Seeking Alpha
View as an RSS Feed

Mark Gomes  

View Mark Gomes' Comments BY TICKER:
Latest  |  Highest rated
  • Poised To Triple Portfolio Updates [View article]
    I agree with what you are saying in the way you are saying it. However, most investors don't trust management's strategic direction and initiatives. In those cases, where there is no visible data to support whether the decision is sound or not, you have two choices: believe yourself or believe the person that was hired to run the company (and presumably has all the credentials to do so).

    Frankly, I don't have half the skills required to run a large organization, so I will always trust a CEO over my gut feeling (or fears). That's something that many investors can't overcome (partly because of the pain of rare and extreme examples, where things go horribly wrong).

    Personally, I feel bad for those who can't adopt a winning investing attitude, but I'm simultaneously thankful for it. Without that, everyone would be a good investor and I'd never get such great opportunities to "buy low" ;)

    Cheers!

    Mark G.
    Feb 13, 2015. 11:39 AM | Likes Like |Link to Comment
  • Mattersight Reports Strong Q4 Business Activity [View article]
    Only subscribers get that info ;)
    Feb 12, 2015. 08:16 PM | Likes Like |Link to Comment
  • Mattersight Reports Strong Q4 Business Activity [View article]
    Too early to say or worry about. Some things need to be addressed and some things do not. At this stage, I think those things fit into the latter category. We should be thinking of MATR like a private company and thinking of ourselves as its VCs.

    It's a different mindset than what is appropriate for well-established public companies.
    Feb 12, 2015. 08:16 PM | 2 Likes Like |Link to Comment
  • Poised To Triple Portfolio Updates [View article]
    1) I trust management's decisions. Also, I don't believe in "concern". That's an emotion, which has no place in investing (I hope that didn't come across harshly).

    2) I'm not surprised. GLUU and MATR went down down down until they actually announced their results ;)

    Cheers
    Feb 12, 2015. 11:39 AM | Likes Like |Link to Comment
  • Mattersight Reports Strong Q4 Business Activity [View article]
    Recall what I said in the article re: "This is exactly what happened to ATTU on its way from $3 to $10. That 200% move happened in just 17 months, during which time it "missed" its earnings number no less than three times. When it did, it was common to see ATTU's shares sell off at the open (which is affectionately known as amateur hour) before recovering throughout the day, as savvy institutions made the proper analysis of the situation."

    Well, don't look now, but that's EXACTLY what MATR is doing today.

    Now up nicely on the session :)
    Feb 12, 2015. 10:18 AM | 2 Likes Like |Link to Comment
  • Mattersight Reports Strong Q4 Business Activity [View article]
    Bazooka,

    I don't understand. Burn rate is cash flow and cash outflow is needed to hire people. For the sake of this discussion, cash burn and SG&A are tied at the hip, so I can only reiterate what I said.

    Cheers,

    Mark G.
    Feb 12, 2015. 09:53 AM | 1 Like Like |Link to Comment
  • Mattersight Reports Strong Q4 Business Activity [View article]
    Bazooka,

    As I stated in the article, they are hiring like crazy. Which would you prefer to see today... a profit or a lot of hiring? Because obviously you can't have both.

    Hiring costs a LOT of money. Hiring requires resources and and recruitment fees. Similarly, ramping a new hire requires training and time (during which the new hire is unproductive). This is why I said (in the article) that novice investors don't understand how a business works.

    If MATR felt the need to double their workforce tomorrow, would that be good news or bad news? If I tell you that hiring that many people would double their SG&A, without an immediate impact on revenue, would that change your mind?

    It shouldn't, because that's EXACTLY how hiring works.

    So, I ask again, is accelerated hiring bullish or bearish? ;)

    Let the Yahoo chat boarders act as they will. There's a reason why they're wasting time on the Yahoo chat boards and not making phone calls with CEOs, CFOs, and Harvard experts. You would think that the ATTU experience would have taught that lesson, but again, I can't force anyone to learn something they don't want to learn.

    They are 100% entitled to do as they please and I respect that God-given freedom (of course, that assumes that they are being sincere on those boards and not just trying to scare other people out of their shares)...

    I don't worry about where the stock goes in the short-term. Just as the past four months have demonstrated with stocks like GLUU and AERO, when investors sell for the wrong reasons, it just provides the opportunity to buy more and make quick and massive profits when their errors are revealed and stock prices revert to where they belong.

    Most of the time, that's exactly what happens, which is why a small number of investors (like Buffett and Icahn) become rich, while the rest struggle to beat the market.

    Hope that helps!

