In 2002 an unknown long struggling penny stock introduced a new product that resonated with the marketplace. The product is called Monster and that company is the best performed stock this century – better than Amazon.
Indeed a $4,000 investment in Monster in 2002 (then price 4 cents) bought 100,000 shares. Those shares are now valued at USD $6 million dollars. It’s been the rise of a lifetime for the shrewd energy drink investors who picked a stock that was literally under their nose.
Of course, Linius is obviously in a very different market and it’s unlikely we will see anything resembling a repeat of Monster’s unparalleled performance. The relevance is Monster was a once unloved penny stock that finally released a product that has massive market traction.
Traction that resulted in a sales explosion.
Could the IMG Replay deal be the catalyst for a monster like sales explosion for Whizzard - including the 8 more deals required for self-sustainability?
The key takeaway from the latest webinar is the flywheel is about to pick up speed.
IMG Replay have been a global leader in sports archives for decades. Archive licensing is what they do and they chose Linius’ Whizzard to drive efficiencies through their clients’ workflow process.
The Alan Shearer 260 goal challenge set by IMG Replay gives us insight into Whizzard’s competitive advantages.
The challenge was to find all Shearer’s goals. Importantly, IMG Replay already had the technology to do this, so it came down to Whizzard’s speed and accuracy. There would need to be a clear value add because IMG Replay don’t do amateur hour and they don’t do charity.
Is Whizzard worth IMG Replay selling to its big name clients? It turns out “yes”.
Whizzard overcame the challenge in a few seconds and Linius won its first whale contract. Despite it being the biggest revenue maker in the company’s history, the market continues to overlook Linius at a point very close to the beginning of a probable sales explosion.
No, IMG Replay does not make Linius cashflow positive, but it does provide a launching pad to a whole universe of opportunities.
Is the market being near-sighted?
It's too early to say but JB has already alluded to 4 hot deals in the pipeline so any of these could be announced in the very near future.
Looking ahead, we are also informed in the webinar Linius are in talks with broadcasters, OTT providers, rightsholders, e-sports, gaming and betting. Tier 1 and 2, semi-pro feeder leagues, US collegiate, high schools and amateur sports.
A whopping 50 opportunities in progress in the sales cycles, including at least 2 more whales.
What positive effects will the IMG Replay deal have on these negotiations?
Moreover, IMG Replay has opened the door to 11 more sports, including the very lucrative golf market and there are major opportunities within the Endeavor umbrella, too: the UFC, WWE, and Learfield to name a few.
Despite being the least known, Learfield could be the most pivotal contract of these big 3 if won because the American collegiate market is the perfect place to launch the forgotten MatchVision product.
Don’t forget industry giant WSC Sports started out small in the minor leagues until an NBA executive noticed the value add of its automated (but not personalized) highlights. MatchVision, by contrast, takes this concept of automated highlights to the next level. It is a simple to use and very practical tool for players, coaches, family, and fans to relive exactly what they want to see.
Above all, IMG Replay could provide Linius with an offramp from sports into any single large video archive via client Miss Universe.
Beyond sports - imagine the size of this TAM.
There is simply no better reference than IMG Replay's blessing to attract more clients and close more deals.
IMG Replay gives Whizzard credibility, validation and, most of all, it will get Whizzard’s capabilities known in the market – not in words like we’ve all heard, but industry end users will be able to experience for themselves the magic of Whizzard in driving efficiencies throughout their workflow process.
The Alan Shearer challenge demonstrated Whizzard saves much time, cost, and headaches; an attractive proposition for any archive business. Via IMG Replay, Whizzard will soon be available to hundreds of UK and American video professionals in the sports archive space.
Instead of JB having to cold call or network for global introductions, if the buzz about this new time, cost and headache saver gets out, companies will likely approach Linius which puts JB at a much better position at the negotiation table.
Big corporate demand for a cutting-edge product with healthy margins that doesn’t cost an arm and a leg in an industry up-to-date in technological trends is a winning solution.
Linius’s Achilles heel has long been it’s a retail stock battling away with no institutional investors; insufficient on market buying demand followed by the inevitable capital raises snuffing out any meaningful share price rise.
As the flywheel picks up speed, however, would it surprise to see dial moving international institutional interest in Linius stock, especially if Linius lands its first big name American client?
On market buying demand from the big end of town in a world where future deals happen faster and faster and get bigger and bigger is very possible in the not too distant future.
In the words of JB, “whales swim in pods”.
Linius may well be on the cusp a major sales explosion - the inflection point - and potentially a monster rise in the share price and yet the Linius comeback story remains unknown.
With each new deal, however, the word spreads and who knows how high Linius can grow if the flywheel hits full speed?
The only thing cooler and more attractive than making a big comeback is making big money.
The flywheel is turning.
Imho & Glta
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