Seeking Alpha

Lou Basenese

View as an RSS Feed
View Lou Basenese's Comments BY TICKER:
Latest comments  |  Highest rated
  • The Disturbing Truth About Silver's Rally [View article]
    No disinformation here. The crux of my argument is simply this - rampant speculation is driving prices higher. It can change on a whim, so I wouldn't be buying silver at these overheated levels. Profit-taking by speculators (not hardcore PM investors) is bound to kick as silver reaches record prices (in nominal terms).
    Apr 15 09:00 AM | 13 Likes Like |Link to Comment
  • Destiny Media's Problem Child [View article]
    I must have missed the memo about using random, unverified social media postings and Google Trends data as legit fundamentals for constructing an investment thesis. Can someone "in-the-know" forward it to me?

    Still making my way through this obvious hit piece. Will provide more concrete feedback shortly.
    Feb 19 02:45 PM | 6 Likes Like |Link to Comment
  • Parametric Sound Merger Not Likely To Be Positive For Shareholders [View article]
    It would also be important to note, Paulo, if you ever personally demoed the speaker (i.e.- did actual due diligence.)

    Or is your assertion that "Parametric [only] trades on hope" based soley on internet research?

    As far as "its inexistent business activity" the facts paint a slightly different picture...

    McDonald's, Rite-Aid, Epsilon, Build-a-Bear and now Turtle Beach. All legit companies engaged with PAMT.

    Others are clearly interested, too, as the company had more than 20 NDA's signed - and was involved in 3 co-development projects - prior to the receipt of a strategic proposal.

    Before anyone trades based on Paulo's "info" I recommend you do your own due diligence.
    Aug 6 12:15 PM | 6 Likes Like |Link to Comment
  • Caveat Emptor Beckons [View article]
    Ok. I'll humor you and leave MCD off the list. Then there's Fujitsu, Ingram Micro and the 20+ other companies under NDA.

    The fact PAMT hired the number #1 M&A investment banker in the U.S. for deals under $3 billion should be a clue here, too.

    You think they're going to "sign on" if there aren't legit proposals on the table. Or maybe they're getting duped too.

    This is the problem with the internet and SA. Instead of getting their hands dirty, testing the tech, talking with investors, management, outside experts, "analysts" rely on internet searches and others' questionable internet research to piece together flimsy arguments.

    As Reagan liked to say, "Trust, but verify." I've done that. If I'm wrong, I'll take my lumps like a man. Time will tell if I need to.
    Apr 3 04:37 PM | 6 Likes Like |Link to Comment
  • Parametric Sound Merger Not Likely To Be Positive For Shareholders [View article]
    Full rebuttal coming. But Paulo, PLEASE focus on facts, instead of trying to mislead people...

    You said, "Gaming headsets, and headsets in general, are deeply competitive."

    Yet you fail to mention that Turtle Beach commands more than 50% market share in video game market, according to the NPD Group.

    So they clearly boost competitive (and sustainable) advantages over every other competitor. That's kind of a major point when considering valuation multiples. TB is anything but an also-ran.
    Aug 6 11:47 AM | 5 Likes Like |Link to Comment
  • 3 Companies More Innovative Than Apple [View article]
    The purpose of this article was to encourage investors to look at innovation in a new, more quantifiable way. It's not an effort to buttress a short case against Apple. Nor am I "shilling" for any hedge funds or others with Apple shorts.

    I agree with everyone that novelty is not enough. As investors, patents must be novel AND commercially relevant. If the company can't translate the technology into meaningful profits it's worthless to us.

    But since patents are indeed a precursor to products, we'd be foolish not to pay attention to them. It can only increase our investment intelligence.

    The metrics presented begin to develop a sense of the quality of patents.

    Again, this is merely to encourage a discussion to think more specifically about patents. And I'm confident time will validate such an endeavor.
    Jan 15 08:44 AM | 5 Likes Like |Link to Comment
  • Caveat Emptor Beckons [View article]
    Not familiar with those Tobin Smith stocks. I agree with you, he's reprehensible. How he's still on Fox is a crime.

    However, I can attest to the existence of actual technology for UNXL and PAMT and CRDS. So can the blue-chip partners they've announced, which obviously didn't join forces without seeing and testing the technology.

    But let's not go there. There's enough back and forth about these companies on SA. The market will decide and prove once and for all who is right.

    Good luck to you!
    Apr 3 04:18 PM | 4 Likes Like |Link to Comment
  • Is Imageware's Inflection Point (Finally) Upon Us? [View article]
    I wrote "average headcounts" because I agree with you. It will be with internal employees.

