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Michael Hill (CEO) seems to be staying real quiet right now. I have sent a number of emails this week asking similar questions... with no response yet. In the past, he's been pretty good about getting back to me. Maybe you'll have better luck.
Re. "HIGHEST EVER ALEXA USA RANKING TODAY 6414. CANT WAIT FOR Q3"
I would think with these kinds of ratings, along with the ability to provide accurate metrics on and exposure to target market audiences, and by providing an accurate number of actual viewers and demographics by media company, genre, etc., that they (StreamTrack) should be able to easily attract advertisers who want to maximize the dollars in their marketing budgets.
You wily rascal you... ;)
Well... it appears ASC must still be in the mix.
absolutely they can...
I sure hope you're right. In fact, I'm wondering if someone put that out there as a test to see if ASC's cheap shares are out there.
This might actually be a very good test to see if we're finally rid of ASC.
Ah, but as quick as we saw it... it's gone. Interesting. I wonder if this will show up after hours as a T-trade?
They're not done yet. They just increased the number of shares in their ASK, along with NITE... 160,000 and 350,000 respectively. Looks like the MM are desperately trying to make a market. Maybe they hope there's enough shares floating around to attract the day traders again.
Hard to say. Clearly, the market makers have been hiding most of their real "Order Book" off L2.
aghedo24... STTK has a past financier, ASC Recap, who have been selling off shares to recoup $1.1 million in debt that was owed to them. In the overall scheme of things... that's really not a lot of money. However, absent any news that would drive the price up, we're kind of stuck waiting for this dilution process to end.
This company's management has not been one to put out news just for the hype of it. The downside of that is ACS's unloading of shares is keeping the price artificially low... which means they even have to sell more shares to recoup their loans.
On the positive side, I believe many of the shares are being locked up by the longs, and the company is sound from a business perspective. In the long run, this will all turn around, I believe... and the company's PPS will rise to a more fair reflection of the company's true value.
AIMO,
I sure hope so.
Between yesterday and today, it would appear that somewhere between 9 - 10 million shares traded at .065. I have to think that's ASC unloading to someone who wanted the shares, and had set up some sort of deal with ASC and one of the Market Makers to execute the trades. How else could so many shares trade without causing a spike one way or the other in the price for two days straight?
So, if that's the case, then we can speculate ASC received somewhere in the range between $58.5K and $65.0K over the past two days. Not near enough to fully relieve the total $1.1 million debt obligation... but a good start... plus, we really don't know how much of their stock was converted and sold prior to yesterday.
Does anyone else see it some other way?
Yes, and with that price point of $0.057, the 407K T-trade doesn't seem to fit the pattern we were watching yesterday or earlier today.
Interesting... only 407K on the T-Trade today.
Re-write for more clarity and additional thoughts...
Actually, RoboFruit is a development tool for Marketers, and as such I think it might be more of an enabler. e.g. a useful tool for those advertizing firms that want to create, publish and monitor the performance of their ads on RadioLoyalty and Watchthis.com.
What's really cool for Marketers, is they have international scale across thousands of media content providers to place their ads...and, if StreamTrack has done this right, near real time feedback on viewers who have been exposed to their ads, and viewers who took the next step to get additional information from the StreamTrack's advertisers, or to place an order.
In my mind, what drives the value of StreamTrack's offerings is the idea of using the Internet to compete against the Cable companies... but using the traditional Broadcast advertizing-based funding model.
Unlike the broadcast model, however, StreamTrack has an advantage in the placement of video and display advertising inline with content... and not as a disruption during the middle of your favorite show.
IMO, StrreamTrack is offering the best of all Worlds. They are offering the convenience, performance, and broad content range of Cable, with low or no consumer costs for listening and viewing. In addition, they have the ubiquitous nature of the Internet providing superior standards, connectivity, bandwidth, and access.
AIMO,
Actually, this is a development tool for Marketers, and as such I think it might be more of an enabler. e.g. a useful tool for those advertizing firms that want to create, publish and monitor their ads on RadioLoyalty and Watchthis.com.
In my mind, what drives the value of StreamTrack's offerings is the idea of using the Internet to compete against the Cable companies... but using the traditional Broadcast advertizing-based funding model.
Unlike the broadcast model, however, StreamTrack has an advantage in the placement of video and display advertising inline with content... and not as a disruption during the middle of your favorite show.
