YuMe, Inc. (NYSE:YUME) Elected a New Director to the Board but the Stock Plunged
[[tagnumber 0]]Yesterday, YuMe, Inc. (NYSE:YUME) filed an 8–K to announce the election of a new director to the Board‘s Compensation Committee and the stock plunged towards the 20–day moving average. There may be no direct link between the two events, anyway YUME looks very bearish for the new session today.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]After the huge 4.14% drop in the last session, YUME closed the market at $5.10 for a share on below the average trading volume. Technically, the stock now looks still in a bearish position with all indicators breaking through critical levels, yet a surprising upward correction could also take place later this week.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]YUME filed its last 8–K just yesterday. According to it, the company has elected Craig I. Forman as director and member of the Board‘s Compensation Committee and Nominating and Governance Committee. Mr. Forman has served in the Boards of many major technology companies in the past years, and in his new position he has immediately received restricted stock units giving him the right to purchase 32,894 shares of YUME common stock.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]Possibly, that remark in the 8–K reminded traders about the company‘s current Equity Incentive Plan and the dilution risks associated with it. During the first three months of this year only, YUME issued over 130,000 under the pla[[tagnumber 14]]n, while since the plan‘s establishment the number of reserved shares for issuance has grown up significantly.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]For the first quarter, YUME reported an expansion in its clients base that raised revenues, however, it is still not making any profits and its available cash is declining respectively. As seen also by the low for the industry market cap, the stock seems to have rather limited upside potential.[[tagnumber 1]] [[tagnumber 20]] [[tagnumber 1]]
