The Worst Call of My Career

MGT reported second quarter earnings that showed substantial improvement over 2013.

I fear it may be too little too late as the company's share price has shaved over 2/3 off its value since I recommended it.

The company failed to execute on its plans that caused me to opine on the stock last year.

The stock would need to triple to be back to where I made the call.

I own up to the fact that this is the worst buy call of my career.

After a rough run into 2014, MGT Technology (NYSEMKT:MGT) just reported its second quarter earnings. It was an interesting quarter that saw the acquisition of draftday.com, the launch of mgtplay.com, tweaks to the vegasinsider.com fantasy sports platform and a launch of a fantasy news site called fantasysportslive.com. Now how did the company do earnings wise? Well, revenues were up nearly five-fold year-over-year, coming in at $320,000 in its second quarter compared to $67,000 in its comparable 2013 quarter. Gross margin was up to $153,000 (up from $47,000 last year) while at the same time operating expenses came down a whopping 47% year-over-year to $1.7 million. Obviously the company is still losing cash with these numbers, and operating loss was about $1.5 million. This is half of the 2013 losses in the second quarter of $3.1 million. So things are moving in a better direction for the company. So now................READ MORE