IMO, StrreamTrack is offering the best of all Worlds. They are offering the convenience, performance, and broad content range of Cable, with low or no consumer costs for listening and viewing. In addition, they have the ubiquitous nature of the Internet providing superior standards, connectivity, bandwidth, and access.
AIMO,
King Koopa... was that your buy for 300K shares at $0.0054? ;)
I totally agree with you 1234... the faster we get through the ASC dilution, the better. Then, the PPS and resulting market cap for this stock will start to rise, and will start making more sense. It's totally undervalued right now, imo.
I think you might be right... the pattern is very similar to what we saw yesterday. But, can you explain the strategy behind it? e.g. Who selling? Who's buying? What's the motivation of the players? etc.
Thanks,
Basically, this filing informs investors that an after hours trade occurred....
From Investopedia: Form T
Definition of 'Form T'
A form that FINRA requires brokers to use for reporting equity trades executed outside of normal market hours. Form T trades occur during extended hours - before the market opens and after it closes. The objective of the Form T reports is to maintain market transparency and integrity.
Investopedia explains 'Form T'
Trading in extended hours enables investors to react quickly to events that typically occur outside regular market hours, such as earnings reports. However, liquidity may be constrained during such Form T trading, resulting in wide bid-ask spreads. Form T trading is especially suited for overseas investors, since they may conduct the bulk of their U.S. trading when their markets are open but U.S. markets are closed.
The growing popularity of electronic communication networks means that Form T trading is bound to continue increasing.
I did see that. Crazy!
And, I hope you're right.
With the after hours trade, more than 11.6 million STTK shares traded hands today.
u nailed it Bro...3,580,7123 shares via Form T.
What made you think this would happen? All other trading had stopped around 2:54 Eastern. Was someone, maybe ASC, unloading shares all day so that someone else could execute the after hours buy?
The short version... StreamTrack is well positioned to become the "Cable Company of the Internet"
Time for some more DD...
Although I have borrowed heavily from StreamTrack's websites, this Value Proposition analysis is purely my own. With more than thirty years experience in IT (Professional Services, Sales and Marketing roles) this is what attracts me to StreamTrack, Inc., and their business model…
StreamTrack, Inc. (STTK) Value Proposition
STTK’s Business Description
The company’s primary business is providing streaming solutions to internet and mobile broadcasters and content providers and earning revenue from advertisers.
STTK’s Product/ Service Offering
StreamTrack is developing applications, web-sites and services that allow consumers to access radio and film content via Internet-based mobile and computing equipment platforms. As a useful analogy, one can imagine companies like TreamTrack becoming the future Cable companies of the Internet.
Currently, StreamTrack has three product offerings available or under development.
• RadioLoyalty.com – Already available, this site allows consumers to listen to music, talk radio, and sports over the Internet and on their mobile phone, from a selection of more than 5000 commercial radio stations, while earning loyalty points redeemable for merchandise!
• Wathcthis.com – Under development, incorporating patent pending DionyVision™ digital video player technology, this website will offer a convergence of original network content and interactive product placement. DionyVision™provides commercial free content with unobtrusive in-show advertising.
• RoboFruit.com – Also under development, a powerful marketing tool that combines a mobile app creation platform, customer loyalty program, and content management system into an instant and measurable marketing engine for your business. This tool should simplify the process for StreamTrack’s advertizing customers to develop, deploy, manage and measure their display ads and videos.
STTK’s Target Market
StreamTrack serves an integrator across the online media value chain. In this role, they bring online media providers, consumers and advertisers together on an international scale.
STTK’s Target Market - Issues/ Needs Addressed
• Today, Consumers of online content often have to register with individual’s sites, filling out each site's forms and managing login User IDs and passwords, etc, to have access to the sites they prefer. Consumers also experience disruptions in service when the content providers’ enabling IT infrastructure in unable to support the current number of listeners and viewers. Consumers also have to put up with obtrusive ads that disrupt their favorite shows.
• Today, providers of online content must build and maintain or outsource the applications and IT infrastructure (computing equipment, data stores and network connectivity) that allow deployment of their media content with sufficient bandwidth to provide uninterrupted service to their listeners and viewers. Provisioning of online services is expensive and resource intensive.
• Today, in order to reach their specific target market customers via online content providers, advertisers and agencies must research and then negotiate agreements with any number of search engines and content providers to ensure they are reaching the right audiences to market their products and services. This is expensive and time consuming.
