tag:blogger.com,1999:blog-8524728277346799123.post5063536315753835377..comments2023-11-05T06:44:24.309-05:00Comments on When Genius Prevailed: 2/1/10 Midday Report: Pat Sajak miffed as $3.8T budget allows government to buy as many vowels as they'd like.Money McBagshttp://www.blogger.com/profile/12277867357843182138noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8524728277346799123.post-59589884976315170222010-02-01T22:14:20.859-05:002010-02-01T22:14:20.859-05:00Anonymous,
Thanks for the update. I hadn't ha...Anonymous,<br /><br />Thanks for the update. I hadn't had a chance to listen to the call before producing the Midday Report because readers demand Money Mcbags' update in a timely fashion and dick jokes aren't written in a day. Well actually they are, but I didn't get to the call until late because I spent an inordinate amount of time searching for the right Jessica Simpson photo (My job is tough and often times thankless, but I am here to serve the people, especially if the people are female and enjoy giving sponge baths and superbowl blumpkins).<br /><br />I did have time to go through ARTG's call once the midday report was up and it was pretty impressive, especially where they expound on the $3.6B market opportunity. There is no doubt that the company is in a growing market, and they picked up some nice deals like DSW and sounds like they got increases Vodaphone and Sprint business. That said, they wouldn't be raising so much capital if they thought they could keep growing into that $3.6B market as they currently are constituted.<br /><br />Here are the exact quotes from their call about the equity raise:<br /><br /><i>"Our future plans are to accelerate growth through market leading product development, geographic expansion, and strategic acquisitions. In order to achieve these aggressive goals we need access to capital allowing us to be nimble and opportunistic in a rapidly expanding global e-commerce market."</i><br /><br /><i>"Obviously we're raising this for general corporate purposes, but obviously as we look out we have made four acquisitions in six years. We would like to pick the pace of that up. We think there is a great market opportunity right now. We think there is a lot of opportunities in e-commerce. We definitely see the pace of that picking up."</i><br /><br /><i>"Well, basically if you look at our cash position, we enjoyed over $85 million as we closed the quarter last quarter. Obviously used $17 million of that for InstantService. We aren't necessarily locked into a cash position. We on the other hand go up against people like IBM on a regular basis. People do look on the our cash balance and expect to us have some amount. So if you think about that -- that is obviously -- limits the amount that we have on hand to go out and make acquisitions, and obviously from time to time being able to have a different mix of cash is helpful for making the acquisition happen and also obviously the size of that acquisition. As we go forward we're thinking of leveraging our funds in both ways."</i><br /><br /><i>"The company did well this year so we wanted to give all of our employees Maybachs filled with beluga caviar and the wings of a pegasus. That shit ain't cheap so we needed to sell some shares" </i><br /><br />Ok, I made the last one up but they are definitely looking to pick-up the pace of acquistions with the cash and maybe get into/expand their market research optimization capabilities.<br /><br />The stock is moderately priced with good growth opportunities, so investors need to try to assess ARTG's ability to integrate a big deal because that seems like what is coming.Money McBagshttps://www.blogger.com/profile/12277867357843182138noreply@blogger.comtag:blogger.com,1999:blog-8524728277346799123.post-51943997153151956612010-02-01T16:35:45.409-05:002010-02-01T16:35:45.409-05:00Re: ARTG and the offering.
During the CC the CEO ...Re: ARTG and the offering.<br /><br />During the CC the CEO said that they're looking for further acquisitions and want to be nimble. He also said that some clients like to see a certain amount of cash on the balance sheet, so this offering will give them the cushion that they need to be able to do quick, cash acquisitions, yet still have enough cash to soothe the clients.Anonymousnoreply@blogger.com