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An old interview with CEO of DCMT:
Earnings should be out soon. Stock is frustratingly forming a pattern, it seems inclined to retrace back to 25 cents just before earnings.
Mngmnt should sell the company or do a buyback. There seems to be little interest in this company despite the apparent good execution of the last 2 years.
I will be out of DCMT. Giving it a few more quarters. If stock doesn't move up by next year, I'll sell and move on.
Hope that you are doing well gettingby.
Might see a bump up today. Earnings are next week. And that will determine where we really head. Let's see what Coats has up his sleeve.
The stock was poised to break 1, hanging in the 90's. Then the unexpected downgrade came and soured the technicals for 3 months.
I don't have them now. Check with Geronimo. He might have it.
Yes and if Steve Dyer of Craig Hallum likes the recent resignation/cost cutting, he might just upgrade the stock. It is a possibility. High operating expenses for such a small sized company was the main reason for his downgrade about 3 months ago.
A lot of the small cap stocks that I follow, are doing nothing, despite apparent positive developments or dirt cheap valuation because of negative biz performance. This has been going on for about a year, according to my observation. There is no grace for misperformance.
So as with ABTL, you have to be super patient. Just hope things will improve in a couple of years or so with small caps.
Ironically, the Russell index is at a high.
The quarter should be fine as they did a big buyback and RS. Question is what will the future, upcoming quarters look like? They have struggled to break 16m revenue. And with the European economy faltering and AAPL reporting poor numbers after a long time, I am personally not too optimistic about guidance for the upcoming quarters. We wouldn't mind a positive surprise, though.
The stock is cheap (just $30m EV) and they should just sell the company, I feel if guidance is nothing special.
Management's reluctance to buy at this level, in a meaningful amount, is baffling. Especially, considering that Coats spoke of selling the company. Should be easy money from here, right? Yet the hesitation to buy. Wonder why? What are they really thinking?
Usually, most companies are not permitted to buy around earnings report date as the buyback window is closed for a short term.
Also the recent average volume (RAV) is used to determine how much a company is permitted to buy in a given day. Usually it is a small fraction of the RAV. However, I have also seen companies buy huge blocks in a day. So am not really sure how a buyback is actually carried out.
Stock looks very cheap at this price. Patience is the key.
Volume has been miniscule last couple of days. Buyback, if not yet finished, should be on hold now as they are close to reporting earnings. Let's see when volume picks up.
Combined they bought worth 4500$.
http://finance.yahoo.com/q/it?s=ABTL+Insider+Transactions
On the flip side wonder what kind of ridiculously costly severance package have they got even though they are resigning. It depends upon the terms of the employment. Resigning is better than layoff in terms of costs for the company.
Those 2 positions alone were costing about 700k. And they must have got other perks as well.
http://finance.yahoo.com/q/pr?s=ABTL+Profile
Trim the fat. Too much salary for a long time for so little performance
More importantly, atleast 8 cents per year to EPS gained just because of these 2 positions.
As the RS was pushed** into July, it hints of a pretty decent quarter. Management knew by end of June/closing of quarter (when the decision to go RS was made) what the numbers would be. Plus the buyback too hints of a decent quarter.
On the flip side, the lack of insider buying at this price, hints of lack of visibility down the road.
pushed** == They still had a few more months before the delisting would have been in effect
Sellers have popped up over the last 2 days. Selling now at 71 cents pre split.
Stock is too cheap now. But still some institution is keen on selling
Agree. EV is 30m or so. Unless Coats really screws up going forward, it is hard to see the current stock price not eventually returning a good gain.
Unlike this stock (which has a strong affinity to gravity and so is proving costly as it keeps going down), dreaming is free. Well, almost, as long as I don't day dream i.e.
At 3.5$, the stock's EV is less than 30 million.
Coats needs to get a rabbit out. For RS hasn't brought about a change in volume/interest in the stock yet. Coats must be really thinking what more can I do? I suggest: Buy some stock with your own money Coats.
Back to 27cents, the low end of the trading range. Disappointing.
Wish mngmnt does a buyback. Stock has gone nowhere now for the last 2 years, despite biz seemingly being good.
Would be real nice if we can get a "ABTL raises guidance, PR" in the coming days.
Oddly the symbol is still ABTL and not ABTLD, as is the norm after a RS. This may cause confusion and chaos today as the symbol is not the expected post RS symbol ABTLD.
////////////////////////
Autobytel announces effectiveness of 1-for-5 reverse stock split
The Company’s common stock will begin trading on a reverse stock split-adjusted basis on the NASDAQ Capital Market as of the opening of trading on July 12, 2012. The common stock will continue to be reported on the NASDAQ Capital Market under the symbol “ABTL,” with 05275N205 as its new CUSIP number.
Yes around 3.75. Should be close to .75 * 5 depending on where it closes today.
Thanks for ferreting the info.
Stock, looks like it wants to head to 20s again.
Thanks. Crystal and DCMT have a deal to produce reports for DCMT.
The market/investment funds is telling us it is not impressed. Top line hasn't grown meaningfully in a long time. Revenue has touched 16m now with the help of acquisition.
Operating expenses remain high. Steve Dyer threw in the towel finally after having ABTL on the alpha list for a long time. Stock didn't move much from his 1$ initiation a few years ago (except the spike to 1.5 last year which was more due to momentum traders piling on that particular week of the spike).
http://www.chlm.com/Steve_Dyer-51.cfm
Stock is cheap. And can double from here if top line increases meaningfully. Will we see a 18m revenue qtr? That could be a big positive.
Need to be super patient.
Also hope Coates doesn't do any crazy acquisitions.
Funny.
But current price of ABTL is not funny.
Yes it always takes a while to digest any acquisition. But most management will often paint a rosy picture about the synergies. And then reality hits a few weeks/qtrs later.
After R/S, another avenue opens to management and which can be potentially a negative to shareholders. They can issue more shares and raise cash to do acquisitions.
The sooner the company is sold the better, I feel.
The only other positive, apart from staying listed on Nasdaq, is that some funds that restrict themselves from buying sub 2$ and sub 5$ stocks will be able to buy. But on the flip side, high prices will attract short sellers waiting to pounce on a bad qtr.
The other negatives are well listed in your posts.
Let's c where we are in a year's time.
If management had decent visibility they would have bought a lot at these prices. They haven't. And even when they have spoken about an eventual sale of the company. This fact too hasn't got anyone excited enough to buy heavily.
A bad qtr can take the stock lower from here. That is my worry. Decent last few quarters have done nothing. Imagine then what a bad qtr will do.
Let's c at what price management ultimately sells the company.
About 8.7m shares outstanding after the split. Let's see what happens in a year's time.
Reverse split confirmed. 1 for 5. In about 2 weeks.
http://finance.yahoo.com/news/autobytel-announces-1-5-reverse-211500406.html
Back to 31 cents. Oh well.
You are like a mouse, can ferret any information.
Roaring 40s is what I want next
New buyback.
Autobytel board authorizes $2M for share repurchases
This new authorization follows the completion of an earlier stock repurchase program under which the company repurchased approximately 1.9 million shares of its common stock for an aggregate purchase price of approximately $1.5M at an average per share purchase price of $0.766
http://finance.yahoo.com/news/autobytel-board-authorizes-additional-2-124500332.html
I have racked up enough shares over a long time. Now would like to see a push past 40 cents. A buyback will certainly help.