Day Gain | ||
Gain | ||
Market Val | ||
Costs | ||
Cash | ||
Portfolio | ||
Realized | ||
Dividend |
Date | For | Estimate | Reported | Surprise | surprise % |
---|---|---|---|---|---|
2024-08-14 | 2024-06 | 0 | -4.4 | N/A | N/A |
2024-05-15 | 2024-03 | 0 | 4.27 | N/A | N/A |
2024-04-03 | 2023-12 | 0 | -4.29 | N/A | N/A |
2024-01-05 | 2023-09 | 0 | -3.97 | N/A | N/A |
2023-08-14 | 2023-06 | 0 | -5.19 | N/A | N/A |
2023-05-11 | 2023-03 | 0 | -10 | N/A | N/A |
Date | Name | Relation | Quantity | Description |
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2024-04-22 | CHADHA PARVINDER S | Officer and Director | 0.00 | Purchase |
Report Date | Organization | Position | Value | Percentage |
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2023-06-29 | Blackrock Inc. | 70.07K | 325.84K | 0.01% |
2023-06-29 | Gsa Capital Partners Llp | 78.30K | 364.10K | 0.01% |
2023-06-29 | Rafferty Asset Management, LLC | 72.77K | 338.37K | 0.01% |
2023-06-29 | Shay Capital LLC | 100.00K | 465.00K | 0.01% |
Report Date | Organization | Position | Value | Percentage |
---|---|---|---|---|
2023-09-29 | Direxion Fds-Direxion Work From Home ETF | 185.18K | 781.46K | 0.01% |
Split | Date |
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1 : 200 | 2023-05-15 |
1 : 20 | 2022-07-26 |
1 : 3 | 2021-01-26 |
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Not long ago after the r/s it was $3+ … lost $7.5k but I learned my lesson to stay away from the atm. Has anyone searched the corporate globe headquarters office? $XELA is a fraud.
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Exela Technologies: No Way Out. Likely Going Bankrupt
Aug. 29, 2022 3:34 AM ETExela Technologies, Inc. (XELA), XELAP7 Comments
1 Like
Bashar Issa profile picture
Bashar Issa
3.2K FollowersFollow
SummaryExela Technologies is mostly a low-margined, labor-intensive, highly-leveraged business outsourcing company.
It needs to quadruple its share count to meet its short-term obligations, not to mention a $1 billion long-term debt maturing the next few years.
Management is exaggerating the company's position in the Business Process Automation market.
Debt problem. Man pushing huge concrete ball up hill.
NiseriNInvestment Thesis
Exela (NASDAQ:XELA) shares dropped 98% since my last article, warning meme traders that the company will knock down their positions through new equity offerings with magnitude multiple times their meme bonanza. Despite its enormous drop in the past few quarters, the ticker's prospects of a rebound are anchored by a heavy debt load, gradually pushing XELA into bankruptcy as it continues burning cash it acquired from retail investors.
Meme traders are unlikely to return after last year's burn. A meme trade requires a certain level of camaraderie, trust that the herd will stand by their positions in the face of volatility, Wall Street skeptic research notes, and hedge funds' short positions, long enough for meaningful volumes to profit from the higher price and formation of a new technical resistance line serving as a psychological assurance for late traders.
Last year, meme traders tried lifting the company's shares twice. Still, they failed, lowering morale and weakening one of the corners of a meme trade: trust that a fellow trader will buy the shares for a higher price than you paid instead of trade pioneers buying and exiting first.
During the Q2 earnings call, management stated that it would continue relying on equity to pay down debt, verifying our hypothesis that even if a meme trade emerges, it will be short-lived, similar to previous ones.
Balance Sheet
XELA was born in the offices of leverage buyout firms slicing and dicing businesses to make a quick profit. The company is the aggregation of five businesses, which, from my understanding, haven't been profitable since 2014, at least when combined together under the XELA brand. Still, private equity firms HandsOn Global Management and Apollo Global Management leveraged the business with nearly $2 billion in debt before dumbing it to the public market late in 2017, where its shares declined from $600 to $1 at the time of this writing.
The company doesn't have a chance of survival without lowering its debt as it faces serious liquidity issues. In the next ten months, it needs to come up with $530 million to cover short-term obligations, from supplier bills to the current portion of long-term debt. Currently, the company only has $240 million in assets liquid enough to be used to repay the debt, including receivables and other current assets.
