Too little liquidity? How big is your position?Anyone having different thoughts about this one after recent news? Still too little liquidity to go in with any confidence.
My eye brows are raised. If we have are big networks / producers such as HBO, Sony etc getting involved.. what's their end game? The way I see it is, they could not care less if QFX ever turn a profit. QFX market reach grows significantly and thus revenue, then the producers are getting their fair share of the loot through commissions / royalties and the like..which I'm better would be a bigger piece of the pie and any profit received from dividends of growth in QFX itself.I've followed QFX for a while, and have been a trial customer.........
To me, they are the perfect illustration of how to/how not to invest in an emerging industry.......
For all the blue sky and possibilities....and all the big names investors on the register.......it is been a no brainer not to own for a long time.....
The reason is that management has shown no intention whatsoever to make a profit..........they have even told the market, "we could make a profit if we want to, but that would decelerate revenue growth".........I wonder how much stock Mr Hodge owns, especially compared to what his 'short term incentive' package must be
Well, quite simply, a company with this attitude will always be taking on new 'sophisticated investors' by issuing stock at lower, lowever prices
EXCEPT for the magic moment they fund growth from operating cashflows.......when will that be?........you want to be an owner when that happens, which will mean buying just before the market attempts to price that.........
As these guys are yet to turn paper profit, growth from cashflows is still a while off...
For the record: I'm a Bigpond movies customer as I find it a much superior product than Quickflicks........but I do at least believe in this little niche
Gonna start sounding like a fanboy soon..I had a look at this a while ago. My theory was/is that kiosks are done once the NBN is built. Secondly, how does a company like QFX build a sustainable moat if they move into streaming. This isn't like a video shop where I may only have once choice nearby. If they start charging more I Google "cheap streaming movies" and go to a competitor. They will competing against the lowest cost provider and it's hard to see how a small company in Australia will compete in a global market. Netflix recently got burnt when it tried to up the price on its customers and they baulked.
I didn't know there was region based streaming. I'm not big into movies, which, if you saw the CV's of my family you'd find quite ironic.Gonna start sounding like a fanboy soon..
At the moment of a lot of streaming content is region locked. For example, South Park can be legally streamed online (from the official south park website) if you are in Canada/USA. You can't legally stream stream South Park from AU. Assuming the average IT user can't easily work around this (via a proxy or such), and this technology will be/is employed then this provides a regional based competitive moat.
While these are all excellent qualities for a company to have, they do not automatically create a moat. All of them can be replicated. Small industries, with high fixed costs and few players have the most natural moat. The region blocking may provide some competitive advantage but utlimately it doesn't stop NetFlix or anyone else from setting up a couple of servers in Australia to compete.In conjunction, there is brand recognition...who says 'search engine for quikflix', you say 'google quikflix'. It is possible they can create very strong association between online streaming entertainment and their brand, if they can provide a good quality (fast streaming, high quality, immense quantity of titles which are always up to date, with a very user-friendly interface) service which is marketed very well. At the moment I have seen little marketing from their behalf which is worrying... They really need to work on that.
In HD?Most of AUs infrastructure is adequate for streaming (ADSL 2+ / cable), but mobile phone wireless speed leaves some room for improvement.
The bleeding edge...Down 60% today, ouch!
Looks like they're struggling with customer acquisition costs, not surprising given the industry (lowest cost wins). the annual report was a pretty sobering read.
SP has gone from 14c in March to 2.3c today.
I did! I watch may be 5 DVDs a year. I don't want to pay Quickflix $25 a month for that.I actually saw someone using one of these kiosks the other week..i was dumbfounded as to why anyone would.
It's one of those businesses that you'd say "yes definitely a growth industry"
It's one of those things the internet doesn't do well. If you don't have scale (eBay/Amazon/Facebook) then it's really hard to make money. These guys are selling content that about 10 other sites all are.The bleeding edge...
It's one of those businesses that you'd say "yes definitely a growth industry" but then you quickly question "why can't anyone make money from it?". The groupon industry is another one such example.