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MEETMe At The Newly Filed 8-K, Where Disclosures Lack Consistency With Remarks

Summary

MEET has failed to beat revenue expectations for the first time in recent history despite likely bearishness within estimates tied to a scathing short report.

New risk factors ahead of the Q touch on the same concerns The Bear’s short reports discussed, suggesting revenues may already be imploding.

I question the difference between management’s words and their actions within this brief MEET update.

I have been following The Friendly Bear's work on MeetMe (NASDAQ:MEET). I'm not going to make estimates based on new findings, rather, this is an analysis of the BRAND NEW RISK FACTORS within the 8-K filed on October 3 rd, 2016.

Before getting into the disclosures, it's news worthy that management also gave a pre-announcement that is in-line (potentially a slight miss) with previous guidance and met expectations. This is the first time they haven't BEATEN in recent history:

Source: Bloomberg

Without further ado, on to the added disclosures!

Source: Company Filings

The first two risk factors seems overly bearish, but relate to the acquisition of Skout and are the sort of thing an attorney would require you to add upon an acquisition. Please find the full detail of the 8-K -Current report posted on the 4 th of October here. The first relates to MEET's potential inability to realize synergies in relation to the acquisition, and the second through fourth relate to the fact that integrating Skout's operations could result in challenges that require significant resources.

The fifth is very odd in my opinion and commentary regarding management's intent would likely be speculative. I'm wondering if management thinks they could be held liable if hedge funds short their stock (that can't be right)? Or perhaps they don't want people to think they're responsible for "propping the stock up (with a repurchase plan)? Or maybe they simply want to tell the world that their stock is only declining because they're a victim of a "baseless short attack"? I'm confused, but investors should consider what management's intent is here:

Source: Company Filings

Regardless of your beliefs regarding intent, The Friendly...


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