NTN Communications, worth 185 million? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : NTN Communications, worth 185 million?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ed Newman who wrote (293)	11/15/1996 5:49:00 PM
From: Patrick Keeler	of 2985

I listened to the conference call just now and my general impression/opinion is: Sokol is in charge and someone at NTN finally understands that a new media is emerging and NTN can leverage its growing audience to do all kinds of things. The Downs' are figureheads, IMO. They made one brilliant decision during their reign, to make the content independent of the hardware. They made two continuous blunders: the continuous branching into non-core markets and the sale/lease-back of the gaming equipment. Sokol sees strong cash flow, revenues, and earnings in the business model and stressed that they just have to reduce expenses. Two main culprits were sale/lease-back agreements (will be easy to reduce), and SG&A expense (will be harder). He is trying to move very fast. I urge anyone who owns a piece of this company to listen to this conference call. I'm not dumb enough to buy any more but I was impressed with Sokol and confident he has the problems targeted and has solutions in mind. I look forward to listening to the 4Qtr conf. call and will move my "fish or cut bait" sell date back from the Super Bowl until the 1Q97 conference call. Sokol will focus the company on its core hospitality and internet/online business. There was no mention of interactive gambling or any of the other divergences the Downs' continued to take the company on. Learnstar will be kept alive by Sokol (I think because its the Downs' pet project) for this quarter and then they will either find it can be profitable or kill it. Over the next 6 months shareholders can expect layoff announcements, co-branding agreements (Price is Right game type stuff), Java enabled internet games, FCC approval of gamepads, and re-financing of sale/lease-back agreements. Company was very happy with AOL change to flat fee and think it will dramatically increase revenues down the line. Immediate periods might be flat as things shake out at AOL. I think the stock is undervalued at less than $4.50 and would be a solid speculative buy for a long term (> 1year) investor.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next