The Market Did NOT Like RMG’s Numbers

RMGN

Well, I liked what I saw Yesterday of RMG Networks new Executive Briefing Center but the market definitely did not like the latest financials released today by the software/media company.

The NASDAQ-listed company closed trading today at 97 cents, down a mind-wobbling 70.61%  from the previous day’s close. Normally, the company trades about 11,00 shares day to day. More than 3 million traded today.

Wow. Just wow.

Dave Haynes

Dave Haynes

Editor/Founder at Sixteen:Nine
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for more than a decade. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He's based near Toronto.
Dave Haynes

@sixteennine

Decade-old blog about digital signage and related tech, written by industry consultant and shit-disturber Dave Haynes.
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3 Comments

  • This was to be expected as RMG pivots away from advertising to BI services. Still, it also says something about keeping the dog you already have in the kennel well fed.

    I expect them to pull through. While complex and competitive BI is known to be comprised of markets with serious customers with serious requirements competing in globalized markets unlike advertising which is for the most part comprised of parasites the most complex requirements being fulfilled by 20 something Photoshop “experts.”

  • John Doe says:

    The problem is that this ‘sizzle pitch’ to the VC and PE worlds was never going to unveil any ‘steak’ to the publicly-accountable world. The previous commenter blasts the advertising media practice, yet that is the only thing about RMG that Wall Street is remotely interested in.
    Dave, the business center display tech is another sizzle-piece from RMG that excites our myopic little sector, but setting ridiculously inaccurate earnings expectations for Wall Street, and then blaming a ‘soft’ OOH marketplace (which Wall Street already knows is anything but) is a clear indication that this company had no business stepping into the stark light of the publicly-held arena. Back to the shady shadows and the land of sizzle with them. They actually want to eat steak up here.

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