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Sorry, I cann't give a proof like 1+1=2....LOL
c'mmon dude...use some common sense...He will never put his 24M into QBID shares when he already have 53% of it...And Frank already stated that he is one of the private investors...In my opinion, he is the only one investor...His 24M is pretty much sufficient to run this company for 2 more years with the burn rate of 1M/month...Probably that's why he said QTN is fully funded until 2008.
Now the point is what will happen if QTN go bankrupt by 2008?...He will sell current assets to pay off private investors(in this case Frank only) before any shareholders...The bottom line is his 24M+20% interest will be intact what ever happens to this company.
Frank's 24M is used as private funding that he draws 20% interest.
53% QBID shares costed him $0.
Remember that Frank Olsen mentioned about the private funding in one of the PRs. We also heard that he put his 25M in to it. So, what I infer is that he is the only private investor but remember that he draws 15-20% interest on the principal. Now, what happened to money gathered from QBID shares?. I think that's the money used to buy NTI, library and studio etc.
So here is the trick...Frank always gets 53% of the shares therefore, he is protected from dilution. He doesnt have to put any money down to keep his 53% ownership or in otherwords he pays $0 for all the shares he owns.
Now, what if this company go great guns?...Frank gets 53% of the market cap.
Now, what if the company go bankrupt?...He will sell studio and NTI etc to cover the debt...The debt will be paid to private investors with 15-20% interest first. In this case we have only one investor, i.e, Frank Olsen with 25M...So bankruptcy court will award him 25M + interest before they court consider shareholders.
The bottom line is Frank wont loose a penny whatever happens to this company in the future...What a business idea!...Who said he is not a genius?.. LOL
Those are buys, right?
This company is hopeless now.
I just watched some QTN Worldnews clips posted on the web site and all looked great. The most important thing is they only included news related GLBT community. That way this program is very unique.
if Q releases the audit, he will probably change his mind..:)
It sounds like ur friend is a good financial planner and i dont think he will ever appreciate investing in penny stocks because of risk involved.
Did he find something very negative in Q when compared to other penny stocks?
Only six more months left for QTN to be available on 150 stations. We are right now on less than 10% of 150 stations. In order to hit 150 target, we should be available on an average 22.5 stations every month for next six months. Is that a realistic figure?
Out of the two PRs issued today, I like the PlanetOut deal and hope QTN content will be distributed over their internet site soon. The second PR is just another crap like the POD deal. So I ignore that one.
Not sure if this one is already posted.
http://qtelevision.com/site/Home/SubscriptionInformation/tabid/96/Default.aspx
I think Q needs around 300K subscribers to break even. This channel will also make some money from advertisements. The monthly burn-rate would be between 1 to 1.5M if QTN roll out to 150 stations, IMO.
How is QTN and Planet Out related?...As I understand, planet out contributes to QTN World news, right?
tomorrow is NY/NJ QTN roll out...Any thoughts on how many viewers/subscribers etc?
You are right lobo...If the A/S is 60B, we will soon see OS of 60B. In addition, Frank doesn't have to worry anything about the OS level because his share is always 53%.
thanks duke!
Oh...Then what was the news that drove the price up?..Do you remember the float at that time?
Good question...Let me ask you this...Why so many companies do r/s then?...The simple reason is they want to bring float to a low level...If the float is low, market would buy out the float much faster and that would create demand for stocks resulting in better price. Take QBID shares as a good example...Last year, it hit 2 cents when the float was under 2B..At that time we had only RCN as carrier..Now we are in more RCN stations and have many other carriers...Don't you think if the share structure remained the same, we would see at least 40 to 50 cents by now??
Right now because of the ongoing dilution and huge float, many investors don't have any faith in this stock...So if I planned to invest 10,000 bucks in this company by seeing the concept of a new GLBT network, now I would stay back or change my investment decision to put only say, 1000 bucks because of the risk involved from huge OS and never-ending dilution.
