Telit Communications Forum

anybody a clue what is going on? why -15%?

strange moves last couple of days and especially today! Anybody has an idea by what this is driven? I can see that Greylock partnerships is cutting its position, as it sold over 1m shares yesterday compared to their 4.8m holdings prior to selling! Maybe the selling today is also driven by Greylock further cutting its stake, however I dont understand why they would push it down so hard then! Also, Kabouter Management actually expanded their stake recently with 1m shares at prices way above the current price. What am I missing here?

Last bit from Shares: We see this as a blip as this relatively small company establishes itself in an emerging, and potentially vast, market.

See shares mag article: Last week’s (13 Jan) full-year trading update was a mixed bag, albeit, still showing impressive growth, but it did little for the share price, the stock falling around 7.5% on the day. That slide was down to a below expectations steer for full year 2014 revenues and, presumably earnings before interest, tax, depreciation and amortisation (EBITDA) too, although that much was not stated. The chief worry is that Telit could return to the bad old days of 2011 and 2012 when missing growth targets was an all too frequent feature. We don’t believe that will be the case, but management could do with steering analysts along more cautious growth lines perhaps in future, there’s much to be said for under-promising and over-delivering.  The machine-to-machine (m2m) technology modules maker revealed 2014 revenues will come in at $294 million, versus a consensus of roughly $306 million. Assuming a similar miss on the EBITDA level implies $34.5 million rather than the $36 million anticipated by analyst at CanaccordGenuity. But that 4% sales miss should be put into the context of still impressive 21% growth, almost all of it organic, plus recurring subscription m2mAIR revenues that more than doubled to $210 million.

I think the slide is down to a slight miss in revenues in the update on 13th Jan Vs expectations

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