Here's my take on the SH update from DW:
1. The shareholder letter will contain a proxy. What do they need this proxy for? Debt restructuring, a buyout offer, ascertain genuine shares vs counterfeit shares?
2. The elusive NTGL audit. 2 chairs, a couple of desks, some video pinball machines, some computers, a few bucks here and there...boom done, right? Okay, so a little tongue and cheek, I respect AH and SR so no offense whatsoever directed at them but it's been a year since the spin off was announced and still there's a delay? Even Helen Keller could have audited NTGL by now.
Lets start with those two topics. As I mentioned, I believe the letter may contain the proxy for shareholders of record at the time of the NTGL spin. If it's restructuring of debt, I believe NTEK wants to leverage NTGL but needs our approval in order to do so. Does anyone here really believe it takes a year to audit NTGL? Of course not, but the delay would make sense if there were plans to leverage that company. And looky here, NTGL is going up in value for no apparent reason. Matter of fact it's worth more than NTEK, how in the hell could that be?
The other possibility is maybe NTEK been presented with a formal bid to acquire UF and 4K Studios. Maybe not but we HAVE already been offered at least three informal bids.
So how about Apple? Apple would be a great bidder. They pay well too, they coughed up 3 billion for some earmuffs with built in speakers. Dr. Dre is happy. They could jump right into the 4K game, hit the ground running and be ahead of everyone else in terms of content, bit rate and security. Not to mention, 4K Studios for remastering. 4K Apple TV keeps getting delayed, sounds like another company we know? Is Apple TV really The Future of Television?
Roku is another possibility, we already have a good relationship with them and UF would be a nice fit there as well. Bundle UF in a Roku IPO and the word 'staggering' comes to mind.
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?
Those are my back of the envelope thoughts and figures....
Get ya summm a dat, Bitches!
Atlas1
NTEK...GET SUMMM!!!
1. The shareholder letter will contain a proxy. What do they need this proxy for? Debt restructuring, a buyout offer, ascertain genuine shares vs counterfeit shares?
2. The elusive NTGL audit. 2 chairs, a couple of desks, some video pinball machines, some computers, a few bucks here and there...boom done, right? Okay, so a little tongue and cheek, I respect AH and SR so no offense whatsoever directed at them but it's been a year since the spin off was announced and still there's a delay? Even Helen Keller could have audited NTGL by now.
Lets start with those two topics. As I mentioned, I believe the letter may contain the proxy for shareholders of record at the time of the NTGL spin. If it's restructuring of debt, I believe NTEK wants to leverage NTGL but needs our approval in order to do so. Does anyone here really believe it takes a year to audit NTGL? Of course not, but the delay would make sense if there were plans to leverage that company. And looky here, NTGL is going up in value for no apparent reason. Matter of fact it's worth more than NTEK, how in the hell could that be?
The other possibility is maybe NTEK been presented with a formal bid to acquire UF and 4K Studios. Maybe not but we HAVE already been offered at least three informal bids.
So how about Apple? Apple would be a great bidder. They pay well too, they coughed up 3 billion for some earmuffs with built in speakers. Dr. Dre is happy. They could jump right into the 4K game, hit the ground running and be ahead of everyone else in terms of content, bit rate and security. Not to mention, 4K Studios for remastering. 4K Apple TV keeps getting delayed, sounds like another company we know? Is Apple TV really The Future of Television?
Roku is another possibility, we already have a good relationship with them and UF would be a nice fit there as well. Bundle UF in a Roku IPO and the word 'staggering' comes to mind.
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?
Those are my back of the envelope thoughts and figures....
Get ya summm a dat, Bitches!
Atlas1
NTEK...GET SUMMM!!!
3
