"These days, Mr. Lynch is on the lookout for new tech success stories. One of his personal bets, Blinkx, a video advertising company spun out of Autonomy, has come back to haunt him, making headlines after a Harvard professor questioned its accounting. The company says the professor’s doubts are wrong.
Mr. Lynch is stepping down as a nonexecutive director at Blinkx at the end of the year because of the company’s shift from what he described as a technology business to “more of an advertising business, an area I have little interest in.”
I dont recall seeing that comment from ML before. WPP.. Please save us!
The Fool is always wrong, do the opposite of what they say and you'll do well.
I don't think Blinkx would be actively hiring new employees if they were going bust. The business has been trashed by the blog but the product still works. Lots of investors don't really know what Blinkx does so won't invest until Blinkx starts showing profits again.
I don't think it's worth buying more pre Nov 11 though as I doubt much positive news will come out. This is now a holding that you forget about for 12 months at least and allow it to recover.
I agree, caution needed. I won't buy ahead of the 11th but am happy, as a small holder, to take a long term view for now In the worst case, a company with £70m of cash and $200m revenue pa is worth plenty to someone who can: slash overhead; obtain synergies: turn off new R&D: cut back marketing spend etc. Even in complete run off mode I reckon you could eke out £150m of free cash over time, which takes worst case shareholder return to north of 50p. Obviously we don't know the numbers. How negative has new acquisition EBITDA been for example? Worst case is that we've been lied to. I don't advise management to have BOD will be curtains
Scorpion, if they are fixing the company and report on progress being made, then great. But it is a big if isn't it. Their previous RNS's are very vague and sometimes misleading, leaving a lot of questions to be asked, as you yourself alluded to in your posts on 11th October. I have less than a quarter of my original stake left since investing in January this year, basically to me now it comes down to a toss of a coin now whether I claw more losses back or lose the lot ,based on their next update, because quite frankly nobody has a clue what is going to happen. Poor situation for shareholders to be in.
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