Yesterday, some bozo from The Seeking Alpha cesspool posted a series of posts, claiming that VEEV lost Genetech, as a client, to CRM. The result was an immediate gap lower, with the stock sinking 15%–just because some clown from “Suhail Capital” was given a platform to incite fear.
Read the article and notice his frantic writing style, purposely manipulated to cause alarm in readers, hoping they’d sell.
My only question is, why is this ‘gent’ doing such a thing?
As you can plainly see, he is making the Genetech ‘loss” to be a rather big deal. A layman reading this would believe it was VEEV’s largest client. However, the truth is a tad less dire and certainly not wrought with deceit.
According to the companies 8-k, released after the close of trade yesterday, VEEV had this to say about Seeking Alpha’s wild accusations:
Veeva Systems: In 8-K, company says that subscription agreement between VEEV & Genentech expired during 2Q13; Already reflected in previously provided guidanceIn an 8-K released after the close, VEEV provides the following information: The subscription agreement between Veeva and Genentech, for use of the Veeva CRM product by Genentech users in the United States, expired during VEEV’s fiscal second quarter, which ended July 31, 2013. The financial impact of the expiration of the Genentech Agreement is reflected in Veeva’s previously provided financial results and guidance. At no time in the last eight completed fiscal quarters was Genentech one of Veeva’s top 20 customers, as measured by revenue in the quarter. VEEV does not believe the circumstances that led to the expiration of the Genentech Agreement are indicative of any trend among its customer base generally and are specific to the relationship between Genentech and Veeva.
In summary, Genetech HASN’T BEEN A TOP 20 CLIENT IN OVER TWO YEARS. I repeat, and this time with a bit more elegance, the stuff allowed to be posted by Seeking Alpha that rocked VEEV for 5 points yesterday, resulting in massive losses for investors, was nothing more or less than a complete and utter fabrication.
The ‘gent’ from Suhail came out with a rebuttal piece this morning. But, quite frankly, I couldn’t read it, as it has the grammatical structure and cadence of being written by an 8 year old.
I’d like to know how much they made by trading ahead of this news and why this modern day bucket shop, called Seeking Alpha, is permitted to continue to cause great harm to investors, without anyone on CNBC or the mass media mentioning their complicity in these crimes against the spartan investor.If you enjoy the content at iBankCoin, please follow us on Twitter