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Great, in-depth response Michael. I appreciate your insight. For...

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delboy80

58 Posts.

09/05/15

02:28

Post #: 15246562
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Originally posted by MichaelOliver ↑

delboy, honest appraisal… i like it.

Here are my thoughts on why the next few months will be interesting.

NWZ has become the worlds leading crowd-sourced news and freelance journalism platform in a very short time... I believe the company has around 8.5 active users including 150,000 - 200,000 professional journalists.

That is very fast growth. And to get 150,000+ journalists using a platform in such a short space of time is very unique. If you have ever worked with journalists you will know they are not the fastest adopters of new technology.

So there is one… massive growth of user base should spike the share price. And unlike most tech companies, user growth for NWZ means cash flow as they monazite the digital flow of content. More active users… more revenue… higher share price.

Another is how disruptive they are. It’s a great story. They are having a huge impact on the way news and content is generated and published. I think this will effect the share price as more investors see and learn about the story over the next few months.

The balance sheet should also improve with the next two quarterly releases. This will hopefully act as a catalyst

Their recent quarter was overlooked. It clearly shows significant increase in cash receipts from customers and run rate revenues @ $2.82 million (March, 2015). With some massive deals not taken into account for that quarter it won’t be long before NWZ is cash-flow break even.

The company is also loaded with cash. It has a very healthy war chest and isn’t running out of money anytime soon.

Further deals like yesterday should also drive the share price north. How we ended in the black yesterday is beyond me. Lots of overhang from these backdoor listings and the news got sold into.

They are already in bed with the world’s leading news agencies and media companies. So there’s no reason why more would not follow.

Then we have further expansion. NWZ are also looking to expand into everything from live from celebrity events to sporting events. News around these new markets should also drive price action.

I’m watching their expansion into the US closely. I think they will leverage their recent partnerships to generate more deals. Media is very fragmented with many holding companies owning thousands of platforms. If you nail one publisher house, then the holding company will roll it out across the greater business.

The market opportunity is massive. I think the next few moths we will see a higher share price once we get rid of that dead stock out there.

The next 6-12 months should be exciting for NWZ. And as Dr said, Fosters would likely cover the stock in more detail moving forward and hopefully put some clients onto it.

Risks… outside of general market factors and the HC ramp brigade... NWZ really operates in it’s own bubble. There are always risks of them not delivering enough revenue through these partnerships. This will be judged later in the year.

They also might need to expand heavily this year if growth rockets. This could affect the bottom line.

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Great, in-depth response Michael. I appreciate your insight.

For my info, what's actually unique about NWZ? It's great to have a good disruptive idea and good announcements but what protection (I'm thinking strong protection beyond the usual brand, reputation, partnerships etc) does the business model have from being replicated?

NWZ Price at posting: 10.5¢ Sentiment: None Disclosure: Not Held
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