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  • McDonald's raises wages in U.S. [View news story]
    Don't shoot the messenger. I'm just saying thats what I've heard. Not that I agree with it myself.
    Apr 3, 2015. 11:25 PM | Likes Like |Link to Comment
  • McDonald's raises wages in U.S. [View news story]
    Ask anybody who works at McDonalds the worst thing about working at McDonalds and they will tell you it is the shame associated with working at McDonalds.

    I'm not criticizing anybody who works at McDonalds as I have tremendous respect and empathy for the working poor but that is how they feel. I've have spoken to many employees and prospective employees and this sentiment is universal.
    Apr 3, 2015. 11:06 AM | Likes Like |Link to Comment
  • Rocket Fuel Ready For Takeoff [View article]
    Yes, I can't recall this second where I heard that but it was in one of the conferences where I think George John was talking about using their technology in other industries. I'm certainly not pinning hopes on it or factoring it at all in to my valuation but its an interesting potential catalyst. FUEL stock still remains risky due to pretty sizable negative FCF. Hard to pick a bottom especially with Frankel selling at every chance he gets even at these levels. That to me is a little disconcerting and I have scaled back my enthusiasm based on that.
    Apr 3, 2015. 10:58 AM | Likes Like |Link to Comment
  • Turtle Beach lower following neutral Wunderlich launch [View news story]
    What makes you think that Romano is a seller in the $2.50-$2.70 range?

    Even that range implies SIGNIFICANT upside from current levels.

    He was a seller around $7 to some big institutional buyers very recently who are now majorly underwater.

    I think this stock is ridiculously undervalued. Even more so than SKUL when I was writing about it (and getting ridiculed by the public) saying its a big time buy at $5.

    It is silly cheap right now and I'm going to work on a full report about it shortly. 10K delay spooked alot of investors but it was benign and now out with no surprises.

    Company is in really good shape here and most importantly has the best of the breed products in a market that is about to begin a 5 year super cycle.

    I was thinking that Gamestop could even acquire it as it diversifies away from its core retail business that is more or less stagnant or even in decline. In fact owning the Hypersound technology could be a big boon for its retail operations.

    Curious to hear your high level thoughts on this company? Hardly anybody talks about it but glad to see there is some interest out there.

    I remember when I was covering Skullcandy extensively when it was trading at $5 and everybody said "Turtle Beach owns gaming" and that is true and hasn't changed at all.

    The problem more so is the cyclical nature of the gaming business. But when it is good it is great. I think we are on the cusp of that. At $7 I will become a seller with Romano.
    Apr 2, 2015. 04:04 PM | Likes Like |Link to Comment
  • Support.com Is The Closest You Get To An Internet Of Things Freeroll [View article]
    This article was published yesterday for SA PRO subscribers.

    Agree with you on the cash. I would like to see at least part of it either be returned to shareholders by dividend or through buybacks. I think that will be a major catalyst here.
    Apr 2, 2015. 11:23 AM | 1 Like Like |Link to Comment
  • Support.com Is The Closest You Get To An Internet Of Things Freeroll [View article]
    Hi Brian - Firstly I would enter in to any FCF discussion based on EV as it properly discounts cash. In that case the multiple is closer to 6 on a TTM basis and this includes massive recent capital spending on Nexus. That is why I considered OCF as a more appropriate metric which disregards capex. In this case as I noted it is remarkably low.

    I did note the risk with ODP but this has also been tremendously overstated as the risks were known when the stock was trading over 50% higher.

