Archos Q2 sales are up 176% over last year. If they invested their capital increase it’s in stock for yet unreleased Generation 9 products and nothing else. In fact, Archos instantly sells all their Gen8 and Arnova devices as soon as they are produced, they still cannot satisfy the demand.

Archos CEO cashed a small percentage of his stocks for the first time in 20 years, he’s got 4 kids, he’s allowed to take some payment for all the works he has done as is doing. He still has something like 13% of the stock and is by far the biggest stock holder, I think the second biggest stock holder has below 3% or something like that (it says in that SEC filing).

If Archos stock price is low that is for nothing else than the current situation of the world economy, the US economy’s recent lowered rating, the economic problems with that stupid French president and German chancellor not figuring anything out for how to improve economic prospects in the Euro zone. This has absolutely NOTHING to do with Archos as a company, it’s performance or anything like that. In fact, Archos is a small capitalization, which means a lot of clueless people have Archos stock, so when it goes up it can go up very fast very high and when it goes down it can go down faster as well. Economic externalities such as weak dollar, weak euro, etc can affect the Archos stock price more. But just as well as any positive release of the new product with impressive positive reviews if the economy isn’t too bad, that can also again bring the stock price up fast.

They are almost dead now… Stock price plummeted by 50%, their Q2 numbers ended up way smaller than Q1 – with a minimal profit in an exploding market (Apple sold 2x more tablets in calendar Q2 than calendar Q1)

Archos burnt the capital increase money in inflated stock (they sit on 4 months worth of stock on top of what is in the Channel) of former generation and are now stuck… they are launching at some point in September the new version G9, but as cash is low they were forced to increase price – departing from the price and performance they were touting at the end of June (spending an enormous amount of money to do an event in a large hotel downtown Paris)….

And to top it all, the CEO cashed in more than $10M selling some shares without previous notice to french SEC at the end of June while the market was high and before the bad news hit the street…

That does not feel right… I would stay away from this company…