Bump. Thanks for the replies, everyone. Well informed. Helpful. I appreciate it. And welcome any other perspectives and insights from other longs. GLTA.
Hi Everyone: Hoping to hear from some quiet longs who mainly (like me) observe but don't participate on these boards because of all the 'noise' we get here for some reason. I was pleasantly surprised when the price ran up above $4 per share after the quarterly report before last. I was not surprised when it pulled back a bit. I WAS surprised by how far back down it fell. Further pull backs just before the most recent quarterly report had me nervous that others knew something regular investors didn't, but the report was ok. I'm not here pumping a $10 target, but I am surprised we remain in the low $2 range. For other serious longs, are we where you would expect us to be? It seems like announcements of new phones and other products have really slowed down. I'm impressed with the products they do announce, but I'm wondering if development is too slow. I'd be interested to hear from other longs about how comfortable they are with where things stand right now. Thanks in advance. Long since 2012.
I'm not down on IFON, but I'll admit a 7" tablet is not worth it if you want to use it as an ipad. However, if you want to use it like a Kindle, it works. So, frame it as a kindle, that also allows you to check email and play some games. That's value. Frame it as ipad mini, and I'm in full agreement with you that it's not worth it. Anyway, good that IFON is in the tablet business and gaining experience and learning about its potential place in the market.
Given all the positive news in the most recent report, the fact we only made $34,000 profit might cause concern? Still not enough for major investors to jump in? Or, the more positive scenario, the nominally profitable quarter is causing major investors to look more closely at IFON. We need to exercise patience while they do their due diligence. What we see now are minor short term profit plays that don't mean much, but, if the company is as strong as we think it is, should see some major stock purchases in the coming weeks. Are last quarter's results meaningful enough to persuade major investors to jump in, or will prices continue to hover in this .50-.80 range until next quarter? My guess is that this last report may not generate much investment, but it will generate interest. We need real profit based on continued strong sales. I'm long, so hoping that is indeed how this plays out. Until then...will try not to be discouraged by recent declines.
Thanks. Well stated. I hope you're right. As I've stated in previous posts, I'm intrigued by the evolution of branding away from a "value" phone to a "rugged" line of phones. GLTA, hoping for strong summer sales.
I am long IFON and agree there are some encouraging items in this report. I also don't claim to be the most savy financial analyst, so please correct me if I'm wrong. But I couldn't help but notice this:
"Other income in the second quarter of 2013 included $527,000 related to the legal defeasance of a previously recorded supplier obligation that had been included in accrued expenses on our balance sheet. The net loss for the second quarter of 2013 was $47,000, or $0.00 per share, compared to a net loss of $265,000, or $0.02 per share, in the second quarter of 2012."
In other words, if not for the good fortune of this one-time legal settlement, IFON would have been in the hole for $574,000 ($47k plus $527k), which would have amounted to at least -4 cents a share. That would have been disastrous.
It's good we continue to ship units, and good to see 20% profit margins (I think). And so very, very close to profitability. But perhaps not as close as it first appears? Help me out...
For the first time in a long, long time, I'm pretty excited about this company. What I see emerging is a new brand best captured by the word we keep seeing in the PRs: "rugged." Not low-cost, or developing world, but rugged. Clearly, that meets a need for customers in underdeveloped societies. But it's a brand that could also appeal to middle class rural customers and regular adventure seekers. I see powerful processors, big screens, and a relatively recent Android OS. It's value indeed. I hope it sells. I think its chances of succeeding are far greater when marketed as the "rugged" option rather than the "value" option. Well done IFON marketing team.
I used to follow this stock and thought I'd drop by to see how things are going. Major gains yesterday and today look suspicious. Why didn't MDFI succeed? Inferior product? Wrong marketing strategy? Another company just offered something better? This was an interesting idea and I'm glad I didn't jump in, but wonder what explains why it didn't work?
Well, for those of us waiting for a positive sign, we'll take what we can get. I like the fact that we are seeing huge volume today and up nearly 7%. I'm not sure if this is accumulation, or just short-term trading. I can hope that some folks see what's going on here and are choosing to load up in anticipation of a more positive future. Or, these are just day trading games with little to no significance. Ah, the joys of investing in IFON.
