Actually u can read the transcript from the most recent call here; it was only 10 days ago.
http://seekingalpha.com/article/2085203-magicjack-vocaltecs-…
OK, Rizz,
I read it and by the way this was my first read of an earnings report. By page 8 I was a bit bleary eyed and missed some info but I hope it wasn’t critical.
Overall, incredible management team. Their expertise generates confidence. I haven’t lost sight of the fact that they are churning out their monthly paying customers and replacing them with free customers as part of their marketing plan and their free cash flow dropped 50% YOY (though they still have plenty of cash) so all hinges on first expanding their customer base and then selling up while losing device sales as well as a damaged retailer, RadioShack, their largest distribution point. I mean it’s a good plan but let’s see if it works. And if it doesn’t work, I don’t think it will be from bad execution, but rather a tough plan to implement in the first place…we’ll see. (I would have liked to have heard what their prediction for reduced churn numbers were and predictions for monetization of the lost leader mobile app so those could be watched more closely.)
Whitney Tillson is one sharp character and hearing him ask the right and hard questions also gave me more confidence. Next time I’d like to hear management’s responses in their own voices to see how they reacted to his pressing and hard questions.
I think they do have a risk here (as does every small company) but they have planned their effort well, I already know they are executing it well (at least the service part), from my friends’ excellent experience of the progress he’s seen in just the last year.
So I’m glad I bought in and next time, I’ll read the earnings transcript FIRST and then buy in later.
I’m glad there’s a short effort going on now since right after I bought in, the price went down. So now, after reading it, I just want to find the end of the falling knife and then pick up a few more shares.
I liked the fact that the management team was transparent, laying out there what was critical to watch to see if the plan was on schedule. Here is that critical item to watch, per the CEO: “Yes, look we put activations out there, company never issued activations before, we put it out there and we basically called on it said, hey look, look at this number because it indicates the health of the business and we stand by that.”
Lastly, if anyone with stronger math skills and interests would pick apart that financial statement and share what I probably missed, that would be helpful.
Mykie
