To: hoffy who wrote (13329 ) 5/13/1999 10:47:00 PM From: myturn Respond to of 15987
MDTV, those of you who love IATV; MDTV is similar in concept in providing digital satellite TV, High Speed Internet Access and is trading at only $1.90. MDTV shows great promise at these levels. Here is a piece provided by Paul Andreola, the IR person for MDTV: To: scouser (162 ) From: Paul Andreola Saturday, May 8 1999 10:51PM ET Reply # of 182 This industry is very young and at this point there are not very many publicly traded companies in this field. The big names of course are DirecTv which is owned by Hughes and Echostar which trades under the symbol DISH. There are several companies that are expected to go public in the near future such as Golden Sky Partners. The big brokerage firms however are really starting to notice the growth in the satellite tv industry and have come out with some very encouraging analysis of some of the public companies. DISH for example is highly recommended by DLJ and Merrill Lynch. In November you could have bought DISH for around $25. Today it trades around $95. MDTV is in a special niche as it bares none of the huge infrastructure costs associated with satellite communications. There are only a very small number of companies in the MDU field. Bear Stearns recently came out with a buy recommendation on a similar company, PGTV. Bear Stearns valued each PGTV subscriber at $2086 each (moving to $2400 in year 2000). PGTV happens to be the top rated company (out of 45 companies)in the broadcast/tv industry ranking biz.yahoo.com Most of PGTV growth has come thru acquisitions, in some cases paying well over $2000 per subscriber in certain deals. They currently have over 500,000 subscribers and operate their satellite services mostly in rural areas where it is predominantly single family homes. It would also be more difficult for PGTV to offer some of the services that MDTV will be offering in the near future such as high speed internet, security monitoring, telephony, etc. MDTV actually has a better business model than PGTV. The Bear Stearns valuation of $2,000 per subscriber is related only to digital satellite tv whereas there should be some value attached to the potential high speed internet subscribers etc therefore making a MDU subscriber even more valuable. MDTV has just under 11,000 subscribers, value $22 million ($2.17 per share). Backlog of potential subs, 25,000. Potential value $50 million. With only 9.2 million shares currently outstanding it makes for an impressive future value. Assume that the company issues additional shares to raise more equity bringing the total to 12 million shares then the future value could be (11,000 + 25,000 = 36,000 36,000 X $2,000/sub = $72 million $72 million / 12 million shares = $6.00 per share) The company projects that it will have approximately 250,000 subscribers within 3 years making for a market value of $500 million at today's digital satellite tv subscriber value of $2,000 per sub. At $2400 per sub the numbers are: $600 million or $50 per share I hope this sheds some light on the matter. MDTV website mduc.com MDTV News biz.yahoo.com PGTV website pgtv.com PGTV coverage biz.yahoo.com Disclaimer: I currently act as investor relations consultant for the company. In no way should this be viewed as an official valuation of MDTV. RG-Investments.com is an independent electronic publication providing both information and factual analysis on selected companies. Companies featured by RG-Investments.com publication pay consideration to RG-Investments.com for the electronic dissemination of company information and, in some cases, for consulting. The opinions and analysis included herein are based on sources believed to be reliable and in good faith but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. This information is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. The foregoing discussion contains forward looking statements which are based on current expectations and differences can be expected. The information contained herein has been provided by the Company to RG-Investments.com for information purposes only. Readers are urged to consult with independent financial advisors with respect to an investment in the shares mentioned herein. Investors should review a complete information package on the Company, which should include, but not be limited to, the Company's annual report, quarterly report, press releases, as well as all regulatory filings. All information contained in this report should be independently verified with the Company mentioned herein. Any opinions expressed in this report are statements of judgment as of the date of publication and are subject to change without further notice, and may not necessarily be reprinted in future publications or elsewhere. RG-Investments.com nor its officers, directors, partners or employees / consultants accept no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. RG-Investments affiliates, agents and/or family may have interests or positions in equity securities of the companies reviewed in this publication, some or all of which may have been acquired prior to the dissemination of this report, and may increase or decrease these positions at any time. Investing in growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor's investment may be lost or impaired due to the speculative nature of the companies profiled. RG- Investments may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act of 1933, Section 17(b), RG-Investments.com received a fee of 60,000 US dollars from the Company as compensation for its efforts in research, presenting, and disseminating this information. We encourage the reader to review the investing information available with the Securities and Exchange Commission ("SEC") at sec.gov and / or the National Association of Securities Dealers ("NASD") at nasdr.com . Readers can review all public filings by the Company at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.