By: FlaGreenie
Reply To: 2941 by highhopes Sunday, 30 Jan 2000 at 8:21 AM EST
Post # of 2960
Highhopes: You ask basically three questions: (1) can we get the cash needed; (2) Does Q have the marketing necessry to sell product, and (3) do they have the right stuff necessary to enter into complex contracts. I'll take a shot at answers: (1) Cash: There has been much speculation over the past month or two about the subject. It is believed that one or more companies are poised to buy into Q with millions of dollars. Indications that this is more then just a rumor, are the corp resolution last Dec. allowing the Q to issue more shares of stock. This gives them the ability to "sell" shares to the investing community. In the past, the Q has, through stratigic alliances, made deals including stock, warrents, and share in royalties. I would expect this on a much, much grander scale. Because the answers to numbers (2)&(3) are very good, we have become very well known in the industry, the giant companies all want to date us, and as few marry us. I believe our cash poor position has held us back in the past. When we take the weight of being poor off from around our collective necks, this baby will fly skyward. I AM NOT worried about getting financing on many different and massive levels, with multiple companies, all players in the business. We are being chased like that easy girl we all knew in highschool. Everyone wants a piece of us.
This brings me to (2) Marketing talent: One of the most overlooked accomplishments of this company, is how they clawed their way into the sports entertainment industry (regardless of media outlet). The Q's start and acceptance into this business is remarkable. When Q first started pitching their supervision product (yes, I know that is a pun), they were way out in front of everyone. No one knew what to do with this product. To be truethfull, the product back then had a lot of bugs in it also. SO the product was used very little. Q would literally beg any TV station to use the product, sometimes for free. This was just to get the product seen, the name out, and to give us a chance to work the bugs out; you can only run so many simulations. If you do your DD, you will find all the old "one time" deals with this mini station and that one, all as we went through our growing pains. This all culminated last year with a three year/two year option, with FoxSportsNet. (FSN) broadcast the largest number of baseball games of all the networks. This in turn helped us land tennis deals with FSN also. Through the FSN deal, we are able to get all the stadiums wired up and cooking, thus paving the way for all the other mediums: Internet, interactive TV, Statistic collection and delivery, in-stadium interactive TV, data retention for post game resale, and on and on. The Q has elbowed their way into bed with the largest companies in the different industries invloved, all while they have had basically no cash, and while the products were still in R/D. People on this thread used to complain that certain events were not sold for enough money. What they missed was the point that the investment was being made for the returns we are about to be blessed with. In short, now rather then Q needing to go to media outlets for use, they are now knocking on our door, loudly, asking how they can get our content on their productions. The mountains are now coming to us. That we accomplished this, with all the chips stacked against us, and that it has and is working, is a multi year marketing plan that is brilliant and that has worked. Think big picture, more then one season long. The picture is a beauty, indeed.
(3) Do they have the talent to negotiate the contracts. The proof is in the past. I answer you with a resounding yes. I will pick one example, you can look for others, they are there. In Dec. 1998, Q put together a deal with AAEC (see release for full details). The genius behind this deal, was that we "bought" over 100 computer super-studs for stock and a share in future profits. That meant we did not have to sink millions into developing our tennis product and ski product, rewriting our baseball product, and all the other sport products that will be coming out with. Think about that, a top shelf R/D team, at no burn rate to the company, and it is incentive driven, because the R/D team only realizes true gain through fantastic product because the stock price must rise and the product must sell for them to make money. Compare that to a vendor-vendee relationship where you pay as you go, based on time spent. Do we have the talent to make complex deals, you bet!
Boar: I disagree with you, to a certain extent. I think next week will be a little bumpy. The MMs will be testing us by screwing with the bid. They can kiss my a$$. This COMPANY is about to explode. It already is inside the many industries we do business with. Now it will also explode to the general public as they realize how big this is. The stock price will follow. Up-side is huge.
Greenie
|
