Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
VELT has tons of customers that pay on more normal terms, but Eastern Europe evidently is in its own world. Don't follow the ad stocks, but apparently the 200 day payment terms are normal. The big issue is whether a client pays for the services on a monthly basis or after an ad program is complete. VELT would run a 90 day program as an example and not bill the client until that was over. The clients would pay within 90 days of the bill, but in some cases the service was provided over 200 days ago.
The real key is not the 90 day payment cycles, but the monthly reconciling and billing. Not waiting for an ad program to end is the key.
Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
You don't know the business model? The issue is that investors complained about the lengthy cash collection cycle and now investors are complaining about the sale of assets that caused that problem. Wall Street can be very fickle. Guess people expected VELT to just force those customers to comply to 90 payment cycles.
The business is growing like a weed when adjusting for asset sales. The market will figure it out soon enough unless the CFO just lays down a massive hammer on a customer base expected to be mostly cleaned up after the Greece sell.
Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
That is fair, but the news at the Analyst Day doesn't change the fundamentals of the company. Cutting off deals that are cash flow positive should be positive news. Wasn't that the complaint about the old CFO?
Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
Great point. Forgot to mention the off the cuff nature of the statement in general. Don't think he meant to spark the reaction that occurred, but CFOs shouldn't make comments about lower EBITDA without an official PR.
The comments were after lunch. Not sure it qualifies as guidance, but the statement was meant to discuss improved cash flow from bypassing deals that were EBITDA positive but cash flow negative.
How the market found that as 30% negative is absolutely absurd. The company though needs to tighten up on whether that was a change to guidance or not.
It was made on a publicly available conference call. Nothing illegal. The real issue is that I believe the company has to file it with the SEC within so many days if the company did change guidance.
The real issue is that I think the market misunderstood the statement. Not how it was over an hour later before the stock dropped.
CFO made a comment about EBITDA at the analyst day that is unclear whether he meant that the number would drop in 2013 or be lower than possible due to the sale of Greece assets.
What he clearly stated is that the company wouldn't chase positive EBITDA deals that didn't generate cash. Otherwise, it doesn't do much good to chase deals that only pay a year later.
IMO, it didn't sound like any update to guidance but it appears the market took the comment and twisted it into a warning.
What do you mean by lack of earnings growth? The company should grow earnings by 35% for the next 5 years. Outside the change in software expenses, earnings would be up 40% this year.
Analysts are overly bearish for 2013. The numbers shouldn't have dropped that much. Buying VELT at $4.60 will provide for huge gains in 2013. Think it is clearly a stock of the year candidate now. Wasn't show sure when it looked like the stock could be closer to $6 at year end.
MM has an advantage of being an independent in the mobile advertising sector. As long as the company provides and equal or better service it should be able to give GOOG a run.
Bounced all the way to $6 this am. Traders could've made a big gain by selling and rebuying back at the 50ema. Still needs to jump to $6.58 to fill the gap.
Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
With a market cap of only $18M, MEDL is too small for me to follow.
Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
The real key is not the 90 day payment cycles, but the monthly reconciling and billing. Not waiting for an ad program to end is the key.
Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
The business is growing like a weed when adjusting for asset sales. The market will figure it out soon enough unless the CFO just lays down a massive hammer on a customer base expected to be mostly cleaned up after the Greece sell.
Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
Velti: Analyst Day Carnage Offers Another Buying Opportunity [View article]
Is The Rebound In Velti For Real? [View article]
How the market found that as 30% negative is absolutely absurd. The company though needs to tighten up on whether that was a change to guidance or not.
Is The Rebound In Velti For Real? [View article]
The real issue is that I think the market misunderstood the statement. Not how it was over an hour later before the stock dropped.
Is The Rebound In Velti For Real? [View article]
What he clearly stated is that the company wouldn't chase positive EBITDA deals that didn't generate cash. Otherwise, it doesn't do much good to chase deals that only pay a year later.
IMO, it didn't sound like any update to guidance but it appears the market took the comment and twisted it into a warning.
Is The Rebound In Velti For Real? [View article]
Is The Rebound In Velti For Real? [View article]
Analysts are overly bearish for 2013. The numbers shouldn't have dropped that much. Buying VELT at $4.60 will provide for huge gains in 2013. Think it is clearly a stock of the year candidate now. Wasn't show sure when it looked like the stock could be closer to $6 at year end.
Is The Rebound In Velti For Real? [View article]
Velti: Secular Growth Overwhelms Cyclical Macro Issues [View article]
Is The Rebound In Velti For Real? [View article]
Is The Rebound In Velti For Real? [View article]
Is The Rebound In Velti For Real? [View article]