And really, shouldn't the share price be at least $1? Trailing EPS of 27 cents a share, cash balance could get to 75-80 cents a share by year end (barring any unforseen events). I guess we need another new contract for anyone to take notice.
Looks like the quarter was a return to the higher margin gaming segment, ITSI earned 15 cents a share this quarter, cash over $8m, working capital up to $10.5m (over $3m accounts receivable). Downside would be voting segment which lost $0.5m for the quarter on $0.3m revenue. Backlog diminished to $5m. Would be nice to kill two birds with one stone and get some new voting machine contracts.
But we should see the cash balance increase next quarter as AR turns to cash. Don't know what happens after the next quarterly report, need some new business. But increasing cash balance should support ITSI share price.
One of the most revealing things I have read (in regards to why Ricky was denied the license) was from an article in the Epoch Times. In the article they stated....
"The decision to deny the license to HKTV was made by Chief Executive Leung Chun-ying, according to the convener of the executive council, Lam Woon-kwong, as reported by the Standard.
Netizens have accused Leung of coordinating with the Chinese Communist Party to suppress freedom of speech with the license denial to HKTV. Leung is widely believed in Hong Kong to be an underground CCP member
A comment made by Wong in 2008 is said to have rubbed the People’s Republic of China’s Liaison Office the wrong way.
Wong worked 12 days as chief executive of ATV (Asia Television Limited), which was said to be Hong Kong’s CCTV. During a staff meeting Wong declared that ATV would not be another CCTV, saying “pro-communist TV has no market; only anti-communist TV draws an audience.” Wong’s resignation followed".
So maybe they (Chinese political figures) haven't forgotten about Ricky's comments from his stint at ATV a couple years ago and figured that he will never get a license because of it.
(From the November 28th Axia press release)......
"Axia Asia sold its 30% interest in OpenNet for aggregate cash consideration of S$37.8 million (approximately CDN$31.8 million)".
No point in following the progress of OpenNet anymore since Axia has no interest in it, but the last press release on the OpenNet website, dated November 12th, stated that "Since the announcement of its 100,000th fibre subscriber in January 2012, OpenNet’s subscriber base has more than quadrupled to over 450,000 in October 2013. This represents a fibre penetration of more than 1-in-3 households in Singapore". Pretty heady growth numbers in Singapore, 33 percent penetration after a couple years.
Axia has released some pretty good news in the last half of 2013. In the August 22 press rlease covering the plan to sell their stake in OpenNet Axia stated "Upon completion of the sale, Axia's Board will determine the best use of proceeds for the benefit of Axia shareholders." Really looking forward to that announcement when it comes, I am hoping they become a dividend paying stock.
In Barrons thi week they asked the question "How many stocks are currently in the Wilshire 5000 Index?" The answer was a surprising 3,609, highlighting the fact that since 1997 their are 40 percent fewer companies listed on US exchanges (I think they were talking about the Nasdaq and NYSE exchanges). Maybe WTT shareholders will see that macro trend continue with WTT, all the anecdotal evidence suggets that will be the case. WTT is a good buy for someone, , "Network" revenue segment has doubled year over year. Management suggests "order momentum" continues in that segment. Current WTT market cap is $56m, over $28m in working capital, 50 percent gross margins on $30m annual sales (an annual sales number that the "Network" segment might do on it's own in the near future)...... at current price WTT is not the bargain it was but it certainly isn't an expensive stock either.
Another good quarter for the company, EBITDA margins were down but it always seems that every quarter has it's share of "one time" charges. (I have given up trying to figure how much they could "earn" in any given quarter, just keep growing the EBITDA). I really enjoyed the CC, there were many good questions, the analysts did a great job. And there seemed to be continued interest in the stock. I would hope the OpenNet agreement gets finalized by November 30th and doesn't need to be extended, but that isn't up to Axia. Sale of Xarxa took longer than expected, maybe the same thing will happen with OpenNet. I just hope after the sale of OpenNet Axia decides to become a dividend paying stock.
I think the company will release FY2013 results next week. Here's hoping that the cash balance hasn't fallen too far since February.
I don't know if the company will have a CC to go with the earnings release but it would be nice if Ricky would set investors straight on what to expect if he isn't granted the FreeTV license. In the press release they state, "The board of directors of the Company wishes to clarify that Mr. Ricky Wong’s statement was that if the Licence issue does not have progress in the next three to six months, the Company will not pursue the domestic free television business and will explore other business opportunity". Just what does "explore other business opportunity" mean? It sounds way too open ended.
Not that it is his fault, but shareholders have waited long enough on Ricky's "TV dream". If Ricky wants to build another media company, god bless. But he can build that other business on his own with his share of the liquidated cash. (To pursue the “production house” model would be a fool's errand and I don't want anything to do with it).
ZIRP, QE3, record NYSE margin debt, tax policies favoring the investor class, etc., etc., all contributing to record stock market levels. Meanwhile politicians attack food stamps and Social Security. Nice sound economic policies for the unreal world.
Yahoo didn't post my message correctly, I had copied part of Robbie Berger's message and tried to respond to that portion of his message but Yahoo chopped my message off. My response to Robbie's original message is that without the license there is no revenue stream from advertising and no way of knowing if their programming has an audience. Both of these factors make it harder for the company to survive as a "production" house. If Ricky tries to make a go of it as a production company of internet programming it seems like a waste of time and money with no reason to be invested here. And really, how can this be seen as anything but dirty politics?
it has NO BEARING ON THE ASIAN HD IPTV BUSINESS PLANS; IF ANYTHING THE HD IPTV PROJECT IS NOW FRONT AND CENTER. Maybe The Regulators thought that a "Free Air License" would give an unfair advantage to The Company with The Global Asian HD IPTV in my opinion
I killed 20 minutes looking, it's an interesting idea but who knows? Reminds me of a "Billy" Shakespeare quote, (I think it can be applied to stock picking), "If you can look into the seeds of time, And say which grain will grow and which will not, Speak then to me". Lately I have been sitting on my hands, this market has me a little fearful right now.
Nice to see the article on SA. Regarding that article, I couldn't agree more that a dividend would be a great way to unlock further value here. I hope that a quarterly dividend is in the company's plan for 2014. I also agree with the article in that the article itself paints a very conservative value on this stock. In France, it is still somewhat early in the game, and I am hoping the FTTH program in France exceeds expectations over the coming years. Axia has invested about $100m in France on high speed fibre networks, I don't think that is akin to throwing money down a "rabbit hole", yet the market doesn't seem to value that network at it's current cost.
I also wonder if the recently announced 3 year extension in Alberta was a result of Axia's increased CAPEX spending in Alberta. Maybe since Axia is investing it's own money in the network, the government of Alberta felt more comfortable with Axia as a partner.
IMO, this is still a very cheap stock with a lot of good long term growth potential that might surprise investors in the coming years.
And let's not forget that WSTL has been buying back stock over the years. They currently have 17m shares sitting in their treasury at an average cost of $2 a share. If WSTL were smart they would do something with those shares. WTT had record revenue ($5.96m) from the "Network" segment last quarter, 3Q looks to be even better. WTT will probably be moving up in price regardless of whether another company wants to make a play on them or not.