This one is getting a little tricky and a falling share price can really screw with a mind.
Still, at these levels the value is there (tested the waters and bought a small parcel today), though someone seems to be getting out slowly. It could fall more, unfortunately.
Management need to give an CLEAR UPDATE on the overdue Adcel deal quick smart, and not just a feed the chickens type ongoing/delays type stalling.
Doubt breeds much fear at this end of the market.
FWIW, the first half CALENDER YEAR has revenues at their weakness, so someone may also be playing with this knowledge, too, capitalizing on a "weak looking" quarter.
Per Ted Dhanik:
"It is important for shareholders to be aware that the Company’s revenues are largely derived in the second half of calendar year due to various events including; Halloween, Thanksgiving and particularly Christmas. In addition US back to school advertising in July / August also play a major role in this seasonality.
On the basis of the Company’s previously announced forecasts for the 2018 calendar year, annual revenues for each quarter by percentage are expected to be as follows:
Approximately 25% of the Company’s annual revenues are expected by earned in the January to June period, approximately. 25% in Q3 and approx. 50% in Q4. This means that about 75% of the Company’s revenues are generally earned in the second half of the year, between July and December and of that about 50% are earned in Q4 between October and December)."
My plan is to hang around to see how margins and profits are tracking at the end of the year. May look at buying a few more too if there's a turn in momentum or it becomes a screaming buy.
