Neulion (NLN-T)

Yesterday there was a takeover announcement of this company. He is disappointed with the price; he had higher hopes for it. And he is definitely hanging on to the stock. He thinks a higher offer could come forth.

The market is looking for them to make some bigger high profile announcements. They have been growing the business at a good clip since losing the NHL last year. He is expecting good things over the next few quarters.

This has major support at around $.50. The thing about penny stocks is that there are less people trading them. It is really retail investors that are trading them, which means that it is going to be thrown around a lot more. It is harder to predict technical trends. This stock seems to have a habit of bouncing off the price of $.50, and at this time, it is probably worth a trade.

It is not a viable stock to look into. He owned it at one point. It is an interesting space, but unfortunately it has been a poorly executed story. It is a bit of a ‘show me’ story.

Makes technology that allows it to not just stream things online, but also manipulate the data and take a cut of it. They had great contracts with a lot of the sports leagues. Lost their NHL contract, and when you can lose contracts like that, it makes him a little leery. He wouldn’t really consider this at this point.

(A Top Pick April 11/16. Down 44%.) This has been a miserable performer. He got at a higher price than where it is now. They seem to be in the right space having technology and providing backing in technology for video distribution online.

Has been a little disappointed with some of their conversion to generating cash flow and earnings. Long-term it sounds like it has lots of potential, but the numbers just don’t seem to come through.

(Top Pick Dec 17/15, Up 29.87%) He thinks it will be taken out some day. They recently signed up the English football league. They are ramping up. Doing a great job growing. There is a lot more growth potential.

Video streaming. Their technology is not particularly sophisticated, and he doesn’t see a lot of barriers to entry. He cut the cord on this a couple of years ago, and now watches BNN on his Internet connections. His experience with this company as a consumer, has not being great. This is not a stock that he would invest in.

Recent results have been a bit mixed, a little bit lumpy quarter to quarter. Thinks management is still figuring out how to deal with investor relations, guiding the street, etc. They are very much in the right space. Participating in distribution and the technology that helps deliver over the top video, (TV channels over the Internet). This is not an expensive stock, and it has a lot of cash on their balance sheet. Very large insider ownership, which he likes. 3-4 years from now, the stock is going to be a lot higher or somebody is going to have acquired it. Disney (DIS-N) recently acquired a 33% of BAMtech, a streaming service in technology.

Had trimmed half his position when it got up to the $1.40 area, and is buying it back now. Very, very cheap and generates a lot of cash. Growing globally. They are signing deals with companies globally for broadcasters of live sports and also other video content. Just completed an acquisition in England. They run pretty lean and mean. He is very confident the company will continue to grow.

A very well-run business. They do a lot of the back-end talk technology for over-the-top broadcasting of sports, etc. As people are watching content on multiple devices, this company is very well positioned. Has a lot of cash on its balance sheet, and is trading at a reasonable valuation. Recently made a small acquisition. Very well capitalized and good growth opportunities. Potentially a takeover target some day.

A pretty good company. Just renewed their contract. They are doing a pretty good job in providing technology that is needed to generate high-quality content. A good free cash flow generator. Currently trading closer to its fair value, and this could be a potential take out candidate if they continue delivering.

They lost a major contract recently, which hit hard. A problem he has with any of these spaces is how chaotic it is and are there disruptors that can come up behind it and easily disintermediate you from your clients. That has always been his concern with this company. Management and the product seem to be fine.

This has had a good run. Has a technology that allows video on demand to work on the Internet. Have some very impressive clients. They lost NHL to major league baseball, which has its own in-house version. There have been a lot of acquisitions in the space. All the big players like Disney (DIS-N) who have these problems with cord cutting, want to have that technology in-house. There is a good shot these guys may get bought out. Have a massive cash position, something like $60 million.