhere near that number.
Given the ongoing disappointing performance of some highly touted business units and the ongoing demise of the satellite business I wouldn't bet on any meaningful revenue growth next year.
Given the weak growth trajectory the shares look pretty extended here.
The won't buy back a single share of course.
- NO mention of the overdue loan, no questions either
- no guidance as usual, but company was pressed hard on q&a - "one million subscribers" next year
Another sham news
they just hope to sell the company for a few bucks as long as there are revenues left - the company is a complete trainwreck and you are down 80% and still think they invented the holy grail
might be - everyone is short already - but I will add to my short when others might want to cover today
Actually the magnitude of the revenue miss should disturb even die hard investors here and the conference call does nothing so far to reassure anyone that things might get better going forward with revenues for both soft- and hardware forecasted to remain very weak near term.