TSIF's PLAY of the Day; Tuesday, 17 March.; Techmedia Advertising (NASDAQOTCBB:TECM.OB)
I'll make this one early as I'll be away from my computer during the trading day.
"Play of the Day" are HIGHLY Volitile at the time the call is made. Many are VERY low volume equities. They may be big board stocks or tine OB stocks. We expect changes of 20% or more over a short time window. Due to the volume and the nature of these stocks we do not recommend making either a green or red thumb. Limit orders are HIGHLY recommended. Note, however, that they may not kick in until some volume moves, (minutes, hours, days, weeks, months). We are not responsible for CAPs scores gain or losses.
Play of the Days are only for those seeking more "thrill" and are impatient with slow stock market days where the S&P swings a mere 2% or less. They may triple or drop rapidly or linger for a year or more.
Play of the day;
Techmedia Advertising (NASDAQOTCBB:TECM.OB).
Current Call: DOWN
All Stars: UPthumbs (ZERO) Downthumbs: (38).
Reason for the Call today: 10% swings twice this week. Currently at top of trading range ($2.20) . Active for about six months.
NOTE: The $2.20 peak is $104 Million Market cap. It would be difficult to play this on CAPS if it drops lower.Expectation: Techmedia had stayed relatively stable for six months. The cycles this week indicates a new trading range will be established soon.
Techmedia Advertising is a very low volume stock, so tricky to get activated here on CAPs. A limit order and patience is a must. It won't trip unless there is movement across your limit price. You can't trip it when it's at the low end of it's trading range as then it doesn't trigger the $100 Million market cap caps requiirement to thumb.
Techmedia Adversising appears to be a Smashy find, though he pitched that he might be early on his red thumb back in September and closed it in November after it crept up, but with a 6 point accuracy gain. 34 All Stars out of 34 still have this as a downthumb, but none really say why.
The list of insiders shows 47 Million shares in the hands of insiders since August 2009. Based on limited information, It's $2 Million in cash on it's balance sheet doesn't appear to support it's $102 Million market cap. Techmedia sells advertising in India and recently signed a $1.3 Million one year deal for advertising on long distance buses.
From a March 2nd Press Release:
"March 2 /PRNewswire-FirstCall/ -- TechMedia Advertising, Inc. (OTC Bulletin Board:TECM.ob - News), ("TechMedia" or the "Company") is pleased to announce in the first 19 days of January 2010, the joint venture between TechMedia Advertising Mauritius (a wholly-owned subsidiary of TechMedia Advertising, Inc.) and Peacock Media Ltd., has completed the installation of the new digital streaming platform on an additional 731 long-distance buses in the Tamil Nadu Province." Bringing the number of buses to 4,508 with 300,000 daily passengers using the service.
"TechMedia Advertising, Inc. expects to sell prime advertising space both in high-traffic as well as previously unexplored areas. We plan to successfully carry our advertisers' message through the right channels and bring their point right to their chosen target consumers within the region. For more information, visit http://www.techmediaadvertising.com/."
Technology based Media is certainly catching on. Techmedia has the initial $2 Million in funding commit with options for up to $10 Million. Funding was suppose to have been closed in January, but was Extended to Febr. There are no later SEC filings to disclose how the funding completed.
Techmedia came to the OB boards through a Nevada based shell. As often pitched, Nevada has the "losest" rules in the country to found companies. The only requirement is to have an office somewhere in Nevada, and in many cases this has ended up being P.O. Box!
15 Dec, 2009 Quarterly report:
"We were incorporated as "Ultra Care, Inc." in the State of Nevada on January 30, 2007. Up until January 15, 2009, we were engaged in the business of developing an industry-leading online resource for the nursing profession. Subsequent to January 15, 2009, we changed the focus of our business direction to that of a company engaged in selling outdoor advertising on billboards and digital signs in India located in high traffic locations, which locations range from public transportation vehicles, commercial buildings, supermarkets and restaurants, by partnering with media space owners. By doing this, we hope to reach a large spectrum of consumers in a wide variety of locations."
Nursing, outdoor advertising...hmmm.... I don't see the connection, but many times someone can't decide what to be when/if they grow up.
Through an 85% Techmedia, 15% Peacock Media, it appears that Techmedia is fronting money on Peacock's five year licenses and using Peacock to gain business. This could stretch into a lucrative business if successful and if the model can be expanded. Spinning up the JV is cost intensive and I can't follow where the commitments, ($12 Million early and $25 Million total) are to come from. It appears to me that until financing is in place AND adequate advertising deals to make the JV self sufficient that the $100 Million Market Cap is nowhere near justified. OB spin-ups, rebrands, shell takeovers, etc, all seem to produce multi-million numbers of shares and insufficient seed money. I don't see this one happening in the next two years.
Capital raise, market share, etc, are all listed as normal in the December 15th 10-Q. So is the going concern from the auditor that this type of early development stage company with no funding typically has. Initial funds were raised by selling shares at $1 per share to 37 individuals. This begs the question why the share price is now $2.20??? ===========================================
GOAL of this report: Don't be a follower without spending some time doing the work. Good companies are formed from reverse mergers and new foundings. Bad companies are formed similarly.
All that Glitter is not Gold
Large Gold Nuggets and Brillant Diamonds were all hidden by dirt and rock.
TSIF Reporting. The Sky (is/isn't) falling today, but it might tomorrow.