The company can't lean on its operating income to help pay the short-term debt. Gross margin stood at $50 million last quarter. However, most of that goes to repay interest on its long-term debt, the additional $1 billion 10% long-term debt. In Q2, the company paid $42 million in interest, representing 84% of gross margin, leaving little for the company to pay for electricity, rent, and other administrative expenses such as accounting and legal costs, let alone accommodating its current liabilities.
Thus, roughly the company will need to fund about $290 million ($530 million current debt - $240 million current assets) through new equity offerings in the next ten months, translating to 250 million new shares based on the current price of $1.15 more than quadrupling its share count, currently standing at 65 million shares.
The equity offering will likely put pressure on the share price. We had seen these dynamics in Q2, when the company issued approximately 40 million new shares between May and August, using the proceeds to pay some of its debt but contributing to the ticker's 70% decline. This is why we started the article discussing meme trades. Practically, it is the only way the company could be saved especially given that the current share price is trading near the NASDAQ listing requirements of $1 per share and dim revenue growth prospects, as discussed in the next section.
If the company repaid its short-term debt by a miracle, it would still need to find another way to repay its $1 billion long-term debt. The company will likely face higher refinancing fees, given the deteriorating revenue and profitability and tightening monetary policy.
Revenue Trends
Beyond buzzwords bombarded on retail investors, XELA is essentially a cash-strapped, highly leveraged call center. Its ventures into Business Process Automation "BPA," a term used to describe software developers writing programs that automate back-office processes, are too small.
For now, the majority of the company's revenue comes from low-margined, labor-intensive outsourcing tasks provided by its call centers in India and the US, the latter mainly covering banking customers with regulatory mandates prohibiting the transfer of data outside the US.
Thus, while XELA's BPA business occupies the majority of its investors' presentations and pitch, it is, in fact, a tiny part of its business, as mirrored in the gross margin comparison of XELA and pure BPA businesses, such as UiPath (PATH), Workday (WDAY), DocuSign (DOCU) and BlackLine (BL), showing XELA margin at the bottom of the chart.
Chart
Data by YCharts
A common procurement standard by large corporations is that no single contract represents more than 10% of the supplier's revenue. This requirement guided XELA's management and probably its private equity sponsor's decisions to prioritize volume over profit, growing revenue so that it could bid for bigger contracts. This hasn't materialized, and the company has been reversing this trend, dropping its less profitable contracts, underpinning its revenue decline shown in the graph below.Chart
Data by YCharts
Beyond strategy backpaddling, XELA faces challenges from current macroeconomic conditions, namely inflation, tight labor market, and rising interest rates. For example, the tight labor market caused staffing shortages during Q2, costing XELA nearly $5 million in lost revenue. Rising interest rates and higher cost of living impacted loan application volumes, which could push banks to renegotiate their contracts for lower Full-Time-Equivalent employees at XELA's call centers.Summary
XELA is a low-margined, highly leveraged, labor-intensive business outsourcing business slowly heading towards bankruptcy unless meme trades sacrifice their monies (for a third time) to bail out institutional lenders. Even if, by some miracle, the company managed to raise $290 million to repay short-term obligations, it will need to find a solution for its long-term debt, standing at about $1 billion with 10% interest, weighing heavily on profitability.
This article was written by
Bashar Issa profile picture
Bashar Issa
3.2K FollowersFollow
Bashar is a contributing writer at Seeking Alpha, focusing on Long/Short investment -
$XELA is a fucking joke…A sad one!
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EXELA TECHNOLOGIES, INC. : Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing (form 8-K)
02/11/2022 | 05:40pmItem 3.01 Notice of Failure to Satisfy a Continued Listing Rule or Standard;
Transfer of Listing.
On February 8, 2022, Exela Technologies, Inc. ("Exela") received a letter from the Listing Qualifications Department (the "Staff") of the Nasdaq Stock Market ("Nasdaq") notifying Exela that, for the last 30 consecutive business days, the closing bid price for Exela's common stock was below the minimum $1.00 per share requirement for continued listing on The Nasdaq Capital Market as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"). The Nasdaq letter has no immediate effect on the listing of Exela's common stock on the Nasdaq Capital Market.
