short term 8-10c - long term $1+, page-8

Criterion has it as avoid.

Quickflix (QFX) 2.7c

SHARES in the online movie streaming outfit surged 42 per cent yesterday after Hollywood prankster Alki David came to the rescue with a $5m debt and equity package, but there is a dead-cat scent to the recovery. The billionaire will extend a $1.5m loan immediately and a further $1.75m on or after February 1 and March 1.

David has the option of converting the loan balance to ordinary shares after six months, at a 20 per cent discount to the prevailing price.

The generous view -- let's call it the Margaret Pomeranz take -- is that of a mogul who knows the industry is backing the antipodean outfit. The David Stratton view is that it's only pocket money for Alki and it will only buy time for Quickflix. One-and-a-half stars.

Quickflix has called an EGM in February to approve the convertible bond arrangement and, despite the inevitable dilution, only a brave investor would hold out.

Criterion had Quickflix as a spec buy at 5.6c in July and a sell at 11.5c in February. We'll revert to an avoid call: Quickflix's 120,000-strong subscriber base and library of 55,000 titles have intrinsic value, but we fear the upside will be enjoyed by someone else.

http://www.theaustralian.com.au/business/opinion/push-for-board-coups-in-summer-of-revolt/story-e6frg9lo-1226544309298