Findev Inc (TNSGF)

[dealorfx]

I didnt see this but grabbed it from the Stockhouse website.

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From the Hackett Stock Report, July 2, 2011

Transgaming has successfully launched, in Europe, the first in what should be a series of launches of the GametreeTV set top box gaming on demand service. Their first launch was done with a company called FREE that is a 5 million subscriber base cable company in France. Numbers on the initial launch results should be coming out in the fall and this will set the bar for what to expect as a baseline set of metrics. The conservative model the company is using is a 10% market penetration, a $5 to $10 a month average usage and a 30% split between the Cable Company and content provider. This would offer an initial baseline of 12.5 million in revenue for this Launch alone over the next 12 to 18 months. However, if it turns out that penetration levels are higher and closer to 20% then the numbers get even more exciting. The company expects 2 to 3 more cable operators to launch the GametreeTV service this year in Europe. This should help solidify their position in Europe as the dominant player of the next generation on demand gaming service for interactive set top boxes. Initial reports of the launch have been very encouraging as the company has been seeing a doubling of users every week with an average transaction value around $7.75. Also 25% of the weekly usage is from repeat users of the GametreeTV service. In the fall, we will get more hard core numbers but so far so good. The big prize potentially coming in 2012 is the possibility of landing Comcast in the United States. Comcast has publicly stated that ongoing trials of the Intel chip based set top box for the next generation of on demand services has gone very well and that they plan to launch this to their entire 22 million subscriber base over the next 12 months. Given that Intel has selected Transgaming as the primary on demand gaming option for these set top boxes, the potential for a likely deal with Comcast as 2012 approaches seems possible. Needless to say, such a deal would thrust Transgaming into the big time. Time will tell whether their service can achieve what I deem to be conservative metrics or not. Should they do or even exceed them than we could be looking at an addressable market of 50 million subscribers over the next 3 years. This would offer revenue potential of over 100 million with profits close to approaching $1/share. Place any multiple you want and the stock would be a major homerun.
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