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  • RVLT - More Spin From The Doctors 0 comments
    Oct 1, 2013 10:55 AM | about stocks: RVLT

    I have written on RVLT twice before, warning investors. Today we get another piece of spin. More promises broken, and new ones made. The company today announced they dramatically missed Q3 revenue, despite making two acquisitions during the first half of the year. Weird, how would a company that installs light bulbs, that bought a company that installs light bulbs outside miss numbers?

    Don't worry though they blamed it on some push outs and that they will get that revenue in the 4Q. Retail investors seemed totally unfazed by the massive 3Q revenue miss (missed by 50%), and continue to be sold a field of dreams.

    What i like even more about managements spin machine is the impressive guidance for 2014. But what is funny is that management's fake Pipeline of $150mm is down nearly 90%!!!!!! If retail investors went back and read the press releases from late 2012 they will see that management quoted a pipeline of $1 billion! What happened? $850mm in light bulb installation jobs up in smoke!

    The fable must and will go on for a little. There are always suckers to be drawn in. There are always investors to sell a jakelope to!

    My guess is that organic revenue will continue its current trends of -10% annually. Not the 50% growth management claims.

    Disclosure: I am short RVLT.

    Stocks: RVLT
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