a sale of the company was mentioned, maybe a reverse merger in the works here? need to dig a little more, but if it does bounce to 2.00 the pps is a bargain right now at .40-.50
the news in the later day of 10-11-07 knocked the pps back down.
a merge looks like it will rock the pps =P
Quote:
Originally Posted by Zoom
What gap??? I don't see a gap...
Anyway, I'm in. So let's run back up now! :D
Come on $2.00 !!!!!
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gap down? i don't know another term for it.
edit: guess you're right no gap
lol
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news on that day..
UPDATE 2-InPhonic explores strategic alternatives; shares sink
Reuters - October 11, 2007 7:19 PM ET
(Recasts to remove extraneous text)
By Ratul Ray Chaudhuri
BANGALORE, Oct 11 (Reuters) - InPhonic Inc. (INPC), an online seller of wireless devices and services, warned of liquidity concerns and said it is considering strategic options, including a possible sale of the company.
In a statement, the company said it requires added funding to continue operations and has hired Lazard Middle Market to address financing requirements.
Shares of the company crashed to their life-time low of 40 cents in intra-day trading and closed down more than 60 percent at 76 cents Thursday on the Nasdaq.
The company also said it had terminated a deal it struck in August with Brightstar Corp, which was expected to become InPhonic's exclusive provider of wireless handsets and SIM cards.
"Brightstar was supposed to address their liquidity and inventory issues. With Brightstar out of the picture, there are more concerns about their liquidity and inventory management," said George Gross, analyst with American Capital Partners LLC.
The loss-making company also warned that third-quarter results would be significantly below prior outlook.
In August, InPhonic said revenue in the third and fourth quarters will increase sequentially by 5 percent to 10 percent. The company had reported revenue of $79.4 million for the second quarter.
Analysts on average were expecting the company to report revenue of $83.1 million for the third quarter.
InPhonic shares have been battered this year, losing about 93 percent of their value before today's losses.
"You are probably seeing some short-covering. There are definitely some investors who came out here," Gross added.
Over the last few months, the company has shuffled its top management with a new chief executive taking over in early October. It had named a new financial chief in July.
Earlier this year, the company had run into trouble with regulators and had to restate results to adjust for errors related to revenue recognition issues.
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S&P MAINTAINS HOLD OPINION ON SHARES OF INPHONIC
S&P Marketscope -
SNPMarketScopeResearchNotes2007-10-11 14:06:28.000INPCINPHONIC INCA.BensingerS&P MAINTAINS HOLD OPINION ON SHARES OF INPHONICINPC, which requires funding to continue operations, retains Lazard to explore strategic alternatives. Announcement follows termination of recent Brightstar distribution alliance, which was seen generating $30M cash from asset sales. Including recent $15M draw from existing debt, we estimate cash at $38M. But with avge cash burn of roughly $20M the last two quarters, we see liquidity issues. We still see value in INPC's business model given its proprietary websites and established carrier relationships. We are lowering our target price by $3 to $0.50 on added operational risk.|US;INPC|59915|167202
Inphonic Inc Com (inpc: Nasdaq)
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