In accordance with Nasdaq listing rules, Exela has been provided an initial period of 180 calendar days, or until August 8, 2022 (the "Compliance Date"), to regain compliance with the Minimum Bid Price Requirement. If, at any time during this 180-day period, the closing bid price of Exela's common stock is at least $1.00 for a minimum of 10 consecutive business days, unless the Staff exercises its discretion to extend such 10-day period, the Staff will provide Exela written confirmation of compliance with the Minimum Bid Price Requirement and the matter will be closed. If Exela does not regain compliance by the Compliance Date, Exela may be eligible for an additional 180 calendar day compliance period. To qualify for such additional compliance period, Exela would have to meet the continued listing requirement for the market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, except for the Minimum Bid Price Requirement, and Exela would need to provide written notice of its intention to cure the deficiency during the additional compliance period, by effecting a reverse stock split, if necessary. If Exela is not eligible for the additional compliance period or it appears to the Staff that Exela will not be able to cure the deficiency, the Staff will provide written notice to Exela that its common stock will be subject to delisting. At that time, Exela may appeal the Staff's delisting determination to a Nasdaq Hearing Panel.
Exela will monitor the closing bid price of its common stock and will consider options to regain compliance with the Minimum Bid Price Requirement. There can be no assurance that Exela will regain compliance with the Minimum Bid Price Requirement or maintain compliance with any of the other Nasdaq continued listing requirements.
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Edgar Online, source Glimpses
Copyright 2022 Acquiremedia
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EXELA TECHNOLOGIES, INC. : Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing (form 8-K)
02/11/2022 | 05:40pmItem 3.01 Notice of Failure to Satisfy a Continued Listing Rule or Standard;
Transfer of Listing.
On February 8, 2022, Exela Technologies, Inc. ("Exela") received a letter from the Listing Qualifications Department (the "Staff") of the Nasdaq Stock Market ("Nasdaq") notifying Exela that, for the last 30 consecutive business days, the closing bid price for Exela's common stock was below the minimum $1.00 per share requirement for continued listing on The Nasdaq Capital Market as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"). The Nasdaq letter has no immediate effect on the listing of Exela's common stock on the Nasdaq Capital Market.
In accordance with Nasdaq listing rules, Exela has been provided an initial period of 180 calendar days, or until August 8, 2022 (the "Compliance Date"), to regain compliance with the Minimum Bid Price Requirement. If, at any time during this 180-day period, the closing bid price of Exela's common stock is at least $1.00 for a minimum of 10 consecutive business days, unless the Staff exercises its discretion to extend such 10-day period, the Staff will provide Exela written confirmation of compliance with the Minimum Bid Price Requirement and the matter will be closed. If Exela does not regain compliance by the Compliance Date, Exela may be eligible for an additional 180 calendar day compliance period. To qualify for such additional compliance period, Exela would have to meet the continued listing requirement for the market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, except for the Minimum Bid Price Requirement, and Exela would need to provide written notice of its intention to cure the deficiency during the additional compliance period, by effecting a reverse stock split, if necessary. If Exela is not eligible for the additional compliance period or it appears to the Staff that Exela will not be able to cure the deficiency, the Staff will provide written notice to Exela that its common stock will be subject to delisting. At that time, Exela may appeal the Staff's delisting determination to a Nasdaq Hearing Panel.
Exela will monitor the closing bid price of its common stock and will consider options to regain compliance with the Minimum Bid Price Requirement. There can be no assurance that Exela will regain compliance with the Minimum Bid Price Requirement or maintain compliance with any of the other Nasdaq continued listing requirements.
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Edgar Online, source Glimpses
Copyright 2022 Acquiremedia
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News Release Details
Exela Technologies’ Warrants and Units to be Delisted from the Nasdaq Stock Market; Common Stock Listing is Unaffected
September 13, 2017
Download PDF
IRVING, Texas, Sept. 13, 2017 (GLOBE NEWSWIRE) -- Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ:XELA) (NASDAQ:XELAW) (NASDAQ:XELAU), one of the largest global providers of transaction processing solutions and enterprise information management, has announced that it has received a letter from the Listing Qualifications Department of the Nasdaq Stock Market on September 7, 2017 pursuant to Listing Rule IM-5101-2, informing the Company that its warrants did not meet the minimum 400 round lot holder requirements for initial listing, as set forth in Listing Rule 5515(a)(4), and, by extension, the Company’s units (comprised of common stock and warrants) did not qualify for initial listing pursuant to Listing Rule 5225(b)(1)(A). Accordingly, Nasdaq has determined to initiate procedures to delist the Company's warrants and units from the Nasdaq Stock Market. The listing of the Company’s common stock, which is traded on the Nasdaq Capital Market under the symbol XELA, is not affected by this action.The Company does not intend to challenge Nasdaq’s determination regarding the warrants and units. Accordingly, the Company's warrants and units will be scheduled for delisting from the Nasdaq Stock Market and will be suspended at the opening of business on September 18, 2017, and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company's warrants and units from listing and registration on the Nasdaq Stock Market. The warrants and units will remain listed on the Nasdaq Capital Market under the symbols XELAW and XELAU, respectively, until the warrants and units are delisted.
