There are many irons in the fire.
1. Delayed closings - as mentioned by someone else here and discussed on the call, the comparison to 2013 was made - where first half was soft, then things built up in the second half, and it led to a very strong 2014. Thad indicated they are very focused on closing deals in Q3 and Q4, and are confident in their ability to get it done. However, as I mentioned in previous post, even with the softness this past quarter, company is much stronger and better positioned than 2013. Unfortunately, because company's business is concentrated in this one area, and it is subject to customer business cycles, the quarterly lumpiness will likely continue. With the jittery markets in general, it just adds to the volatility in the shares and this wild selloff.
2. Embedded SIM - this will be an additional revenue stream in the future. Activation still needs to take place. So, if anything, the market continues to expand - more devices will need to be activated in the future.
3. A number of partnerships in the works around mobile ad insert, mobile app download, and personal cloud backup - these are new/additional revenue streams that will be coming.
4. There was a question/answer on the potential for a buyout. It is out there and company is open to it if it comes along for the right price...but right now the focus is growing the business.
Bottom line for investors, there are going to be more and more mobile devices. These will be replacements as people upgrade their phones every couple years along with new customers. Additionally, there are going to be more new devices which require activation - whether they be tablets and other portable computing devices, or new technologies still to come - Internet of Things/M2M is coming and so there will be more connected devices. Nobody competes with EVOL in provisioning like this and the numbers show it. Wireless providers need EVOL as their subscriber base grows.
The future continues to be bright.
1. just prior to shares going ex-dividend, there will be a segment who will sell. in general, shares tend to dip lower right after the ex-dividend date and these folks look to be out of the shares so they avoid that dip...as we see today.
2. there would certainly be some insider purchasing, or potentially company buyback of shares with the price so low. however, being that it is after end of the quarter and the earnings have not yet been announced, it is a restricted period where company and insiders cannot be buying or selling shares, unless there is a 10b5-1 trading plan in place to allow it. many times, short sellers will take advantage of this, since there is nothing company can do to provide some floor under the shares until the earnings are announced.
Well, then I'll never be interested.
There are other/similar/better out there at this time with insiders putting their money where their mouth is.
agree with all your points.
company needs to show a return to profitability - even a miniscule profit.
Why yes, I am a shareholder - as of yesterday - because I do understand this company, and that these unwarranted selloffs do occur periodically. In fact, when this happened last time was when I last bought shares - at $6.00, to watch them go to $10 just a few months later.
Again, you do not know this company, and that is what allows you to make flippant off-the-cuff comments that have little basis in reality.
a share buyback at this time makes lots of sense. as mentioned on the call, a dividend could be another option, but the share buyback is better from a couple views.
1. dividend is taxable to shareholder now, buyback increases the value of remaining shares and pushes the gain off into long term capital gains
2. reducing share count while the shares are low is much better than companies looking to use the buyback specifically as a mechanism to keep their shares inflated at a high price. many big companies are using their cash piles for this or taking on debt to do this. invariably it fails because their shares were artificially inflated at the high price to begin with.
3. reducing share count during a low profit period provides extra momentum when profits pick up again.
4. repurchasing shares when the price is below book value is a no brainer. book value is increased. remaining shares are more valuable.
5. as mentioned on the call, and obvious to anyone following the company over the past two years, management is fully invested owning a significant number of shares. they've done the hard work turning things around. now they just need to continue to perform and it will pay off in a big way for all shareholders. it's just a matter of time for when the sector turns higher again.
6. a caller mentioned Ladenburg Thalmann in his question. if you compare the financials of NHLD with LTS, it is clear that NHLD is doing a better job. at some point, the market comes to its senses and realizes this. in the short term, people get distracted by Frost buying LTS shares all the time and get all excited. it happens with all of his companies - he has a halo around his head and naïve investors believe everything he touches turns to gold. LTS is overvalued and has been for the past couple years, solely because of Frost.
7. NHLD is a buyout candidate with the shares so low. the company is strong and in a good financial position. they don't need to go looking for a savior.
the recovery in share price.
Thad said they would be very focused on closing deals in Q3 and Q4, and this is him beginning to deliver on that.
"The larger shareholders are watching very closely..."
As if you have the inside track to know what the larger shareholders are doing?
there were much better bashers here last time around.
you won't be here in 3 months and shares will be back at $9.
Patience...secure 8% dividend makes it easy.
We've been through this before - company always performs.
My only concern would be company gets acquired cheaply with the shares this low again.
unfortunately the analyst was stuck on the 63% increase in compensation. over the past few years, the compensation was actually low in my mind...and they have done a tremendous job turning things around...lots of bang for the buck. as was indicated, and apparently the analyst could not get through his thick skull, most of the increase was the valuation of OPTIONS ... they aren't worth squat unless the stock goes higher. the total compensation number may be up 63%, but it's not like the increase in compensation is cash going right into their pockets.
it also seems that there are more analysts involved now...it may take them a little time to come up to speed ... the folks here likely know more/better at this point.
unfortunately, none of the analysts were impressed enough with the quarter to say "nice quarter guys".
so long as the company is performing, increasing the bottom line, decreasing the debt, and making good progress, they can manage it as they like.
if you ever have concern or believe that the amounts being taken are egregious, I will tell you, the analyst, and anyone else to go look at what is taking place at FLL.
this company is very well run.
I'm personally not excited about the acquisition, however, knowing/seeing what this management team has already done, I am willing to give them a long leash.
if you have access to time and sales data, check what happened beginning at exactly 15:50:00 on Friday. now, go look at some other stocks that similarly trade low volume - with most you can see the same took place with a (relatively) large closing trade at 16:00:00...the activity began at 15:50:00 with all of them - which obviously means that it was all computer driven.
my belief is that shares of all these companies should gravitate to where they were trading just before 15:50:00 on Friday...unless there is news since then justifying the current share price. some were moved higher, others lower.
1. Today was the time for buying - right at end of day. People selling simply because market was down, and market maker manipulated price with last trade so it would close under $6.
2. I was likewise concerned about a lowball buyout with the shares so low. However, Singer and Miller still hold good size positions and they will not allow the company to be sold cheap.
Shares have obviously been gaining strength and there has been some good sized purchasing the past few days. Shares will certainly bounce back, as today was just the market...can't do anything about that...except buy more. I think we both know that under $6 is pretty great with the dividend and continued low market interest rates.
quadruple witching hour (google it).
similar happened with many other stocks/companies...it was just extremely prevalent here because of the illiquidity of shares.
shares will slowly trend back under $8.25...today and probably tomorrow you have stragglers who simply see the shares are down $2 and think they are getting a bargain.
UBCP is a good bank showing good results. however, at $9 it is a bit overpriced considering current performance.