Hey guys, sorry for the delay in getting back to you. The Techknow event was excellent. The presentation only went for 15 minutes, but afterwards was where the real gold was as we were able to speak to Dion and Mark the CEO and Chairman. Another investor friend of mine and I spoke to them for over an hour. McGriffin was also there.
There was quite a few things they couldn't say exactly but alluded to and sort of hinted to without actually saying. They answered a bunch of my questions. Pretty much what I got out of it was that they are ahead of where they initially anticipated and their metrics are way above industry averages, sometime by over 5x. These things were covered in the presentation which you can download from the ASX website or this thread.
We discussed the next judge coming on. Without saying who it was, they alluded to it being a vlogger of massive influence, she is of ethnic heritage was all they could say without saying who it was but said she had a massive following into the 10’s of millions and would have a HUGE impact on the push for fans to download the app.
I asked if Jeb would be starting to do some promoting soon in regards to getting more talent on board which wasn’t of the singing and dancing mould but more so extreme and other performance types, and Dion said Jeb and Usher have something planned for the next round of heats with still a fair bit to play out.
There will in fact be 6 heats with the last one being a big push for other types of talent besides singing and dancing, not 5 like has been reported.
We spoke about the future and what's planned for next year, basically it's not confirmed 100% but they're looking at 4 comps, 2 English speaking countries and potentially 2 in non-speaking countries.
China and India are big on the list so may come first, Megastar Bollywood they reckon will be massive, Megastar China is being pushed by the Chinese who want it to be rolled out early next year. There's a TON of money in Chinese advertising, so that will be massive, not to mention their population, we're talking serious numbers. We spoke about MSM Bollywood at length and discussed just how big talent shows are over there……guys we’re talking HUGE numbers. They love following a story and journey of talent.
From what I gathered without being told as such, they are already over 250k downloads, when they hit 400,000 dl MSM is valued at .96c by RaaS and their main marketing spend hasn't even started yet, that will come in phase 3 which is just starting now which is app download acquisition. That's where the majority of their cash will go, getting fans to the app. Just let that sink in for a bit…….
We discussed the finals and how they will be massive with all the app features in play (which will increase usage and time on app from where it already is). We spoke about the media coverage that the winner will receive (online and mainstream) and that it will be so huge that come comp 2 we'll get a lot more contestants and will be a lot bigger. This will look like a baby in comparison to future comps.
I said to Adam that I know the valuation with 1mil daily active users puts the company at a valuation of $3.89, so when we bounce into China and India, if that number is 10mil daily active users would that correlate to the share price being $38.90 and he smiled at me and said it's not out of the question.
I spoke to Dion and said I noticed there hadn't been much marketing in the UK and why was that? He said that it was all planned that way to have the most marketing spend in the US and Australia. He said paid advertising was a lot more expensive over there. For example, I think he said it was about a $3 spent per performer acquisition with about a 1 to $1 for contestant acquisition. In the UK it's about $37 per performer. So financially it was better off allocating the marketing spend where they could get a lot more bang for their buck so to speak and let the virality take over. It would hit the UK, even if it's more so for comp 2 once the brand has been established.
We also spoke at lengths about the team behind MSM including the app team who knew exactly how and when to bring in new features to help build a deep engagement experience. The app was stripped back for the start to make it easy for performers to get in and upload content. As the comp goes on as everyone has started to see, new features have been added including top gifters etc. There is still a few features still to come.
All in all, there is massive growth potential for this company, if you look at what they've achieved in less than 4 weeks and multiply that by the potential of the remaining weeks to come, then multiply that by multiple comps in multiple regions around the world over multiple years, that should give you a bit of an understanding on where we're currently sitting.
IMO this could be a $10 stock in less than 3 years, and that could be conservative, it’s just hard to say before the China and Bollywood roll out (and other multiple region comps), especially when the big international investors come in from places like China, India and the US. There is also the potential to list on the NASDAQ moving forward. So in actual fact, this stock could go anywhere.
I must say, I left feeling pretty confident in the team, the product and the strategy they have in place. I don’t think you could have hand-picked a more experienced team to the ones that run this company. I look at the stock price now and think, wow, people will look back when it was in the 20’s and say, why oh why didn’t I buy more. Don't look at this as a short term play IMO, buy what you can, when you can and let it play out. The team know what they're doing.
Hope that summary gives everyone a good insight. If you can get to the Sydney roadshow on Thursday I would recommend it, especially AFU so you can speak to Dion and Adam directly and ask them anything you like (moreso to stop bugging the thread with unsubstantiated comments J. Also, they provide free beers, wine and food afterwards : ) WIN/WIN! GLTAH get ready for liftoff!
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