XTV my Unicorn pick

Sorry fellas for the incessant ramping on the XTV threads. I'm just trying to hammer in my own convictions for buying into XTV and at the same time hunting for any negatives that I might have missed as I am astounded as to why XTV is so undervalued. In the speccy end you can never too sure about anything.

I find UST Global a very fascinating company. Their business model is an intricate web of client/UST/vendor relationship that is built to benefit all parties. An end to end IT services integrator that focuses on quality not quantity and hence their focus on Fortune 1,000 companies. So when they choose to market something you know they believe that product will benefit the client. I shall draw similarities to what they have done to 1PG because I believe this has significant implications for XTV.


UST is a technology leader with profound domain expertise across
the following industries: Healthcare & Insurance, Retail, Financial
Services, Transportation & Logistics, Manufacturing & Automotive,
Telecommunication and Media & Entertainment. By focusing on the
business model of ‘fewer CLIENTS, more ATTENTION’, UST strives for
excellence in providing their clients with the best service and
commitment to long -term client success. With 14,000 employees,
UST’ s growth and clientele have been impressive.


From 1PG's announcement 22/10/14 : http://hotcopper.co.nz/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTE4P6we8phGWp5lJ2/k=


1-PAGE ENTERS STRATEGIC EQUITY & SALES PARTNERSHIP
WITH MAJOR IT SERVICES COMPANY UST GLOBAL

 CUSTOMER – UST Global extended their use of 1-Page for internal
innovation and employee engagement
 INVESTOR - UST Global to invest up to US$1.5M in 1PG
 SALES PARTNER – UST Global becomes official sales partner to their
Global Fortune 1000 clients
 ADVISOR - Sajan Pillai (CEO) and Saurabh Ranjan (Dir. of Global
Operations) join 1-Page’s Board of Advisors.
1-Page Limited (ASX: 1PG), the enterprise cloud-based talent acquisition platform, changing
the way companies hire talent, is pleased to announce it has entered a strategic equity
agreement and channel sales partnership with existing client, UST Global.
UST Global is a multi-billion dollar privately-owned IT services business based in the US with
operations globally. It has more than 14,000 employees and a client base comprising a large
number of Global Fortune 1000’s enterprises.
UST Global became a 1-Page client in May 2014 and uses the 1-Page platform to enhance
talent assessment and acquisition of IT professionals globally. UST Global has also extended
their use of the 1-Page platform for engaging existing employees in relation to internal
innovation initiatives.
Under the strategic equity and marketing alliance with 1 Page, UST Global, an existing
shareholder prior to 1-Page’s listing on the ASX, will invest an additional US$1m which is to
be provided in the form of technology advancement and product development services to
enhance the technology and functionality of the solution. UST Global will earn shares based
on projects completed, with the share price to be set at the average weekly price at the date of
invoice.
Demonstrating strong belief in the new alliance and the beneficial interest to both parties in
success, 1-Page has agreed to issue 666,666 unlisted options with an exercise price of
A$0.45 per share expiring 21 October 2016.
UST Global will also become a Channel Sales Partner for the 1-Page software platform,
allowing 1-Page direct access to the impressive list of Global Fortune1000 companies that
use UST’s services. The company’s will work together on building strategic projects delivering
innovative solutions to 1-Page clients.
As a result of the partnership, UST’s CEO Sajan Pillai and Managing Director of Global
Operations Saurabh Ranjan will join 1-Page’s Board of Advisors.


What we see here is UST has become a customer, an investor ($1.5mil, which is less than what they have put into XTV), a sales partner, and an advisor to 1PG. 1PG as of today has become a half billion dollar company in less than a year!


In almost the same manner UST have become XTV's customer ($1.8mil 5 years contract !), investor ($2 mil), a sales/strategic partner ( we must add Microsoft to the mix as well), and an advisor by adding Tony Velleca CIO of UST to the board (yet to be appointed). The other thing is the Microsoft and UST alliance will first target 20 enterprise client that is a shared customer of both companies. I don't know what the market is missing but I'm definitely following the money on this one!

My belief is that getting into XTV now represents an outstanding low risk entry for such an outstanding potential. XTV would have to be a complete flop for anyone to lose money buying in at current levels. I have seen and ridden quite a few hypes currently with shells announcing tech acquisitions and before it even listed with an unproven tech and enormous commercialisation risks and yet it is valued many multiples of XTV. AZK(I hold), VTX, PRA are a few examples. It is very difficult to go against the crowd, but once the hype dies down there'll be quite a few licking their wounds.


So out of all the hypes out there, I'm learning to be a contrarian and make XTV my unicorn pick of the decade. My reasons are:


* Low risk entry - very small market cap compared to the enormous potential that is about to be unlocked.
   Completely dismissed by the market. Buying at the bottom as oppose to buying at the top of a hype.

* Hot sector - tech is currently seeing enormous attention from the market after the resource bust

* Disruptive product - .TV is the next evolution of the .com era. An untapped market.

* Proven tech - already servicing big clients

* IP protection - a crap load of patents pending that is "ahead of the curve"

* Globally scalable - absolutely

* Good managements - Joe Ward serial entrepreneur, a heap of high calibre boards/advisors

* Heavy backers/strategic partners - Microsoft, UST Global, Intel, AOL, AT&T. The most significant
   being Microsoft and UST Global alliance.

* Commercialisation stage ramping up - already contracts signed and about to be significantly scaled by the
   the big boys with Microsoft and UST's alliance "Go to Market" STRATEGY.

* Revenue increasing - low start but revenue already increasing significantly last quarter

* Tight registry - Top 20 holding 70%

*Good performance hurdles - all 4 performance milestones needs to happen within 2 years - only 18 moths
  to go.


XTV seems to be ticking more boxes than anything I have came across so far. The only downside risk I find is if for some reason Microsoft and UST pulling out altogether. Even if XTV will be only mildly successful at current market cap it will still make many people rich.


My target price is 10c within 12 months and $1+ within 3 years. My reason being Microsoft and UST Global
are going to push hard for the global enterprise adoption of .TV. These big boys uses strategy and UST has enormous clients and credibility. People ignored me when I said AZK could reach 50c on hype alone. XTV is not a hype.


“Enterprise Media is a tidal wave of new opportunity, evidenced by xTV’s strong customers and partners such as Microsoft, Intel & AOL,” said Tony Velleca CIO of UST. “We’re looking forward to deploying xTV into many of our significant verticals and allowing xTV customers to tap into our 14,000 strong organizations to deploy any size
online TV network.”

An intricate win/win/win strategy by UST Global.