Neulion (NLN.TO)

A nice breakout around $0.90. It is now overbought. It has to take a breather. Ultimately it looks to have target of $1.10

A way to play sports broadcasting. They provide an end to end solution for content owners. Valuation is cheap. Insiders own 60% of it. It is a potential take out target.

Does the live streaming of sports events. Stock took a big hit last summer when NHL announced they were switching. They are continuing to sign up new clients. Announced a share buyback. Stock has performed quite well in the last couple of months. Thinks it has growth prospects ahead.

A top pick last year. A core position. They have an end to end solution from sports events to any screen available. The NHL was one deal they lost last year to major league baseball. NLN-T has proved they have the best platform out there. They have good margins. They had good results recently. A lot of institutions can’t buy it because it is under a dollar.

Compression technology. They compress video and put it into the data format you need for watching on a mobile device. Was doing fairly well about a year ago and dealing with a lot of sports leagues in North America, outside of major-league baseball. NHL was one of their marquee clients, but switched all their merchandising and video over to Maj. league baseball which made a pretty big knock on the company stock. Have a lot of cash on the balance sheet and are continuing to grow. Getting into soccer now. Super cheap. You can watch this and probably get it at an attractive price.

End to end streaming of HD live content. They are the leaders. They announced they lost the NHL contract and lost half their value. NHL has now come back to NLN-T. It has a PE of 4 times.

(A Top Pick Aug 21/14. Down 32.08%.) Helps TV companies with television over the Internet. Lost a contract that was probably 25% of their revenues. They are talented and will hopefully win new contracts.

This takes different video feeds, compresses it and puts it into all different formats so that you can watch it on an iPad, Blackberry, etc. Their specialty in the past has been the NHL and some of the sports leagues. They also work with TV manufacturers and distributors. Recently lost their NHL contract which created a huge hit in the stock price. Thinks they will still grow and have nice numbers going forward. The stock price is probably going to take a little while until people have a real sense of where the business is going. Long-term this is going to be a business that continues to grow as more people are watching TV on mobile devices. So far they are only in North America and have no content in Europe. That and Asia would be a huge expansion.

There has been a pretty good run in the stock, but last March he sold because of the Rogers deal. There was some insider buying recently. He likes the company still. Losing one contract does not kill the company.

(A Top Pick Aug 21/14. Down 27.36%.) Announced a loss of their NHL contract, which was less than 20% of their business. They still have big clients like Rogers, NBA, USC and are growing internationally. He would be an aggressive buyer down at these levels.

Got rocked recently by the loss of the NHL contract, and thinks it was a bit overdone. Wants to see a few more quarters to make sure the rest of the business is evolving and that the profitability comes back. Has seen enough good signs from management that he is going to ride this out.

What happened to the stock is what happens in a bad market when you have a surprise announcement. He likes to look at technical indicators and quite often they lead the news. With this company, that wasn’t it at all. If anything the charts were actually turning up and improving. The news of losing the NHL contract came out and the stock went down. The outlook is fairly strong. NHL represented about 10% of their revenue and 25% of their EBITDA. However, they are still negotiating with the NHL in ways they can continue to work forward. Also, growing in a number of other areas. This has been penalized a little too much.

Volatility was partly because the contract with the NHL had moved over to the baseball league. The baseball guys have a pretty good method of keeping on top of all the digital rights for their own crew of baseball players, and the hockey players are asking for this on a totally integrated basis. He still thinks the “over-the-top” trend continues. This company will continue to benefit as people will want to continue to track their team. Earnings estimates have been shaved from $.05 to $.03 over the last short period because of the loss of the contract. A good opportunity to get the stock on weakness.

(A Top Pick Aug 21/14. Down 30.19%.) Yesterday there were stunning declines in the stock when it was announced they had lost the NHL contract. That was 20% of their revenues roughly speaking. There is some rumbling about negotiating still going on and they might still have a connection. They claim that the numbers, on the business they are going to lose, is something like a 7% annual growth patent, whereas in the rest of their businesses they are up about 17%-19%.

It was a horrible showing all around. The stock was plummeting and then at 3 o’clock, they halted the stock and announced they had lost the NHL contract, which was about 20% of revenue. He doesn’t know where it is going to go tomorrow. This is an example of poor communication. It won’t kill the company. They are talking about new initiatives.