actually the company guided down for Q3 on the conference call and I would suspect several analysts to downgrade their ratings on the stock tomorrow.
actually I see plenty of downside as management's "actions" to right the ship most likely will make things even worse. Given the issues at the company level I can't imagine any kind of m&a activity as long as the business remains a trainwreck. Sell.
I don't think buyers will line up given the dismal state of company. Guidance for Q3 is for FLAT revenues and margins. Company will stop hiring and investing in new initiatives for the time being which clearly won't lead to renewed revenue growth.
they should have filed for a bigger secondary - this will buy them just another year at best
the beat was almost solely due to a push out in r&d expenses as evidenced by the just in-line revenues - and while guidance for next quarter was pretty good the company took a cautious stance regarding visibility for Q4 and beyond suggesting that current revenue levels might not be sustainable. That's why the stock is down - the stock market never cares about the past - it's always about the future.
just in case you missed - the stock is down almost one dollar from after hours trading today. EVERYONE who shorted the shares in after hours is making a profit today.
and won't produce any significant revenues - the Chinese people might be great in manufactoring worthless things but they are not eager to buy them. Close to one million shares already traded today which will put HUGE pressure on the share price for the next few days as trapped traders have to sell at any price. Holding for $2.50 tomorrow. The company remains a joke and always a sell.
I don't think so. Their products remain #$%$ so this won't change anything. Shorted BIG time around $3.25
stock in the red as expected - very nice gain from after hours short here. Another great call.
"Arthur "Art" Krieg, M.D., has been named senior vice president and chief scientific officer. In this role, Dr. Krieg will lead the company’s drug discovery and early-stage research activities."
this seems to be a non-event here - mea culpa
if he would have been terminated for sexual harassment or fraudulent personal expense accounts the company would have pointed to issues "unrelated to the company's business". This is not the case here so I guess it has to do with the drug.
the loss is a non-issue as this is mainly dependent on marketing spending. The problem is indeed the poor revenue guidance and the projected cut in marketing spending which will lead to even lower customer and revenue growth.
With marketing spending projected to come down 50% qoq new user additions will be even lower than before - many analysts were scratching their heads about that announcement and asked management how to model FY16 estimates accordingly as 25% growth and substantially positive eps look illusive given today's announcement.
Even worse the company is looking to arrange a debt financing going forward so clearly internal cash flow projections must have been revised downward dramatically.
Investors get a double whammy of reduced revenue and earnings expectations AND some serious questions about the company to become a sustainable business from a cash flow perspective.
Ok - why not putting the company on the auction block here ? Clearly the company looks really cheap trading at just 1.5 times FY15 revenue estimates but the ongoing poor performance of the business and continuing cash needs might not attract too many buyers down here.
At this point the business model looks like being on the verge of failing so I would stay on the sidelines here despite the 20% after hours decline.
just take a look at the PE the shares are trading and you will soon realize that this is not a value investment as the shares look excessively overpriced at current levels. The company has been picked up as a high margin, high growth cloud services play and therefore analysts are looking for continued customer additions, international growth, increased arpu, low churn and so on. Eps can be lumpy quarter over quarter as marketing campaigns or sales force hires could put temporary pressure on the bottom line. So do yourself a big favor and read the cc transscript tomorrow and you will know what this is really all about.