What a surprise. Markets jumping, EVOL down. There's even a huge block for sale sitting at $8.05. Guess we'll find out tomorrow why someone continues to unload this stock...even at what appears to be an extremely attractive dividend yield of 5.5%. They must think (or know) the news tomorrow is going to be really bad.
Paranoid much? Just like many other microcaps, PESI reports Q4 results at the end of March. They are not late by any means. Unlike many other microcaps, PESI should report an eye-popping Q4 turnaround on the bottom line. From a big loss in the year ago quarter, to a nice profit in the current Q4. Think they'll also be bullish on a continued turnaround in 2015. None of this has been reflected in the stock price. Yet. Stock is insanely cheap in the $4's. I think we'll see it in the $6-$8 range this summer, where it will still be undervalued.
I'd sell on the AH pop. Stock will give up most of those gains when people dig into the numbers. Headline earnings number looks good...but only because they paid an unusually low tax rate of 11%. With a more normal rate like in Q3, earnings drop to around .40/share. Revenues, bookings & backlog all dropped sequentially. Comps are going to start getting tougher too.
AMOT opened at $18 after the terrific Q3 report. Not sure I would chase at $28 with sequentially lower numbers. And given the lower bookings & backlog (not to mention the harsh weather), guessing Q1 will see more sequential declines across the board. If that happens, stock will be back around $20.
Surprised stock is down. I'm seeing junky stocks soar when they report a smaller than expected loss. MLR announces a monster quarter...and stock is down. Yeah they benefited from some government orders that won't be there every quarter. But they sure sounded bullish on the CC. Lower gas prices and a harsh winter both helping their business. CEO said backlog was the strongest it's ever been! Also like the dividend increase...current yield over 3%. Not too shabby.
Haha ur kidding right?? This acquisition is a HUGE positive. Yet you think the stock is going back to where it was before the acquisition was announced? Talk about dream on! MTSL spiked up to $2.30 when the acquisition was announced. It's going back there, and eventually much higher.
Do yourself and favor and read thru the proxy statement filed last week. In particular, pages 30-32. Where you see the impressive Vexigo growth and the big boost that Vexigo financials will give to MTSL. For the 9 months ended 9/30/14, Vexigo would more than DOUBLE the company's revenues. And MTSL's loss of over $1M would swing all the way to a PROFIT of over $1M. If you figure 40% more shares due to the acquisition, looks like the combined company would have earnings of .16/share for the 9 months! And keep in mind that Q4 is a seasonally strong quarter for Vexigo, that MTSL can significantly cut their losses, and Vexigo should ramp up revenues and earnings much higher next year.
Writing is on the wall here. Smart money is buying. Once the acquisition closes, MTSL is going to report some eye-popping comps thanks to Vexigo. Monster revenue increases and dramatic improvements on the bottom line. I think 2015 earnings of .30+ is very possible. Stock will be double or triple the current price if that happens. But hey, keep waiting for 90 cents.
Only negative was this comment from the CEO:
"While in 2014 we reached exceptional revenues and operating margins, some new deals that we expected to close in 2014 were delayed, thus our booking is lower than a year ago.”
Anyone find a bookings or backlog figure? Maybe it'll be in the 20-F filing. Guess booking being down isn't great news. But they're opening a new office and sound upbeat otherwise.