TeleNav 2011 Annual Report Download - page 42

Table of Contents
We attempt to comply, and attempt to ensure that our stockholders who are subject to Circular 75 and other related rules comply, with the
relevant requirements. However, we cannot provide any assurances that all of our stockholders who are Chinese residents have complied or will
comply with our request to make or obtain any applicable registrations or comply with other requirements required by Circular 75 or other
related rules. Any future failure by any of our stockholders who is a Chinese resident, or controlled by a Chinese resident, to comply with
relevant requirements under this regulation could subject us to fines or sanctions imposed by the Chinese government, including restrictions on
our Chinese subsidiary’s ability to pay dividends or make distributions to us.
If securities analysts do not publish research or reports about our business or if they publish negative evaluations of our stock, the price of
our stock could decline.
We expect that the trading price for our common stock will be affected by any research or reports that industry or financial analysts publish
about us or our business. If one or more of the analysts who may elect to cover us downgrade their evaluations of our stock, the price of our
stock could decline. For example, in late July 2011, following our earnings release for the three months and fiscal year ended June 30, 2011,
several financial analysts published research reports lowering their price targets of our stock. After our announcement and the publication of
these reports, our stock price fell more than 40%. If one or more of these analysts cease coverage of our company, our stock may lose visibility
in the market, which in turn could cause its price to decline. If our stock were to trade at prices below $5.00 per share in the future as a result of
an announcement, financial analysts may terminate coverage of our company due to internal policies within their investment banks, which could
result in further stock price declines.
Our stock price has fluctuated and declined significantly since our IPO in May 2010, and may continue to fluctuate or decline in the future.
Our common stock was sold in our IPO at $8.00 per share. Although our common stock traded at prices as high as $22.07 per share, it has
also traded at prices as low as $4.65 and has tended to have significant downward and upward price movements in a relative short time period.
Future fluctuations or declines in the trading price of our common stock may result from a number of events or factors, including those discussed
in the preceding risk factors relating to our operations, as well as:
General market conditions and domestic or international macroeconomic factors unrelated to our performance, such as the continuing
unprecedented volatility in the financial markets, may also affect our stock price. For these reasons, investors should not rely on recent trends to
predict future stock prices or financial results. Investors in our common stock may not be able to dispose of the shares they purchased at prices
above the IPO price, or, depending on market conditions, at all.
The concentration of ownership of our capital stock limits your ability to influence corporate matters.
Our executive officers, directors, current 5% or greater stockholders and entities affiliated with them beneficially owned (as determined in
accordance with the rules of the SEC) approximately 65.1% of our common
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actual or anticipated fluctuations in our operating results;
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changes in the financial projections we may provide to the public or our failure to meet these projections;
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announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures,
capital raising activities or capital commitments;
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the public
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s response to our press releases or other public announcements, including our filings with the SEC; and
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lawsuits threatened or filed against us.