Maybe this is the open door HKTV will enter thru, it seems the "Executive Council" will let ATV's license expire in November. It makes sense for them to do this, it also makes sense to give HKTV a license.
"The Executive Council has decided not to renew the license of Asia Television after it expires on November 30. The broadcaster has confirmed the decision on its webpage. That means some 700 employees will be out of a job.
It is surprising that the Chief Executive and the Executive Council still decided not to renew ATV's license, despite the fact that new investors have been confirmed, the cash-strapped broadcaster said in a statement. It may consider legal action, according to the statement.
According to the Broadcasting Ordinance, a TV station must be given a 12-month notice if its license is not to be renewed".
It will be interesting to see how this trades in Hong Kong tonight. I had some spare cash and bought some more shares of HKTV just now, hard to find anything interesting to invest in these days. HKTV has always been very good to me over the years, we will see if that continues.
I think it has come up before but there is a new rumor that Ricky Wong has purchased an interest in ATV. I don't think anything "official" has been declared but I found an article entitled "HKTV's Ricky Wong to buy ATV controlling stake" posted online. The article stated
......Major shareholders of ATV, the financially troubled Hong Kong television broadcaster, are said to have agreed to sell their stakes to HKTV (01137.HK) chairman Ricky Wong Wai-kay.
Wong Ben #$%$ and Wong Ching have notified ATV’s management that they accepted an offer from Ricky Wong to buy controlling stake in the free-to-air broadcaster, according to an evening news bulletin on ATV.
Under the deal, Wong Ben #$%$ and Wong Ching will take “haircuts” on most of the debts that are owed by ATV to the duo, the report suggested.
The report did not disclose more details about the transaction, which will require approval from the court and the firm’s trustees, as well as Hong Kong’s Communications Authority.....
I guess we will wait and see.
Alex Lo wrote an opinion piece for SCMP entitled "Turn off ATV and turn on HKTV", which to me is stating the obviuos. In the article Lo wrote
"In two rounds of licensing decisions, local regulators made complete fools of themselves. First, they allowed a financially and intellectually bankrupt TV station to continue. Then they granted new licences to two subsidiaries of i-Cable Communications and PCCW without ascertaining when they would start to provide free-to-air services. So far, both have little or nothing to show for it.
Meanwhile, the one station, Hong Kong Television Network, that actually committed investment, hired hundreds of people - subsequently forced into redundancies - and produced actual new programmes was rejected".
HK courts have reserved judgement to be handed down in both of HKTV's court cases, and HK Communication Authority has not only been dragging it's feet on granting HKTV a license but has been an impediment to HKTV. As Lo ended his article, kill ATV now and give the licence to HKTV.
The Hong Kong Broadband Network (HKBN) that Ricky helped build (and sold a couple years ago to pursue his "TV dream") is now a publicly traded company. The stock code is 01310 on the Hong Kong exchange.
I remember buying shares of Western Canadian Coal (WXJXF) back in December 2008 for about $0.45 a share. Found out soon after that I would be losing my job in May 2009. Sold those shares in January 2009. Walters bought out Western Canadian Coal for $11.50 a share in December 2010, which would have been a 2000% return on my investment. To this day I think about the money I would have made on those WXJXF shares. Now I wonder if history is repeating itself. (But for now I have the feeling it isn't as I haven't bought any WLT).
Other than the date of the board meeting, which is March 26th, and the weekly viewership reports, I haven't heard much lately. Probably too early to get a good picture on how the "shoppertainment" concept is playing out. Maybe they can give some color when the annual results are released. Regardless, the excellent balance sheet should provide a bottom at around these levels.
Regardless of the good results it's hard to see the stock going up. (They need great results to do that). If there were ever any "take private" plans I guess they have to wait until the 1.57m C-Motech shares can be returned to C-Motech and then purchased by FKWL. A profitable company with an enterprise value at around $2m seems really, really cheap. Especially given the fact that they had almost $4m in "cash flow" from operations in only 6 months. (Which is why I wonder about the "take private" deal but what do I know).
Hopefully FKWL management aren't superstitious and release earnings on Friday the 13th rather than next Monday. And wow, wouldn't it be nice to hear something on the outlook of the business rather than the "sales were this" and "earnings were that" type of generic comments from management. They need to knock that off, it isn't funny anymore.
HKTV put out a press release Monday, February 2,
"Hong Kong Television Network Limited (“HKTV”) announced the grand launch of its online shopping mall! Starting with the slogan “We Sell Whatever You can imagine”, HKTV works with more than 333 stores, bringing together the target to be a large scale online shopping mall. Signifying by extremely wide variety of products, official distribution of brands at official prices, consumers can enjoy shopping at ease as much as they can"......"Since the trial run on 17 December 2014, large and small sized stores were opened in phases, marching towards our goal to become a large scale online shopping mall. Creating a new lifestyle and a new way of entertainment for Hong Kong people, are what HKTV lives with".
In an article it is stated that, "Hong Kong Television Network plans to make its online shopping mall the biggest in the territory within a year. So said chairman Ricky Wong Wai-kay at the launch ceremony for the mall yesterday".
I have no idea how to value Ricky's "Shoppertainment" vision, but my initial reaction is skepticism. I would rather HKTV be granted a FreeTV license, and that may still happen. (With ATV struggling to even pay it's employees why wasn't HKTV granted a license in the first place?) But on the bright side, as they wait for a license, at least they have some sort of business venture going right now, and maybe it will surprise me on how well Ricky is able to execute his plan.
Miners haven't tracked the price of gold lately, don't really know why that is. Over the past 12 months GLD is up 2.5 percent, PPP down about 19 percent. If gold doesn't falter, PPP could be a good bet for 2015 if they hit their projections, a great bet if gold keeps trending higher. I bought some PPP yesterday, might add in the near future.
After reading this latest press release I immediately started listening to Firesign Theatre's "Everything You Know Is Wrong" comedy classic.