Hi
@Bullish Event et al,
The cyclical movements of the SP are
not a management issue. They are driven by the many players in the market. Earlier this month management delivered shareholders a maiden, major multi-year deal with one of Indonesia's largest telcos. And now iStream is proven and ready to be heavily promoted, with Indosat recently confirming
'digital promotion and an SMS blast' presumably to their existing customer base of ~100 million people.
Yet in 11 trading days the SP has fallen from a 6 month high (1.9c) to a 7.5 month low (1c) - an almost 50% decline. So why the dramatic and sudden sell down?
As I explained last week reasons including an overbought TA, selling the recent news, tax-time and clever manipulation of the SP to lower the VWAP for a discounted buyback / conversion were or are unfortunately still in play, however the EOFY ends at 4.10pm tomorrow so I suspect the line wipes to the downside will soon cease. Today's line wipe at 1.1c (more SP poker) was again achieved on minimal volume and overall the volume has been in decline since the sell down began towards the SP finding its cyclical low.
However fundamentally we now know that TV2's platform has already proved its technical superiority (vs Optus for example) on the world stage via it's super successful streaming of the World Cup, and really this is only the beginning as
'TV2's advanced data analytics capabilities allow targeted advertising to enhance revenue potential as Indosat expands the iStream platform to offer a wider mix of global, local and user-generated content.'
From the recent Indosat announcement
'The business model that’s been adopted under this agreement will showcase how TV2U’s technology can deliver the engaging, highly personalised experience necessary to keep viewers engaged. As viewing habits continue to change, preventing churn and driving new bottom line growth through relevant advertising and data-driven personalisation has become the key focus of operators and content owners', and thus I believe further agreements through established partners eg. PGASCOM Indonesia, in Brazil as well as brand new content providers and partners in those territories and beyond) will come thick and fast in 2018/19, and the revenue will follow.
Thus I'll continue to buy the cyclical dips and thanks must go to whoever has provided this rare (and possibly final) opportunity to buy TV2 shares at @1c.
GLTA and please DYOR.
Cheers
Elpha
