On the existing rev base they earned 10 to 15 cents a share. The overhead costs do not rise dramatically on this additional revenue and the gross margin on this new contract is probably around 20%. That's 5 mill, say at worst they need an additional 1 mill thats 4 mill pre tax on 9 mill share base. Going forward eps should be at least 50 cents a share. The fmv of moc yesterday was over $2.5/sh .Today this contact makes it worth 2/sh more in my opinion. They received a future pre tax incremental cash margin stream of 50 mill over next 10 years. The pv of 50 mill at 10% over 10 years is 20 mill or $2 a share.
Much of their "revenue" was actually bartered revenue. In other words, it received no cash but recognized the cost of getting to place its ads on affiliates. Actual revenue increased 17% but losses increased 32%, assets lost 9 mil, and cash was significantly reduced.
The company further disclosed that it did not have enough cash to complete continue its business over the next year and plans to dilute the shares by issuing addition debt or equity offerings. It received a going concern warning from its auditor and disclosed that it is under an SEC investigation due to trading in its stock.
After you actually read the 10Q, let us know if you still think that long term VGGL is a nice addition to your portfolio. cheers.
CDXS deal with GSK while huge won't be more than setting up the lab this year. Since GSK already has a Vaccine, CDXS could not be involved. CDXS is a nice turn around play but its not an ebola stock.
Only "Netflix like company" other than PPStream, Iqiyi, Jiaflix , Sohu, Tenecent, Yoku , QQ, LEtV and Funshion. curiously YOD is the only one of those companies that never appears in any Iresearch reports about market share.
The company has said that their earnings last year were boosted heavily by Superstorm Sandy. They expect this year to be more normal. And earnings are reflecting that 36% decline in residential sales. For that reason, I think the "Sandy" premium will come out of this stock it will retreat to low 40s to mid 30s.
Not going to happen. Both companies already have better infrastructure and better content deals in place already.
I agree that it would be prudent to follow Chardan. But I would follow their money and not their analyst:
Look at the S3:
Chardan Capital Management selling 56,429
Fresh Rewards Development selling 1,714,286 (controlled by Congyan Xue of Head of China at Chardan Capital Markets )
Steven Urbach (Mark's brother) Selling 40,000
Jonas Grossman Selling 40,000
George Kaufman selling 38,857
Kerry Propper selling 37,143
Shai Gerson selling: 14,286
But what's your DD?
yes and no. He sold to an 7Million shares investor and exchange received E class shares. It was a condition of the C-Media deal
Chardan is headed by Steve Urbach, who is the brother of YOD's president Marc Urbach.
Chardan mgmt. and directors and Chardan controlled company-- Fresh Reward Development Limited (read the footnotes) own about 2 Million shares of YOD, which they filed to sell on February 6, 2104. In addition the Wolfson Family who was implicated in the Suphco P&D scheme owns (SEC form S3). The next day, an anonymous Seeking Alpha article made a bullish case calling YOD the "Netflix of China." The stock then ran and on March 14, Chardan analyst then upgraded the price target to 10.
You draw your own conclusions about the independence of Chardan's price target, but I would suggest they are a bit biased.
It was upgraded by Chardan Capital, whose founder Steven Urbach just happens to be the brother of YOD's President and CFO
On the daily charts its not even close to oversold on any indicator. At a minimum the 50 MA will get tested at 28.30.