02-21-2014, 01:23 AM
02-21-2014, 01:34 AM
No news. The proposition is fairly simple. Since things going a little slower than people hoped, some started to get cold feet and sold, this got the stock below thresholds for institutions ($100M market cap, $75M market cap, $2 share price), so it led to something of a self feeding frenzy with shorts piling on.
Just keep a few things in mind:
1) PlayMPE is used by all the major studios and has gone through major investments to improve the product, we're at the tail end of it. Universal is taking it global, but on their pace. Play MPE generates VERY high margins (as it is almost completely automated), hidden by reinvestments in Clipstream.
2) Clipstream has uptake by quite a number of market research companies, and these have clients who could very well be interested
3) The sell-off seems to price in a complete commercial failure of Clipstream. It's waaay too early for that. Jury will be out for quite some time.
4) Even a little uptake will greatly improve top line and (after investments) the bottom line, the market is huge, so are margins, and the market is growing very fast.
Just keep a few things in mind:
1) PlayMPE is used by all the major studios and has gone through major investments to improve the product, we're at the tail end of it. Universal is taking it global, but on their pace. Play MPE generates VERY high margins (as it is almost completely automated), hidden by reinvestments in Clipstream.
2) Clipstream has uptake by quite a number of market research companies, and these have clients who could very well be interested
3) The sell-off seems to price in a complete commercial failure of Clipstream. It's waaay too early for that. Jury will be out for quite some time.
4) Even a little uptake will greatly improve top line and (after investments) the bottom line, the market is huge, so are margins, and the market is growing very fast.
02-21-2014, 02:40 AM
I think it has something to do with this... http://seekingalpha.com/article/2027301-...urce=yahoo
02-21-2014, 06:30 AM
'marsexplorer' pid='37709' datel Wrote:I think it has something to do with this... http://seekingalpha.com/article/2027301-...urce=yahoo
Well:
1) Since he's an hedgefund manager and was complaining recently that he couldn't find shares to short it's a safe conclusion he's not in it for the profit as his position must be infinitesmall relative to the size of his portfolio. Most funds complained that it's too small for a long position, let alone a short one.
2) So what is the motive, well, that guy has an ax to grind with me after exposing him as a liar.
3) Motives apart, he thinks transposing cost aren't relevant, that there are better alternatives to PlayMPE and Clipstream will not get any traction. I simply disagree with all of that. More importantly, so do the big record studios and many market research companies.
I also happen to think that, considering the enormous margins on these products and the enormous size and growth of the market for online video, even a little uptake of Clipstream will have a large effect to Destiny's financials.
Jury still out, this isn't something that is going to be settled in weeks.
02-21-2014, 07:34 AM
Interesting buying activity at today's close, quite the reversal.
02-21-2014, 08:12 AM
Yea, it looks like a capitulation day but the share price doesn't really mean a whole lot as it's largely emotion driven.
02-21-2014, 03:37 PM
'admin' pid='37721' datel Wrote:Yea, it looks like a capitulation day but the share price doesn't really mean a whole lot as it's largely emotion driven.
That's massive volume. Means something IMHO. Meeting next week 25th.
02-21-2014, 11:18 PM
Yes, the volume and intra-day reversal certainly looked like capitulation, but I was referring to the stock price in general, which is all over the place.
03-08-2014, 03:34 PM
'UncleT' pid='37707' datel Wrote:Is there some news out I don't see? What's with the high volume this morning? 1.4 million shares in the first hour of trading.
I have not listened any news about this.