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Though it opened higher after delivering a Q1 beat, Velti (VELT -25%) has since crashed. The...

Though it opened higher after delivering a Q1 beat, Velti (VELT -25%) has since crashed. The mobile ad agency's Q2 revenue guidance was above Street estimates, but its 2012 guidance of $283M-$296M was only in-line with a $289.5M consensus, and could be disappointing some. Needham (Buy) likes Velti's strong Q1, but notes its cash balance fell 46% Q/Q, and thinks investors want to see an improvement in Velti's revenue collection - trade receivables rose 20% Q/Q to $85.5M.
Comments (3)
  • The Illogical Investor
    , contributor
    Comments (7) | Send Message
     
    Looks like the cash spend was one time against acquisitions and facilities capex.
    16 May 2012, 01:27 PM Reply Like
  • scottkstegall
    , contributor
    Comments (3) | Send Message
     
    Has to be a near panic liquidation from a large seller today that took the stock down to these levels.... the news is not that bad... and the mobile market is still in its infancy... gotta believe when the fear is gone the rebound is worth a gamble...
    16 May 2012, 01:49 PM Reply Like
  • johnbee
    , contributor
    Comments (533) | Send Message
     
    I have followed this stock for two years and it is now back where it started. The problem is the incapability of the management to run a US listed public company properly in PR terms or any other. There have been a number of confidence crises, including some bad accounting around the time time of their IPO which needed correction. Their phone conferences are a disaster with their Greek CEO babbling away at breakneck speed in an unintelligible manner. In addition there has been talk in the trade about staff layoffs and unhappiness due to poor management, and not least Velti has 400 employees situated in Athens Greece which right now is a flashpoint of trouble. Many of the stock sales have come from employees who were given stock in the IPO.

     

    It is clear that the IPO money they got went to their heads and they have not stopped buying since. Why so of they have good internal growth? Any figures are dubious as with so many acquisitions it is near impossible to understand what the true direction is, and I would imagine that management are up to their necks in trying to co-ordinate their staff in their new acquisitions, rather than concentrate on their core business which it seems they can never make a profit on. They need new professional management to be appointed to their board of very high calibre to give some re-assurance that the management are in control.
    The current worry is that they will very soon run out of money,
    and a stock price that has shot up and down between $5-$20 often losing half its value in a week, as happened this last few days, is not conducive to anyone making a serious long term investment. This is for brave speculators only.
    17 May 2012, 02:26 AM Reply Like
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