The shares of common stock and warrants underlying the units may be traded separately, and substantially all of the originally issued units have already been separated. Holders of the remaining units have the option to continue to hold units or separate their units into the component pieces by having their brokers contact the Company’s transfer agent, Continental Stock Transfer & Trust Company.
Following the delisting, the Company anticipates that the warrants will be eligible to be quoted on either the OTC Bulletin Board or "Pink Sheets". No assurance, however, can be made that trading in the Company's warrants on the OTC Bulletin Board or "Pink Sheets” will commence or be maintained.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Exela: Exela is one of the largest global providers of transaction processing solutions and enterprise information management. We integrate knowledge platforms and technology-enabled services, with proven processes and industry expertise to provide an end-to-end delivery model, turning data into outcomes. Our solutions combine multi-industry and industry-specific enterprise information management platforms (deployed on premise or in the cloud) with decades of experience. We manage data and automate mission-critical business processes to aid in digital transformation. We have made substantial investments in our own IP and industry leading secure operating centers so that we can meet the evolving needs of our clients and the markets they serve. Exela utilizes a secure, cloud enabled global delivery model to serve over 3,500 clients, including more than 60% of the Fortune 100, across more than 50 countries. We provide solutions and services with approximately 23,000 employees at nearly 1,200 onsite client facilities and through approximately 150 delivery centers strategically located throughout the Americas, Europe, and Asia.
Forward Looking Statements: Certain statements included in this press release are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “may”, “should”, “would”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “seem”, “seek”, “continue”, “future”, “will”, “expect”, “outlook” or other similar words, phrases or expressions. These forward-looking statements include statements regarding the continued listing or quotation of Exela’s securities, and other statements that are not historical facts. These statements are based on Exela management's current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to a number of risks and uncertainties regarding Exela’s businesses, and actual results may differ materially. Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found under the heading “Risk Factors” in Exela’s Proxy Statement dated June 26, 2017 (the “Proxy Statement”) filed with the Securities and Exchange Commission (“SEC”) and its most recent annual report on Form 10-K and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, which are available, free of charge, at the SEC's website at www.sec.gov. There may be additional risks that Exela presently does not know or that Exela currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements or in Exela’s filings with the SEC. Exela anticipates that subsequent events and developments will cause its assessments to change. However, while Exela may elect to update these forward-looking statements at some point in the future, Exela specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Exela’s assessments as of any date subsequent to the date of this press release.
Contact: William Maina, ICR
E: ir@exelatech.com
W: investors.exelatech.com
T: 646-277-1236Primary Logo
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This stock only sees green briefly after a R/S and as usual back in the red for a while until the next R/S … such a SCAM…
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Why so much negatives comment????
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The only time $XELA will see $5.00 is on their next r/s. Keep buying suckers!!! All you are doing is making someone else rich. ️️️
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Too the moon they said…. Maybe when it gets down to .10 they’ll do another R/S and I’ll be worth $3.99 overnight and won’t be able to trade until opening bell and by then it’s be worth $1.89
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I want y’all to understand par isn’t losing money, y’all are. Par will keep creating shares out of thin air & after a while r/s you again. Plus does the company really exist? From a simple search on their website and google maps with their address 🤨..
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You all need to stfu. The company was leveraged heavily with 2 billion in debt when it first began. The ATMs are prudent to pay that down and keep the company running efficiently as much as possible because of overhead. Dissolving the company through spin-offs can be potentially beneficial as the parent company then passes on its debt to other pieces of its company. If you invested in this company are crying because you didn’t take the preferred share buyback earlier this year then you clearly don’t understand the market.
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You all need to stfu. The company was leveraged heavily with 2 billion in debt when it first began. The ATMs are prudent to pay that down and keep the company running efficiently as much as possible because of overhead. Dissolving the company through spin-offs can be potentially beneficial as the parent company then passes on its debt to other pieces of its company. If you invested in this company are crying because you didn’t take the preferred share buyback earlier this year then you clearly don’t understand the market.
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$XELA share holders, hop on and don’t forget your helmets and crayons
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