You On Demand -12.2%; SA author sets $0.50 target


Adam Gefvert expects You On Demand (YOD) to trade at $1.50 by the end of 2014, and $0.50 by the end of 2015.

He points out YOD only had ~$300K in 2013 revenue in spite of potentially reaching 18.2M Chinese households as of 2012, and that even a 3x 2014 revenue increase would leave shares trading at over 120x sales.

Gefvert also notes the Chinese VOD service provider has to contend with the huge popularity of pirated content, and (given Q4 SG&A spend of $8.3M) declares management is "fleecing shareholders."

With a large number of outstanding warrants and preferred shares having sub-$2 conversion prices, Gefvert thinks YOD could fall below $2 if holders
"get worried and convert and sell their stock before it falls any closer to the exercise price."

Comments (1)
  • tc menninger
    , contributor
    Comments (9) | Send Message
     
    It also seems that management completely ignores the one facet of pay-per-view that could actually generate interest on both cable and mobil: sporting events. Never any mention as far as I can tell. Anyone ever try to watch an entire movie on a screen measuring 6 square inches ??
    17 Apr 2014, 12:07 PM Reply Like
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