gcn reiterating p1 value, page-63

CloudWalker

Page 25 of Annual Report shows that receipts from customers were $193,052 in 2011, compared with $45,463 in 2010. Not much I know, but GCN also has some sort of line of credit with an investment bank that it can draw on.

This is mentioned on page 14 of the Annual Report:

"The Consolidated Entity has demonstrated in the past that it has been able to access new capital as and when required and will continue to do so in the future until it is operationally cash positive."

One of the additional solutions they propose (advertising) may be a saviour. In the report, advertising sales and advertising commissions are given as $10,685 in 2011, but unfortunately that is down from $30,675 in 2010.

There is a chronic problem here. I monitor uctv.fm every couple of weeks or so. Thus far paying advertisers (as distinct from ads for GCN's own products) have not realised any advantage to GCN. There are virtually no paying ads, and that is after many years of trying.

Major growth in what they call 'viewer traffic' has not lead to major growth in revenue.

The 'traffic' analogy begs a question. GCN are not the owners of a tollway, where increased traffic is directly correlated with increased revenue at the booths.

In the case of GCN, I have seen no evidence yet that increased audience reach has led to increased revenue.

OK, so where do we stand? Angry and others tell us to put the past behind us. Look instead at the current promising schemes. I agree - at least for a small investment. The GCN leopard may be able to rearrange its spots.

All investments are a bet on the future. I think the odds of success with GCN are long. That doesn't mean we should never bet on an outsider - but not when wearing rose-tinted spectacles. I have my GCN shares on hold.