Investors should never feel "stuck" in a bad investment. I do appreciate the point you are making, but you are incorrect to assume that I was in any lower than anyone else. My first purchases were close to the all time highs, so I likely had a higher cost average than most here after initial buy-ins in the 3's and 4's. I remember purchasing shares in the 1.20 range thinking they were a gift at the time. When the IP dream died for Paul Arena and the stock price tanked, I believed in the reorganization strategy and steadily accumulated shares below $1 to bring my average down, still not close to being under $1 per share.
The company has come a long way since then but, in a booming market, their growth has slowed tremendously as a result of all the problems they've faced. They just lost out on millions and millions of dollars worth of business and exposure -not to mention the attention their first 10 million dollar quarter or "CFBE" would have garnered- because management failed to monitor or prepare for the threat posed by the TCPA. It seems crazy that sales staff were diverted from their duties during the holiday season- they must have been totally blindsided, despite claims to the contrary.
I am very disappointed in their execution last year and still displeased with their lack of transparency. I am still following the company and will buy in if the timing works out for me. I have already admitted that this may be a risky strategy if good news breaks, but so many investors are stuck here (as you point out) that I think many will sell at the first chance they get if the stock is up at all. It's going to take a lot to shake this investor sentiment, which means plenty of opportunity to buy into this story.
Agreed, it's a great idea to get out if you don't believe in this company- trust your gut! Honestly, how could anyone believe in the fundamentals of this company? What metrics tell a good story here? Until I am given a reason to believe otherwise, the fundamentals are abysmal and I will not risk pouring more money down this hole. I'm rooting for HIPP and hope to buy back in when/if the fundamental picture changes. Since the awful, embarrassing conference call last month, I have been much happier with my money out of HIPP and invested elsewhere.
I agree there is huge potential here and I think management has done very well to right the ship after the legal setback and collapse AUGT suffered.
I find it troubling that HIPP just signed a deal with Google and Mondelez, partnered with MM, have a nice mobile checkout deal with MGM- which should be easy to sell across the hospitality industry, and have a long standing relationship with Ford- but guidance is flat? If it is only a few months of setbacks due to the TCPA, why hasn't the ceo stepped up and given a longer term projection for market adoption of their analytics platform and potential value this might have for them in FY2015-16? It does not add up to me.
I believe management is likely completely focused on merger/sale at this point, which is ok. I've always hoped they would remain a sovereign entity because I feel that is where true value would lie for shareholders, however after everything that has transpired I realize that someone with deeper pockets- or a good sales team- could do much more with this technology. I still don't think they will sell before they hear back about the Yahoo! appeal.
Jason, my comment about CFBE is really a gripe that the company had hyped August as the month they would have achieved this. Due to their statements last winter, it was reasonable for investors to think that August might be the latest CFBE would happen. Instead, August and September passed with no big news. When they finally mention August's CFBE in October, it felt like a small band-aid to patch the large wound of disappointing revenues in second quarter. Rather than being on a steady growth trajectory and adding and delivering for new customers through the holidays, they got blindsided needed financing again, they did not have the sales team in place to handle the TCPA issues- and have yet to put together a full or experienced sales team.
There is plenty of potential in Hipcricket and 2014 is going to be a big year for mobile. I do hope to get back in without missing the boat here.It seems to me that the focus has shifted to selling the company and i believe the sales price should be far higher than current PPS. I'm well aware that I could miss a rise in this stock price on some news, but there will be plenty of entry points going forward provided they do not sell the company.
I agree that blame has to be assigned to leadership. Do away with all the excuses and what happened so far in FY2014 is that Hipcricket's leadership failed to execute on a number of points. They did not execute their plan to beef up the sales team, rather, they were forced to take a step backwards. They did not report CFBE in August as promised, instead they disappointed. Leadership failed to smoothly navigate the challenges posed by the TCPA, again, a major disappointment they allowed to blindside shareholders.
I have always had high hopes for this little company. But the wind was taken out of my sails with that last conference call. I want to put on my rosy glasses and tell myself that HIPP "set themselves up for a beat on Q4 numbers", but I can't get over the lack of encouraging statements on that call. Getting rid of most shares and going to step to the sidelines for a while here. Good luck everyone holding here, I'll keep an eye on this knowing that HIPP shares are worth more than .35 this but feel money is better off in other places with leadership I feel more confident in.
Feeling your pain. The frustrating part is that this sell-off may have been largely avoidable had Hipcricket been more upfront with investors over the last six months.
If Ivan had come out early warned of the TCPA and it's impact on the entire sector, he could have come across as a leader while explaining their plan to deal with the impact it would have in the short term and alleviating customer concerns. Had he mentioned that some sales staff had to be replaced because they were not meeting his high standards it would have been better than the shock we heard yesterday. Maybe this was not possible, but he needs to be more open and honest so that they don't stun the market like they did yesterday. This is assuming he keeps his job.
