Rightscorp, Inc. (NASDAQOTH:RIHT)

CAPS Rating: 1 out of 5

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Player Avatar TSIF (99.96) Submitted: 4/1/2014 5:07:53 PM : Underperform Start Price: $0.65 RIHT Score: +53.95

Rightscorp, Inc sounds like a good idea, montior copyrighted material, generate cease/desist and generate fines to return to their customers. Represents 1,000,000 in copyrights, including past block buster movies, with about 40,000 in it's growing database.

My issue is that I'm not sure who died and made them the police. They claim 60,000 resolved cases to date, which is incredible considering the time and staffing this would take...unless a case involves multiple names...so this might have been two cases of 30,000 title each where JR got caught running an illegal fileshare and his parents agreed to bail him out rather than go to trial..... 2 of the 3 listed employees have a salary of $200,000 each.

Clearly, however, not much is making it to the books at Rightscorp, I know they are new at this...but $324 thousand in revenues, and a $2.3M loss, with $33 Thousand in the bank, doesn't make for a $40M market cap from a reverse shell merger. (Making a P/S of 145). Founded in 2011..it needs to pick up speed to get to that $2.3B market opportunity.

Spent more to promote awareness than they have....

"Upside Report has been paid $500,000 in cash by Priority Partners, Ltd. to run awareness on RIHT."

Blackrock Media, glossy brochure...et al others.

25Mar. 2014, 10-K

Liquidity and Capital Resources

Overview

As of December 31, 2013 we had cash and equivalents of $36,331, which we estimate will be sufficient to sustain our operations for five months. We expect that it will take approximately $1,500,000 to operate the Company over the next 12 months. We anticipate that $750,000 in needed capital will come from the remaining $750,000 available from the $2.0 million financing transaction entered into with Hartford Equity, Inc. We anticipate the additional $750,000 will come from the Seaside 88 financing which we entered into in March 2014. Revenues continue to increase that generate cash flow reducing the need for financing. It is possible that the company could become cash flow positive from revenues in 2014 no longer requiring financing to offset negative cash flows.

We generated revenues of $324,016 during the year ended December 31, 2013, an increase of $227,451 or 236% as compared to $96,565 for the year ended December 31, 2012. This increase in revenue was driven by an increase in the number of copyrights for which we have contracts to detect infringements of, from approximately 12,000 on December 31, 2012 to approximately 30,000 on December 31, 2013.

(HMMM doesn't sound like a million licenses and 60,000 cases......but of course they are clearly bundled in some manner).

With 69.8M shares outstanding, might be worth a nickel each, maybe a dime if they can get the revenue up a little bit more.....

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Member Avatar jed71 (53.37) Submitted: 4/2/2014 1:55:13 PM
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And here is what that $500K paid for. This was in my email in-box this morning:

"To the Tech-Savvy Investor:

Online piracy has taken an enormous toll on entertainment companies and artists. Music alone has seen a 57% decline in revenues as the result.

Understandably, rightsholders have had it. After years of toothless efforts to reign in copyright infringements... online piracy continues to soar... andthat could lead to substantial gains for shareholders in RightsCorp, Inc. (RIHT).

Over the last year, RightsCorp has rolled out the most effective technology ever developed for the war on piracy. Industry giants have declared war on piracy and RightsCorp has taken point for them at targeting infringers. Over one million copyrights have already been placed in RightsCorp hands and the battles are just taking shape.

Early projections are that RightsCorp has opened a mid-term $2.33 billion market opportunity with growth potential many times that figure.
   
This is hot news among entertainers, but Wall Street is still in the dark. You can still grab a ground floor position, so I urge you to read my RIHT investor report now available to you online.
Yours for Success,

Gerald Kieft
Founder, Wall Street Resources, Inc."

Member Avatar TSIF (99.96) Submitted: 4/2/2014 6:31:08 PM
Recs: 0

IF I were you I would complain to the "newsletter" that they gave it to you late and you want to be in the first round of notifications on the next can't lose deal! :)

How they can get a name "Wall Street Resources" and do this just adds to the boiler room fixation.

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