Thanks for the feedback. I would agree with a lot of what you say. Looks like they tried to sell at the wrong time. Results are definitely improving which is one reason I bought. Not sure I agree with the raider comment. That implies they would somehow benefit from some sort of low ball breakup sale. I believe their main beef is the stock price is depressed currently due to the governance issues (which could be fixed easily) and, because they believe the company does not have enough scale to be competitive as a public company. A sale to a strategic buyer would fetch $20+ IMO. Ancora is an activist investor. They make money by using their voting power to pressure management into doing value enhancing things. I would rather they sell @ $20 than risk making more acquisitions that may not be good for shareholders in the long run.
I am new to the stock since the activist group got involved. Given the current undervaluation, poor corporate governance and entrenched self dealing, why would shareholders not be interested in a sale? Isn't the job of management to maximize the value of the stock versus line their own pockets? Interested in everyone's take.
These numbers are all pre-bankruptcy sale which are meaningless now.
I haven't looked so sorry for stupid question. What is the date of the financial statements? If it is any time in 2013, the number will reflect the pre-bankruptcy debt picture. Remember, the sale closed in January 3, 2014 and debt was assumed. The liabilities listed in the bankruptcy filings were extensive, so most went into the BK with the other entities. I don't think 2013 financial statements will mean a lot. Anything after Jan 2014 is all that matters IMO.
Thanks. I did not know that. If that is the case, the company should be worth a heck of alot more. How did you know it was not part of deal?
When was Casee acquired? My simpleton understanding is if it was owned by Velti PLC prior to BK, it was sold to GSO as part of the deal. Remember, GSO assumed the crushing debt so they got just about everything. If it was created after BK, it is likely still owned by GSO as that is who owns the vast majority of the business, software, etc.
Interesting. Given the negative sentiment surrounding Mr. Moukas, I would have thought the stock price would sky rocket.
Thanks Ed. Seems to confirm what I thought except the 6 - 12 month part but that seems reasonable given the situation. Now, if you can somehow get a hold of someone at the company...
Asset impairment is purely a GAAP issue (ASC 350). If during the year there is an "impairment event" or reason to believe your assets may be impaired, you have to re-value the assets at the current estimated fair value. Just accounting rules. The decline during the year of stock price way below book value and decline of iron ore prices were likely the triggering events. This has no bearing on cash flow or taxes. In my experience, such impairments are usually booked very conservatively, in other words, so the assumptions are made such that the company does not have to impair the assets a second time. A loss for tax purposes is only booked when assets are sold.
Cant remember had big loss on first investment after selling, saw opportunity with warrants and now made loss up looking to double in a few years. Will take some time. My warrants are $3.50. They did get up to $9 but I held.
Not sure of ownership. That's interesting. I could be wrong, but dont think there is any reason to restructure VELTF shares after securities settlement is done. The restructuring in my mind happened when they sold the majority of assets/debt to GSO and kept the small sliver of business. Now there is a small business not burdened with the debt and miss-steps of the previous business. Yellow was different, shareholders got screwed at restructure, debt holders picked up equity, equity holders got 1/10 of their position or some such thing, but if you bought warrants right after the restructure with new $$, you did well.
Warrants have 8 years left with strike price of $27 I think. Google yellow media and warrants and the document should come up. Price already got over $20's earlier this year but stock now @ $14. I really like the warrants at this price. That is what I own.
Had a similar investment in y.to. Company had too much debt, took a nose dive, restructured and I bought more after restructure. Risk was out of the price at that point.