Yesterday was a good day and lets see if there is any follow through.
Looked like some accumulation.
The company has said it will have things rolling out in December and there are only 15 trading days left. People are looking for a reason to buy so lets hope they give them one.
This is the perfect January effect stock.
Over the past few years the January effect starts in December.
Beaten up with great balances sheet and growth, just need someone to light the fuse.
That is why the stock is at these levels.
If the numbers were fake how did they get the cash to buy back shares including the $12,000,000 they just spent?
If the numbers were fake would guys like Vento and Gordo sign the financial statements and open themselves up to personal prosecution?
In regards to competition, this means the marketplace is huge and plenty of room for multiple players. They sold 300,000 devises last quarter. They are expanding to international markets and going back to get cash paying people back online. Their APP is growing very aggressively and this has not been monetized yet.
If this was selling at 20-30 time earnings you might have a play but at a 5PE no debt and the company has said it will grow double digits you are just playing the weakness in this and one day will get burned.
Same story every week and it still seems to go down. I wonder if some people knew that they were taking it off margin and wanted to pressure it?
I hope that the company has been buying and when they are finished we start to hear some news.
Institutional ownership up.
PE at 5
$2 plus a share in cash with no debt.
Expected growth of double digits in 2014.
Hopefully this management team final follows through on their promise and creates shareholder value.
Institutional ownership is up 5-10%
Revenue growth of double digits in 2014
Short position up 20% over the past month.
Share price down.
Sooner or later the games will end and it will go higher.
Management needs to step up already, they have a fiduciary responsibility and they are pushing the envelope with this silence.
Management does not control share price, the market does.
That being said they should and probably are and have a fiduciary responsibility to use the rest of the buyback to buy shares at these levels.
They are probably finishing it and then will announce news.
Lets hope they have been buying and when they are finished they come out with news to move this.
I t could be a big positive.
If it is the company buying back at these lows and then some news you get the double whammy.
This movement is all from the shorts.
Vento has stated they have big things coming hopefully we finally catch the shorts and can get a good move from it.
Remember that the January effect starts in December and with the fundamentals and balance sheet we can attract some big money boys and have some fun.
I just added.
It looks like the game they are playing is to sell large blocks of calls to put pressure on the stock.
Another week and another $1,000,000 in free cash flow.
CALL is now selling at 1 times revenues if you take out the cash.
3 times EBIDA less the cash or less than 4 times including the cash, find me another company like this?
The have come out on record as saying double digit growth in 2014.
These are the facts and sooner or later they will show in the share price.
I will be a buyer this morning.
Every week and another $1,000,000 free cash flow.
I expect to see things start to happen very soon.
Management has laid out the plan and now we need to see and hear about it.
EGHT go upgraded and anything positive will get this going.
I would borrow $50,000,000 and buy back 4.000,000 shares (almost 25%) and easily pay it off with cash flow.
Keep cash on hand to expand and make it happen.
#$%$ is management and the BOD thinking?
I want to see the company buying back stock in the open market.
I also want to see management step up and buy in the open market.
It is time to put pressure on the management.
Anyone have contact with Vento or Gordo?
Bottom line is the company is a cash cow.
Now they need to create shareholder value.
They should be buying back stock on the open market and putting a floor so the shorts can't keep playing games.
Once that happens the longs will jump in and we go higher.
They better start the news flow like they promised.
When you are trading at a 6 PE and can borrow money cheap and forecasting double digit growth and have a large short position you borrow and buy back at these artificial low prices and easily pay back with cash flow and have money to keep pushing the business and shareholders would be handsomely rewarded.
Vento needs to get aggressive and create shareholder value like he promised on the call.
This is a no brainer plan, now just execute it.
FYI- If they did this earnings per share would be over $3 based on lower share count and with nominal double digit growth. If they had more than nominal growth then it could be $3.50 -$4 per share.