STTK’s Target Market - Capabilities Needed
• StreamTrack will attract Radio listeners and Television viewers who want a single point of access and login to find and view their favorite shows, while also avoiding disruptions in service and unobtrusive advertising.
• StreamTrack will attract content providers who want to focus on the development of their content, and not on building and maintaining the infrastructure that is required to support thousands or even millions of listeners and viewers. Moreover, StreamTrack will attract content providers who do not have the resources to dedicate sales and marketing staff and funds to find, attract and manage advertisers for their online content offerings. Above all, content providers need to enhance revenues and profitability for their online content offerings. that comes from amortizing IT infrastructure, sales and marketing costs across thousands of content providers.
• StreamTrack will attract advertisers and agencies who will value having access to millions of domestic and/ or international prospective customers, and being able to leverage StreamTrack’s demographic information on registered listeners and viewers, and by the different genre of content offerings, which will allow them to specifically target their ad messages to the appropriate audiences for their products and services. Plus, they will attract advertisers and agencies who value only having to deal with one company to reach their target markets on such a large scale. In addition, advertisers may prefer an option on various pricing models, such as: Cost-per-thousand (CPM), Cost-per-view (CPV), Cost-per-Lead (CPL), SEO, Social media
Features and Functions
StreamTrack provides online content delivery solutions to consumers across a robust computing and network environment.
StreamTrack provides a number of products that enable streaming of content and mass advertising solutions across the online media value chain. This includes more than 5000 radio stations today who can offer their audio content via StreamTrack’s robust computing and network infrastructure. In addition, advertisers and agencies who are seeking highly targeted audio, video, display and mobile ad delivery capabilities on an international scale will be attracted to StreamTrack’s business model.
Benefits
• Listeners earn Loyalty Points that are redeemable for merchandise
• Radio and television consumers will only have one place to go, and login, to access thousands of their favorite radio and television shows
• StreakTrack’s business model and technology enables advertising funded radio and television content without the obtrusiveness of disruptive ads that force breaks in the middle of a show
• Significant savings to content providers as they do not have to build, support and maintain the online provisioning applications and infrastructure
• Better advertising profit model to content providers as sales and marketing costs are amortized across thousands of STTK’s content providers
• Radio ads can now have a video, visual and mobile displays, offering broader access and more impact
• Advertisers have direct access to millions of prospective customers, both domestic and international, with demographic segmentation available based on information coming from user registrations
• Further customer segmentation is possible by types of customers attracted to specific genres of music and video selections, and/ or the regional locations of the content providers.
• Advertisers have several pricing models to choose from:
o Cost-per-thousand (CPM)
o Cost-per-view (CPV)
o Cost-per-Lead (CPL)
o SEO, Social media
Competitive Advantage
• StreakTrack has already established a significant foothold in this market space with thousands of customers, and more than 5000 radio stations to build from.
• Their Patent Pending DionyVision™ technology, available via Watchthis.com, will enable them to take the RadioLoyalty business model to television and film based content providers.
• StreamTrack’s unobtrusive ad displays are unique in this market, and highly valued by its listeners, and will even be more valued when Watchthis.com brings an end to the disruptive commercials of broadcast and cable Television.
PS... I'm sure I've missed stuff or even perhaps gotten a few things wrong... so please feel free to add corrections in your follow up posts.
Whatever's driving it, the trading today is insane for sure!
Here's some additional thoughts to consider when working through ASC's goals and position. I can't claim to have any idea what the folks at ASC are thinking, but there are a few scenarios that could logically play out. I can think of three, right off the bat:
1) In one scenario, the principals at ASC may have decided they want their $1.1 million back just as soon as possible, and executed that plan as soon as the ink dried on their agreement, back on October 23, 2013. In that case, they may have been buying and selling in their 3,740,000 share Tranches just as quickly as they can. In such a scenario, they may be already pretty far along in converting and selling their shares. In this case, there may not be too much more damage they can do in diluting the stock.
2) In another scenario, perhaps there are some restrictions that forced them to delay acquiring and selling their tranches. In the worse case scenario, they've recently started acquiring and selling their shares, and they want their cash back immediately, substantially diluting the stock in the process... and we longs may have to see a doubling or so of the OS.
3) In the third scenario, I assume ASC has done their due diligence - far better than we can - since they could have asked the company to open all their books to them during the initial loan and settlement agreement, and perhaps they too recognize there is real value in the company. Recall they can maintain up to 9.99% of the company's stock. In such a scenario, they may want to retain that 9.99% share ownership until after the company releases new quarterly results and partnership and product announcements, in order to maximize their profits.
