Post by
Vantechie76 on Jul 29, 2015 4:43pm
FWIW
This is my take on what I believe are the "facts" around VID. About me: I've been following the stock for a long time (before the pump) and I bought in near the beginning of the pump. Didn't sell any at the top but have sold some on the way down. Still a shareholder.
The Pros:
1. Growth in use of video is a secular trend. This is good news for long-term investors if in fact SoMedia has a solution capable of capturing even a small % of the market.
2. The company has "aligned" itself with some big name players (e.g. Google). What the exact relationship is remains unclear. There could be something really big brewing and they are unable to put out PR about it. Or it coud be something small with a lot of hope and future potential. Either way it's not a negative.
3. The stock appears to be oversold and victimized by shorts.
4. Potentially the new CRO can turn things around from a sales perspective. Though it's worth noting he is only listed on the website as "Acting Chief Revenue Officer" so it's unclear if he's there for the long term.
The Cons:
1. The company has been hemorrhaging cash for years and while top line sales figures are increasing the burn rate is still extremely high. Granted, some companies get rewarded for growth at all costs. But it seems like VID needs to start showing either more rapid top line and/or improving bottom line performance.
2. The CEO is a master promoter. If you look at how much capital this company has raised it's pretty impressive. Credit to George for his ability to attract new investors (though at this point the question is "at what price?!?") That being said, in my opinion the company does not have a lot to show for the amount of capital invested. And they can't afford to keep raising money every few months.
3. It feels like the company is getting desperate, both in terms of raising money at $0.10 after they said they would not do it at $0.15 and then the press release that came out today is news that was already issued in June. I realize you gotta do what you gotta do but let''s get some quarterly results issued that show real progress.
Nobody on this board can tell you if this stock is going to 0.05 or 0.15 but it does feel like it's close to a bottom. With all the money recently invested in VID it's hard for me to see it going to zero. Unfortunately I'm worried it's going to end up being flipped for pennies before any sustained move up. So either get in for the long term or buy at 0.07 and sell at 0.09 if that's how you roll. Personally I'm holding until this thing recovers a bit.
Comment by
home001 on Jul 29, 2015 4:57pm
Vantechie: Thanks for posting.