TV2 (ASX) Research

Originally posted by Kristian333 ↑

It amazes me every time the thinking of investors here.

I guess investors buy into a business because they assess the underlying business idea believe in the competitiveness and that it promises profits in the future.

In particular with technology start-ups rewards can come very sudden, be very high can come very fast. (BUD, BIG, JIN, KNM, KGN, FGF...)

As a result investors in tech companies have very high expectations when it comes to returns. (Rightfully so as the risk taken is substantially higher than investing in blue chip stock).

Due to the nature of start-ups on the one hand changes can be substantial and the market requires updating on the other hand the businesses are also prone to delays and unexpected events.

So when for a certain period delays are encountered or updates are not made (due to management working their butt off to make it happen) investors are becoming jittery and blaming management.

Investors do not hang onto every announcements made by Telstra and blaming Telstra management when no price sensitive announcement has been made for a couple of weeks.

My point is: Investors should invest in a business with what they are comfortable with and if they believe in the business they should give it some time and be prepared for delays. Even be prepared to get not the 100% perfect announcements. As long as the big picture is on the horizon what triggered the investment in the first place, I think it is worth to hang on.

If investors are not prepared for this they just should sell and move on, I guess.

K

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while there is very little doubt in the long term viability of this business and its prospects for profitability,
the need for fast sub uptake and immediate revenues cannot be underestimated.

i see the possibility of further dilution as the primary threat to current shareholders.

I think the first realistic substantial mid term goal for most of us is the 100mil mcap (im not looking further than that at this stage).

but there are plenty of successful and profitable 100mil mcap asx companies still scratching at the 2c sp mark, which will help only a small percentage of current holders.

While I don't personally believe tv2 will end up in that situation, it does remain a significant factor in assessing an investment here.

Profitability is the fundamental core to the success of a business, but not always the core factor to success in investing.