Good morning all, With all sorts of things set to happen in the...

Good morning all,

With all sorts of things set to happen in the next weeks, I thought it’s time to keep the chart thread going.

Fundamentals:

Based on the recent announcements and previous ones, I have tried to (speculate) what the news flow might look like over the next few weeks to give us an indication where price/volume actions might happen.

1. The company has announced it will release Engagement figures next week. Remember, for an app to be successful, it needs to acquire (downloads), engage (how it’s used – features, and how long it’s used for – time spent) , finally retention (How often they are using it – Daily active users, Monthly active users etc). I think the company will mostly release engagement figures and I am expecting some comparison with other market leading apps out there. I also believe that if the engagement is “good” now, it will only get better with more users coming in and therefore creating a community. Often “engagement” is the most challenging aspect of a new app because it’s a chicken and egg game. You can’t have great engagement without a community of users because they feed “content” and you don’t get users without the app being engaging. Hence, this is the most important figure I think at this stage.  I would love if they threw some retention figures too i.e. what % of users are using it daily so when the volume grows with more downloads, you can get a sense of the DAU’s/ MAU’s for RAAS research valuation.

1. The next bit of announcement I think will be followed by Celebrity. The “audition rules” also stated an additional celebrity judge to be announced prior to 4^th Nov which also happens to be the week after next. Remember, if anything these guys have the “network”, “market/product understanding” and “capability” to acquire the best of the breed out there for an “early stage company”. Big name celebrities will follow a successful product – at this stage, we need someone who really “cares” and more likely massive celebrities of today have very tight schedules and therefore likely will not put in that extra 10%. So, we need someone to be part of the team and not just the face of it.

1. The next bit of news to follow I think will be early download figures as the stream 3 (fans acquisition) would have commenced. Remember to focus on the “growth” and with each round the competition heats up and therefore more callout’s for votes resulting in an increase in users as well as engagement and retention. Technically speaking all 3 metrics should see considerable growth week on week.

1. The other significant news I think will be another “tournament”/product as I think this is already in the works. Whether they will announce it immediately after the finals remains to be seen.

Technical:

The chart has followed very similar trends to some other specs in the recent months. Strong spike to breakthrough followed by immediate pullback to test support and then a strong rise. Yesterday’s close at 23.5c did justice to that trend however requires significant volume to push the trend back up. It might actually consolidate with a churn of little volume before the (potentially) increased interest from Tech-Invest next week.

Look out for a close over 24.5c. All in all, it’s shaping up to be a very exciting next few weeks. GLTA.