lol. I've actually talked to the mod and he said I can re-post...

lol. I've actually talked to the mod and he said I can re-post the original post if I make some small edits.

So here's the edited version just for you @RandomK

----------------------------------------------------------------------------------------------------------

A friend of mine brought my attention to Big Review TV. I'm not sure how this slipped under my radar all this time but I decided to dig a little deeper and see what this is all about. Let me just summarise my findings in one line...

Worst stock I've ever seen!

My apologies if what I've said below has already been mentioned. I made an honest attempt at going through all of the material posted here but frankly it was so hard to find anything substantial amongst the 'land fill' of ramping garbage.

So let's just summarise. As of today the fully diluted market cap is $224 million. The company can be described as 'Youtube meets Yelp'. Revenue numbers look great and it's cash flow positive.

The question I've set out to answer is: Is this just a fad or is there something really special going on here? The short answer is that it's neither, it's far worse. I'll explain below.

What's driving the share price higher I think is the revenue numbers. People here are getting all excited about the phenomenal growth in revenue but when you look 'under the hood' at what is really happening it's easy to see what's going on in my opinion.

The hospitality industry is extremely competitive and the industry spends a significant amount of income on marketing to try and sway consumers to become loyal patrons. Most restaurants and bars will jump on the 'band wagon' of any new promotional platform that comes around. We've all seen fads come and go. Groupon comes to mind and perhaps you could argue this is somewhat successful but when was the last time you bought a coupon?

What I give "Big Review TV" credit for is that they understand that "Content is King" and what they are offering to small and medium sized businesses is uniquely attractive. The opportunity to have a professional promotional video produced at a razor thin budget of only $400 is a bargain. If I were a restaurant owner and all of my competitors had signed up to this wonderful new service I would jump at the chance if offered.

Sadly, this is where the story ends with Big Review TV. In my opinion it's simply nothing more than a cheap video production company. What's worse is that they just outsource some or all of it to third party marketing companies looking to 'clip the ticket' and ride the latest craze.

The long term value for shareholders is dependent on weather or not the "Big Review TV" brand becomes 'sticky' with millennials. Will the brand represent a popular, trust worthy, rich content driven, and innovative platform, or is this all just window dressing?

If you look at the current traction of the "Big Review TV" brand there's limited evidence, in fact, there's no evidence of this becoming popular amongst consumers. He's a screen shot of "Big Review TV" in Google Trends:


For a company claiming 24,00 Youtube subscribers their video views are surprising low:


Furthermore, if you scroll through their Instagram account what you will see is the typical "good looking models" featured in their promotional material. In other words, 'click bait', designed to pull in easy views to boosts consumption. Their trying to be relevant to millennials when in fact millennials just don't care about reviews, they're more interested in consuming "Pewdiepie" content like zombies.



The value added from Big Review TV is limited apart from introducing SMB to the new world of video marketing. Most SMB have never produced a video before and there's no doubt that video content will continue to grow and be a significant driver in the market. Big Review TV have opened up the door up to small 'one man band' video companies who will try and compete and offer to sell the content in full with no licencing restrictions.

There is only going to be a limited number of businesses wanting to 'dip their toes' in this new video promotional market. They will sign up, realise the short comings, then look else where to generate content. A somewhat similar situation happened with Groupon in which companies rushed in, realised the low return on investment, saw better alternatives, and then moved on like a 'school of fish'.

What I believe will happen is that revenue will begin to decline, if it not already has, and then the early movers may begin to sell their stock. The third party marketing companies will see that the gold rush has ended as the opportunities begin to dry up and demand an ever greater incentive. And lastly, if there is any sign of this working, Yelp may will just decide to feature video content.

The market can easily be fooled by 'the numbers' and future projections of growth can easily be plotted on a graph to look impressive but the key to successes is vested in Big Review TV's brand but there's no sign of this becoming "cool" or relevant anytime soon. My advice to shareholders is to ironically ignore the numbers and look for signs of growth from consumers and not the producers of content.

DYOR