IB Net Payout Yields Model

Velti Presenting At The JPM Conference At 8:40est

After a 33% drubbing today due to irrational fears over the cash conversion cycle, Velti's (VELT) CEO will present at 8:40 AM E.T at the J.P. Morgan Technology conference. Talk about ideal timing if he has a good story to tell.

As posted last night on this blog, the CEO has a good explanation for the higher receivables. The company has now history of writing off bad debt so the concern is clearly overblown. The question is whether he can say anything that soothes the market or if the shorts will press even further if he doesn't provide something of substance.

Details on the stock moving call:

Alex Moukas, Chief Executive Officer will present at the J.P. Morgan Technology, Media and Telecom Conference, to be held at the Westin Waterfront Hotel in Boston, Massachusetts on Thursday, May 17 2012 at 8:40 AM ET.

A live audio webcast of the presentation will be available at: http://jpmorgan.metameetings.com/webcasts/tmt12/directlink.php?ticker=VELT and will subsequently be available on the Company's investor relations website at http://investors.velti.com

Update 12pm 5/17/12: The presentation was very positive. The company has increased the cash balance to $47M from $41M as of 3/31/12. The much feared collapse in the cash balance is not happening as the company has no history of customers not paying. Per Jefferies, the company is inline of global ad agencies.

From Jefferies: investor concerns following Velti's Q1 results have focused on Velti's high DSOs; however, DSOs are generally high for global ad agencies. CY11 DSOs: WPP 229 days, Publicis 388 days, IPG 262 days, and Omnicom 166 days. We believe the selling on Velti is overdone and that
cash flow generation this summer (possibly as early as Q2 vs. guidance of Q3) should calm investor concerns. We reiterate our Buy.     
Disclosure: Long VELT. Please read the disclaimer page for more details. 


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