The Hunt for the Next 10 Bagger

[NicPlatoNic]

The most interesting/rewarding DD you may ever read...

Well, this is a DD board.

So let me put some speculative DD out there. I will be quoting from several recent sources (PR's, quarterly reports, and so forth). You are highly encouraged to follow the argument here. It is VERY fascinating.

If you need some motivation to keep reading, note that the ticker that I will be discussing very recently ran nearly 2000% in the span of a couple weeks, and it did so BEFORE most of the significant facts I will be unearthing below materialized. In short, it ran nearly 2000% just on the brute speculation that developments which the following DD seems to suggest were in the works.

Okay put on your thinking caps. For here is the set-up/exposition to the remarkable DD puzzle pieces I am going to offer below...

Background:

$TIVU shareholders have, for some time now, suspected that they happened upon a gold mine in finding TIVUS among the Pinksheet stocks. For here was a company with, not only a revolutionary technology (Google-like Ad-Insertion IPTV software for Hotel Guest HDTV's, which kicks 50% of all ad-revenue back to hoteliers, thus turning a former expense in to a constant revenue stream), but, further, this company had actually made an inroad with its technology into a Fortune 500 company. That is, the inaugural TIVU system is NOW deployed in a major hotel property which belongs to the largest hotel property company in the world, Host Hotels & Resorts. The property in question is the downtown Philadelphia Marriott.

However, TIVU shareholders have had an arduous task on their hands, they have - over the past year - had to wait out, and wade through, a seemingly endless amount of dilutive shares (viz. convertible notes) that the company, in development stage, had to use to fund day to day operations as they installed 1400 rooms of the downtown Philadelphia Marriott with their new system.

All the while this has been going on (and, indeed, even before) TIVU shareholders have had a looming question on their minds.

It was this:
"How will Lodgenet's (LNET) seeming industry monopoly on in-room hotel entertainment affect our chances of taking a significant market share with our new technology?"

It has long been known that not only is Lodgenet's technology hopelessly out of date, but their single source of revenue for hotels, i.e. in-room VOD (video on demand, largely porn) has quickly begun to be less and less attractive to hoteliers. This is, after all, why Marriott just dumped them for the new TIVUS system. Nonetheless the looming question has remained regarding how TIVU shareholders ought to think of LNET's market share and the affects, positive or negative, it would have on how rapidly our new technology/product could and would gain dominance.

Well, I am starting to believe that we now have our answer to that question, and it is more startlingly positive than any of the TIVU shareholders could have originally imagined.

Here it is... Buckle up.

I now offer you a series of five evidential exhibits. I encourage you to put the pieces together as you read. I will help.

Exhibit A:
On April 5th of this year, $TIVU drops an atomic-bomb PR. Steven Truckenmiller, founding-shareholder of LNET, and 25 year veteran executive of the company has come to TIVU, taking on the position of Executive Vice President. Here is the link to that PR: http://ih.advfn.com/p.php?pid=nmona&article=51917939

As you can imagine, this news speaks for itself. Why is a 25 year veteran of the industry monopoly/giant defecting to a virtually unknown start-up?

Exhibit B:
For this piece of evidence, I ask that you simply observe the the POUNDING that $LNET stock has taken over the past months. From over $4/share, to - recently - a low of $1.18/share. It just... keeps... falling. Why?

Exhibit C:
This comes from LNET's Q1 report, released on May 9th.
(http://ih.advfn.com/p.php?pid=nmona&article=52343852)

I will put in bold-faced font the important content from the statement. It reads...

