Nice, as usual. What are you? 15 years old? I am at loss when reading posts from intellectual giants like you.
Anyways, as usual your performance speaks more eloquently about you than do you. I will add your new statement to the inventory of idiotic and unsubstantiated statements that you have made in your time on this board.
Yes, you should seek help. And, no, I can't help you (idiot or not.). You need professional help... a whole team, perhaps.
Good luck with your $50 million target, two week, $5 price target, Simple Mobile contract is not gone, SBC is AT&T, $9 medium term target, and the company has own lots of secret contract that will generate trillions of dollars in revenue soon based investment. It's infantile, but, hey!, at least it is yours to keep and cherish.
Oh, and before I forget. If the company gets classified as a FPIC all those underwater stocks that you are trying to offload with your drivel will become a huge liability. Perhaps it is time for you to consider -- oh my God -- to sell, eat your loss, and go somewhere else.
Thank you for your note.
Generally, all I can do is to share my personal opinion on the issues surrounding an equity. What you (or anyone else) gathers from what I write and decides is up to you.
Overall, because I think that there is genuine long term potential here (serving the MVNO/MVNE space with a cloud/managed service solution is a good idea if you can stay alive while your customers build revenues,) I find the way that MER Telemanagement Solutions' equity has moved highly dissatisfying, leading back to the first speculative run-up of MTSL to a price of +$5 per share (at a time where it was entirely predictable that the Simple Mobile contract would terminate) and going on to every single subsequent run-ups on rumors, meaningless news, SeekingAlpha articles, or newsletter/subscription services promotions.
Short of an M&A event, the only way that I can see the equity being worth "more" is if there is a significant and near-immediate take-up in business by the current MVNO/MVNE customers -- essentially outpacing the new-business costs and causing near-immediate replacement of the Simple Mobile revenue stream -- or a significant reduction in costs. Naturally, the company also have to avoid taking on dud-clients such as SBC, since a couple of these can be terminal.
You will see that I discard the TEM segment. I do so because the company does it (and because it is objectively declining.) In fact, one of the concerns that I have is that the company will jetison its TEM segment, selling it and rationalizing that it needs to "focus" on the MVNO/MVNE business (a common mistake -- compare, for instance, Jacada's spin-off of its core business to focus on a hot segment -- a move which ultimately killed the company,) because I think it will give a short-term bump in the per share price (another speculative run-up,) but ultimately kill the overall business.
We will see I guess. Good luck with your portfolio.
... and $1.9 (with BID at $1.8)
I agree on the potential value (in fact, I have been saying this for almost five years now -- I am probably the person that has been following MER Telemanagement Solutions the longest time.)
However, the value is going to decline if the company does not: take very strong and immediate steps to reduce its burn, take steps to clean out its investor relations department, change its communications style, and revise it customer acquisitions strategy (a couple of fiascos like the SBC matter or expensive, non-revenue producing deals in deep Africa, and the game is essentially up.)
Also, the PFIC issue could become the defining issue for the future of the company at this stage. Although the tax code is not understood by most amateur investors, traders, and speculators, I can assure you that it is fully understood by the IRS, which has demonstrated in the past that it takes PFIC taxation issues very seriously.
A cash bleed of something like $300 thousand to $450 per quarter would not surprise me at all at this stage, which would erode the cash position by something like $1.2 million to 1.8 million over the year.
Simply put, the issue is not whether there is potential long term value in MER Telemanagement Solutions, but, rather, whether the company will be around long enough to release the value (after all, there is a pretty shoddy history of delisting notices, strong losses, IP litigation, poor investor communications (I contend that it possible that MER Telemanagement Solutions could have pre-warned on the loss of the Simple Mobile contract, avoiding the run-up to $5 that seriously hurt investors in the company,) and creeping dilution and pension benefits.)
Anyways... enough of this. Over and out!
P.S. You wrote $2.14, but you mean $2.10... $2.05... $1.99 oooooppppssssss
You are welcome.
Certainly, MTSL is showing to be a great shorting stock with these meaningless burbs if you can get your broker to access loanable shares (quite difficult, unfortunately since most reputed brokerages do not have MTSL in inventory.)
BTW, I think the organic costs will sink slightly, which will help, but, unfortunately, the company's business model, focusing on managed services/cloud with significant up-front costs on very limited revenues, will probably offset any savings.
Good luck, and congratulations on getting out at $2.15... With the per share price now at $2.03, and, I think, headed towards or below $1.5, you did really well.
And here we go.... Sliding down the VERY steep downside to the speculative run-up.
It is getting slightly tedious to watch this happening -- Although I do admire the entity of persons who works the gears behind the curtain.
Well, UNTK is bubbling along nice, having hit a per share price $1.85 yesterday, up from a 52 week low of $0.95 per share price.
Best of all, it is all happening under the radar, which gives plenty of time for patient buying.
Go UNTK! But not to fast, rather, Run Silent, Run Deep!
Well, uncertainty may be a misnomer. There is absolutely no uncertainty regarding revenues going forward.
The current up-tick is not unusual, reflecting, I think, simply headline-reading-not-filing-reading by uneducated investors and traders backed by some speculators and people like yourself who were caught below the line. We have seen five of these meaningless rallies and their rapid collapse over the last year.
