Thank you for the kind words.
Here are my thoughts and observations. To begin with, there is absolutely no reason for this stock to be trading let alone going up in price. I got a call from a reporter with a major financial publication a week or so ago regarding Klepsy. It appears that Darth Vader was tweeting that Qtrax would launch on Feb. 23. He didn't believe it, of course, but asked me if I had heard anything. I could only tell him what I will tell you.
I have not heard Klepsy's name or Qtrax mentioned at all in any conversation I have had with every record label. None of the labels have heard a peep. Any licenses he may have had at one point in the past are no longer in force. I really don't think that he ever really activated any of them since he never had any money. These days the advances have gotten to be so outrageous that investors run from the space. It's just not worth it anymore to mess with the recording industry. They are terrible partners, there are paper thin margins and advertising is down the toilet.
It is coming on 3 years since Klepsy lied to the world at MIDEM. He has burned every bridge that he had or could possibly have with the press. That's a fact. With the cost of marketing a consumer service, you need the "free" exposure that the press provides. That door is shut for all practical purposes. He has cried wolf so many times that no one in the media believes him anymore. He's a complete joke. And every time he puts out a press release everybody I know in the press just scoffs at it.
In my opinion he is and always has been a complete fraud. I have a lot of information about his shenanigans that unfortunately I can't reveal in a public forum, but I told Rick Riccobono 4 years ago that the guy was a scam artist and I told Robin Kent as well. I've know Rick for 35 year sand he's a nice guy who just found himself in a bad set of circumstances. But I glad that at least he's out of the Qtrax muck.
I think that Klepsy is under a lot of pressure from some of his broker pals to do something about the stock because they're sitting on millions of share that they can't dump. They need out. Klepsy knows how to work this board and knows that the faithful buy into his garbage, so he takes advantage of it. What he did was put up a stupid slash page, the latest in a string of similar stupid splash pages, and float the rumor that he is launching on the 23rd of Feb. He knows that there are people on this board who have a limited knowledge of how the business really works and he knows how to play them. They are so invested, both financially and emotionally, that they blindly listen to him and reject any facts or evidence to the contrary. He may indeed launch, but I doubt that he'll have any content of consequence. He may have been able to con some little record labels in India or Singapore or the Phillipines into giving him some content without any advance money, so he may try to pull off that as a "launch". But no major label stuff.
It is virtually impossible for Qtrax to succeed, even if they beat the odds and launch something. It just doesn't matter any more. The market is set and there's little to no opportunity for new services, especially with Google's imminent entrance into the market.
I really don't think that he even has the money to build a new site. If he does, then he's hiding it from judgment holders. Let's be honest. The guy's looking at about $4 million is judgments and those are the ones that we know about. God knows how many more are ut there as well as the vendors who haven't filed lawsuits yet.
As far as the supposed model goes, once again friends, it will not and cannot work--for a number of reasons. But let's save that for another time. Don't forget that Spotify is definitely launching in the US and with their freemium model, who needs a stupid "free" drm'd download model? It's really useless. Also, the labels are just not behind that model anymore. They don't want to hear it. That's just fact. It would take a war chest of many millions to launch these days, and I cannot see how any semi-intelligent investor would trust Klepsy as the stewart of their money. After all, his track record speaks for itself on the truth meter. You've all read his ranting blog posts with all of the righteous indignation, self pity and empty promises. None of it, and I mean NONE of it, has ever come to pass. EVER. That too, my friends, is fact.
Frankly I don't care about Klepsy or Qtrax at all. It's merely mild entertainment for me at this point. I won't even write about him on my blog any longer as he really doesn't deserve the attention. And I'm not the only one who feels that way. The truth is that posts about Qtrax just don't get any traffic, so why bother? Nobody cares.
I was talking to a top digital media exec yesterday at a major label and asked if they'd heard from Klepsy. The answer was"not a peep". See, he owes them all money! Money that he doesn't have.And yes, if he walked in the door of a label with several million in cold cash in a suitcase they'd be happy to deal with him. But that's not going to happen and they would gladly take his money but would never really back him. They know that he would go out of business and they could then keep the balance of the advance money with paying anything out to the artists. Sheer profit.
So I honestly believe that this is nothing more than a typical Klepsy pump and if people can make money playing the pump, fine. Frankly I think your odds are better in Vegas.It's just like craps. But there is absolutely no long term viable play here and I really don't even think there's even a short term play either. The time for Qtrax came and went 4 years ago, minimally.
I first ran across Qtrax in London about 7 years ago and knew it was a BS play then. Nothing has changed as far as I'm concerned. The guy is toxic.
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