Thoughts of a sharholder on the weekend before openning day:
First, I personally enjoyed the tennis product last weekend, and I'm looking forward to a greater use of it this weekend at the Family Circle also covered by FOX,live on Sat and Sun. Yes, it would have been nice to have received a little more exposure for QSTI, but to become negative by the lack of PR fanfare I believe misses the mark. I look at this a a huge step in the right direction. That would be the direction of the bedroom with FOX in tow. The same people that make the chief decisons for Baseball are also making the tennis decisions.(read the PR that FOX puts out on their web sites). It is therefore obvious to me that FOX is happy with our company and our products. Yes, large revenues are nice and are ultimatley what we need to kick this baby into high gear. But I think that will come. We must cement our relationship and prove to this big gun that we can perform, that we can deliver, that they need us. The revenue will then follow.
On that note, I ask those that are also second guessing themselves to look at things this way: We have come so far as a company. Supervison and the ProViews have been in the R/D stage for most of my memory. The uses of it has been more in my mind along the lines of a proving ground, and of stimulating interest. I now view things as finally coming out of the R/D stage, rolling off the assembly line, and out into production. I believe the baseball deal will come. Yes, I would also have liked to have seen a contract months ago; but then where would all the fun be? If FOX was blowing us off, why would they be courting us with the tennis product? My math tells me that when I add the combination of QSTI with FOX, I get multi sports with contracts that grow revenues geometrically. The hard part, of course, is the waiting. But I still believe the waiting will pay off. Look at the chart for this stock. It has established a solid base over the last four months between the high 50 and mid 70s. Doesn't this look better then the past. Doesn't this look like a jumping off point?
I will, if for no other reason but to convinvce myself, restate my case for why I beliueve this stock is the golden ticket:
Multi sources of revenues, for the same widget, with only one real outlay of cash:
Source One: Broadcast enhancement. Yes, this is the big one, the first large domino that we need to fall. Go back and reread the old releases. Supervision was sold for $2,000 a game. I figure if FOX bites and swallows, they will probably get some discount. So figure $1,500 a game. FOX SPORTS NET covers around 1,700 games a year. $1,500 x 1,700 = $2,550,000 per year. This also does not take into account any potential we may have to share in sponsorship money. No idea of the profit margin in these numbers, but I do believe that the whole contract will produce a positive bottom line for the company in the first year alone. Keep in mind that this then pays us back for most of our upfront cash.
Source Two: Choice seats. Reread the releases for a detailed explaination of what this is. The short end is that it is in-the-ballpark interactive action. We take the same graphics, and now sell it to a second source without (?) incurring any additional cost. I'm not sure what we earn for this, but it is a plus for sure. We did this for the world series last year.
Source Three: The Internet. According to the release last December, we can also broadcast our images (for many sports) over the internet, providing content, for a fee. Again, we get more revenue for the same images, without (?) any more cash outlay.
Source Four: My personal hope has always been for the company to store all that data it generates into a huge archive on computer disk. This can then be resold to: Baseball teams scoting a pitcher, video games wanting to advertise hitting against a real pitcher, perhaps to fantasy baseball, for quick statistics. The possibilities are endless. Again, assuming we get that first domino to fall, we will be in the ballparks, getting the pitches on disk, and can then sell then with no (?) additional cash outlay.
Well that's how I see it. If we get that first one to fall, I've got to believe the others will fall too. That's my story, and I'm sticking with it. Luck to all, and GO SOX! |
