Thursday, December 12, 2013

Hey VC's . . . Are You Still Buying Violin Memory $VMEM Trading Below Cash Value?

Why is Violin Memory $VMEM Trading Below Cash Value?
Will These VC Funds & Corporate Investors let this company fail?  
Windcrest, Juniper Networks, Toshiba, SAP Ventures, GE Capital, Highland Capital

I have often said the Venture Capital is a game of getting bigger and dumber money to follow smart money.  This one takes the cake.  Violin Memory has priced its IPO of 18,000,000 shares at $9 per share for a value of $162 million. J.P. Morgan, Deutsche Bank Securities, EM Securities and BofA Merrill Lynch are underwriting the IPO, with Barclays serving as a joint book-running manager. Baird and Pacific Crest Securities are also co-managers. Based in Mountain View, Calif., Violin Memory, which is backed by SAP Ventures, Highland Capital Partners, Toshiba and Juniper Networks, is a provider of memory-based storage solutions.

Revenue Growth Looks Good But Spending Money For Sales Expansion

If you can dismiss their last quarter below guidance based on not closing a few Government contracts and their CTO leaving the story looks pretty interesting bringing on 30+ new customers in the quarter.  This chart looks horrible but it feels like an interesting public venture capital growth opportunity if you don't mind trying to catch a falling knife of a pretty good growth opportunity. 
The $VMEM IPO Priced at $9 and now it trading at $2.6?  
Is this an overreaction?

Here are Silicon Valley’s 10 most in-demand startups
Big Data Storage Companies:  Cloudera, Nimble Storage, Dropbox, Violin Memory

Violin Memory $VMEM currently has market cap of $100M and $NMBL $1.5B which is a difference of 15x. Nimble and Violin have similar tech, customers, industry, revenue, losses. Go figure Wall Street due your due diligence before investing.

Tuesday, December 03, 2013

When Will Visa or Mastercard Buy a Mobile Phone Company?

 
When are credit card phones going to become reality?  I have be been waiting almost a decade for this to happen and we still only have Google Wallet that is not widely used.  Mastercard $MA and Visa $V now both have market caps of  $92B and $157B respectively.  Mastercard does $8B in annual sales and Visa does $12B and pay a huge dividends.  

If credit cards are eventually going to be on mobile phones why don't these companies just buy a company like Blackberry that has a market cap of $3B and does $12B in annual sales?  Do these greedy credit card / banks have to wait until a smart company like Google figures out the technology before actually creating value for their customers?   Come on bankers lets start to innovate!  Get your heads out of your asses and do something to create value for your customers.  Plastic credit cards are useless and full of fraud.  Do something disruptive and innovative for once in your life.  Buy a mobile company instead of paying such a huge dividends and screwing consumers with your lousy interest rates.  




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