I have worked with this guy and can tell you that he had zero knowledge of SCM, Client Service, and surrounded himself with a lot of smooth talkers. The new CEO has the fundamental background to do a sound job for CMGI/ModusLink.
Still way more deadwood in ModusLink needs to be weeded, especially in the Corporate HQ!!
Patient living 9 years longer with Onconase is wonderful!! This potentially means that we have to wait a couple of years more for the 316 events?
Or is there a maximum time limit before FDA will approve this drug?
Your input is appreciated.
Thanks for your insight! The shorts covering (even when it is < 2% of total stock) might indeed give a spike, like last year. Let's hope it will go into dubble digits.
Can anyone give an educated explanation what the PRX news means for the short term ACEL price?
Getting funding of 5M, 30M, dubbel digit royalties seems to me that the stock price should move towards 5 bucks quickly.
Well Christmas is advancing, and that was the time in Modus Media when people were handed their pink slip. Last year a couple of VP's and a CIO got their "freedom" back. Unfortuantely they were replaced with more ignorant folks!!
I truly believe that by April 2008 the Sr.management will be hashed-out, including Joe.
ModusLink is operating in the right market and the customer base is excellent (even with the current margins!!!!!).
Simple math shows that the margin is not the key in making money, VOLUME is!! The SCM businesses have always operated with small margins (couple of cents per unit). So the higher the volume the more money you make. Also the cost for higher volume SHOULD decrease per unit. Now I agree that the current cmgi Sr.management are not holding their managers accountable for the screw-ups. Therefore they are failing and therefor we all are screwed.
NOTE: By replacing the current managers with savvy business/operating/IT people the company would be worth at least 30 bucks with one quarter!!! However the guys at the top are unable to hire the right people with guts to turn this company upside down. They had also many lucky breaks after losing HP and Kodak business. The luck is going to run out sooner or later and then the top will be booted.
Sobi, Have you taken in account that Joe L. will be either booted or resign next year? In case he and his Jokers will stay in this company longer then next summer then we might see your number as a stock price.
Since Joe came aboard we have seen that SCM management is not held accountable for the losses, due to malpractice. The special projects (move from IFS to SAP) is even a bigger crime!!
So all hope that these clowns are leaving cmgi asap.
Sobi, where did you get the info regarding AMD? Do you know people in ModusLink?
Are there plans to get a manufacturing facility for AMD in Japan?
BTW CINRAM getting MOT business is huge!! However they need to work with other parties to perform the SCM for Motorola.
I expect that the 4th Qtr will be a loss. End of 3rd and during 4th qtr the company fired many people, which is an indication that the financials are not looking good. Additional factors for 4th qtr:
- Loss of HP in Europe
- ramp-up of Magellan
- MSFT Vista winding-down
- low volumes for AMD
- move of business & penalties for terminating lease of buildings
Some of the sites are related to Kodak and HP loss of business. It is bad to see that there is no pressence in California, since the communications with the amin customers quite often happens from the silicon valley.
Reduction of buildings means that consolidation is happening or decrease of business.
Joe will reach his 4 years term by spring 2008. This means that he can collect his negotiated shares and bonus if he will reach his goals. I believe that the goal was to bring the shares to at least $1.50 (from around $1.20 when he started).
Unfortunately he has selected during his period all lazy and incompetent people to advise him at the top. He wasted 2 years to move the business to SAP, which is still in the infant stadium. His wingmen have wasted large amounts of cmgi money for this project, which even large corporations can not afford. This wasting process will continue until someone in cmgi will step-up and fire all the so-called mangers involved in the new SAP project.
Since Joe started we have seen 4 different CIO's, multiple VP's came and went. The old farths who brought Modus Media almost to a chapter-11 are still dominant and waiting for their pension.
It is sad to see that this company will not move upwards until a palace revolution occurs!!
kut te krap! Getting laid, get some kind of disease, and then use NGEN products???????? Is this your way of moving up the stock price?
There is no reason why the earnings should be delayed so long. Note that cmgi like HP and all the fortune 500 companies are using SAP as their ERP system. After the month-end close, which takes a couple of hours, the numbers for the quarter are automatically generated. Now part of cmgi is still on another obscure ERP system, so give them a week to consolidate all the numbers and a few days to organize the paperwork. This means that cmgi should be reporting the numbers at least as fast as an HP.
CMGI is deliberately using delay games. The reason for this is really interesting to me.
Sobi, as always you impress me with the numbers!!
Joe Lawler promised to have a growth in double digits. This is one one of the reason why he was not concerned that HP redirected the business to a competitor. This will prove to be a capital blunder!! The sum of the low margin of HP cumulated to be accounting for the biggest chunk of the profit for ModusLink!! Fortunately the competitor is not doing a good job for HP with the redirected business.
Kodak was a disaster due to operational mismanagement. Vista is over now, so no value add any more. AMD reached its high early this year. The only bright picture in the company are TomTom and Magellan. However the company finally need to negotiate better contract for the companies they servicing!!
Once again, all numbers are showing us that the company is in trouble. Short term cmgi is sliding to below 1.30 due to lack of leadership and sound decision making. I truly hope that we will see major changes in this area. Too many chiefs and only a few indians. The non-functional VP's and other middle management needs to be sent away.
Good luck to all,
Do you recall the drop from 2.30 to 2.01 in a couple of minutes somewhere in April/May. I think a couple of instutions sold their positions based on negative internal management discussions. Somehow the information is being leaked to outside after which the big market guys instantly react.
Seriously lack of clear direction and reality checkpoints/accountability of plans (if any) are costing cmgi big time.
The only way out of the downwards spiral is by change of sr.management or selling ModusLink (or a miracle). The SCM market is consolidating anyway so that might be a good exit point.
Sobi has followed this stock for ages. I believe that he is a pretty good analyst, which he proved a couple of years ago, by selling the stock against all odds above 2.00. After that the stock tanked to below $1.10. Whether he now owns any cmgi stock or not is not interesting to me. However his input is quite often refreshing. All investors, longs and shorts, could use the input for their benefits.
rat, that filing doesn't mean anything if the revenue and net gains are sliding. Let's hope something new is coming out of the hat to turn around things for cmgi.
Good to see that old longs like Sobi, lenn... are still around. I hope that cmgi will get some revenue from other branches than ModusLink. The last half year they lost too many good customers without any replacements. It looks like that they will have an issue to maintain the status quo for the next quarter. The reason for this is that middle management is running the show instead of sr. management.
Unless we see a dramatic change in the decision making structure I foresee that the stock will slide again below $1.30. The summer vacation is typically a slow period, the historical numbers in October are allways bad.
Let's cross our fingers for better judgements from sr.management.
good luck to all,
I have loaded up GZGT in low 2's. Schwab is not charging any commission for trades on GZGT. They are pushing this one very hard I guess.
According to them there will be around 200 to 500 % increase... Time will tell.
ModusLink is shipping Vista worldwide. Microsoft made a bundle of money on this, which means that ModusLink will get a share of this! This has to reflect in the CMGI gains for this qtr.