Velti PLC (VELT), 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.
The GuruFocus 52-week low screener reveals that Velti PLC (VELT) 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 Ron Baron of Baron Funds and Manning & Napier Advisors Inc., held on through the fourth quarter.
Guru Ron Baron 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 $1.97.
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 2,589,810.
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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