    We will simply disagree on management as the people I have talked to speak highly of the new CEO. She has requisite experience with Citrix as a leader in SaaS development and rollout.
    I agree with you on the dividend and a major part of my thesis is getting an activist on board to rightfully push for that as it will double or triple the share price.
    Apr 2, 2015. 10:32 AM | Likes Like |Link to Comment
  • McDonald's raises wages in U.S. [View news story]
    Doubt employees would work harder. Even well paid employees do nothing for the most part. Only way to get a hard worker is pay based on performance. So unless McDonalds found a way to incentivize employees based on a percentage of the sales or profits, I can't see employees working harder for the extra $1 an hour.
    Apr 1, 2015. 07:33 PM | 9 Likes Like |Link to Comment
  • Support.com Is The Closest You Get To An Internet Of Things Freeroll [View article]
    Thanks for reading Matthew. Everything has its price where it becomes very interesting. I like SPRT at $2.20 but I absolutely love it at $1.50. I am happy with my entry although as mentioned in the article it could easily continue to drift lower not for any fundamental reason but simply due to lack of investor interest. I love it so much though at these levels that it is a core holding of mine (20% of portfolio). Its hard to pick an entry in stocks like this with little to no conventional coverage but when a company is generating positive cash in a worst case scenario of a transitionary year and has no debt and is trading for basically its cash value I have to draw a line in the sand. The odds favor it not getting all that much cheaper and it is just a matter of time before a big boy steps in here. You can bet they are watching it at these levels. What I suspect will happen is a smaller activist will jump in here and take a meaningful position and be very vocal and disruptive which will be a tremendous catalyst. A return to the $4 area in 2 years seems like a reasonable target with little downside risk IMO. The major risk being loss of a core customer but imagine the effect of a gain of a new core customer? That hasn't even been considered.
    Apr 1, 2015. 08:42 AM | Likes Like |Link to Comment
  • Rocket Fuel Ready For Takeoff [View article]
    I think acquisition chance is low. Most of the majors own their own DSP already.
    Mar 31, 2015. 08:15 PM | 1 Like Like |Link to Comment
  • Rocket Fuel Ready For Takeoff [View article]
    I think it is too simplistic to think that Google will crush everybody. I think that the 130% revenue retention rate indicates that advertisers are happy with the Rocket Fuel product. So their product has a competitive advantage. The problem the company has though is that it isn't clear if they can turn a profit because of their rampant spending - especially on sales. Their sales force is weak and their leadership is non-existent. The engineering side of the business is a success but it is completely mismanaged. Which is why I view the CEO exit as a good thing but it also creates new short-term risks as he left in a hurry meaning that Q1 numbers are probably pretty dismal. I've been negative about Rocket Fuel since $50 but got positive around $9.60. Maybe I'm early though given these new developments.
    Mar 31, 2015. 02:22 PM | Likes Like |Link to Comment
  • Turtle Beach lower following neutral Wunderlich launch [View news story]
    I highly doubt that any insider is going to sell at these levels.

    So right now HyperSound is discounted to zero valuation, which is unfair considering it had a $100M valuation a year ago by Michael Pachter. Since then it has only appreciated in value after receiving various approvals and successful commercialization tests.

    It is on the cusp of being widely commercialized (Q4) and the core headset business is on the cusp of a 5 year growth cycle. It is cyclical but a good business at the right time in the cycle which will really pick up steam from 2016-2020.

    The current market valuation suggests the most extreme pessimistic scenario. I'm a buyer here. I think this can easily get back to $10. Turtle Beach products are by far the industry leader in gaming and that hasn't changed.
    Mar 31, 2015. 02:13 PM | Likes Like |Link to Comment
  • Sizmek Short Squeeze May Be Imminent In The Wake Of Game-Changing Q4 Results [View article]
    From $6s to $8s. Thats a big move pal. A big big move if you have enough skin in the game. What were you looking for a double overnight? LOL
    Mar 29, 2015. 08:52 PM | Likes Like |Link to Comment
  • Sizmek Short Squeeze May Be Imminent In The Wake Of Game-Changing Q4 Results [View article]
    Are you daytrading it? If so you should have sold the spike to mid-$8s in to the hype of the Meruelo letter and the buyback. I made a ton of money on SZMK this year and its not even April yet. What about you?
    Mar 26, 2015. 06:16 PM | Likes Like |Link to Comment
  • Lumber Liquidators Is Evil [View article]
    SA would of course allow this. Reed Hastings wrote an article awhile ago here in defense of NFLX that faced a barrage of attacks.
    Mar 25, 2015. 09:54 PM | 1 Like Like |Link to Comment
  • TubeMogul: It's All About The Numbers [View article]
    I am negative on TUBE at the current valuation but the comscore data is worthless.
    Mar 25, 2015. 04:14 PM | Likes Like |Link to Comment
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