I'm not asking where is this stock going. I'm trying to figure out Ram's strategy here. IFON has moved away from being a 3rd world cell phone distributor to being an "economy" cell phone producer and distributor. Part of the reasoning for that move, from what I could tell, was because of gross margins. You can make more money selling your own phones rather than someone else's. It appears to me that Ram has done a very good job of minimizing costs while trying to keep R&D active so that IFON releases phones worth considering. The problem is not on the supply side. It appears there simply isn't a robust demand for IFON products. We need aggressive marketing blitzes to sell off old stock rather than push new models. I've lived in Africa and Eastern Europe and what I observed first hand is that at the end of the day people are willing to spend more money than they should on their phone. They're going to buy a Nokia, a Samsung, and iPhone. I don't question the value of IFON products. It just seems to me that there is not a sufficient market for these "value phones" to allow IFON to be profitable and grow. So where is this company going? What does RAM see has possibly changing on either the supply side or demand side that keeps him motivated and dedicated to this project?
I'm long on IFON, but worried. I agree with you. Trading these last few weeks suggests we did not return to profitability. Is it management, or just a very difficult, unstable market? What's unclear to me is how far we can expect this to drop if we just miss profitability.
I won't argue against the fact that 4g is becoming standard for much of the market. But I live in an expensive urban area and I'm raising 3 young kids and our family is forced to keep a very tight budget. We chose to cancel our Verizon acct and go with Virgin Mobile's pay as you go plan. The quality is not the same. Neither is customer service. But it's adequate and saves us nearly $2k a year. I see Verykool supplying phones to the VirginMobile, Boost, and Cricket type suppliers. No one on TMobile, Verizon, or Sprint would give this a second thought. Hey, the developing world is migrating to the US in droves and they're on pay as you go plans and that's a market that makes sense for Verykool.
I think many of us believe that Ram intends to sell the company, but not until the new business model is confirmed, profits sustained, and the price much higher than here. The last 2 quarters disappoint us because we were really hoping for a smooth transition to profitability and the price rise it would create. Let's be clear, Ram has absolutely no incentive to enter into buyout talks now or any time soon. He probably needs at least 3 quarters of profitability first. I justify my patience by reminding myself that there is no debt, no immediate need to raise R&D funds, and early evidence that Verykool is in fact building a brand and selling phones. Any chance of a buyout? Yes. Any chance in 2013? I don't think so. 2014 if next quarter finally begins the era of sustained IFON profitability. I wish I had sold last quarter so I could buy at these levels, but I am not buying more at these levels. I am holding.
I'm not sure if this is a new development, but it's news to me. On Wednesday, Verykool announced on its facebook page that all Walmart Supercenters in Mexico will now carry Verykool phones. That sounds good to me.
Samsung will bid, but then Apple will counter. Not to be outdone, Google and Microsoft will enter the race. Bids drive stock price into triple digits before a dark horse (Most likely big oil, like Exxon or BP) swoops in and wins the day. We all retire soon after. Just a hunch.
I've been following this stock for years and Mgt has been beaten up from time to time for the falling stock price. I think it's fair to commend them when recent accomplishments warrant it. Samsung released the Galaxy Note was released Oct 2011. The 5" monster now has a cousin, the "value phone" Verykool released today. Samsung's Galaxy Note 2 comes out at the end of August. The global promotions surrounding that phone should help sales in countries where so many consumers like the concept but can't manage the price tag. Enter IFON. A return to profitability last quarter. A steady drive upward in stock price. And new phone offerings that are in line with consumer demands. There is a lot to be excited about with IFON. We have a great year ahead of us.
The last earnings report was very positive, though not profitable. I'm putting odds at turning a profit this next quarterly report at 55%. The report comes out mid-Feb, is that right? GLTA.
I've been following IFON irregularly for quite a while. The price is horribly low. There is no trading volume. But in my view--as superficial as it may be--they have built up a decent distribution network of stores and they have successfully launched their own low-cost line of phones. The Argentina tax really hurt for sure. But I guess I'm having a hard time spotting the trail of bad mgt decisions that justify all the hyper-critical messages against the IFON CEO. I'd be interested to hear from long time IFON stockholders or observes to make their case. I'm not doubting you, but I'd like the hear the evidence.
From the PR:
The Company believes that FDA's concern over drug product authenticity stems from the procedures used to select testing and reserve samples in Study 530-01 and the availability of testing and reserve samples for inspection. The Company believes the procedures used to select testing and reserve samples in Study 530-01 were adequate to verify the authenticity of the drug products. Of note, Exelbine and the reference product come in different package presentations, require different preparation procedures and have different physical characteristics. Based on the different characteristics between the study drugs, the Company believes it is unlikely that study sites would confuse the two study drugs or fail to recognize which drug was being administered to a patient.
From me: The Company's reply suggests that there shouldn't be any confusion...but the FDA determined that authenticity remained in question. Is it possible that both are correct and the explanation is as simple as this: the lab Culley contracted to do this work are complete imbeciles and found a way to muddy what should have been perfectly clear waters? Where did this go wrong?