Posted On: 01/26/2016 8:19:45 AM
Post# of 96883
I like this part of your Analysis: "The weird thing is we're a 6 million dollar company with expected revenues more than 10 X that figure. Q4 fins are due in a couple of weeks and those revs may even be double what our market cap is as of today. Q3revs were nearly 4 million and it only included a tiny fraction of what we have on UF now. During Q4 we had tremendous growth in both content and subs with promos over Thanksgiving and again on Christmas. Just 100,000 subs, 50k during each promo at $99 would be $10mm right there. That isn't including all the other pay per view rentals during the quarter.
So why are we still diluting? Could it be management doing a 'top-up' provision to ensure a successful merger or maybe a 'poison pill' provision to dilute and thwart any attempts at a hostile takeover? Given our current and anticipated revenues either one of those scenarios seems plausible. What doesn't seem plausible is NTEK is hurting for money like some would have us believe. Remember, they just told us they were going to up our content budget from 2 million to 10 million. That sure doesn't sound like a company that is strapped for cash does it? And before you say it, you don't mortgage your future into oblivion for content either.
So then which one is it, leverage or merger/buyout?
As for the rest of the sh update, it looks like NTEK is starting to run all eight cylinders. I see no signs of layoffs except Riordan, and you wouldn't need a permanent CEO if merger/buyout talks were in the not so distant future would you? "
So why are we still diluting? Could it be management doing a 'top-up' provision to ensure a successful merger or maybe a 'poison pill' provision to dilute and thwart any attempts at a hostile takeover? Given our current and anticipated revenues either one of those scenarios seems plausible. What doesn't seem plausible is NTEK is hurting for money like some would have us believe. Remember, they just told us they were going to up our content budget from 2 million to 10 million. That sure doesn't sound like a company that is strapped for cash does it? And before you say it, you don't mortgage your future into oblivion for content either.
So then which one is it, leverage or merger/buyout?
As for the rest of the sh update, it looks like NTEK is starting to run all eight cylinders. I see no signs of layoffs except Riordan, and you wouldn't need a permanent CEO if merger/buyout talks were in the not so distant future would you? "
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