I think a 30 to 1 R/S is sufficient at this time provided Frank wont sell his preferred shares anytime soon. This will leave tradable stocks under 1B....We could even see a buck at that level.!
not people like you and me are selling...Only the CEO of our company is selling...:)
I repeat what dk mentioned before..."Supply greatly outweighs demand"..:)
I think the same no matter what progress this company is making in getting new carriers and audit release etc...Stock price is driven by supply and demand...Right now the supply is nearly 60B shares but the demand is less than 5B shares...This basic principle will drive this stock down to the lowest value possible($.0001).
yea, you are right...I totally ignored percentage break down...So, we need atleast 500K subscriber base to break even, huh?. Now i think getting more carriers is not that difficult as I thought before..The main delay is in negotiating carrier margin...Probably that's why we often hear from Dish network that they are on negotiations with QTN....So, I kinda think that QTN will be forced to sign up with all top carriers(such as comcast, direct tv, dish etc) at lower rate margin if they couldn't reach better price agreement before june 2006 gay games.
chevdawg18...first of all, 1M burn rate is not going to remain same...As the network expands to other cities/markets, more money needs to be ear-marked for channel advertisement and other expenses...If 2M is a realistic burn rate at that time, a subscriber base of around 250K($7.99/sub) would roughly break-even, IMO
I dont believe any of these are true. I think Frank deliberately put out these kind of PRs to artificially increase demand for QBID shares and thereby helping companies holding restricted shares to sell at a better margin.
Also, I think individual shareholders like you and me own only upto 25% of current float(~20B). So, about 15B is still in the hands of companies with restricted shares. They are dumping these shares each and everyday. Eventhough Frank mentioned that these shares will disappear very soon, honestly I don't think so. We will see more lows in coming weeks. That's why I think this is the best time for the company to begin buying back.
where do you think he is going to get the shares from to buy back?
We know for sure that someone is selling shares heavily, that's why pps is going down every week. Frank mentioned in last CC that it is the companies he issued restricted shares for film library etc are selling. They still make profit because those shares were issued at .0001 or lower
Exactly...I think buyback is a better option than r/s because the former gives more value to shareholders...Buyback may increase company's debt by $3 to $7M but that's not at a big deal if company feels of being profitable by next year and payoff the debt.
Itesprit, honestly I don't think its a problem Frank holding major portion(53%) as long as he doesnt sell it. It grants him the full control of this company. But I do agree that humongous share count and ongoing dilution is a problem for shareholders like us. If Frank is a good CEO, he should buy back shares from now onwards up to 20B...Since the pps is dropping gradually every week, he can probably complete buyback in a month or two and would cost ~$5M. He can do the this without informing shareholders so the PPS would remain low during buyback. When the buyback is complete, the float would 1 or 2 billion. Frank can then retire ~20B of his personal stock and maintain 53% of company ownership. I think this is what he should do as a good CEO
I dont think Frank lied on Audit release...He told it would be release before Oct 30th...Never mentioned the year...:)
duke, Compare to SIRI having a subscriber base of over 2M and current market cap 9B
duke, I was referring to what raggs mentioned in post that
"...In a couple months I think we will be at .05!". In a couple of months it's sure not going to happen.
To have Q worth 2B, it needs to have atleast 500K subscriber base. That's a long way to go and may take many many years(3-10 years, IMO).
impossible bro.
Excellent!!!
Isaac Newton,
See your equation F=G*mM/r2...The G was very high at one point of time and therefore the F(force) was also increased to a very high value...Because of very stong force it hit .04..LOL.
I am sorry, it's Friday and I am drunk...The price spike is a software glitch...Just ignore it.:)
Isaac Newton, its because of gravitational pull this stock is goin down....Just compare this stock to the apple that fell on your head..LOL
WOW...QTN on there...channel no:399
20B buyback is not enough IMO...May be 10:1 r/s...That will leave OS at 4B.
what would be the PPS by next week if it fails to release audit info...any thoughts?