For your entertainment. A article by Ken Wangdong 2/6/2016...

For your entertainment.
A article by Ken Wangdong 2/6/2016
Should You Buy GoConnect Shares at This Price?
Link to Article at Money Morning

What happened to the GCN share price?

GoConnect Limited [ASX:GCN] was completely flat by late afternoon today. The stock price of GCN has now reverted back to May pricing, at around AU$0.006.
It is clear that the market is yet to factor in the ‘excitement’ of the Chairman’s address in late May.
Why did GCN shares do this?

After reading the Chairman’s Address, released on 31 May 2016, my overall impression is positive.
Based on the Chairman’s Address, the valuation for GoConnect, which is between 15 cents to 40 cents a share. This is significantly higher than the current price.
The valuation is based on the value of Go Green Holdings Ltd, a significant investment of GoConnect. Go Green Holdings is valued at between $1.5 and $4 per share. Of course, and GoConnect has implied value at a much higher price than now.
What strikes me is not the much-higher valuation the market is missing; rather, it is the strategic direction the company is taking. There is definitely a sense of excitement and intrigue in the Chairman’s Address. In my publication, Emerging Trends Trader, I have talked about agriculture as a very old industry, one which struggles to be an exciting trend.
I have also identified China’s tech sector to be a major trend in the coming years. Here you have GoConnect putting forward an integrated plan for agriculture (Judith Grapes), a media business, content creation, and virtual reality technology. The company is mixing the old with the new.
I think that is a very good move for the company. The truth is agriculture and content will always be there as a source of demand. The delivery of it may vary depending on technology.
Embracing virtual reality is an important step towards getting ahead in the next round of competition, particularly in consumer products and services.
What now for GCN?

I think GoConnect’s agriculture business component should go well as a result of China’s higher demand for better fruits. Distribution strategy has also been laid out nicely through partnering in the mainland. The media component is a great marketing tool, and it should generate additional ‘buzz’.
Through the use of ‘celebrity marketing’ and ‘virtual reality’ branding/delivery, GCN has so far shaped a very unique and exciting angle. I believe this is the right strategy to have when a fast-approaching future is surely going to disrupt traditional industries.
Embracing new content, marketing and delivery mediums through technology is crucial.
Ken Wangdong+
Emerging Market Analyst, New Frontier Investor