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Charles Moscoe

 
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  • Sizmek: The Profitable Ad Tech Company That Nobody Is Talking About [View article]
    Which of these peers expense software development costs? In my experience, expenses generally refer to operating expenses but if software is being developed those costs would be capitalized. Like the labor cost for assembling a house would be capitalized. Also I did some research on this just to be sure and if the software development adds future value it is capitalized. See this from Stanford.edu accounting:

    http://stanford.io/1BP...
    Oct 7 09:01 PM | Likes Like |Link to Comment
  • Facebook May Become Bigger Than Google AdSense [View article]
    Just an update on my comment here and the early failure of Atlas to attract publishers as I suggested would happen:

    http://bit.ly/1qbUa8e
    Oct 7 06:36 PM | Likes Like |Link to Comment
  • Sizmek: The Profitable Ad Tech Company That Nobody Is Talking About [View article]
    SZMK got a competitive boost today by reports on the early failure of Atlas to gain traction with publishers:

    http://bit.ly/1qbUa8e

    This really accentuates the unique strategic positioning of SZMK as the neutral independent open stack ad management platform.
    Oct 7 06:34 PM | Likes Like |Link to Comment
  • Sizmek: The Profitable Ad Tech Company That Nobody Is Talking About [View article]
    Again this is off the top of my head (and I could be off on this number) but the $12M in one-time costs related to the spinoff is discussed in the Q&A of that 3 hour analyst presentation which I linked to in the article. I will listen to it again shortly. Right now the tech focus at Sizmek is to integrate all of the separate parts that make up Sizmek MMX in to an SaaS self-service solution. I know that Aerify Media is being integrated this quarter, so that development would naturally be capitalized. Remember that Sizmek is composed of a number of platforms so integration (which is capitalized) is a big part of the story over the next few years. The SaaS solution should be done in 3 years, but until then I'd expect for more capitalized development relating to that. I'm going to look in to this more but this is my best answer right now on this topic based on my research up to date. Thanks for reading.
    Oct 7 06:24 PM | Likes Like |Link to Comment
  • LookSmart: A Failed Business, No Cash, And No Options Equals A High-Conviction Short [View article]
    I have no opinion on the stock but Atlas isn't a competitor for Clickable. Clickable is more like something Vocus offers, an SMB dashboard. It doesn't seem enterprise at all. Atlas is an ad server which is driven by Facebook traffic. I think two entirely different products.
    Oct 7 05:47 PM | Likes Like |Link to Comment
  • Sizmek: The Profitable Ad Tech Company That Nobody Is Talking About [View article]
    Hi Ouissam,
    Sizmek capitalizes servers and equipment. I think that is normal. Remember they aren't a media trading company and have a ton of servers all over the world, running a massive ad server. Sizmek is an execution company and makes transaction fees. There is a giant physical infrastructure to support this outside of the software that runs it. I imagine that the bandwidth is expensed while the actual equipment is depreciated. This would be like any "cloud" company. I think you will find that Rubicon Project which also has significant server infrastructure does the same. As far as cash flow, that was impaired this year from costs related to the spin-off. I believe off the top of my head that was $12M in one-time costs this year related to that. It is the EBITDA and the increased operating leverages that I find compelling here.
    Oct 7 05:33 PM | Likes Like |Link to Comment
  • Brightcove Is A Pure Play On The Rapid Secular Growth Of Online Video [View article]
    I don't know why I keep responding to your trolling, but clearly you cherry picking as I've written a number of short articles, with gains of up to 95% on the best one (said short from $37 to now $1.50). So saying they are not relevant clearly proves that you are being very selective to your benefit. I'm definitely not a short term technical trader. You can count my trades on one hand last year. This year a little more trades as the market has been so volatile that I'm being a lot more nimble and actually being forced to sell some gainers prematurely to cover losses in some other stocks. While I'm up significantly this year, the past 2 months has been very difficult. This will be my final comment on this matter.
    Oct 7 05:16 PM | Likes Like |Link to Comment
  • Brightcove Is A Pure Play On The Rapid Secular Growth Of Online Video [View article]
    If I wanted to suggest a stock as a trade, I would clearly list it as such. Picking an entry that is perfect every time is impossible. I've been down 50% on stocks only to see a rebound of 1000% a year later. Small caps, particularly internet like I write about, are very volatile. I try to get in as low of an entry as possible but what I write about are generally out of favor and can just as easily drop more or snap rebound. For instance we bought RUBI a couple weeks ago at about $9.50 and sold at $12.10 literally a week later. Even at $9.50 RUBI does not look exceptionally cheap and there was alot of air below it. It could have dropped more and many people told me it was "too early", but I timed it perfectly and had a massive quick gain. I'm out of RUBI but will continue to trade around that core position as it now again approaches its lows. I'm still bullish on it though but at its current price there are better bargains in the space all things considered. I liked MM last week at $1.70 but didn't like it as much at $2, so I sold. Market value changes the story all the time. I continue to watch every stock I write about and evaluate them constantly for feasibility. I have held YUME for instance since $6.50 and it is now $4.85 and I've managed to make a lot of money on it still despite the selloff. There are times I change my opinion when presented with new information, this is well documented. I trade (profitably) around a core position. There is nothing wrong with that. This doesn't mean that I've turned bear on it if I'm not constantly updating my position. If I write about something as a long then I believe the story, but it takes time for it to play out. Day to day low volume moves are just noise. Lately my shorts have been doing exceptionally well, I suggest you check some of them out. Trading is up to you.
