UrtheCast Corp (UR-T)

Cameras on satellites. Feels they’ve made a lot of progress in the right direction. Management is working hard and there is now more clarity. We may see some positive free cash flow one day. At this point, it is starting to become interesting, although clearly there are still a lot of unclear questions.

Takes high-definition pictures and videos from space, and can monetize this with their partnerships. However, the proof is really in the pudding. To date they haven’t generated much in terms of cash flow. They still need to install more cameras. When all cameras are placed in one space station you have to be careful, even though they have this insured. This is more of a speculative story.

(Market Call Minute.) Thinks this is a bit of a TSN turning point. Has fantastic management and great technology, but the price got way ahead of itself. This is not a broken company.

Basically satellite cameras. Contracts haven’t come in as much as people had expected. They were very good at raising money, and now it is a situation where they just have to deliver the goods. Based on the track record and history, he would give this some time before stepping in.

They put a camera on the Russian side of the International Space Station. Certainly interesting and has a lot of blue sky ahead of them. There are lots of interesting and neat applications in what they can do, but what he hasn’t really seen yet is how they are able to put that down to numbers. There has been lots of hype, and the stock has run up on that, but he doesn’t see where the cash flow is coming from.

He has never owned it, but has watched it. It gets the attention of the markets every once in a while. He questions how they are going to generate the revenue. You could trade it, but don’t buy for a long term hold until they show revenue.

(Market Call Minute.) An interesting concept, but he wants to see what they can generate in revenue before jumping in.

They were just in New York doing a presentation, and the media picked up a lot and spread the word on its satellite images and being able to resell them. Looked at this 2 years ago, and they had problems with their 1^st camera, and the stock came off quite a bit. Now everything has worked out and the space is getting hot again. Difficult to value right now as you are trying to figure out how much they are going to be able to sell in the future. He is very much GARP (growth at a reasonable price) and wants to see revenue and earnings come through.

(A Top Pick Oct 31/13. Down 30.26%.) He still holds some of this personally. This is Russian space station cameras. There is no problem with Russia, but the market sees it differently. For the time being it is going to be quiet.

The period of patience cannot be defined. They signed a contract for 5 years to provide services recently. The stock is held back by the Ukrainian problems, with the market thinking they have to use Russia to get their camera into space.

Sold some of his holdings as he needed some cash. Russia is also going to use its technology. Thinks there is a very large chance that it will continue.

HD Cameras on space station. Management team is impressive. Highly speculative. They have some contracts. Recent space walk caused stock to drop when equipment didn’t work. Would not get involved until there is cash flow momentum.

Their unique cameras will be transported up on the Soyuz spaceship.