Blausen ???, page-21

HI all

here is my take on this.

the market will be regarding xTV with some caution, based on past events.

it appears that the strategy of xTV is now firmly focused on a specific sector, which is a good thing if you have the right team together - and in Mark Sangster, this does appear to be the case.

suppose that we do get ANN monday,  unfortunately it would have to include anticipated revenue flows, and some forward looking strategy plan. else it will certainly be viewed as 'just another typical xTV ANN' full of promise and bluster but lacking on detail.

However i do not believe that there will be any ANN regarding Blausen - so please do not get too excited. (happy to eat my words if proven wrong)

i have as much desire to see xTV succeed as others, cashedup included, but still urging caution.....reasons
whilst i am fully aware of the enthusiasm and concept of what xTV are doing, i have had growing doubts about the business model; the concentration on healthcare has to some extent alleviated this, but not completely.

remember these guys are in the hub outside San Fran, between the TV companies and Silicon Valley, and so in a good location, but they are also inviting extreme scrutiny from the movers and shakers within the sector(s) - whether its tougher to do business there or not, and whether the advantages of being in that location outweigh the disadvantages, we dont know. but we can be sure that if xTV are targeting now just the one sector, there a possibly dozens of other companies in the region that will be trying to erode their market share.

and yes, as for the SP / MC, there will be no real or sustained movement until some solid revenue figures v expenditure are published.

A few pips here or there are immaterial, xTV cannot survive in this sector as a $10m MC company, and whilst they can still be considered a startup, albeit producing revenue, the road ahead to becoming $100m MC is probably longer than a lot of us will like.

I would not be watching % gains on the sp, where 1 pip is 10%, but would be looking towards the oppies, at 3c exercise price. Once we start to see big orders here, then we know that there is solid support for the future (traders of course can distort this)

The Baker Young ??? (i think) target price was 3.7c - giving a 40m MC - which is where xTV will need to be if they are to compete in a crowded sector in tough economic times: My thoughts that to achieve this target they will need to be able to show a $2m profit (not revenue) - basis 20:1 ratio. Again until we see revenue v cash burn, we cannot make any predictions.
On the downside, if the MC starts trending towards $5m then the vultures will take over, and they will possibly be in an 'asset strip ' situation, where the company will have to be sold off in a firesale.