The short term picture seems rather bleak. Without a good sales team in place it's hard to see them growing revenues rapidly. But it will only take one good account at this point to move this stock, so theoretically one good salesman could be all the company needs- the question is how marketable is their product? Their client list makes it seem great, while the lack of sales tells another picture. Need to re-listen to that call now that I am no longer in a state of shock.
I believe that I heard Ivan say they had seen the TCPA coming and had brought someone in who they have been consulting with about how to best navigate it? Correct me if I am misheard.
The fact that they can't find salespeople is most concerning to me. I just cannot get over that point. All their problems supposedly happened in October, but they already should have had a full sales staff months before that point. For all the praise everyone wants to give Ivan, I think he dropped the ball in terms of management last year. It cannot take this long to hire sales people. I'm not sure why they lost ten sales staff this year, but suffice to say it is not a good thing and it looks bad for management who offered no explanation for this.
Increasing the size of the sales team was a stated goal that should and could have easily been met. Even when valuing the company for sale, a smaller sales team hurts shareholders. How can we still put so much faith in their technology when insiders are not buying they dirt cheap shares, sales staff is leaving the company as recently and Q4 revenues are supposed to remain flat with this disaster of a Q3? I don't get it. They offered nothing to provide confidence to investors today.
Unless that Yahoo appeal falls our way in a hurry, my only hope at this point is that we get taken over by MM or Google for stock. We clearly have a valuable technology considering who some of our clients are, but management has been unable to monetize this during a period when they should have brought in record revenues. After everything longs have been through holding this stock, it is hard to have any patience for another year of the same stories. Not much more to say here. HIPP better have a nice PR lined up for tomorrow morning if they want to stay above 30 cents per share.
Everyone who tried to excuse the lack of insider buying was failing to read the tea leaves. Maybe they'll step in and take the company private for 15 or 20 cents a share.
That Hipcricket added a net of 0 out of 10 new members to their sales team is inexcusable! All they had to do was hire a few people on commission basis to get the numbers in line for the conference call. It is sickening. They needed a full sales team otherwise, as we saw this fall, they do not have enough staff to handle challenges that arise- this cannot inspire confidence in their clients. Sadly it sounds as if their attention has already begun to drift towards "strategic alternatives". It's been fun and interesting following this company, but it has also been a painful reminder of how easily things can go wrong. I will probably step out of this investment for a while, maybe hold on to a few token shares as a reminder of my high hopes for the company, but there are better places to put money than this. At this point, all hopes for a good year are hinging on a positive development in the legal proceedings with Yahoo!, it's like 2011 all over again. Good luck to anyone who holds on.
Lionsgate is a new addition to brands featured on their front page..
I didn't think it possible, but after today's earnings release this long term investment just became even longer for anyone who plans to hang on to any shares.
Simply awful. Ivan had the nerve to say that this would look like a different company in 6 months when business was being negatively impacted by the TCPA? Maybe he plans to sell the co?
The release reads as a bad excuse for poor sales. When the "mobile sector" is smoking hot, all they have is excuses. It really is unbelievable. After reading this earnings release I almost don't care what they have to say anymore, but I will tune in this afternoon, possibly the last time I listen to one of their calls as it sounds like the company is going nowhere fast. The only thing that will save shares from tanking tomorrow is great guidance, but it seems clear that we wont get that today.
I'm looking to see Hipcricket post more office celebration photos on Twitter after today's call! We are now 3 months into the 6 month time frame, HIPP has seemingly made some big moves but has told us nothing of monetary value aside from the amount our shares were diluted.
Today might be the day Hipcricket finally turns the corner and begins to stake its claim in the mobile sector. We have all been waiting long enough, but due to past conference calls I would guess we will all be left waiting for the Q4 call after this afternoon.
I went back and listened to October's call again today. Ivan stated that Q3 and Q4 would bring them to meet their guidance. Since then, waiting over the last three months to hear anything about Q3 has been painful but all will be forgiven if they report a great quarter tomorrow! It will be interesting to compare their tone on the call tomorrow compared to October considering that Ivan also stated that we would be a totally different company in six months! The whole market is skeptically waiting to see how much of that progress has been made- it is time for him to start delivering. Maybe they will throw us a bone and provide some insight into the MM, MGM or the Google/Mondelez deals? Or perhaps they will shed light on their performance for Q4?
I still want to see them raise guidance for Q4, for a number of reasons, but I will remain focused on the Q3 data which is all we will likely get tomorrow.
Wow. With all the buzz around the mobile 'sector' in the past month, it amazes me they have not made any more of an effort to get their name out to potential investors. It is as if management is doing all it can to suppress share price in the hopes someone will buy us out cheap and, in doing so, alleviate them of their responsibilities. One thing that has been bugging me is that Hipcricket finally started a YouTube account this year, but their "new" videos feature accounts that are very old news to the market: Ford, Nissan, MillerCoors. Nice accounts? Yes. News? No. It feels like an attempt to gloss over the lack of recent developments.
In just about 1 week we will know if they have been executing or simply blowing smoke all year. I'm surely not the only one who is getting sick of waiting.