"Advertising Services . We deliver advertising-supported media into select hotel segments, from which we earn revenue from the sale of traditional television advertising, place-based digital advertising and promotional marketing solutions. The demographic and professional profile of the traveler within our room base tends to have characteristics we believe are attractive to consumer marketing organizations. By approaching guests with relevant messaging when they are in the comfort of a hotel room, free of distractions, advertisers have a prime opportunity to capture the attention of and connect with these desired consumers. In addition to market demands, our revenue is also dependent on rooms available to promote customer products and services. As of March 31, 2012, we provided advertising and media services to approximately 1.1 million hotel rooms. As our hotel customers upgrade to high-definition signals, we believe our existing analog system will be less attractive both to hoteliers and to advertisers. During 2012, it is our intention to transition our 300,000 room Superblock platform to an expanded high definition platform with over 20 channels, capable of inserting targeted advertising into an existing nationwide direct-broadcast satellite signal. This transition, which will involve a substantial capital investment, will enable us to deliver our advertising content in a more cost-effective manner across a much larger segment of our existing room base. As an initial step of this transition, we discontinued certain services provided through the Superblock platform. Our new high definition platform, targeted to begin operations in early 2013, will have the scale to attract national advertisers and will also have the ability to target specific designated market areas and zip codes. Longer term, we believe our new advertising platform will have the potential to significantly enhance our ability to monetize the advertising value of our extensive room base and valuable guest demographic."

Question: Does that move that is being suggested here sound like any particular little IPTV HDTV start-up company you might know? Perhaps one that one of LNET's 25-year veteran, founding executives just went to join forces with?

Hrmm...

Exhibit D:
This comes from LNET's May 11th PR
(http://ih.advfn.com/p.php?pid=nmona&article=52377846)

Building on the speculation that has already begun swirling due to Truckenmiller's move, and LNET's expressed plans for overhauling it's 300,000 room system, it reads:

"LodgeNet is in the process of evaluating various potential partnerships, alliances, and other options to expand, strengthen, and grow our business," said Mr. Petersen. "We believe there are a number of opportunities open to the Company; and we, with the assistance of our outside advisors, are highly focused on their pursuit."

Guess who is an "outside advisor" to LNET? Yup, that's right. Steve Truckenmiller has been on "consultant" status for the past couple years. Yup, that's right, the same Steve Truckenmiller who just went to work for TIVU... TIVU, who just HAPPENS to have patent-pending technology that PRECISELY matches the tech that LNET just said they want to upgrade their 300,000 rooms to.

Exhibit E:
This comes from the very next paragraph of the same LNET PR, and is even MORE suggestive of what is happening. After all, ask yourself, why has LNET's stock been plummeting?

Answer: Because someone has been selling an UNGODLY amount of small blocks. But why would they do that if LNET is such an industry leader with such a large, impenetrable market share? Read closely...

"In this regard, LodgeNet also announced today the resignation of independent director Edward L. Shapiro. Mr. Shapiro, a partner at PAR Capital Management, joined LodgeNet's Board in 2010. In addition to being a significant LodgeNet shareholder, Mr. Shapiro's firm also makes investments from time to time in various companies in the media, entertainment, and travel industries. In announcing his resignation, Mr. Shapiro informed the Board that his decision was not based on any disagreements with the company, and indicated that his intent is to eliminate any potential conflicts that could arise as a result of his service on the LodgeNet Board and his firm's other current or future investments. Mr. Shapiro said, "It has been a pleasure and privilege to serve on LodgeNet's Board and to help position the company for long-term success.""

Did you catch that? Shapiro is leaving LNET. Why? Because an investment that his group is about to make might pose a conflict of interest with his current status as a shareholder in LNET. So he is selling his shares... all of them, so as to avoid the conflict of interest.

But where might he be going? And where might his investment group be planning to put their money?

Are you seeing this yet?

I'll leave you with this tidbit. When $TIVU ran 2000% a couple months ago, it was because investors were under the impression that dilution was over. This was because the CEO hinted in a radio interview (here: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73290909) that remaining convertible notes would be absorbed in the near future by TRADITIONAL financing. I.e. No more dilution! When that message (albeit a bit preemptively) slipped out, the stock sky-rocketted towards its actual value.

Now, where do you think this traditional financing is going to come from? Do you see it yet? And what do you think will happen AGAIN to the $TIVU PPS when that announcement comes?

Hint: It already happened once, a couple months ago, i.e. a 2000% parabolic run.

The pieces are all there to be seen.

You just have to put them together.

TIVU is currently trading .0002/.0003, and no one is budging.

Buckle up.

-NicPlatonic