Velti (VELT) is a young company in the nascent mobile advertising and marketing industry. Alexandros Moukas wears a lot of hats for the organization: Co-founder, CEO, Executive Director, and Chairman of the Executive Committee. I imagine taking a company from a bootstrap business to a publicly traded entity is a lot like parenting; no matter how much studying you do, there is nothing like on-the-job-training. Right now, Mr. Moukas is getting a real education in what it’s like to be in the public eye of a back-end loaded industry like Madison Avenue.
Traditionally, many advertising agencies and marketing departments allocate their yearly budgets in the late Fall, near the end of the calendar year when they know how much they have to spend for the next twelve months. As a result, Velti’s earnings tend to be lopsided. Investors don’t look long term in today’s world. They’re going quarter to quarter, which is why the stock price is under pressure. My impression is that if you are patient, you may very well earn a decent sum with this company. Full disclosure, I’m long the stock with my average price of $9/share.
Velti does more than smartphones. It is in the tablet market, too. In the next few years, there may be six billion smartphones and tablets sold. That’s a big universe.
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