Post by
hintonkid on Apr 21, 2016 1:58pm
Weighing in on the announced cost reduction measures.
I have held an investment position in the company for a while now and I must admit, that when the cost reduction measures were announced by the company, I did hit the panic button and as with others, I did sell my holdings but, upon reflection in the brighter light of day, I did buy back a 1/3 level of my previous position today. At the time, that I sold, alarm bells sounded when it was indicated that the company was not only considering the 50% staffing reduction but, also the possible sale of Game-Tree TV and the possible loss of the revenue stream that goes with it.
However, as I said, after some reflection and analysis of the situation I took another look.
1. If the company were to sell Game-Tree TV, the loss of the revenue stream, overall, would have less of an impact then if they were to sell the Game-Tree TV Gold enterprise as I think that once it were to start to produce revenue on a much broader level, would have a greater impact on the company's bottom line and, if they could get a good price for Game-Tree Gold it would give them the funding that they needed to get them through this rough stretch and back on course.
2. From the business news reports, regarding the quarterly earnings reports, both Netflix and DISH, though producing reasonably good numbers, took big hits when the companies reported that domestic subscriptions for the US market were down for the reporting period though overseas subscriptions were relatively strong. Since TNG has business arrangements with both of these companies, to me, it stands to reason, that they would be affected by the weakness in domestic subscription services that both Netflix and DISH are experiencing and had reported on. As these two companies take measures to improve their domestion subscription numbers then TNG should, hopefully, begin to see a pick up in their's as well and I had basically thrown the baby out with the bath water but I have bought a portion of those shares back and, once TNG shows signs of strength with regard to their revenues, etc. I will gradually add to those holdings.
3. Finally, I mustn't loose sight of the fact that there are additional potential revenue streams that will be taking affect in the next couple of quarters including the GOOGLE arrangement and once they get a foot-hold that should, hopefully, add additional momentum for the company and investors will be able to look back on this as one of those speed-bumps that all companies go through from time to time.
In the mean-time, as I suspect most long-time investors will do, I will continue to monitor the situation and see what happens and take what ever prudent steps that I should as they are warranted.
Comment by
hintonkid on Apr 21, 2016 2:05pm
Sorry, just an ammendment to my post. I meant to say the sale of gametree TV would have less of an impact instead of the sale of Gametree TV Gold. I missed the correction when I was editing my post before posting my comments.
Comment by
FluidDrummer on Apr 21, 2016 7:07pm
I bought a ton more at 0.02c
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yyz123 on Apr 22, 2016 11:48am
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yyz123 on Apr 25, 2016 10:55am
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