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Any news from the hearing?
HAL tried to buy ESPH $80M in 2012 or early 2013 and ESPH turned them down. HAL then stole their 'trade secrets' and began deploying their own product into the market. When ESPH learned of this they sued HAL for $300M and that's the basis for the current arbitration going on in FL. I believe we should know the outcome sometime in FEB of 2014. If ESPH wins the arbitration it will be huge not only from a business perspective, but also for the SP.
Now take that with a grain of salt b/c I also thought the SP would react much more favorably with the new customer (in Canada) announcement so maybe I just don't know what I'm talking about at all...
If you are looking at this on a straight valuation basis I would agree with you. However, if you look at how the industry is currently being valued it's on a multiple of their sales (not net income). Most of the smaller players are not profitable yet in this space and have sold at 10X + their sales. I don't think HIPP will get anywhere close to that number for multiple reasons, but I do think 4X sales is reasonable. I think this Q's revenue number was an aberration, so let's call annual sales $30M (which I think is attainable and in the long run somewhat conservative).
$30M x 4 (sales multiple) = $120M / 155 shares = $0.77 per share.
Now a sale may never happen and this could go the way of VELT, but I think that's unlikely (just my opinion).
They didn't lose clients b/c of the regulations...what they said was that clients chose to stop marketing (ie - using HIPP) until the regulations are better understood b/c they didn't want to unintentionally violate the new FCC rules.
Regardless of that, MGMT should have informed shareholders that business was going to be negatively effected and they did a piss poor job of managing the business this past Q.
That said, this is a unique company with unique capabilities. I also found it interesting that the head of the board was on the call and mentioned they are 'exploring strategic alternatives' or something to that affect. I read that as 'we are quietly shopping the company'.
My buy out guess is around .70 per share in an all stock transaction with MM (possibly Yahoo).
This is going back into the .20's tomorrow. Q4 guidance is flat with Q3. They did say monthly burn is $800K so they should be able to fund themselves for the year...but my guess is that another cash raise is in the cards (which is why I think we see .20's tomorrow).
Their fiscal 2015 begins March 1st (not that it really matters). They are going to end up selling the co this year for 50 to 70 million.
Window dressing...they are trying to limit the downside in the SP. My guess is that they are going to try and sell the company, if they can.
I agree. This was a big miss and calls MGMT into question.
big revenue miss...extremely disappointing. The CC better be amazing or this stock is going to get crushed tomorrow.
http://seekingalpha.com/pr/8595771-hipcricket-inc-reports-fiscal-third-quarter-results
I always try to listen to CC when I can. I'll post if I hear something 'interesting' after listening.
I will be
I disagree, if they issue very bullish guidance then this ER is essentially meaningless as it's backward looking.
Great news...first new licensing agreement in awhile. I'm a little confused/concerned as to why the market has essentially 'yawned' at the news...
Actually, I think the lack of volume and share price increase is a good thing this time around. Historically, there has been a run up into the ER and then the stock has been slaughtered due to misses. I think people are staying away and taking a 'wait and see' approach this time around. This ER is hugely important for them as a beat or even meeting estimates will give them a huge boost.
Amigo,
Any idea why HIPP has remained silent this past month? It's got me a little nervous...I've been thinking this is the Q that things turn for them, but the silence has been deafening. You'd think the agreement with MM would be a big plus, but the market not only yawned at them, it knocked the SP pretty significantly in December.
Those are essentially my thoughts as well. The one thing I don't know is if DSS utilizes the Bascom patents in any of it's products. If they do, then they aren't an NPE and the stay should be denied. If they don't, well then it's anyone's best guess as to what the court may do...
QS never said they'd claim any amount of market share. However, they do have some % of the market since they produced over $300K in revenue last quarter. The question really is how big of a percentage of the market can they get/keep?
Guys, you are both missing what the CEO said (236 more so).
He said they have the ability to gain significant market share (not that.5% market share is significant). He then went on to give an example (not of significant market share), but on the 'kind/amount' of market share that would make them a viable business (ie - less then .5%).
Hope that helps clear things up.
Personally, I think it's one of two possibilities. Either the company isn't going to make their numbers (and someone knows it) or the MM are shaking out the weak longs before taking this thing significantly higher. JMHO FWIW.
It's only good news if HIPP is being 'fairly' compensated for it. I haven't been able to find any financial info as it relates to their new partnership...has anyone else had better luck digging up the details?
Are earnings being reported after the bell? Are they hosting a CC on earnings today?
Agree, but the BO price could easily be in that $2-$3 range based upon similar sale metrics in the industry.
This thing keeps bouncing off the 50 DMA...let's hope it holds b/c if it does, this could resume it's trend higher. $1 per share isn't out of the question before YE.
Are you sure the investors from this placement can't sell yet?
Prospectus Filed Pursuant to Rule 424(b)(3) (424b3)Edgar (US Regulatory) • Tue Nov 12,2013 6:04 AM
Notice of Effectiveness (effect)Edgar (US Regulatory) • Tue Nov 12,2013 6:00 AM
Securities Registration Statement (s-1/a)Edgar (US Regulatory) • Thu Nov 7,2013 5:28 PM
Either way, I agree with you that this is a great medium term investment as it's ridiculously undervalued compared to its 'peer group'.
I would tend to agree. They were sitting on a 50%+ gain in under a couple months. Tomorrow will be interesting as we might test the 200 day MA if the selling continues.
Tomorrow should be interesting as the 50 day moving average is 0.504...a bounce off that number tomorrow would signal a big bull run. If it breaks that level on volume then a test of the 200 day moving average is in the cards (low .40's).
Tremor Video posted horrible numbers and that whole group sold off today. HIPP is selling off in sympathy with that group. It's also had a monster move over the last few weeks and some back filling is healthy.
When is the ER going to be released?