Velti PLC (
), the largest mobile marketing provider listed on Nasdaq, is
down 85% over 12 months, and off 61% since January. With a market
cap of $120.2 million, and a P/B ratio of 0.4, the company
reported $189.2 million in revenue for fiscal year 2011, and more
recently, revenue of $270.3 million in 2012, an increase of 43%
from fiscal year 2011.
52-week low screener
reveals that Velti PLC (
) is at its 52-week low of $2.00 (the high was $14.65). According
to the GuruFocus Value Screen for 52-week lows, VELT is 86.3% off
high. But top Gurus, namely
of Baron Funds and Manning & Napier Advisors Inc., held on
through the fourth quarter.
is one of the largest Guru stakeholders of VELT, with 1,145,326
shares as of Dec. 31, 2012, when he reduced his position by
35.94%. For the seven consecutive quarters leading up through
fourth quarter 2012, Baron's VELT shows an average cost of $24
per share, with a 92% loss on average. In the second quarter of
2011 his shares were bought at $15.91, way off today's price of
His holding history:
The largest Guru stakeholder, Manning & Napier Advisors Inc.,
shows a similar loss story, after increasing its VELT position by
92.81% in the quarter ended Dec. 31, 2012, with current shares at
Velti PLC develops and executes interactive campaigns with
subscribers for mobile operators. At the forefront of mobile
marketing and advertising early in the mobile revolution, Velti
now has a global footprint in more than 15 countries and supports
Fortune 500 companies.
Velti's CEO Alex Moukas described his company's fourth quarter
and fiscal year ended Dec. 31, 2012, as:
"Our full year 2012 results show a 43 percent increase in revenue
over 2011, even though the fourth quarter was a difficult
quarter. In the fourth quarter, revenue came in at the low end of
our expectations, which, in conjunction with higher operating
expenses, contributed to significantly lower adjusted EBITDA."
Moukas also said he was pleased with fourth quarter sales
activity, citing "revenue growth in key markets, including the
U.S., Western Europe, Brazil and India."
According to Velti's CFO Jeff Ross, "We believe that 2013 will be
a transitional year allowing us to deliver significant revenue
growth in our business in the key markets as well as
significantly improved cash flow."
As of January 2012, Velti PLC completed its acquisition of the
largest mobile advertising exchange in China, called CASEE, which
could have enticed Gurus to hold on in the first quarter.
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