Avid delisted on NASDAQ

[TimothyJohn]

Originally Posted by nst7

Yes, I'm aware of that. I was comparing the ratio of cash on hand to what the company is worth. Apple's cash on hand is about 1/5th of what the company is worth. Avid's is about 1/3rd. It's just the idea that Avid is in a position to buy back 1/3rd of their stock if they chose to do so.

Nothing scientific. Just a general observation.

Gotta chime in. I totally got your point. But many of us missed the class when they taught the concepts of percentages and ratios. Not a day goes by when I don't here fuzzy math used by the press to push a point of view; hoping we are all unwilling or unable to understand the concepts of percentages and ratios. I commend your patience in explaining your post.

Now on to Avid; when they went public, I was a bit pessimistic and cynical. The products they offer serve such a niche market. And investors like high volume trading.

So is there hope? I mean if every semipro recording enthusiast and every major label, TV station, radio station, movie company and mastering house committed to biannual PT upgrades for the next ten years, Avid's total market would still be a fraction of what Apple's is.

Now having said that, you would expect Avid to be aggressively attempting to expand their market. IMO, They should be attempting to expand into every college and high school in the world. (How many licenses of Finale and Sibelius are there in high schools worldwide?) Where is Avid's music education advocacy program? Educating young people with regards to all facets of music production is a necessity I believe, when considering the future potential growth of companies such as Avid.

Considering things as they are, I remain cynical as to Avid's future as a publicly traded company; but hopeful for them as a company that provides outstanding software and hardware for all facets of music and video production.

Tim

[SpinningDisk]

Well said Tim. 👏

📀

[Barry Johns]

Originally Posted by Emcha_audio

Barry don't forget that they just finished the main development of the s3.. and the s6 m10 and m40. There is further development they are putting into all of these to push the ability of these controller even further, not to mention they just released PT 11 not too long ago, which was a major development for 5+ years where at the same time they were working on PT 10, HDX, HDN, the c400, the c600 even if these two product went dead two years after, and AAX. And there's hints that they will be showing something new at nab also. So while they had something like 200 M not too long ago, when you factor in all of what they have been working on in the past couple of years... yes 48M is still a good amount of money in the bank when you think of all they have just released in the last 2 to 3 years.

Guys, I run a 48 mil a year business, that is not good at all. Go back and read the report, low cash on hand was a major issue.

[Barry Johns]

Originally Posted by nst7

Just for comparison, Apple has a market cap of 469 billion, and their cash reserve is 160 billion.

Avid has a market cap of 272 million, with 48 million in cash.

Doesn't sound totally bad.

Apple's cash on hand is insane compared to their market, which is why they are under constant fire by shareholders pressuring them to release a massive chunk of that cash.

[DonaldM]

Originally Posted by Barry Johns

Guys, I run a 48 mil a year business, that is not good at all. Go back and read the report, low cash on hand was a major issue.

Okay, now you have me curious, Barry. What type of business do you run?

[DonaldM]

One thing that is not helping Avid at all is that no Wall Street firm's analysts are following the company and making recommendations to their clients on it. This summary shows that the last analyst recommendation...a downgrade...was back in 2011!!! It doesn't appear there's been anything since.

Avid's webpage lists these Wall Street firms as providing recommendations for shareholders. Piper Jaffary has some of the best analysts on the Street. In looking at the list of companies they currently cover, Avid is not on the list! I couldn't find coverage for any of the other companies either.

In other words, Avid is NOT attracting any attention on Wall Street among the major brokerage firms. Most of the major Wall Street firms regularly have analysts make recommendations on NASDAQ stocks. At one time it looks like Avid had at least 5 such groups reporting on the stock, with JP Morgan and Piper-Jaffary among them...both highly respected firms with excellent analysts. Somewhere between 2011 and now, it looks like coverage was dropped. That is not good!

[nst7]

It could be that they suspended coverage while these issues are being worked out.

[DonaldM]

Originally Posted by nst7

It could be that they suspended coverage while these issues are being worked out.

No, I think coverage was suspended prior, because there's no mention at all! If they suspend coverage, there's usually some sort of announcement to that effect.

[DonaldM]

Here's what Forbes Magazine had to say about the delisting. From the article:

In the past few years, Avid has suffered from a brain drain across every division and every department. It seems like a shell of its former self. That said, Pro Tools is still very much alive and well. The latest Version 11 is rewritten from the ground up, getting rid of legacy code that was very long in the tooth. The adoption is slow, but steady, as the industry gradually upgrades. Its current audio hardware is better than ever, and has drawn praise from even its staunchest critics.
My guess is that even if Avid were to fail, Pro Tools would survive in some form, given its huge installed base across the various sectors of the audio industry.

[Drew Mazurek]

Originally Posted by DonaldM

Okay, now you have me curious, Barry. What type of business do you run?

Not only what type, but name it.

If you're going to present yourself as an authority and tout your expertise, we have to be able to verify it IMO or else it's basically meaningless.

There's a thread on GS where a bunch of anonymous amateur "analysts" have been talking about this for a year and it's a joke. No one will step up to name themselves or show their past record of "predictions".

I'm all for discourse and the free sharing of information and expertise, but it has to be done properly in this new age of internet anonymity.