Tangoe down after SA author calls its reporting "a farce," alleges cash position is collapsing


Shares of Tangoe (TNGO -5.8%) are falling after SA contributor The Forensic Factor calls the company's reporting "a farce," with EPS figures overstated by as much as 38% and a dubious restructuring charge inflating results.

The author also takes aim at the disconnect between the company's PRs and revenue generation, noting that annualized incremental revenue per customer has "declined percipitously in 2013" from $410K in 2012 to $109K in 1H 2013.

Another allegation: organic revenue figures are materially misstated with irregularities clouding Tangoe's acquisitions reporting.

The Forensic Factor continues that Tangoe's cash position is eroding (even as the company posts positive FCFs) with the imminent necessity of a follow-on.

What is Tangoe's intrinsic valuation? $3.92/share, the author concludes. Tangoe shares opened at $20.35.

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Comments (1)
  • richie1974
    , contributor
    Comments (15) | Send Message
     
    Finally people are waking up to the tangos fraud. I'm a former employee of Tangoe, Inc as well as Bernard L. Madoff, LLC. I can certainly say these executives at Tangle needs to be in a jail cell right between Bernie and Peter. Where is the SEC during this scam? Probably spending their payoff. Tongoe is nothing more than a Ponzi scheme.
    31 Oct 2013, 06:52 AM Reply Like
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