Decreased comfort level

[0751Jeff]

Looks like we got out on time (with a considerable profit, as it happens) and our decreased comfort level has been shared by many..

Still, curious what happened:

• They have big customers who testified to the quality of the product in public
  
• None of the analyst spotted any trouble, not even the ones doing channel checks
  

This initially looked very promising, but the problems with that 36 month backlog, rising payables and cash bleed, and now internal strife has gotten the better of this stock.

What would it take for you to buy back into this?

[admin]

Hi Jeff, knowing what's really going on would be a start. It looks like they inflated expectations, despite having a legitimate product and bona-fide customers in what's undeniably a growth market in the early innings. But they will have to come clean and stabilize the cash bleed to even consider moving back in. Now it's just a gamble, for all I know, the whole thing could actually collapse or forced to take toxic financing to keep afloat. It's a curious story, a showcase of the fact that in these smallcaps, the quality of management matters a lot.

[admin]

Decreased comfort levels indeed..

Pareteum Corporation (Nasdaq: TEUM) today announced that the Company will restate its previously issued consolidated financial statements as of and for the full year ended December 31, 2018, and interim periods ended March 31, 2019 and June 30, 2019. This decision was approved by the Company's Board of Directors upon the recommendation of the Company's Audit Committee, and after consultation with management and the Company's independent registered public accounting firm.

 Pareteum to Restate Previously Issued Financial Statements | Seeking Alpha

• Good job we were long out of the stock after that comfort level dropped below something we I would tolerate..
  
• SHU turned out a couple of profitable trades in TEUM
  
• Pity the true believers, there were quite a few here.
  

[Joe.tags]

Any thoughts regarding teum's earnings tomorrow?

[admin]

Hi Joe,

Various gradations of ugly, but look for:

• Cash flow, is there any improvement?
  
• Receivables, is there any improvement?
  

If there isn't, stay away.

[bobp77]

Is the CEO who was terminated and the other executive terminated couple weeks ago are the only two with bad history ? Or are there anybody else left in the management that you know of ?

[admin]

Is the CEO who was terminated and the other executive terminated couple weeks ago are the only two with bad history ? Or are there anybody else left in the management that you know of ?

Hi, sorry for the late reaction, from what I know is that the CFO was involved in a previous fraud case, but I can't really recall the details and to what extent. They obviously need to clear house. The surprising thing for me all this time is has been that they do have a legitimate business in a fast growing market, there is no need for dodgy stuff.