tag:blogger.com,1999:blog-7126131564610858851.post3208941899013905645..comments2023-09-09T10:21:32.853-04:00Comments on The Hackensack: A Conversation with the CFO of Destiny MediaDaveinHackensackhttp://www.blogger.com/profile/01313169814904229272noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7126131564610858851.post-43620006124887053762009-04-16T17:31:00.000-04:002009-04-16T17:31:00.000-04:00Musicpop,
Welcome to Blogger! I see that I was th...Musicpop,<br /><br />Welcome to Blogger! I see that I was the second person to check out your profile. <br /><br />I mentioned to Destiny that they ought to update their statements on the Yangaroo dispute, and Vandenberg said he'd get an updated paragraph on that to me. I'll post that here when he does. In the meantime, I'll note that Destiny has not been "shut down" in Canada -- the company is doing business there -- and Destiny is the plaintiff in the two lawsuits pending relating to the dispute.DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-80920398254784774042009-04-16T17:25:00.000-04:002009-04-16T17:25:00.000-04:00J.K.,
Profitability would be enough to keep me ho...J.K.,<br /><br />Profitability would be enough to keep me holding, but probably not enough to get me to add more. A quarter of sequential growth after that would be more encouraging. Another factor, besides my convo with Vandenberg, that has kept me holding is the tiny volume in this stock. I don't have a big position in dollar terms, but it's enough shares that I'd have trouble selling them without moving the market.<br /><br />Again, your reasoning makes sense. There's a good chance that the reaction would be muted if DSNY does turn a profit next quarter. It would still be a risky stock then (though less risky than it is now), and there still isn't much appetite for risk in this market. There may not be for some time. In the case of PNWIF though, I think it being better known might have worked against it. Perhaps most of the typical investors for PhotoChannel were already soured on the company by the time it finally turned a profit. There's definitely less patience for unprofitable companies these days, and for good reason: there are still plenty of deals among profitable companies.DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-7604512121542090112009-04-16T17:15:00.000-04:002009-04-16T17:15:00.000-04:00Albert,
Yes, he meant Q3 revenues would be 30% ov...Albert,<br /><br />Yes, he meant Q3 revenues would be 30% over Q2, not YOY. According to my math, if expenses remain constant, the Q3 profit will be much less than a penny per share, since it will only be about $14k gross (Q2 revenues of $467,488 x 1.3 = $607,734; $607,734 - Q2 expenses of $593,037 = $14,697. You've got to divide that by ~51 million to get PPS). <br /><br />One point to bear in mind though, is that a high margin business has some inherent leverage with respect to its profits, once it becomes profitable. Relatively small increases in revenues above the point of profitability will lead to much faster growth in profits.DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-6587277737800989202009-04-16T13:30:00.000-04:002009-04-16T13:30:00.000-04:00I heard a rumor on one of the boards that Destiny'...I heard a rumor on one of the boards that Destiny's competition Yangaroo (Canada) was recently issued a US patent which could shut Destiny down as it did in Canada with the Canadian patent. And Yangaroo has filed an infringement case agains Destiny in Canada. I sold my position until this and other legal issues (lawsuit) are clear up. This is far too speculative and the patent thing scares me. Took a loss but I'm not complaining. I guess due diligents is key with all micros.Musicpophttps://www.blogger.com/profile/14619078493194490995noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-57773531564010187902009-04-16T00:00:00.000-04:002009-04-16T00:00:00.000-04:00Interesting...Curious Dave, what would you need to...Interesting...Curious Dave, what would you need to see for you to add to your position? Just profitablility? <br /><br />PNWIF didn't have a huge rally when they became profitable, and I figure the little known DSNY will have a similar muted reaction, giving me time to get back in at that point. And if they continue to be unprofitable -a real risk, regardless of your convo- I can save myself the pain of this dipping further.JKnoreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-13385857316782225842009-04-15T21:06:00.000-04:002009-04-15T21:06:00.000-04:00Thanks for the post and sharing the information. ...Thanks for the post and sharing the information. I assume he meant Q3 revenues would 30% over Q2 right, and not YOY? If that's the case, that's only about a 10% increase over the Q1 numbers, since Q2 was down 16% over Q1.<br /><br />I just have a hard time seeing them increasing revenue all that quickly. This could be a multi-year process, not just a matter of another quarter. <br /><br />If Q3 revs are 10% higher than Q1, with profitability of a penny per share, is that enough to keep you in it for a little while longer? I think I might need to see more announcements of deals signed with other major domestic or international labels.Homer315https://www.blogger.com/profile/08861912576884021842noreply@blogger.com