"The speculator’s chief enemies are always boring from within. It is inseparable from human nature to hope and to fear….The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses...Instead of hoping he must fear and instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit."
Livermore's genius on display.
The VELT longs "hoped" their mounting losses would reverse. They failed to "fear" when they should have. And many averaged down, breaking the cardinal rule of all speculation - "always SELL what shows you a loss..."
And it is in VELT, that shorts have achieved short sale nirvana - they have come as close as possible to SHORTING VELT TO ZERO.
Amazing that some here exhibit "hope" - when all hope here was gone long ago.
And there it is - off to the pink sheets and obscurity.
VELT was hype from the beginning, and all who took the time to study the filings would have noted numerous red flags signaling trouble.
It's over now. Many knowledgeable shorts have achieved the desired end game: the have shorted VELT to ZERO, or as close as you can come without having the market closed down on you.
This has been some flameout, a lot of mobile marketing cred has gone down the drain with this turd.
"Ladbrokes" an on-line gambling site. Illegal in the United States and many other jurisdictions. Pretty low-brow stuff. What's next?
You know that one, yes? The rare technical where longs use issue paper for personal hygiene purposes?
What a laugher - keep playing for fractions of pennies. Clowns.
The entire long position in VELT from the date of the IPO could have gone long a SPY ETF and been up CAGR 40%. Think about that.
GSO did not assume VELT's HSBC loan debt at 100%. More like 20%. The difference became an HSBC loan loss. And there's a former HSBC commercial loan officer somewhere looking through the Linked In job postings, right now.
GSO will then attempt to auction off the debt at the highest price they can get. This will be a high yield situation and the terms will be onerous. Think $57 mil, crammed down to $18 mil carrying a 10% coupon in a senior position. There will still be less debt, but the payments won't change that much because the interest payments will be sky-high.
The size shorts - that's who.
Size shorts need a big trading day to cover 100K+ positions. And that's today. This is the day the shorts convert paper profits into cash, by buying all the dumped shares to cover. I would suspect that short interest after today's close will be minimal to non-existent.
This was the day they were waiting for.
Well, all the longs were warned, and re-warned, countless times about the non-viability of this business model. It's a shame that so many were fooled and blinded by the real value creation occurring elsewhere in the mobile landscape.
Tough lesson to learn, holding long and hoping and then...BK!
Hat tip to edgar for some vary prescient postings which all here should have acted upon months ago. See you all next time.
VELT most recent quarter posted $9 million in NET REVENUE. That straightlines to $36 Mil. Even if they DOUBLED that, it still would be way south of your number. This is actually a very small company.
Many have sold - charters disallow sub - $5/sh positions. Some that hold are indexes - they have to hold everything, including this dog. Some are stuck, and besides, at this sh price level, it's a negligible trade amounting to relative pennies.
You need a 13-d filer who can shake this up. But like I said earlier, there's no deep value asset base to attract one.
This trading range could go on for years. 30 WEEKS at this base could happen just as easily.
See Loeb's deep value long BVEW - traded for years at .70 +/- with irregular spurts up and down 2001 - 2004. Finally sold to SYMC for $4. But BVEW had $60mm hard cash on the balance sheet - about $2.00/sh, creating the needed floor for a true deep value long play. You don't have that here.
Didn't you hear? Killer deal.
VELT signed on a gyro cart outside Athens! Unbelievable - guy makes the best gyro anywhere, man. And get this, guy agreed to never pay VELT, that way VELT can book and report the revenues and keep their DSO's north of 300. Everyone wins!
Buy with both hands.
It's a long story.
Since you're new to VELT, the best advice you can receive at this point is simply this: erase the ticker VELT from your computer memory and head for the hills, and don't look back. The only investors who have made any real money on this scam were short, and they've squeezed all the juice from this lemon.
Plenty of better things to be looking at.
This is a "mobile marketing" conference -
Why would Velti get up and say they're not going BK? Doesn't make sense. They are there to SELL - not highlight their financial shortcomings.
"Of all the speculative blunders, there is none greater than seeking to average a losing game."
Always, always, and only average "UP" when going long and building a position. Your initial buy needs to prove itself to you - by being profitable. Never, ever be lured into buying more of loser because you sense a bargain - you need to instead acknowledge that you are wrong. And that you need to stop being wrong, by selling the losing position. The best way to play a deep value long as a retail player, is to wait for the arrival of 13-d filer, someone who can CHANGE the way a firm does business, or change out the management teams, of throw out the Board. And then effect positive change.
See Loeb and YHOO.
The pumping of this POS is ridiculous.
This is a penny stock. With a dozen lawsuits filed against it. Laying off hundreds. And posting a $110 million quarterly loss while generating $9 million in net revenues.
It's a POS that's been so badly mismanaged, that it's unlikely to ever recover. It cannot be a takeout candidate until the litigation is settled.
Instead, MoPub was acquired by Twitter - for $350 mm. Of course, what this means is that broke and near-bankrupt VELT can now compete with Twitter, along with those other nobodies: GOOG, FB and AAPL.