Post by
stocksnbonds on Aug 17, 2016 2:46pm
long way to go still.......
Was told by a broker that 4 million shares were not taken up by investors during the $2.75 financing. Firms involved in the financing not able to convince shareholders to buy and hold in accounts were likely dumping the shares over time in addition to some shorting by others. The $2.75 financing was not a success. CEO had to step in recently and did with personal buying. The street now wants to see results. The street expects over 30 million in revenues for Q2. I didn't calculate nearly as much.
When I saw that last dilution yesterday, I was pi$$ed but understood it was to close a former deal.
I hope Matt now sees he can no longer go to the markets until he can prove NYX is capable of producing not just revenue growth but cash flow growth and most importantly, profits ! Imagine that, running a company and being profitable. What a concept !
The nice thing about the share price is that Matt Davey and senior management are fully aligned with shareholders and are feeling our pain. No more buying sprees -- no more acquisitions. Integrate OpenBet, cross sell, find new licensees, grow the business and become profitable. Personally, I'd start looking at head count. Lots of redundancy across all the offices. The company may be too "fat" at this point. That's just me though.
Thanks to those posting short and house positions. Very helpful data.
sb
Comment by
Froyalmac09 on Aug 18, 2016 8:39am
I don't think $30 M in rev is too optimistic for Q2. They had half a quarter of OpenBet which might be $12 M and last quarter they had $20 M in revenue. Comparing to Q2 of 2015 is not the correct assumption as they did crypto acquisition in second half of 2015. So I think correct base to use is $20 M then adding acquisition contribution.
Comment by
maypeters on Aug 18, 2016 8:45am
Matt said on his interview with BNN that no more acquisitions for next year and half .. Focus is on integration of Open Bet & moving to TSX. Once we move to TSX ... Dual LSE listing may follow in the footsteps of IT Matt is heavily invested in NYX & patient investors will be rewarded ... Will just take longer time that I thought GLTA