Bruce Campbell (2) Sensio Technologies Inc. SIO-X COMMENT Jan 13, 2016

Still likes this company. Thinks they are suffering from not having a lot of news out. Had a quarter that was great, but going into the next 6 months, we are going to see a lot of news come out for this company. They have their ramp-up with LG. Those LG TVs with the Sensio 3-D apps are just being released into the market right now. It is going to be a big Christmas promotion that LG puts on. This means their 3-D app gets utilized and will get a lot more users. Those users drive their revenue and cash flow.

Basically the 3-D version of Netflix. LG is their big manufacturer. Their product just went into LG TV in November, so he is expecting that we are going to see a real big ramp up. Their service is called 3DGO, which streams the 3-D movies to the 3-D TVs. Expects there will be a big ramp up in the number of 3DGO users. Management has been excellent in stripping out all the costs, and have got down to the point where they are very lean. Any type of bump up in revenues is really going to fall to the bottom line. They also have an arrangement with Wi-Lan (WIN-T), who is defending their patents. There has been no news, but going forward he expects to see some news on that. This company also has a technology that allows them to stream into 4K televisions as well.

Everything management has said they would do, they have done. He gets pretty excited about what he sees in releases they have had in the past little while. This will end up being the 3-D streaming service for 3-D TVs, similar to what Netflix is. They embed apps into 3-D TVs, stream movies and get paid. Registered users are now at an all-time high. LG rollout was delayed a little and just started around Christmas. They are starting to see it ramp up. Will be bringing 3-D Go service to Canada with LG fairly soon. Have just broadened their technology allowing them to access a far greater number of 3-D TVs. He can see a lot of catalysts going forward.

(A Top Pick April 23/14. Down 16.67%.) Probably more excited about this today than he was a year ago. They do 3-D streaming, the 3-D version of Netflix. Since then they have signed a deal with LG to have an app on their TVs. Also, brought over LG’s 3-D app and transitioned it over to theirs. User numbers just keep climbing. Expecting an announcement soon that they have signed a deal with Samsung. Have broadened the technology they use to allow a lot more of the companies and TV manufacturers to be able to use their technology.

Was a Top Pick April 23/14, and he is probably more excited now than he was then. Since then, they have signed deals with LG and Samsung. By the end of this year they are going to have about 80% of the addressable 3-D market that can access their app and rent movies from their 3-DGo service. The number of registered users continues to ramp up. Management has been very strong at cutting back their costs and still growing their business. 2 of their focuses right now are 1) building out their libraries, where they sign more deals with the studios, and 2) seeing the integration of Samsung. Expects that a year from now there will be some fantastic numbers. At some point he expects they will be acquired because it is basically going to be the 3-D version of Netflix.

They have taken a while to get everything solidified and in place, and he thinks that now the stars are really starting to align. There are more and more movies that are being made into 3-D, which will be important for them. Have signed on the big TV manufacturers. At the end of this year, once they have Samsung and LG signed up, they’ll have over 80% of the addressable market share to use their product, the 3DGO app. This is a product similar to Netflix, but for 3-D movies. This is really starting to ramp up. This is their quieter quarter, but going into the fall, we’ll start to see the number of users ramp up. Also, seeing them add a number of different movie studios, which means that not only will the users ramp up, but the amount of movies those users watch will ramp up too. Thinks they will become profitable in the next 12 months and you’ll really see the numbers ramp up. His guess is that they will get taken out. Stock is pretty cheap if you are prepared to hold it for 12-18 months.

Has been stuck in a range and thinks a lot of it has to do with seasonality. Their strong seasonality is really September to April, when people are inside watching TV. What is going to propel the stock going into the next few months is that they are going to see a full rollup of all their technology. Up until now they have had growing numbers as far as how many TV manufacturers they were with. Coming this fall they are going to be in 80% of the 3-D TVs and are going to put a big marketing push on to get people to really understand that they can now stream 3-D movies to their TV. The next big catalyst is when you see Samsung and LG fully integrated and the numbers for users start to ramp up.

Basically a 3-D version of Netflix. It has taken a long time to get all the pieces together, but sounds like they are all together right now. Have all the major movie studios signed up, with the exception of one. Have 80% of the addressable 3-D-TV market, about 4 million TVs in Canada. Just going over to Europe which has about 40 million TVs. Going into the season’s heaviest period. Expects to see some real big cash flow numbers. Have really focused on getting high margin customers, and have done that through having a deep library by working with all the studios. Expect they will be cash flow positive in 2016.

He has been waiting for this day for some time. They have been trying to ramp up with access to as many devices as possible. They stream 3D to your smart TV. They are at the point where the number of users they have access to is huge. They have pretty much all the major studios signed on. They have a full catalogue of movies. These are their two busiest quarters. It is a micro cap, so you want to have a risk profile here.