Now, in a sense, they have a double edge sword they have to be concerned about. Dilute the shares too much, and they reduce the value of their own holdings - especially if other investors steer clear due to the dilution. Also, dilution reduces the pool of shares StreamTrack will have to sell to purchase additional companies and products, or pay for research, development, sales and marketing costs.
So, let's assume under scenario 3, they desire to keep the OS around 100 million shares, and constrain their share conversion and selling accordingly. That would give them the possibility of keeping ~10 million shares. The question then becomes "what is the real "market cap" for the prospective business StreamTrack is in?
Is it $1 Billion? - Then their 10 million shares has a potential value of $100 million - way better than $1.1 million!
Is it $500 Million? - Then their 10 million shares has a potential value of $50 million - still way better than $1.1 million.
Is the company worth $100 million? - Then their 10 million shares has a potential value of $10 million. Not a bad return on a $1.1 million investment.
Is the company worth just $10 million? - Then their 10 million shares are worth $1 million - just shy of breaking even... but they will have made that up in the other shares they converted and sold.
The same process works out if they allowed the dilution to increase to, say, 200 million OS, or 500 million OS, whatever. Ultimately, investors will determine what the total market cap should be for StreamTrack, over time. Dilute the company too much, and investors might shy away, never allowing the company to reach it's full market value and potential.
So, imo, the folks at ASC have some thinking to do too, about their own risk/ reward scenarios. Do they just want their $1.1 million back? Or, are they too willing to risk some of their STTK investment for a better overall return?
If I'm them, I hold on to some shares, and keep the dilution under control.
AIMO,
I suspect for many of us, averaging down from only .01 would be a good thing. ;)
Thanks Locknload...
According to an email from the CEO, Asher is paid off.
We are both right on Redwood. There are two parts to the agreement:
1)The 130% repayment fee is for the two Convertible debentures, in the amount of $125,000 each, to Redwood Fund III, Ltd. and Redwood Management, LLC.
2) The 125% is to pre-pay the “Settlement Agreement” with Redwood Management, LLC that was used to pay off the debt with Asher.
Agreed... and the more shares the longs lock up at these low prices, the better the run when the PRs and new financial statements are finally released.
AIMO,
Except that ASC has had since October to convert and sell their shares. They've had ample opportunities to sell at much higher rates than we're seeing today. From a business perspective, I would think they would have taken advantage of those higher prices.
ergo, they should be well along the path of satisfying their claim against STTK's debt... and, per the settlement agreement, selling in blocks of 3,740,000 shares of common stock per issuance.
In fact, if you look at the 6 month charts, you can see STTK was trading steadily around a dime (.1) in October when the Settlement Agreement was agreed and signed... and then the stock began to decline gradually, rose briefly in January to nearly 6 cents, and again in March to 2.5 cents, and quickly declined each time after each of those two brief runs. During that time, the OS increased... but not by all that much.
As a result, my hope is they have already started working through a significant part of their debt while those rates were high. Why would they wait now to unload their shares?
Obviously, they have a great deal of incentive to dump shares and further depress the price, so they can obtain a larger volume of shares... particularly if they think the company is currently undervalued - which they should. But, I also have to think they didn't wait this long to start dumping their shares.
To put this all into perspective, if ASC were able to have converted all $1.1 million of STTK's debt when the prices were trading at $0.10, back in October, the total shares required to relieve the total debt of $1.1 million would amount to just 11 million shares.
By January, at the 5.5 cent PPS, the amount of shares required to satisfy STTK's debt would have been 20 million - minus whatever converted dollar values they they sold previous to that short run.
But, if they waited until this week to convert their shares, at Friday's price of $0.006, the amount of shares required to satisfy STTK's original $1.1 million in debt dramatically climbs to ~183.33 million shares.
So, worst case scenario, perhaps the OS climbs to ~250 million shares. But, I doubt it. Again, I don't see ASC as having waited until now to start converting their shares. My hope is they are substantially through the process.
Perhaps Mr. Hill can send out an email or PR to let us know what the status of ASC's debt is.
