This one has moved nicely this week and has much more room to go. OS is 38M with a float of just 14M. Here is some quick DD:
*Interests in two radio stations in Northern Nevada
*Owns two TV stations...WNRC retransmits Network signal as the affiliate of Azteca America and Mexicanal...receives carriage fees and ad revenue from both.
*in a separate wholly-owned subsidiary, has approximately 5000 cable subscribers paying monthly now and is in negotiations to purchase many, many more...also in due diligence phase of attempt to get even more.
Ok...all of this stuff is great and...just given current business, not including any incomplete acquisitions...the company expects revs to exceed $9,000,000 over 12 mo. Market cap is only $3 mil now, so it looks to be quite a bargain. Buy some or not...you decide...
Beyond all of that, here's the thing:
There are two huge wildcards available for this stock 1. The share structure and Green's proven ability to pull-off a surprise reverse merger,(his last RM scored shareholders 4000% in two months) and 2. ScFN has the chance of turning into a "multiplier" on a single day.
Let's run thru the ScFN plan that WNRC is pursuing here...maybe they'll be successful, maybe not, but think through what will happen if they are:
Ok...for starters, think of one station in one city (Reno):
Assume Ngen and the cable provider split 12 minutes per hour of commercials...6 minutes each. They each sell their own ads for those six minutes.
Assume 6 minutes per hour for 24 hours = 144 minutes of ads per day for each Ngen and the cable provider.
Assume that for the Smallcap Financial Network (ScFN) they only charge Scottrade, Ameritrade, Fidelity, WSJ, IBD, and similar Financial Services companies $50 per commercial...
...that is $50 times 144 minutes = $7,200 per day in revenue to EACH Ngen(WNRC) and the cable provider...that is $2,628,000 per year to each company.
Now...let's say that on any date in 2011...Charter takes the station from Reno and turns it into a "network" by providing it systemwide to major, mid-market and small cities throughout the US....
that would...on a single day...increase the reach, the value, and the revenues of Ngen(WNRC) by 40 to 50 times...THAT DAY
And Charter's revenue would go up by as much...do you think that they would be interested in rolling it out nationwide?
The company is pursuing a plan that could make it an incredibly explosive stock...and they've come through on all of their plans so far...what if? It could be the stock play of our lives.
Posts: 85 | Registered: Jul 2006
| IP: Logged |