As Velti (VELT) hits recent lows below $6, investors are left pondering the reason for the sell-off. Especially considering every indicator points towards a robust market for mobile advertising, especially with the advance of the tablet.
Velti is the leading mobile advertising and marketing technology and solutions provider for brands, advertising agencies, mobile operators, and media companies. Its Velti mGage platform allows its customers to use mobile and traditional media, such as television, print, radio, and outdoor advertising to plan, execute, monitor, and measure mobile marketing and advertising campaigns that reach consumers through mobile internet applications.
Part of the reason for the concerns is that Velti is faced with a technology investor base that doesn't understand the receivable history in the advertising agency sector. The company hosted a financial conference call to discuss the large receivables, but that never helped the stock price.