Not that it is any of my business Gregory,but I was wondering if you were holding onto any of your MATR shares,If memory serves me correctly you were going to flush all of MG's picks at some point.
Stoney did say on the cc that they expect to break even 3rd quarter next year and be profitable by the 4th quarter
Not Stoney, They
i sold all of mine last year sometime in the low 7s. I repurchased somewhat recently a fairly small position as a trade. I was a bit early, and now certainly wish I hadn't. The stock cycled regularly over the last 18 months between ~5.5 and 8, so I thought I might catch a cycle there. I don't really have much interest in holding this long, since I have more questions than anything regarding it - over a decade of losses and it is not getting any better - but i thought it would be worth another trade - I made quite a bit on it 2 years ago or so, on a few trades. Just glad I made my play a very small position....
With the Market getting pounded again at present time and MATR trading at average volume hopefully most sellers are gone, this could be the bottom who knows. I picked up a 2.5% position just under 4.50. I am going to let it ride and see how things unfold.
Thought I was smart and picked up some at 4:05, now trading below 4.
It was not long after I made my previous post volume picked up and it dropped another .12 geez shound have kept my trap shut.
I would not panic if you picked up shares recently as i believe we are at the lows from a support perspective. I would suggest that if you are taking a position at this point you keep a longer term horizon given the state of the economy, oil, stock market and a FED which has no clue what they are doing. MATR has broken below what was a upward trend channel and it take time for the stock price to get back into that channel. At that point I would watch the channel carefully and be ready to get out when stock price get near the top line. If someone has a R/R chart please post it. If not, i will try to post one this weekend. Thanks, Kurt
Here it is... just the trendlines. A bearish market may not apply generous revenue multiple valuation when companies are losing money - risk off mode. MATR has about 15% to fall from here to hit the bottom and would get back over 6 if it came back up from here to the top of the channel in the next 3-6 months. [MATR_RR](//muut.com/u/pttresearch/s1/:pttresearch:UXtF:matr_rr.png.jpg)
Eventually, I intend to buy again. I sold my position last year.
Thanks Remi I will hold what I have for now if it does pull back 10% or 15% I may average down.
Can anyone comment about messages on Yahoo about accounting issues and company dipping into credit line. I have not seen anything about this but message board talks about. Do not know if true or just someone shorting the stock. Mark has made no comment about this stock in awhile and I thought it was one of his largest holdings.
Maybe you are referring to the SEC filing posted on Yahoo "On March 25, 2016, Mattersight Corporation (the "Company"), together with its wholly-owned subsidiaries Mattersight Europe Holding Corporation and Mattersight International Holding, Inc., as co-borrowers, entered into an amendment to its existing Second Amended and Restated Loan and Security Agreement (the "Amendment") with Silicon Valley Bank (the "Lender"). The Amendment extended the term of the Company's line of credit with the Lender for an additional year, through March 31, 2018, and replaced the existing financial covenants with a requirement that (a) the Company achieve certain free cash flow targets, measured quarterly commencing in the quarter ending March 31, 2016, and (b) the Company maintain unrestricted cash on deposit with the Lender that, when added to the unused availability under the revolving credit facility, equals or exceeds $17,000,000. Pursuant to the Amendment, the Lender also agreed to make available to the Company an additional $6,000,000 term loan (the "Term Loan"), which is interest o nly through March 1, 2017, and fully amortizing over a thirty-six (36) month period thereafter. The Term Loan may be prepaid at any time, provided that a prepayment premium of 1%, with respect to prepayments made prior to March 25, 2017, and 0.5%, with respect to prepayments made prior to March 25, 2018, is made in connection with such prepayment." Agreeing to free cash flow target covenants starting with this past quarter sounds good. Interest only, no principal payments for a year is ok too. It seems on the surface that Mattersight sees its business starting to generate cash but needs an extra year of time to ramp up. Are we going to hit the bottom of both the descending and rising channels (around 3.40 or so, see chart attached) If we do, I might actually grab some.... always a price for everything... [MATR](//muut.com/u/pttresearch/s1/:pttresearch:XCkj:matr.gif.jpg)
https://mattersightfail.wordpress.com/ which is always worth checking helps clarify some of these issues, including that "the company achieve certain free cash flow targets" apparently alludes to "negative free cash flow no worse than".
@Stephen - very interesting link you provided. Someone has spent a lot of time and effort on that site, posting weekly for almost 4 years which makes it seem like its a vendetta. Although there's lots of fair points in there. What's your view on MATR?
Thank you to Remi for the explanation and chart and to Alan for the link.
Credit to Stephen for the link. That was all his. I'd be interested to get people's view on it.
Alan, I was fortunate that Gomes released the MATR pick on a Friday after the markets closed. If he had released it Thursday at 2 EST, I might well have bought some promptly. Researching it a bit over the weekend, finding that Mattersight Fail site, and looking at Glassdoor, I came to the impression that management was skilled at spin artistry and, quite possibly, self-dealing... not one I trusted to meet its own predictions. By Monday I was checking to see whether I would be able to short it, but that turned out not to be the case via my broker. That said, I haven't followed it closely lately, and Remi very well may be right that at around $3.40 it may be worth buying.
Thanks Stephen, the detail regarding the free cash flow targets makes a positive turn into a negative... The piece regarding the accounting was actually from this site looks like, I think that one looks like it's reaching. But then you have them talking about how one of their largest customers seems to be late in paying their bills, the customer concentration risks, the disgruntled employee(s) not getting paid overtime, the track record of management and lack of leverage in the business, the executive/board getting good compensation regardless of the missing profits, etc. I might still play this for a small trade at some point but I will definitely define a stop loss before doing so (if you're playing for a short term move you should ALWAYS define your stop before entering).