gcn reiterating p1 value, page-29

why did it drop from 5 cents
a US firm had convertible notes and deal was they could convert to shares when they wanted at the lowest price

well I cannot say too much cause the deal is now suspended with possible action by GCN, so don't want to comment too much for legal reasons.

the price dropped a lot and GCN not happy about this

then GCN restructured the deal with cashmere media, to save money.

Paul Cashmere resigned as a director and said he was committed to being a shareholder, made a statement to ASX, then straight away started selling stock, had 120 mill of them,

now has none.

and the markets we know has not been great

I know this makes it a long post but thought I would add part of my "another valuation" post to explain my view on how the independent valuation would work out

this is based on the P1 business alone, GCN have other income streams that are about to produce,
it's just that most are based on IPTV which is pretty new, like Asian IPTV where at present some homes have those huge satellite dishes, they pick up channels from their home countries, this is expensive to run and GCN have done a deal with Netbay to change all these to IPTV, Netbay have 50k customers atm, GCN will switch all these to IPTV for cost saving and also it means they can watch these programs when they want to.

if say GCN make $5 profit from these it is $250k per month, or $3 mill per year, now as it will be cheaper they could attract more customers, and can do this globally as well with IPTV

Anyway here is the post on P1 valuations. long so best to read in the morning.

O.K. here another stab at valuing P1

They have 400 mill customers, this is without anything from China

say 20% take up on their cards, $100 per year, merchant get's half and P1 and GCN share the other half.

So $25 times 80 mill is $2 bill for P1,

Say a net margin of revenue is around 60% and that could be conservative cause the system is automated, that is $1.2 bill,

this does not include commission fees, transaction fees, insurance sales where they will earn a lot more, a PE of 10 gives a market cap of $12 bill or around $15 a share.

working on a valuation like that you can see that 30 cents is a long way short of a valuation.

Now that is P1,

so what about GCN, they will also earn $1.2 bill based on those figures,
and do you think the market cap will be $20 mill whilst earning $1.2 bill A YEAR???

don't forget GCN have other revenue streams,
and who is to say another P1 type wont come along with a different sort of deal who want to use their IPTV

The valuation on P1 will also give a valuation on GCN,
So those thinking come ex what is the value of GCN, this could be the real winner here, P1 will be valued at 30 cents or greater, but GCN could still be around 5 cents by then, so there is a 6 bagger to get anywhere near P1 price, A 10 bagger right now!!!!

We will obviously get a range of prices from the valuation based on take up rate,

but you see a 20% take up gives you around $15 a share,
you might say that might be too much to ask for as far as take up,
a 2% take up then gives you $1.50

so the 30 cents to me on those figures is safe as houses,
but it also gives you around $1.20 on GCN as well based on even a low take up of 2% (GCN have slightly more shares when P1 lists)

So when this is all worked out, you can see GCN is in my opinion a SCREAMING buy