AIMO,
Although I hate to admit it, I believe DryLightening is right. We are seeing declining stock prices precisely because StreamTrack's debt to ASC Recap LLC (ASC) is not paid back yet, and ASC is likely dumping shares per the terms in the 8-K released on October 23, 2013. I'm trying to see if the CEO can enlighten us on how much remaining debt there is to ASC that can be converted into shares.
Beyond that, after re-reading every SEC filing made by STTK, I don't have too many concerns about this type of activity striking us longs again. Yes, the Redwood credit debentures are out there, but the terms are definitely better... with a conversion price equal to 45% of the lowest traded price for 15 trading days prior to conversion.
Moreover, those shares are locked up for the next six months under the registration exemptions authorized under Section 4(a)(2) of the Securities Act of 1933, and as governed by Rule 144.
In addition, The Company may prepay any portion of the principal and interest payments due to Redwood for the Debentures at 130% of such amount upon seven days written notice. Since the company Officers have accepted shares in lieu of payment, and with increasing revenues that will only be further enhanced with the elimination of short term debt, my hope if Mr. Hill and his Board will be keen to pay off the Redwood debt before it comes due... thus avoiding the debt conversion into shares. In the meantime, the filing makes it very clear that this new debt was used to pay off the debt owed by the Company to Asher.
There's just not that much debt left out there that I can see. We do need Mr. Hill to tell us where they stand with ASC, as that agreement could, in theory, more than double the current OS.
Interesting... we'll have to hope they don't have very many left then. Per Michael Hill's email to me; specifically Answers to Questions 4 & 6:
As I mentioned, there is a limit on the number of shares ASC can acquire... roughly 8 Million. We will continue to monitor the OS and ask the CEO hard questions if we see the OS continue to rise.
Right now, the credit debenture from Redwood combined along with increased revenues, should ease their finances a bit. So, we watch and wait... but there's no reason, imo, to panic while ASC is trying to get as many low price shares as they can. It is what it is.
Within the next six months, all CEO, Michael Hill, has to do is post decent returns in this next quarterly report, and issue a couple of decent partner and product related PRs, and the price will run. The Longs hold too many shares for it to do otherwise.
And, that's exactly what Mr. Hill claims is in his game plans.
AIMO,
You know what, I'm going to agree with you. That could be exactly what's going on... and has been going on. But, it will end.
In the meantime, the longs can enjoy STTK's current below "real" market value prices to extend their positions and average down on their previous holdings. When new quarterly reports come out, along with new partnership and other announcements, this stock should quickly drive through these low prices.
And, my guess is ASC, though acquiring shares on the cheap today, will hold onto their shares for some time during the run in order to maximize their profits. After all, there's no sense in acquiring if they don't also intend to sell at a profit.
In the meantime, the number of shares they are allotted is contained to 9.99% of the total OS. With an OS of 82 million, it's not a problem.
I suspect you are here to sow fear in the hearts of longs to sell short and help ASC accomplish their goals to get their shares at the lowest possible price.
Well... quit waisting time... just get-er done already. ;)
AIMO,
At 383k, a relatively big trade at that.
I think you meant to say "Highest Ranking" you've seen... not lowest. ;)
The only problem with looking at L2, is the Market makers aren't showing their real Order Book. e.g. I've seen many trades take place without changing the Order Book on L2. My guess is they (MM) have a better understanding of the true number of shares Asher has and is willing to sell, and may be holding back that information from us.
So, it will be done, when it's done.
AIMO,
And there's my answer. Thanks 1234...
At today's average price of ~.0065, that would allow 169,230,769 shares... against an OS of only 82 million. Clearly that can't work. I don't have the time to look at the 8-k. Does anyone know if there was a cap n the number of shares by percent of OS, as their was for Asher and is for RedWood?
I don't know if anyone has talked about the OTC Market PR that came out yesterday... but here's Michael Hill's response back to me this morning about it:
-----Original Message-----
From: Michael Hill
Sent: Friday, May 16, 2014 12:00 PM
To: XXXX XXXX
Subject: Re: Odd PR Release Attributed to StreamTrack
Hi XXXX,
I did receive a few other emails regarding this same topic. Lux Digital is our former name and today is still operating privately under previous management.
We can not control the newswire syndication process. Our filings require that we maintain FKA Lux Digital Pictures, which from a keyword perspective will post under our ticker.
We have maintained a relationship with Lux and their team. To date, we haven't executed an agreement based on what you are referencing below.
Have a nice weekend.
Michael
I just got in... looking at the Trades, it seems like the Bears have been having there way this morning.