What do you mean by "fishy?" The company never committed to a specific date, and still hasn't. There are whispers about dates and all, but until we see something from management how can an earnings date slip? The company has had tremendous changes in the quarter, with the convertible preferred offering to $100 million in cash for digitalNATION. All within a very short time horizon. This is a management that is pedaling as fast as they possibly can, as they prefer not to keep the overhead of an IBM.
We are all getting edgy about the performance of the shares in a lousy market, and the article from TheStreet.com isn't helping out. Management confirms that overall satisfaction from the standpoint of "satisfied/totally satisfied" remains in the 70-80% range, while monthly churn is in the 2-3% area. The author is from N. California, where the company made some acquisitions that were operating on a less-than-stable platform. VRIO closed a number of POPs, dropping the total from 18 to 4. Yes, perhaps some got lost in the shuffle (perhaps the author), and yes, management is not satisfied with its customer service. However despite some great survey and churn results I have never seen management satisfied with its results. That' what I like to see, management who is never satisfied with its results!
Bottom line, let's not blow this way out of proportion. The company has made tremendous strides over the past year, and we should expect some great things to come over the next twelve months. I am sorry about the author and the others on this board who have had some poor results from Verio in the past, but the performance of the company and the stock is testament to how well overall things are going with a company. After all, it is one of the few providers that has successfully pulled off a roll up strategy, as well as transforming itself from a consumer focus to a business focus with minimal problems along the way. The roadside is littered with others who have attempted/are attempting to do the same! |
