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.