Tucows: Why Its New Internet Business Will Hand Investors A Cow Patty
by Sonya Colberg, Senior Editor, 8/3/2015 9:53:21 AM
You’ve almost gotta love Tucows (NASDAQ: TCX) for its humor, as demonstrated by the company reportedly taking a real cow to a conference, plus its depiction of two cows in its logo:
But the negatives inherent in Tucows’ business plan utterly outweigh its funny personality.
The stock for this Toronto, Canada-based domain name registrar and wireless service provider has been running wild and crazy the past two months. Indeed, Tucows jumped over the moon at $32 on July 21 and then began declining somewhat. The stock is now on the brink of turning around and trampling investors before they can jump out of its path.
Before Tucows hooks another one, check out our executive summary briefly describing the top reasons we think Tucows’ stock price is ready to drop.
*Troubled Trio – The company reports two operating segments - domain services, consisting of domain name registration, and network access services, consisting of both retail mobile phones/services and Internet service over fiber networks. Tucows faces growing challenges in all areas.
*Faltering Fiber – The stock rallied on announcements of Tucows’ entry into the Internet business. But Tucows lacks the multi-millions to build a fiber network. And our research shows the Ting fiber business won’t produce meaningful revenue now … and probably not ever.
*Yelling “Sell!” – Insiders have been hitting the sell button on Tucows’ stock.
*Crumbling Core - Tucows’ core Internet domain name business is flat and poised for further decline. The business has become vastly more competitive and commoditized, so customers buy principally on price.
Glu Mobile: Kim K Trips, New Games Disappoint, Key Insider Sells Amid Crazy P/E
by Sonya Colberg, Senior Editor, 7/22/2015 9:34:56 AM
Her stilettos flashing and iPhone snapping selfies, Kim Kardashian is racing out in front, with Deer Hunter close behind, and Racing Rivals bringing up the rear. But wait … No, no. It can’t be…Yes, yes, America’s dashing diva is slowing now as, in one fell swoop, she whips out a tiny mirror, smears pink lip plumper on that famous kisser and checks out the scenery behind her. Slowing, slowing, slowing. Stumble…
In the wacky world of mobile game making, Glu Mobile (NASDAQ: GLUU) is in a constant mad dash for gamers’ hearts and fingertips.
But Glu’s top three games “Kim Kardashian: Hollywood,” “Deer Hunter 2014,” and “Racing Rivals” are now declining, according to App Annie data.
And that decline is just the first warning flag amid a mile-long parade of red flags viciously snapping at Glu.
The company has not responded to TheStreetSweeper’s request for comment, but investors may find other viewpoints here.
Meanwhile, here’s a quick executive summary:
*Hopped up on hype. Glu Mobile’s stock is up on hoped-for hits and the company’s enthusiastic guidance.
*Declining stars. Glu’s three top games drive the bulk of past and current revenues. But they are in a slow decline.
*Recent games disappoint. Games launched so far this year are turning in disappointing numbers. And games currently in soft launch are getting surprisingly poor rankings, too.
*Key insider selling. A director who was an original investor also manages a fund that is now dumping the majority of its shares in Glu.
*Crazy P/E: Glu’s price-to-forward earnings is an outlandish 74, while the P/E is about 20 for two competitors and the industry as a whole.
*Should guide lower: Overall, we expect Glu leaders will need to lower sales guidance for the third quarter and potentially the entire year.
Indeed, we believe Glu shares are poised to decline faster than a broken stiletto can drop any dashing diva. Here’s why:
*Current Stars Decline
JAMN Finally Spills the Beans -- And It's an Ugly Mess
by Janice Shell, 6/2/2011 10:32:51 AM
To be sure, the 10-K offered investors little reason to sing. For starters, the filing reveals, this once-hot “coffee company” sells no coffee of its own at all. JAMN relies on a supplier based in frigid Canada – far away from the tropical Jamaican home of its co-founder Rohan Marley – to provide the company with an actual product to sell to its customers instead.
Back in April of 2010, JAMN inked a “supply and toll agreement” with Canterbury Coffee of British Columbia that gave it access to some brew. According to that agreement, JAMN relies on Canterbury to fulfill every role – save a minor one – normally satisfied by a firm that classifies itself as a coffee company. Canterbury purchases the coffee beans. It roasts them. And it then packages them in bags supplied by JAMN – the company’s only real product – for sale to the public.
JAMN signed this deal more than a year ago, right before Shane Whittle – a notorious Vancouver stock promoter – officially resigned as CEO of the company. But the company never mentioned that agreement, seemingly material enough to warrant at least a quiet 8-K report, in a single regulatory filing until now.
Jammin Java (JAMN): Hot Stock ... Bitter Aftertaste?
by Janice Shell, 6/2/2011 10:30:25 AM
It’s time to wake up and smell the coffee! That’s exactly what Jammin Java (OTC: JAMN.OB), a heavily promotedcoffee company, and – for very different reasons – TheStreetSweeper would like investors to do.
Since the beginning of the year, JAMN has miraculously risen from the ashes of the “Grey Market” graveyard to become one of the liveliest – and richest – stocks in the entire microcap arena. JAMN has seen its stock shoot straight toward heaven, soaring from 55 cents to peak above $6 a share on massive daily volume, with its market value nowtopping $355 million despite the company’s limited resources and operating history. (As covered in more detail below, two of the Internet tout sheets pushing JAMN the hardest effectively vanished -- disabled by their Internet servers -- on the day the stock’s trading volume exploded past 20 million shares.)
CCME: Few Signs of Life at 'Healthy' Chinese Firm
by Roddy Boyd, 3/23/2011 9:30:34 AM
Also, and this cannot be understated, hanging out on a sidewalk in Fujian–the sidewalks double as parking spots when the streets, which appeared to have been designed in the Han Dynasty, fill up–was not a viable option. There was also the matter of the world-class headache the Financial Investigator was developing from Fuzhou’s diabolical smell, an epic conflation of poor sewage treatment, air pollution and the smell of cabbage that made getting the hell off Dongjie street a matter of vital importance.
The Financial Investigator and his traveling companion for the trip, an American investor with extensive experience in China, decided to head upstairs despite our interview with the CFO having been cancelled at the last minute (with no explanation given.) We thought a quick tour of the offices and meeting a few other executives might open our eyes to a few things.
Though the language barrier was a little steep with the young receptionist–when we asked for writing paper, she provided Kleenex–we were in short order shown to their conference room and told to wait. It did not escape notice that pride of place in the conference room belonged to a framed certificate of participation from the Fall 2010 Rodman & Renshaw conference, the World Cup for reverse merger companies and the pumpers and touts who peddle them.
Eventually chief operating officer James Yu came down and after spending 30 minutes trying to understand who we were, concluded that giving us a tour wouldn’t hurt. Soon enough, his colleague, Vinne Ye–the chairman’s assistant–came out and took us around.
It was most eye-opening.more...
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