TeleNav 2012 Annual Report Download - page 38

Table of Contents
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 significantly and may continue to fluctuate in the future.
Our common stock was sold in our IPO at $8.00 per share. Although our common stock has 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 relatively 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.
In addition, if the market price of our common stock falls below $5.00 per share, under stock exchange rules, our stockholders will not be able
to use such shares as collateral for borrowing in margin accounts. Further, certain institutional investors are restricted from investing in shares priced
below $5.00 per share. This inability to use shares of our common stock as collateral and the inability of certain institutional investors to invest in our
shares may depress demand and lead to sales of such shares creating downward pressure on and increased volatility in the market price of our
common stock.
Recently, the market price for our common stock has traded only slightly above the cash value of our common stock. If investors do not value
our company as an ongoing business and only value it for the cash on our balance sheet, our stock price may decline if we incur net losses and use
our cash to fund operations. We may also attract investors who are looking for short-term gains in our shares rather than being interested in our long-
term outlook. As a result, the price of our common stock may be volatile.
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 39.4% of our common stock outstanding as of June 30, 2013 . This significant concentration of
share ownership may adversely affect the trading price for our common stock because investors often perceive disadvantages in owning stock in
companies with controlling stockholders. Also, these stockholders, acting together, will be able to control our management and affairs and matters
requiring stockholder approval, including the election of directors and the approval of significant corporate transactions, such as mergers,
consolidations or the sale of substantially all of our assets. Consequently, this concentration of ownership may have the effect of delaying or
preventing a change of control, including a merger, consolidation or other business combination involving us, or discouraging a potential acquirer
from making a tender offer or otherwise attempting to obtain control, even if that change of control would benefit our other stockholders.
None.
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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;
• announcements by us or our competitors of significant technical innovations, relationship changes with key customers, acquisitions,
strategic partnerships, joint ventures, capital raising activities or capital commitments;
• the public’
s response to our press releases or other public announcements, including our filings with the SEC;
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lawsuits threatened or filed against us; and
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large distributions of our common stock by significant stockholders to limited partners or others who immediately resell the shares.
ITEM 1B. UNRESOLVED STAFF COMMENTS