Another interesting post, its probably how real business is done, its is kinda depressing.....
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Re: Davis Look at the bottom line.
by: DavisProductions 10/22/03 07:56 pm
Msg: 23032 of 23051
I agree with you.
But aside from the FACT that the patent is bogus and the management is pond scum, let's look at the other facts:
1 - In the past 6 months the stock has gone up over 700%. There is very little short interest, so it's not short covering. It's real buying. Listen to the message of the market.
2 - The biggest players are capitulating. Only the small sites are fighting. What does Larry Flynt know that we don't?
3 - Revenue has gone up 1000% in 3 months. And the biggest licenses to date have not yet kicked in.
4 - The prospect of a large cable company like Comcast agreeing to a license could double the price of the stock overnight. A license like that would be H-U-G-E! Don't focus on the adult web sites. That is small potatos compared to the big prize --- VOD over cable and satellite. Don't forget that one of the first licensees was Lodgenet.
5 - It will take YEARS to get a court judgement invalidating the patent, if in fact the small sites fighting don't run out of money before then.
6 - Their real cost of operations is virtually nil over and above ordinary G&A costs. They don't have a product, hence no production costs other than Xerox paper and postage. That's a 100% margin busines s model.
I'm can't believe I'm writing this, and will have to go puke again afterwards. But I am trying to be objective. Seeing Hustler cave in was a wake up call. If Larry Flynt can agree to a license and call it a "business decision", then holding my nose and buying the stock is the same thing --- a business decision.
That's my story, and I'm stickin to it.
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