To all: I am out of GVIL and a bit disgruntled over the whole announcement and new strategy, so take my thoughts for what they are worth. Still: if there is a phase II in play as many on the yahoo board suggest, and certainly as many hope given the strength of the stock this morning, I personally belive that GVIL management has/had the fiduciary and management responsibility to better explain that position during the conference call and in the press release. But, quite frankly, they weren't able to even do that. They could only say that "numbers" won't be available until May (given that it is year end), and that they won't be able to release their new product until Fall. That is a long time to keep 60 people employed and without an advertised direction. If this is their fabled new york product (router/server in development for over 2 years), my main thought is: god, you still need more time to announce it? After all that time and millions of dollars to develop? Personally, I feel cheated by the NATURE of the announcement, and less so by the business strategy. The impression on the release of information as well as the vague and sometimes laughable conference call indicate a poor lack of vision and direction. Sure: the target mentioned is lucrative. That is a no brainer. But HOW are they going to get there. Certainly, if they are going to stake their future on it, then they must have a clearer vision than "wait for a few weeks and we'll tell you." That is not management. That is hidding. And, if they can't say because they are still "cooking up deals" then I think it is criminal NOT to wait until the entire package is together before you "bail" for a very poor price. Frankly, the announcement and conference call sounded like a panic -- my speculation is that GVIL did indeed try to negotiate the sale of its modem business to apple and were going along in the process (and it would only make sense that they'd at least offer it and that apple would listen) or even that they had offered apple an equity stake, but that at the last minute Apple decided against it and GVIL was running low on cash. With pressure from their creditors, the need to ship the V90's with NO cash on hand to manufacture (and with the supply chain having lots on order), they had no choice but to sell. After all, Selvin said it was the best deal for the shareholders -- right, the best deal was a garage sale? Maybe...either that or bankruptcy, which would have been worse. So, good luck to all. I will monitor. But I seriously have my doubts about this management, their ability to be straightforward with shareholders, and their ability to execute a strategy in yet another new venture. Just my thoughts, with all due respect to those that still believe.
Richard |
