I would say the stock went down after earnings due to one big reason that was shorts. They shorted the crap out of it but have been covering big. The short interest hit 2.4 million shares and they covered a million of that in 15 days. I would say just looking the their current fundamentals they look good. Now debt free, signing on new customers, EPS improving big time, and tons of large players own a big chunk of shares. I mean come on I don't have enough fingers to count the amount of great stocks that have been killed after great earning. Hell we have seen atleast 10 on this board in the last 3 months that had great earnings and have been taken down. Anyone that has been in this market for any time at all knows how the game works. Good companies get taken down to shake out the shares. If large money wants in they want to load cheap so they do what they need to do to take the stock down. That has not and will not change in this market. Its up to us as retail investors to either take advantage or not. As far as the stock getting hit after the IPO it was done for one reason. They needed to bring in new business and many companies were not ready to give it to them since they still needed cash. The CEO even talks about that in the conference call. After the did they sold shares they singed on many new customers. Shareholders took pain out the gate but it was for a good reason.
This was from the CEO on the conference call.
we strengthened our balance sheet with the successful completion of our follow on offering which raised $40 million.
Transactions substantially increased our institutional share holder base, and we believe provides the ample funding for us to execute on our strategy for growth. The offering also generated a significant amount of interest in our technology within our core target market, the global hedge fund industry.
And we had some real challenges with what was a robust pipeline going into the second quarter and in closing contracts we ended up with 20 new clients in the quarter.
And that was really a result of our financial situation of our balance sheet. People were reluctant to sign contracts with us, early in the quarter when they knew we were out on a potential capital raise and strengthening the balance sheet. After all we’re selling to Hedge Funds, Hedge Funds that analyze companies and given the circumstances that we found ourselves in towards the end of Q1, it put a lot of pressure on Robert and his sales team to close transactions.
So the pipeline was very healthy going into Q2. It’s even healthier going into Q3, which we’ll talk about. But that really created a little bit of a headwind for us -- substantial headwind for us. And when we closed the secondary offering on May 20th and obviously made substantial strengthening of the balance sheet, we’re able to close out the quarter with some fairly strong momentum including some very notable wins for us. So, it was nothing more than that, it was really just the headwinds of our balance sheet.
