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Kevin Porter

Kevin Porter
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  • 3 Shorts With Near-Term Catalysts [View article]
    From 2006 to 2010 Montage had a significant net loss each year.
    For example in 2010 it had negative net margins of - 28.5% which is quite harsh.

    Then in 2011 it started a distribution agreement with the magical LQW distributor (which was incorporated in October 2011, the exact same month MONT claims to have started doing business with ...) and thanks to this it suddenly started to have ramping revenues, ramping margins and positive earnings, while the other 2 distributors Qinuo and CEAS didn't experience this at all.
    Gross margin more than doubled in just 1 year from 26.9% to 54.6%.
    MONT never explained how this was achieved in 2011.
    LQW currently doesn't even have a website which is really ridiculous.

    Then in 2012 and 2013 the performance improved even more always thanks to LQW and MONT now claims to have about 63.5% gross margin which is far far higher than any competitor. This is absurd at best.

    We are already 70 days after the Gravity Reserach report and Montage has still to answer all the key points of the report and is delinquent in regard to SEC filings, the 2013 Annual Audited 10-K report was not filed on time.
    Montage hired Jones Day to conduct an independent review as if its official auditor PricewaterhouseCoopers Zhong Tian LLP had resigned and couldn't continue its job.

    Valuation:
    I believe MONT’s largest distributor (LQW) is a shell company and MONT’s claimed revenue is not real. MONT's revenue is probably somewhere in the 30M/year area, net margins are probably negative and growth close to flat.
    With this kind of margins and growth MONT should trade at less than 1x sales. Let's be nice and use 1x sales just like STMicroelectronics (one of MONT's competitor) which is a solid company paying a good dividend each quarter.
    30M x 1 / about 30M fully diluted shares = $1 a share.
    $20 longs are totally nuts.
    Now add all the future legal expenses due to this mess (for example NQ, which is in a similar situation, is paying 8M legal costs a quarter) and you have a company close to bankruptcy.
    Apr 18 02:17 PM | Likes Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    $4 is actually very generous to longs, let me explain it a little better

    From 2006 to 2010 Montage had a significant net loss each year.
    For example in 2010 it had negative net margins of - 28.5% which is quite harsh.

    Then in 2011 it started a distribution agreement with the magical LQW distributor (which was incorporated in October 2011, the exact same month MONT claims to have started doing business with ...) and thanks to this it suddenly started to have ramping revenues, ramping margins and positive earnings, while the other 2 distributors Qinuo and CEAS didn't experience this at all.
    Gross margin more than doubled in just 1 year from 26.9% to 54.6%.
    MONT never explained how this was achieved in 2011.
    LQW currently doesn't even have a website which is really ridiculous.

    Then in 2012 and 2013 the performance improved even more always thanks to LQW and MONT now claims to have about 63.5% gross margin which is far far higher than any competitor. This is absurd at best.

    We are already 70 days after the Gravity Reserach report and Montage has still to answer all the key points of the report and is delinquent in regard to SEC filings, the 2013 Annual Audited 10-K report was not filed on time.
    Montage hired Jones Day to conduct an independent review as if its official auditor PricewaterhouseCoopers Zhong Tian LLP had resigned and couldn't continue its job.

    Valuation:
    I believe MONT’s largest distributor (LQW) is a shell company and MONT’s claimed revenue is not real. MONT's revenue is probably somewhere in the 30M/year area, net margins are probably negative and growth close to flat.
    With this kind of margins and growth MONT should trade at less than 1x sales. Let's be nice and use 1x sales just like STMicroelectronics (one of MONT's competitor) which is a solid company paying a good dividend each quarter.
    30M x 1 / about 30M fully diluted shares = $1 a share.
    $20 longs are totally nuts.
    Now add all the future legal expenses due to this mess (for example NQ, which is in a similar situation, is paying 8M legal costs a quarter) and you have a company close to bankruptcy.
    Apr 18 02:13 PM | 2 Likes Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    Fifth-letter identifiers on the Nasdaq http://bit.ly/1eQvMKN

    E- Delinquent in regard to SEC filings
    Q- Bankruptcy

    imo MONT will become MONTE next week and MONTQ just a little later
    Apr 18 09:53 AM | 1 Like Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    rickeespal don't focus on timing, this thing will be dead sooner or later

    just wait until it's at least $4 or lower then cover
    Apr 17 07:19 PM | 1 Like Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    MONT will be $4 soon, maybe even lower, maybe even below $1

    $20 Longs are totally nuts
    Apr 17 11:54 AM | Likes Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    yes, no doubt
    Apr 16 11:25 AM | 1 Like Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    really pathetic
    Apr 16 07:50 AM | Likes Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    gotta love it :)
    Apr 15 03:32 PM | 1 Like Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    if they can't file the audited SEC 10k on time before Tuesday April 15 final deadline, then it's gone
    Apr 11 06:10 PM | 1 Like Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    We will know very soon

    An extension (Form 12b-25) of up to 15 calendar days is available for Form 10-K. The extension period begins to run the day the report was due (March 31 in this case). No further extensions are available.

    So Montage has only up to April 15 to file the annual report.
    Apr 10 03:25 PM | 1 Like Like |Link to Comment
  • 3 Shorts With Near-Term Catalysts [View article]
    Good Article

    Re MONT, I think there is not a single chance that the Pudong deal will be completed

    Pudong couldn't even outbid Tsinghua's bid (2.0x sales) for RDA, Pudong is not buying MONT for more than 5x sales

    MONT margins are extremely questionable, it is the only company in its sector with such very high margins
    Apr 1 08:27 AM | 1 Like Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    @ anti-gravity lol


    what about the hugely high margins that only Montage in its sector can achieve ?


    is there an 'hidden chinese steve jobs' working for them ?
    Apr 1 08:21 AM | 1 Like Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    if the SEC won't halt the stock, next week they will report a non binding offer coming from Mars or Jupiter :)
    Mar 31 11:03 AM | 1 Like Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    ChinaWind
    business is business everywhere,
    $ is $ everywhere

    MONT fully diluted shares about 28M x $21.5 = about $600M

    In china they don't throw away 600M just to have fun, believe me

    Pudong couldn't even outbid Tsinghua's bid (2.0x sales) for RDA, Pudong is surely not buying MONT for more than 5x sales
    Mar 31 09:50 AM | Likes Like |Link to Comment
  • Montage Technology: The SoC You Can't See [View article]
    This company is really VERY VERY ridicolous

    They can't even file 2013 10k but at the same time they are forecasting 2014 Q1
    Mar 31 09:32 AM | 2 Likes Like |Link to Comment
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