AR ... I think I will try a different approach so maybe you can see why I look at the forest and not the tree. Management to me is the company's goodwill with out key warlords you have weakness regardless of industry. Let's take another stock for example to show you how I consider management to be more important that the product. Now the reason for taking another stock is not promotion it but hopefully take the emotion out of the thinking. Now I can do this on most every stock I own because management is a primary research option. If they will not talk to me I go to another stock it is that simple.
I have been asked why I was excited by a news release Friday on Joel Smith going with the management of MDCE and up and coming filming company. Joel Smith through not an icon is extremely knowledgeable within his industry. I have talked to the man and even met his once. Then as now he has the following thoughts on how to succeed in business. Now what I am about to tell you is the thoughts and actual brilliance this man has. No balance sheet can convey what this man is about. Though you do not like AGTI's management I see some quite similarities. What Joel has expressed almost five years ago until presently when we talked to him after hearing the news. I do research my stocks and talk to everyone I can personally.
After introducing myself from meeting him with Travis Tritt about 4-5 yrs ago. We talked about how successful that venture was. I was told it was the highest rated special for TBS. (I have not confirmed this as of yet). After about 15 minutes discussing Georgia I asked him about a concept he had about putting William Shakespeare's works on CD-ROM for multi-media and that I had not seen it yet. He told me had some 15M from a Japanese Investor but needed more. But it never came to pass and I moved on the ask him about his goals with MDCE.
His goal is to help establish Media Concepts as a viable production AND distribution company. PLEASE note (& distribution) That means they will not only make the product, but we will bring it to the market and sell it. This way they control their financial destiny - and avoid the "creative accounting" which occurs when a producer (and his investors) turn over their production to another entity.
NOW I BELIEVE you know why I was happy about when the merger talks ended with AGTI. I am for strong management teams that take the bull by the horns and get on with it. To me this is business 101. A lot of investors follow the newsletters I prefer to follow key individuals in their industry that have a track record for making things happen.
He will be establishing a marketing, sales and distribution arm for MDCE, while at the same time bringing in some financial sources and "name recognition" properties. He is also bringing to the table a production philosophy and formula which I believe offers a prudent approach to the entertainment industry. This involves cost-effective production; the involvement of international co-production partners; and the accessing of whatever incentives are available to reduce on the part of their investors.
Not exactly sure I asked him exactly how he intends to do that. He informed me MDCE will begin promoting and marketing their projects as soon as they are greenlighted into production. By involving international partners they will lower their investment level per project and simultaneously increase the licensing fees they can generate abroad. They will also cap their production budgets to the point where they can recover their money without necessitating a theatrical release in the US. Broadcast, cable, home video and foreign will be their principal markets. Of course, if the project justifies they will of course consider a theatrical release; but big screen contracts are very difficult to obtain since the major studios control them, not to mention a theatrical release is very costly.
They will maintain a theatrical release as a possibility - but it won't be a financial necessity. That is - only if the picture warrants it and a distributor offers them an attractive package. (Remember what is good for the company is good for the investor) Another area they will be targeting is the growing and presently untapped Hispanic American audience. He feels the demographics tell the tale. Soon 30% of the population will have Hispanic ancestry - yet this is a market no one is really providing to. They will and are currently developing a slate of English language films targeting Hispanic Americans which have strong crossover appeal into the mainstream market. In other words, they don't want to make pictures that only Hispanic will go to see. They want to hit a general audience while keeping the Hispanic groups as our core target.
I asked about the financing he could acquire and I was told about something I already was aware of but most do not. He has been nurturing international co-production and sales partners for several years. He now has relationships in Canada, New Zealand -and soon Puerto Rico - where they can produce quality shows with significant risk mitigation. For example, we can get 25% of our budget covered by producing with our Canadian partner - and not have to pay this money back. In Puerto Rico they can assure our investors that their money is 90% secured by tax credits. And if they bring the production to New Zealand they can get up to 50% of the budget covered by partnering. They yield equity here - but they also substantially lower their exposure and they still add to their film library - the true capital asset for the future.
Now Joel has contacts and exposure with solid credentials in his industry. Does AGTI not have that same type people on their management team with contacts, foresight and aggressive knowledge of their industry?
I hope this helps clarify some things that I consider when investing I expect great news releases and film deals getting signed. I am a business man and I want to see the opportunity. I hope you understand that I agree with you on the key roles of management. Where Joel is excellent in most all areas of the filming from Creating, Writing, Producing, Organizing, Handling the filming permits, etc. etc. etc. Robert Torres And David Garcia are two other gentleman that take up the slack and brought on Joel to complete the team. Each of these men make the three legs of the table.
I think if you look very very carefully at the management of AGTI you will see a strong team with a goal and direction. AR this is not an insult I just wish people would look a bit deeper at management's abilities instead of their payroll checks.
BACK on track did you know 150 Turbo units are going to be installed in the San Manuel Casino within the next two weeks. Now OK I admit that is a small number and I can see people going well whoopee Bard and your point is. My point is the forest on the tree. San Manuel is the largest and most respected casino in the Indian gaming industry. Now we have exposure and the potential for future sales. Let the equipment speak for itself. Most of you have been holding this stock for a longtime and gone though a lot of beating and mental stress with it. Now it is starting to making progress and most can not see where this one is going.
I know I look at things totally different but I know what my research tells me. I prefer to be at the bottom waiting patiently with and unloved and unnoticed stock so when it moves I have a valuable stock. Don't get me wrong I do have some momentum stocks I trade to make money for a quick turn around but I do like ones that I am into for the solid future potential and so far I have 3 bad and 17 good ones. Time will tell I guess.
I truly hope everyone understands the value of the management team that Hardrocker articulately expressed in his post earlier. That is why I posted on MDCE please understand Management regardless of industry can make a business work.
Thanks
GaBard
OK Hardrocker I hope you can take this example and relate it to AGTI. The main reason used another stock was if I had done this on AGTI it would get lost in the emotional ideology and be redundant of what you posted. Your turn... LOL |