    Mark G.
    Feb 12, 2015. 08:12 AM | 1 Like Like |Link to Comment
  • Mattersight Earnings Preview [View article]
    Tim,

    Paul is dead on. As I stated early in this article, sales and EPS aren't the numbers investors should be looking at. Professional investors understand that there's a lot more to a business than that.

    Specific to MATR, bookings (which were a blowout) are far more important than revenue (and even though revenue was a "beat", I don't care about that metric). As for EPS, management stated on the call that they could have "made the number" if they wanted, but instead opted to invest more $$ into attacking its opportunities (which are so plentiful that they have already hired TWENTY additional employees this year -- in other words, they're swamped).

    I'll have more details in my full report in the morning. In the meantime, I can't force you (or anyone else) understand what I've just said, so we'll see how the stock reacts... but I will say that the consensus amongst professionals is that MATR is a double-digit stock in the making. As such, if it sells off, it will just create the opportunity to buy (or buy more).

    FYI, the same thing happened with ATTU on its way from 3 to 10, which happened in just 17 months (during which it "missed" its earnings number no less than three times).

    Being able to identify these things is just one more difference that separates trained professionals from the masses... otherwise, there'd be no need for the analysis I provide ;)

    Cheers!

    Mark G.

    p.s. To answer your question -- yes, MATR has been one of my top 3 positions for almost a year now. I expect that to be the case for years to come (barring acquisition, which is very possible). I'm very happy with how management is executing.
    Feb 12, 2015. 12:30 AM | Likes Like |Link to Comment
  • Mattersight Earnings Preview [View article]
    I was. The answer was too extensive to discuss here, but it was incredible. You should check out the replay. There were a couple of minor disappointments, but that was offset by a TON of positives. I can never predict near-term stock movement, but this was a VERY bullish call :)
    Feb 11, 2015. 06:23 PM | 1 Like Like |Link to Comment
  • Mattersight Earnings Preview [View article]
    I'm providing additional commentary LIVE on Twitter. Suffice it to say, everything is going well and is being well-received.
    Feb 11, 2015. 05:35 PM | Likes Like |Link to Comment
  • Mattersight Earnings Preview [View article]
    I'll write my analysis of $MATR earnings for Seeking Alpha tonight... but weighing the many pros against the one or two cons, my article will surely be positive.

    FYI, from what I see the EPS "miss" was due to making additional investments in reaction to rising demand. If I'm right, this is exactly what happened to ATTU on its way from 3 to 9. ;)
    Feb 11, 2015. 04:48 PM | 6 Likes Like |Link to Comment
  • Mattersight Earnings Preview [View article]
    Top line beat, with very positive commentary. Can't wait for the call!
    Feb 11, 2015. 04:21 PM | 2 Likes Like |Link to Comment
  • Mattersight Earnings Preview [View article]
    Loved the pre-announced metrics. Revenue and EPS are irrelevant (regardless of whether they are great or so-so), because they are determined by accounting rules, not bookings.

    The most important thing is what management says on the call. I'll be on it and try to ask a question or two.

    Stay tuned... :)
    Feb 11, 2015. 04:01 PM | 3 Likes Like |Link to Comment
  • Poised To Triple Portfolio Updates [View article]
    Broker,

    I appreciate what you're saying, but the loses in my picks over the past four months have not been based on fundamental weakness, but rather investor sentiment.

    Indeed, after the Q3 reporting season I stated that I was VERY happy with the earnings performance of each of my picks. I didn't, don't, and will never have the ability to make people see things the way I do.

    Of course, that's probably why most people don't average 35-40% a year for two decades running...

    As for being silent, I'm an analyst, not a cheerleader, megaphone, or messiah. When there's nothing new to report and a mob creating a din, the best thing for someone like me to do is not fight against it. Rather it's best redouble my focus on what got me here: research and wait for reality to reveal the truth (as we have seen over the past week).

    Besides, my paying subscribers can attest that my newsletters have continued to come out every week as always, so I haven't exactly been silent ;)

    I hope all is going great for you!

    Mark G.
    Feb 11, 2015. 11:16 AM | 5 Likes Like |Link to Comment
  • Poised To Triple Portfolio Updates [View article]
    Great comments, folks. FYI, I'll be hosting a Live Q&A session for the public (it's usually for customers only) tomorrow night at 7PM ET. You can RSVP here: http://bit.ly/1CfQOds

    Cheers!

    Mark G.
    Feb 10, 2015. 11:03 PM | 1 Like Like |Link to Comment
COMMENTS STATS
2,062 Comments
1,776 Likes