TV2 0.00% 0.8¢ tv2u international limited

I like that people are keeping expectations low about opening...

  1. 505 Posts.
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    I like that people are keeping expectations low about opening SP. But this isn't just about the $5m. The sp of TV2 isn't going to move based on a $5m payment. It's going to move on a variety of factors I thought I should share:
    • Markets always discount the next 2 years. This means the revenue TV2 will generate in the next 2 years moving forward from this contract - while difficult to know exactly how much, the market will estimate
    • Viability of tech and business - Such a large contract being signed means that TV2's tech has commercial viability. There is a demand in the market and they are willing to pay big bucks for it. What's important for a tech company is their portfolio of clients that use their tech, and now we finally have that ball rolling. Nobody wants to be the first to trial a company's tech, but when you see so many others using it, it instills more confidence in you as a user/client.
    • Sentiment - As most of us know, TV2 has been smashed down in sentiment due to the company being unable to deliver on past deals. Now that we have finally delivered - The market sentiment will have a massive uplift, also due to previous point that the tech and business is commercially viable.
    • Visibility - A lot of investors, funds, traders, brokers etc. stay away from pure speculative stocks with 0 revenue. TV2 while still speculative, now has derisked a lot of aspects of the company, and will bring in a fresh market of investors who will be looking to hedge some of their funds into a speculative high reward play.
    • Market conditions - TV2's growth depends on people staying home and consuming content online. And what's happening with current Covid-19? People staying home. Lockdown or not, I live in China and have been through the pandemic and people are still staying the hell home even with no lockdowns. Content producing apps like Douyin (Chinese tiktok) have been going through the roof due to the massive increase in users. These market conditions create more focus and attention on stocks such as TV2.
    • Confidence - Like a lot of long term holders and posters in this thread who are now posting with a lot more confidence, the market will react the same - For spec stocks confidence is a really important factor because there is little fundamental valuation you can perform to get a definitive MC result. Most spec stocks are driven based on future valuations and potential of where the company can be. When gold prices tank hard, speculative gold stocks that don't produce a gram of gold will also drop in share price, because of a drop in future expectation/potential. It works the same here, with renewed confidence and increased potential for the company looking forward, we will see a boost in buying from this angle too.
    • Hype and momentum - Hype and momentum are also massive drivers of spec stocks simply because there is no intrinsic value in the company yet. A spec stock does not have to be valued between a certain MC range like larger caps do, which gives them free rein to multiply share price as many times as they like. Bitcoin is a great example.

    Based on these factors, I do see the SP being higher than the 0.012 or 0.016 predictions
    Last edited by Day424: 15/06/20
 
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