Re the earnings model, I am adapting some material from a recent rereading of James Broadfoot III, " Investing in Emerging Growth Stocks". I am specifically referring to Chapters 6 and 9, Anatomy of a winner and Creating and Using Models for Stock Selection"
In both chapters, Spectradyne is the company and I find it especially apropos of iNextv. By the way, Spectradyne went private in 1987 by way of Marvin Davis. It then merged in the 90's with a unit of Ascent Entertainment, owned by Qwest founder, Phil Anschutz...hmmm...
Spectradyne pioneered the in room, payperview movie system in hotels. Spectravision is the service. Interestingly, Spectradyne put in the system, splitting a piece of the revenue with the hotel. Guests got a movie, put on their expense account, hotels got extra stream of revenue etc etc.
Hotels = Portals, no? yes?
The other point is that once Spectradyne complete the build out of the system, they had a tremendous amount of operating leverage. |