    Oct 7 04:44 PM | Likes Like |Link to Comment
  • Facebook roundup: Anonymous app, mobile ad network, Atlas [View news story]
    SZMK the major benefactor of the FB Atlas failure to attract publishers. The only independent open full stack. I've been saying over and over that publishers do not trust FB with their data. SZMK strategically well positioned as a neutral third party here.
    Oct 7 03:04 PM | 1 Like Like |Link to Comment
  • Sizmek Is An Undervalued Spin Off With A Strong Balance Sheet And Growth Prospects [View article]
    Does not surprise me. On an EV/Sales multiple it trades at 1/5th of Conversant where it was acquired a few weeks ago. Conversant's MediaPlex is a competitor to Sizemek MDX. Sizmek MDX though is a more potent stack.
    Oct 7 11:28 AM | Likes Like |Link to Comment
  • Sizmek: The Profitable Ad Tech Company That Nobody Is Talking About [View article]
    All the stars have aligned for that to be the end result. It really is a bet somewhat on Meruelo. He has been successful starting from nothing in to forcing the sale of the legacy TV ad business for $485M (which was in decline). Now we are left with the treasured assets of the expanding online business. Meruelo now also controls the board, so everything is aligned with shareholder interest. Theres no bond holders, no other outside interests. Everybody is aligned with the price of common stock going up. Sizmek has a huge footprint with 48 International offices. Thats why they are the only ones getting good operating leverage right now because they have all these offices opened right now and meanwhile the other independents have to keep spending tons of SG&A to try to keep up. Sizmek also has 20,000 customers, and isn't really affected by the loss of a single one as we saw with YuMe for instance in Q2 which lost a big customer and missed had to guide down FY2014. A lot of diversification, strategic position and real high quality tech fee revenue is the story here.
    Oct 7 10:07 AM | 1 Like Like |Link to Comment
  • Brightcove Is A Pure Play On The Rapid Secular Growth Of Online Video [View article]
    I'm not a huge fan of the OVP business in general as it is heavily commoditized although I think Brightcove is well positioned in it. We don't know to what extent though as Brightcove wont break out its CDN reselling numbers. Its not clear though if Brightcove will ever be profitable. What is clear is that their technology is industry leading and a step-up on Ooyala which was bought for 4 times the valuation of Brightcove. My article here is no glowing recommendation to buy Brightcove and I think my comments have stated that. I think if you want to play in the OVP space though and believe in the secular growth of online video than Brightcove is a good way to play it and its near an all-time low. Last time it got to these levels it tripled off them pretty quickly. Sentiment can change quick but this no stock I'd be "all-in" on.
    Oct 7 09:59 AM | Likes Like |Link to Comment
  • Sizmek: The Profitable Ad Tech Company That Nobody Is Talking About [View article]
    Thanks for reading. I think ultimately, given the disruptive nature of Meruelo for starters, that it will be acquired. He just agreed not to push for this until Q1 2015, but thats only a few months away. I just didn't make acquisition the focus of the article as I believe the company has merit on its own as simply a profitable player in the space like Conversant - which was ultimately acquired at a very favorable EV/sales. Major competitors are DoubleClick, Atlas and Conversant's MediaPlex. Sizmek is #2 in the space and uniquely positioned as independent and open stack. Its really the tissue that holds together the entire ad management ecosystem for a publisher. The open nature of the platform allows publishers to deal with a neutral party and not be forced in to using Google's or Facebook's analytics and giving up all their data, which is ultimately what is most important right now.
    Oct 7 09:30 AM | Likes Like |Link to Comment
  • GT Advanced files for Chapter 11 bankruptcy [View news story]
    I wish people would stop blaming writers for this. I keep seeing a lot of hate for this Matt Margolis. Give the guy a break. He was fooled like everybody else, including every Wall Street analyst. I'm sure he lost a ton of money here also like everybody else (except the shorts). My interest here is solely in passing and wondering due to the bizarreness of this bankruptcy is there a chance that the common shares will be worth something? I've never had a position in GTAT. I don't really know anything about the company or have spent any time researching it. The financials don't look good, but I would never have guessed it would go bankrupt. Any thoughts on a trade here?
    Oct 7 01:13 AM | 4 Likes Like |Link to Comment
  • Why I'm Buying Up Coal Stocks [View article]
    Why did ACI tank today but ANR ran? Which one is the better of the 2? I think ACI looks like the best play in coal all things considered right now.
    Oct 6 08:25 PM | Likes Like |Link to Comment
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