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Velti (VELT -8.3%) is off sharply after receiving a downgrade to Neutral from Janney, which...

Velti (VELT -8.3%) is off sharply after receiving a downgrade to Neutral from Janney, which cites ongoing weakness in Europe. The mobile ad agency, which reports after the close on Nov. 14, derived 55% of its Q2 revenue from Europe (including the U.K.). Americas sales, which made up 29% of revenue, are growing much faster.
Comments (3)
  • Stone Fox Capital
    , contributor
    Comments (5779) | Send Message
     
    just b/c Europe is having ongoing weakness doesn't mean that VELT will see weakness. The company is not dependent on GDP growth in Europe.

     

    Why people follow these analysts are beyond me.
    5 Nov 2012, 12:49 PM Reply Like
  • rockitman
    , contributor
    Comments (3) | Send Message
     
    Well, I wonder why this is being killed. What happened to the $10-$13 run up everyone was talking about prior to 11-13-12, which is now 11-14-12. It's very scary for the ones that have been here since it started taking off from $4.99.
    5 Nov 2012, 01:51 PM Reply Like
  • Saul Rosenthal
    , contributor
    Comments (10) | Send Message
     
    Rockitman, Let's see what's scary:

     

    Last quarter: Revenue of $59 million, up 73% and up 13% sequentially from $52 million.

     

    Revenue less 3rd party costs (Gross Margin) of $38 million, up 60% (and resulting in a gross margin of 64% as a percentage of revenue).

     

    Adj EBITDA of $6.2 million, up 100% (!) from $3.1 million year over year, and up 35% sequentially from $4.6 million!!!

     

    Sorry, I don't see what's scary.
    5 Nov 2012, 02:26 PM Reply Like
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