dd completed, page-38

re: beware false claims putting the immense amount of personal slangings to one side for a moment and the hype of fridays corporate activity, some thoughts to consider;

with around 8-9000 subscribers qfx is losing just under $100k a month (($274) on last qrtly) - what is the break even, my guess if they dont have to increase admin. overheads markedly, b/even is around 15-18,000 subs. They are low on cash and doing a placement, its a low capex bix so they may only need 1.5-2m to get to profitability (educated guess)

with recent register activity this shouldnt be a problem, but how much can the coy make, i'd like to see some models from the coy on profit by subscriber vol's, say 20,000, 30,000 etc.

then there's the competition and changes occuring in the market, no question strategically that video stores are mature and in decline across the board - some local areas may have growth due to local demographics but overall in decline. also there's the emergence of online movie downloads coys (rma - coy formed out of the old flowcom) this is a poor attempt at cracking the online download market and will suffer due to the way their doing it but nonetheless, downloads to set top boxes in homes and pc's is emrging and has potential. dont forget foxtel with its subscription and pay per view models.

as it is travelling at present, qfx as a biz in my opinion will take time and have a slow growth to profit, it needs a white knight the likes of murdoch, a retail video chain wanting to get into the online side, fairfax etc to lift awareness/profile as a biz and accelarate the growth of the biz.

on the corporate front, i think there's got to be more ahead, as much as some of the posters are discounting others views, the likes of a big corporate doesnt invest without a broader plan, there is something afoot, its not just a one off investment.

my question is why buy stock onmarket when there's a placement in the wings and the coy will need more cash beyond this one, also why not buy a controlling interest before the premium kicks in? why buy friday - it allows time over the w/end for just this.