Reasons I like PCLI:
*The market is considered to be very large, many billions of dollars.
*CSS language finally was approved by the studios for on-demand DVDS. It's the same protection major studies use now against copywriting DVD's they make. This opens the door to the eventual on-demand production of any movie ever made by the major studios (assuming they still have the master).
*PCLI is the only company I know of which has CSS incorporated into software for on-demand DVDS.
*Already one (or two--I forget) MAJOR studios is on board.
*The 200 store major retailer trial
*Deals with respected industry names--Bollywood, CityLights, Monarch, etc...
*Studios like this because it requires no upfront production and potentially unsold inventory. They also like it because of the "Long Tail" theory--ie they can sell older items as easily as newer items (no supply issues once mastered).
*Retailers like it because there is no inventory. They can carry thousands of items in virtual inventory.
*Consumers should like it because it will over time offer flexibility to purchase any movie they desire. Also, for customization--you will be able to combine titles, etc... Also, it will include DVD-quality wrapping (a feature I understand is NOT offered currently by Polar Frog). Should appeal to avg consumers, impulse buyers, gift-givers, and collectors.
*Lots of flexibility for future enhancements, ie downloading to digital devices of one's own, etc..
*Lots of promise for on-line fulfillment with all kinds of on-line retailers-from small independant producers of digital content to large retailer/resellers.
*The kiosks are very affordable to mass deployment, starting at about $5,000. Your neighborhood mom and pop store can compete with Walmart and Target!
*The stock currently has a very small dollar float, which I estimate to be at around $1-$2 million, 20 million shares currently. As word gets out this stock can move up quickly.
*Working with big players in the kiosk world, and software world (Sonic and Macrovision)
*Incorporates Rip-Guard from Macrovision for top-level security
*As I understand it, their security engine and database features require sophisticated development, having invested lots of R&D over time. This should be a real advantage for first-mover status.
The primary negative I see is the weak financials, which I think will NOT be a problem as financers get a handle on just what PCLI really has here.
Needless to say, there is a lot to like here. At only 6-7 cents.
ted
