Actually, I'm not focusing on very much here. Say a spike into the low ones - maybe $1.17.
Volume increasing rapidly enough alone should bring in the buying interest which hopefully
would hold for more than a day.
The points which you bring out, though crucial to a long term viability IMO are way beyond most if
not all "operators" who haunt the penny stock roster . A quick pop, double down and so on
is what motivates them. Incidentally, this could also work on the bulletin board if it comes to that.
In fact, I'm surprised that AXC is holding at the 30 cent level. If after all those write downs, why did
this stock not drift down to 20 even 15 cents. December 00 saw 25 cents. Also, institutional
presence even increased thru 3/31/01. I find this puzzling.
As an alternative, perhaps the disposal of everything non core but for Internet assets is contributing
to clearer future prospects.
Today, I was thinking about the notion of the 2MM/qtr iNEXTV costs. Suppose TV1, the
incomplete Berlin studio, AENTV and the LA studio were disposed of. Also, ADS and all non ITG
patents bundled and sold off.
Hopefully most of the debt would be gone from this. iNEXTV would then consist of the NY studio,
say 20 employees and ITG patents. Since facility costs are done, operating costs should come
down to less than 5MM/annual. That would require only 1.25MM/qtr Net revenues to cover costs.
More if debt remained.
The asset base would be very small, but at say 2MM/ qtr in Net revenues -> 3MM/annual net
profit on 60MM shares at P/E of 35 for a price of $1.75/sh. Market cap would be about 105MM.
Personally, I thing that the smaller the company and the purer the play, the better the chance
that Bramson has of attracting financing. Right now, it's a mish mash of old and new and too
clever financing.
Further, an IPO of a focused entity would very easy. Even a buyout. Now? The whole
thing looks like one big "poisened" pill. Who would want to touch it?
Ed Perry |