    Synaptics is a hardware play. It's the actual fingerprint sensor provider. Ditto for Idex. Imageware's tech is software and complementary to biometric readers.

    Yes, Imageware needs millions of users to generate significant rev and profits. My point is we're nearing the curve in the hockey stick - the inflection point. 28% growth is too conservative.

    Imageware's IP is unique in that it's multi-modal and allows for anonymous matching. Hence, it's valuable and can't be ignored for valuation purposes, either.

    Fair point on Miller talking about the new deal and ignoring past ones. Emida and Global Payout are two others we haven't had an update on in a while. But those talks pre-date the beefed up Fujitsu relationship. Could be because Fujitsu is getting IWSY into bigger, more meaningful accounts. In any event, I'll inquire about both.

    To clarify on the major financial institution - it was only a pilot, which was extended. Miller never characterized it as an "agreement in principle" with a "definitive" agreement imminent like he did with this one.

    Yes, more dilution is likely. But that comes with the territory with disruptive tech investments. The upside potential more than compensates for the dilution risk, in my opinion.
    Aug 14 11:26 PM | 3 Likes Like |Link to Comment
  • Parametric Sound: A Turkey's Desperate Attempt To Avoid The Chopping Block [View article]
    Alpha Exposure: Is your track record better than the top performing small cap growth mutual fund manager over the last 5 years - the $825 million Hodges Small Cap Fund (HDPSX)?

    Because they just purchased all 364,286 shares in Parametric's $5.1 million equity raise (

    With an average annual return of nearly 20% per year for the last 5 years, I'm sure they don't have a clue what they're doing, though.
    Nov 20 01:47 AM | 3 Likes Like |Link to Comment
  • Parametric Sound Merger Not Likely To Be Positive For Shareholders [View article]
    That's management (and lawyers) being overly cautious. Until proxy is filed, regulators could misconstrue providing too much info as solicitation. Final #'s likely will come in higher.
    Aug 12 03:53 PM | 3 Likes Like |Link to Comment
  • Parametric Sound Merger Not Likely To Be Positive For Shareholders [View article]
    J.P. is spot-on. SKUL and LOGI are not good comparables.

    We should wait for the proxy to get clarity on TB's financials before declaring it's "not likely" that the company is "much more profitable than either Skullcandy or Logitech" like Paulo.
    Aug 7 06:55 AM | 3 Likes Like |Link to Comment
  • Caveat Emptor Beckons [View article]
    I'm sorry. But that makes no sense. By that logic, TI should partner with every last tech company that might have viable innovation... just in case.
    Apr 4 08:42 AM | 3 Likes Like |Link to Comment
  • Rinse And Repeat: Short Parametric Sound [View article]
    Here's my point-by-point rebuttal...
    Oct 1 12:03 PM | 3 Likes Like |Link to Comment
  • Parametric Sound Merger Not Likely To Be Positive For Shareholders [View article]
    Three things...

    1) PAMT is not in "dire financial situation." At current burn rate, enough cash for 12 months. Plus, digital signage applications ramping up enough to make cash flow positive w/in next yr.

    2) Hypersound tech is exactly why TB entered transaction. Listen to conf call. TB started as potential licensee, did due diligence on tech and realized disruptive potential so they submitted strategic proposal. These patents have significant value. Ask the 20+ companies under NDA that want to license it.

    3) Again, listen to call. TB absolutely has products in mind. They simply said it won't be included in a headset. But Juergen Stark gave specific product example of sound bar for video games. BTW - PAMT already had a co-development project underway for such an application. This is just one of the products both companies can bring to market utilizing TB's established distribution network. No one's giving any credit for synergies of a deal, which are significant.
    Aug 11 04:10 PM | 2 Likes Like |Link to Comment
  • Parametric Sound Merger Not Likely To Be Positive For Shareholders [View article]
    There IS a way to value it. People are erroneously assuming PAMT's stock needs to trade 5 times higher than current price. That's not accurate.

    There are currently 6,769,051 shares outstanding with another 1,365,354 subject to options (not all exercisable). But let's call it 8 million fully diluted.

    So if 8m shares represents 20% of the merged company, PAMT needs to issue 32m shares to pay for TB.

    At $17 per share, roughly the price before the announcement, that values TB at $544 million. Given TB's EBITDA of $46 million that works out to 11.83 times EBITDA, which is a fair price, not a rich price in this market.

    Case in point: the Washington Post just sold for 17 times EBITDA!
    Aug 9 04:12 PM | 2 Likes Like |Link to Comment