Anilkoomar, you are forgetting that COGs (cost of goods sold) is not a static figure. In other words, the calculation fluctuates on variable factors tied to the producer. The Chinese can surely produce "widgets", as you say, at a lot less than $1 per unit! Margins are one thing, but holding the assets (tech) and controlling a market are another. JMHO
I agree. There is no compelling reason to stay in ECOM, especially when it is a shorts wet dream trade. I feel fortunate on flipping this stock for a 42 cent gain per share, the day after I bought in. I'll happily take my $2k capital gain and invest it somewhere else! GLTA
I bought in today at 16.55 and hope for a bounce as well. Any move North from this level is gravy. The call was not bad at all. Dollar per customer revenue was good, and the shift of their customer base to bigger customers from more smaller accounts should also bode well for their receivables and sales booking. Cash flow could be better, but allocation of some cash to sales-oriented growth programs is reasonable. Although the CFO wouldn't commit to a cash-flow positive timeline, he did say that he did not see any need in the foreseeable future to raise capital externally. Bottom line -- today's (Aug. 5th) action is a bit oversold. JMHO
ECOM has 17.30% of its float in short positions at the moment, with 7.3 days to cover. This is based on a float of roughly 20,000,000 shares. Lots of opportunities here....
ECOM is going to be a short squeeze special. This was a short play at the 20's mark. Anyone shorting it now at this level is a hog....soon to be bacon and chops.
You will find that you actually saved yourself some money by not going short at these levels. ECOM is THE Bounce play of the week. Buckle up, as it eventually gets back to the 19-20 range by week's end.
The bottom is being priced in as we speak this a.m. at the mid-17's to 18 range. After the call today, it will either be a $2-2.50 pop up or a new 52-week low. JMHO
Reverse Chinese mergers typically follow this M.O....very under the radar. The acquisition vehicle that is used is typically listed in the islands, as to allow this. Make no mistake, this is already a done deal and formalities are respectfully being observed.
This deal is going to be sealed quick. Not a bad ROI with this one, especially for holding the equity for a short amount of time. GLTA
There are still regulatory hurdles to overcome, mainly from two state agencies, in order for the deal to pass. If you think that these can not be met, please sell your stock to me... the cheaper the better!
With tomorrow's votes, this appears to be a done deal. Still waiting on some state's approval. Any news there? What are the chances this deal closes by Sept-ending?
Agreed. Any idea what ERI would trade for post-acquisition?
Any idea what the anticipated closing date of this deal? The state regulatory approvals appear to be moving along, and the funding is there. Valuation for MNTG sounds to be solid at $6.06/share. So what other potential holdups could there be in closing this deal?
BCS is undervalued for sure at the moment. Once the litigation cloud clears, the valuation should reflect its substantial balance sheet. Income is always challenging, but recent acquisitions and the growing trend of higher interest rates should help. Dollarization from other countries assets should also improve as the plight to safety will ratchet up amid foreign events. Argentina and Ukraine are only the beginning. JMHO