Good Morning SiliconVau,
First of all, as everyone knows, any price projections are purely speculations and opinions on my part. But I like to play with numbers and share thoughts with others almost daily. As to a target of .25 by the end of the year, that does appear rather high at the moment, but still possible imo. If it was still Jan or Feb, when I first mentioned the possibility of seeing .10-.25 by the end of the year, I'd feel a bit more comfortable. But due to all the internal issues, to include management, admin and filing problems, MPIX has lost a full four months. Keep in mind, new management has only been running the show full time now for just over one month. So whether or not the share price can still see my guestimate of .25 by the end of the year is yet to be seen. Maybe 9-12 months from now? Probably offers more of a probability, but since I'm on record from a few months ago, I'll stick with EOY. That still leave approx 7.5 months, plenty of time.
Ok, let's talk numbers! I'll use the Show of Peace as the best example of a huge event that will occur sometime in the future. I don't know the timing, but let's assume it is produced within twelve months. Producing and marketing a theme of peace through music from a multi city, multi country production with some of the largest artists in the world should attract 10's of millions of viewers through a worldwide, streaming mechanism. The sponsorship and advertising companies that will sign on should make the event profitable in itself. How many viewers a historic music event will draw is the question. With a worldwide population of over 6.5 billion as a potential audience, is it fair to use a 2% possibility of viewership? I think so. That would amount to 130 million views. The Show of Peace just might turn out to be the largest music event ever produced in the history of the world.
But let's knock that 2% down by one half to just a 1% viewership, or 65 million views. An all day event, perhaps two days, priced at $10/view, with just a 1% audience, results in an income stream of $650,000,000 from just the stream. Although I don't know the profit margins that MPIX might have, in speaking to other investors with some knowledge of the streaming technology, I'll use 50%. That would net $325,000,000 pre tax from the stream. For simplified calculations, I'll just use a 40% overall tax bracket. So using a 1% viewership, the profit margin and tax payment, I come out with an approximate net income of just under $200,000,000. After an OS reduction of approx 400 mil shares, the resultant one billion shares equates to an EPS of .20 without any multiple. Let's not forget the potential revenue base from sponsorship, advertising, and possible participation in the gate and what I would expect to be a very large assortment of memorabilia celebrating an event such as this. The income could be substantially higher. Could such an event draw 2%, 3%, 5% or more? Of course, but I'm staying very conservative with my projections.
Now, whether or not The Show of Peace will be produced within the next twelves months is unknown to any of us. So maybe that example shouldn't be used. Let's try a series of much smaller productions. We all know that ZZYX has the Forbidden City as a venue. We also know that the company has relationships with some very large artists including Anrea Bocelli. When that concert series is finally underway, would it be possible to see just a 10 million viewership of Bocelli play live from the Forbidden City in Beijing, China at only $10 per view. Everyone that I've spoken with believes I'm ridiculously conservative. Until MPIX has executed a number of productions over time that would establish a pattern of audience viewership, I'll stick with 10 mil viewers at $10/view for now. That one 'minor' event of Bocelli would produce a streamed cash flow of $100,000,000. Imagine ten such events over a 12 month period. That income, pre margins and pre tax, of $1 billion. Using my margins and tax brackets above, the bottom line works out to $300,000,000 or .30 EPS. Once again, this estimate of revenues is only based solely on the worldwide stream. It doesn't factor in any possible revenues from any of the afore mentioned items. Now slap on a market multiple of your choice, 10, 20 or 30 PE and higher.
The point of all this is that there is a huge potential with MPIX/ZZYX. The company still has to produce, execute and deliver. I see the share price much higher than .25 should any number of the projects they are working on come to fruition. The best part is that many of these projects would produce recurring income, meaning more of the same productions annually. Product isn't the issue. As long as people continue to pay for entertainment, MPIX can deliver concerts and projects for a long time.
For those that still don't understand the potential, I would once again refer you to the news releases of the last six week, study the website of ZZYX Entertainment, and to do your DD on our management team along with all their relationships with some very important individuals and corporations. The move from .0008 to .0171 has been nothing. The best is yet to come!
