TheScore Inc. (SCR.TO)

He has never been a fan because of no revenue nor earnings. It is a highly competitive market. He would not invest in it. It is hard to value it when there is no earnings.

(A Top Pick March 25/15. Down 56.82%.) This has the 2^nd leading sports app in North America, next to ESPN. They got caught up in the daily fantasy business, using their app users as a platform. Had believed business was going to do very well. Still likes it a lot. They can use the platform of app users for other products.

This has gone through some business transformations over the last couple of years. It is now basically mobile apps and provides live scores to fans. What got the stock going about a year ago was fantasy sports, which was all the rage. Recently there were some legal issues in the US as to whether it is gambling or not, and will take a little while to sort out, and why the stock checked back. However, they still have the original business providing sport updates to fans, essentially an advertising business. They also are into E-Sports where people get together and have tournaments on video games etc. A solid business. If you are going to own this, you should have a longer-term point of view.

Just bought some last week. Likes the company and really likes the management team. Have big plans in all their areas whether it is E sports or fantasy gaming, where they can cross sell incrementally into these new platforms. Growth has slowed, but advertising has actually picked up as they have gotten more and more scale. Now they are going to be able to cross sell the fantasy sports and E sports to their users of the Score Sports app, which is roughly 11 million people. Still thinks there is tremendous upside. Thinks there will be upside in the next 6 weeks and then could go back to $.45-$.50, but longer-term, north of $1, is very reachable.

(Market Call Minute.) Took this out of his portfolio. Has been disappointed about what is going on. A very expensive stock with only $3 million in revenues per quarter and $85 million market cap.

This stock is not doing well at all. He would have liked to have seen them get a lot of eyes on their app. Looking at the number of active users; it hasn’t done much in the last 6-7 months. They don’t have the same growth trajectory that they had 6 months ago. They need to execute and show that they can get there and make money off the initiatives that they have had.

It did quite well and then sold off with the stock market. It is one of the best management teams you will find in the micro cap area. They have a lot of brand recognition. They have millions of users, but have not quite monetized their user base. He thinks they get bought at some point. The CEO is buying the stock.

This is more of a concept stock. They are not making much money from the app.

(Top Pick Oct 17/14, Up 17.14%) The app growth is slow. They are focusing on additional product lines. They are just in the process of launching for this year’s NFL season. The app is growing but at a much slower pace. He bought more this morning. They might get into sports gambling.

(Market Call Minute.) Longer-term he thinks this is great. The macro environment right now for small stocks is unfavourable. Thinks they will do the same thing with this that they did with the app they did with TV stations, build it up and eventually sell it out to somebody.

He uses 2 tools for his analysis: the 40 week moving average and the trend line. In The Score, he can see the 40 week average still rising, but now the price has fallen below it and the trend line has broken. This is where the stock started to back off. Now the stock has developed a downtrend and until it breaks that downtrend line the stock will not stop falling. He thinks the support is around the 2014 trading range. So he believes that we are not far from it and buyers could probably come in. The stock is a little bit oversold. It is in a downtrend right now and you should buy stock when it is in a uptrend.

At the moment they are not profitable. Forecast by 3 analysts for Aug/2016 is that they will lose $.04. This is more about the gold rush to acquire viewers. The crack in the armour generally is that people had previously said sports was immune from the slim fast diet plan that was going on, as far as cord cutting, for people that had typically subscribed to cable TV. To their benefit they offer an opportunity where you can use your laptop or app, to keep on top of what is going on with your favourite team. Within the last 4 months they have acquired a fantasy sports crew, and hope to bring in some of their existing 10 million subscribers into the fantasy sports side. This gives access to their fantasy sports side much less expensively, and the ability of cross-selling their existing customer base. The fantasy offers a pretty good opportunity for them.

Owned this in the past, but started seeing it breaking down in his technical process. From a business standpoint he thinks everything is going along nicely. It is more a fundamental market issue then a fundamental business issue. They are just getting into the electronics gaming where people watch video games as a sport, which is becoming a huge market. Over the next year or 2, he thinks that business will be bigger and the company will probably eventually end up selling it. They did this with their television network and will probably do it with this one.

He used to own Score Media. He sold because it did not meet his criteria. They are burning through a lot of cash. They have a dynamic management team that has succeeded in the past. This is a much more speculative stock.

To him this is the premier sports app in North America. Has 10 million users compared to Sprylogics (SPY-X) with only 200,00 or 300,000. Loves the management team. Expects this is going to do well long-term.