InvestorsHub Logo
Followers 0
Posts 2
Boards Moderated 0
Alias Born 12/11/2011

Re: Ghegheto post# 9

Sunday, 12/11/2011 11:08:21 PM

Sunday, December 11, 2011 11:08:21 PM

Post# of 15
I think the story is just starting. The company is just now beginning its transition from a concept stock to a revenue generator.

They are also transitioning from a one-trick pony (Live3D) to a diversified revenue base of (1) Live3D, (2) Consumer Electronics (Vizio, etc), (3) Professional/Broadcasting market and (3) VOD (to be launched very shortly).

Revenues so far are small, but growing very quickly. This last quarter was the first quarter that some of these business lines started generated revenues (some for just part of the quarter). The consumer electronics market should see solid growth from Vizio alone over the next several quarters. And expectations are for at least one new licensing deal with another major TV manufacturer within weeks (The CEO mentioned on the CC that they are very close to a deal on the Switch patent, which we already know Samsung and (I think) Panasonic are infringing on).

All the reporters were calling 3D dead earlier this year. Suddenly, with the success of 3D movies like Hugo (directed by Scorsese), a number of blockbusters already set for 2013, and the better than expected 3DTV sales in the last quarter things are finally looking up again. 3DTV sales are now expected to hit 100 million/year within 2 years (from 22-23 million this year). Even if SENSIO only hits 20% of that, we're talking over $10 million in revenues from that segment alone (and growing), without even looking at the other 900 million devices such as laptops, computers, smartphones, etc.

SENSIO just hired a key person to oversee the Live3D business with expectations of significant growth in that business as well in 2012 (UFC and NBA, as well as at least two other major events plus a decent shot at getting the Olympics in 2012).

Just based on existing revenue streams there is a solid chance the company will be profitable and cash flow positive by the end of 2012. Which means no additional funding requirements. If they get a couple of key licensing deals then you could be looking at .05-.10 eps in 2013, possibly even higher.

They just announced this past week a deal with Marvell to incorporate the SENSIO 3D technology into Marvell SoC chips. That makes 6 major semiconductor companies now and will greater shorten the time from signing a licensing deal to generating revenues.

Just one decent announcement (Olympics, Samsung Switch licensing deal, or LG 3D format deal for example) and this stock should be back above .80. This stock has the potential for a 10-bagger over the next few years from the current .40 if everything goes well.

The biggest problem with this stock right now is illiquidity. But that could work in our favor if there is a major positive news release over the next couple weeks.