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Re: dmoinvest post# 21348

Saturday, 06/25/2011 1:27:14 PM

Saturday, June 25, 2011 1:27:14 PM

Post# of 52575
DMO, thanks again for your posts. Tivus is stuck like every other pinkie having to rely initially on equity financing. I am assuming that if they pull down contracts that they can shift to Debt financing, and that should be better, depending on the terms. Again, this the reason for my questions around what a contract might look like from Host or some other hospitality group. It seems to me that a contract with $10,000,000 for 15 hotel conversions would open up some very fine financing terms, assuming that anything in this market will be "fine". We do know that banks are flush with capital and are willing to loan, but only under very restrictive terms. I would hope that $10,000,000 (hypothetical) would open the gates to terms that would allow Tivus to get reasonable debt financing. A contract of this size, or even half this size, should bring Tivus a long way to solvency.

Now, assuming Tivus can get to this stage this year, their SEC filings and their need to bring in an adequate cfo and staff would probably gobble up their initial investment premiums. However, with the continued income of the ad insertion tech, they should be able to move along to a bright future, IF they are not stupid in managing their assets. When cash hits after being cash poor, there is always a tendency to believe you have hit the mother load and not look out for unexpected curve balls in business. Someone will always be looking for an angle to get more from a new company, or sue them for an old past, hoping to get them to settle and avoid litigation. At any rate, let us pray for a contract asap that has cash attached to it.\

Question for SH: When does the DT contract ($1.2 mil.) turn into cash for Tivus?

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