A number of new movies were added to the play catalogue for the weekend. About time too, it had been quite stagnant.
QFX with a mc < 10m has been priced for imminent destruction for a long time. It is still only valued about 20-30m. Given the recent volume and pricing clearly some cashed-up market participants' views of QFX have changed from no chance to at least a small chance of achieving their business plan.
A subscription streaming service with 15% of Australasia's 10m households paying $15/month, with a profit margin of 10% would generate earnings of 27m/year. With a P/E of 15 that's a mc 405m, any ppv revenue would be in addition to this.
The current 20m market cap indicates the market thinks the odds of QFX pulling it off are something like 1 in 20. Personally I reckon it’s more like 1 in 4. Just my uninformed hunch but I am a subscriber and I like the service.
I'm not planning to buy or sell before the next quarter so I'm not too preoccupied about the sp but somewhere in the 2-4 c range seems fair to me. I hope the liquidity stay up, it'll be an interesting week.
Viva la Quickflix
QFX Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