New orders, for instance, will not move the needle, as I wrote in an external post discussing a Seeking Alpha article:
"Mr. Lahiri’s rather simplistic view continues throughout his article. For instance, he writes:
"For instance, if MTSL were to land one large customer, EPS could easily grow from current $0.27 to $0.40 per share in the near future. Apply the industry average of P/E 15, and you have a $6.00 share. Another customer could mean $0.50 or $0.60, that’s a $7.50 or $9.00 share. Any extra customers directly add to the profit without a substantial increase in costs. The upside potential is therefore very large."
Well, let’s look at this. The assumption here is that a new customer would add something like $0.13 in earnings in the near future. In real terms this means yearly earnings (not revenues!) of $585 thousand or so, or just about $50 thousand per month. Assuming a liberal 20% margin, this amounts to $250 thousand in revenues per month.
With the Simple Mobile pricing a benchmark for per subscriber revenues, pointing to something like a quarter of a dollar per subscriber per month in revenues, this would mean that the fictive customer would have a subscriber count of one million.
MVNOs or MVNEs with 1 million subscribers are relatively rare, and, importantly, they don’t just emerge in one go (read about subscriber count in the MVNO world in an earlier posting here,) so I think that Mr. Lahiri’s projection of the “near future” earnings is… well… laughable."
Relative rare is, of course, a euphemism.
Q4 and full year results from the Formula Systems juggernaut are out. The highlight in one simple paragraph:
"Net income attributable to Formula's shareholders for the fourth quarter ended December 31, 2013 increased 736% to $62.6 million (or $4.38 per fully diluted share) compared to $7.5 million (or $0.53 per fully diluted share) in the same period last year. Non-GAAP net income attributable to Formula's shareholders for the fourth quarter ended December 31, 2013, increased 564% to $64.1 million compared to $9.7 million in the same period last year."
That's a new low for you. It is incomprehensible and ignorant at the same time. Bravo.
Not that it matters, but for record: S ettling doesn't mean guilty and Faruqi is not a lawsuit - it's a soliciting lawyer.
Eh, what do you mean? Was that actually a sentence? All I know is that 33% of the revenues were confirmed to be -- poof! -- gone and that the non Simple Mobile business declined a full 17.5%.
To paraphrase a little kid: I see lots of red!
Don't worry. I will follow you to hell and back. I will even wait patiently when you disappear next time -- as I have done in the past.
I have been very patient with your silliness and given the amusement of your rambling I can certainly wait longer.
So you think something is cooking? Well, so you did at the last speculative rally... and the one before then... and the one before then.
Hope, my friend is not a strategy. It is idiocy.
P.P.S. And the excitement rolls on with today intraday swing of $0.15 (or 7.5%) after the (now) usual morning sell off. Very nice recovery through the day. We might even end up closing above today's open!
P.S. The staggering 33% revenue contribution also means that -- and hold on to your hats here -- MER Telemanagement Solutions' non-Simple Mobile business declined a staggering 17.5% -- far worse than predicted.
The class action suit settlement papers arrived in my mailbox today.
As you may recall the silly class action suit against the company was settled with negligible financial impact on Unitek Global Services.
The matter was always silly with the action of a couple of rouge employees causing minor direct economic damage and this damage being amplified hundred-fold (well, not quite, but certainly by a factor of 10,) by silly investors who decided to sue the company for their "loss" even though, in fact, their losses were accelerated dramatically by the actual suit. That's litigation America for you, I guess.
Anyway, the settlement documents illustrates how silly the issue was. As usual, litigation lawyers (who, I remind everyone, were active on the scene early on, soliciting for business,) will get lots and shareholders will get.. well... very little.
Lesson learned for investors. The class action law suit only hurts your investment. If you have a geniune case, pursue it alone. If not, sit tight (or sell, of course.)
Anyway, all this is behind us now. All we need now is the refinancing and getting back to business (and -- hopefully $26 million in re-claw from the Pinnacle acquisition.)
The 20F filing is in (or out... it depends, I guess.)
Here is the very first qualitative statement in the company's report:
"If we do not replace the revenues generated by Simple Mobile LLC our operations and financial condition will be adversely affected.
Our principal customer during the three years ended December 31, 2013 was Simple Mobile LLC, a U.S.-based mobile virtual network operator, or MVNO, for whom we provided hosted billing services. In 2011, 2012 and 2013, sales attributable to this MVNO accounted for approximately 16.4%, 22.8% and 33.3% of our revenues, respectively. During 2012, Simple Mobile was acquired by TracFone and in 2013 TracFone migrated our hosted billing services to its own platform and did not renew its agreement with us, which ended in December 2013. If we are unable to replace the revenues generated by Simple Mobile LLC, our operating results and financial condition will be adversely affected."
33.3% of the company's total revenues -- poof! -- gone. Wow! I had estimated the Simple Mobile contribution to be 28.5% in 2013, so I was 4.5% -- or $561 thousand dollars of.
Q1 is certainly not going to be pretty regardless of whether or not new business is picked up (in fact the opposite (remember that MVNO hosted business is upside down for the first quarters.)
Amazing that the same day the 20-F is filed, another speculative run-up is initiated. So much for reading, I guess.