Asian Television Network (SAT.V)

[riseofamillionaire]

This is one of my favorites. Used the pullback today to add to my position. My expectation is I will hold this for 3-5 years.

In my opinion, this relatively unknown, underappreciated company will continue to grow steadily over the long term and eventually gain appreciation from analysts. Investors that are in before the Bay Street love should be rewarded accordingly.

They currently have 34 premium specialty channels ranging from regional news in several languages, to Bollywood, to sports and rugby, and lifestyle genres. Early this year, they announced the creation of their new state of the art broadcast facility which will allow them the capacity to operate up to 100 channels. That’s 3 times the channels they currently have. It’s scheduled to be completed in June 2012.

They maintain agreements with Rogers and Bell which allow them the platform to launch channels and have their channels available to a wide audience. Adding other Canadian carriers may be a future growth avenue.

Referring to their Q3 2011 Management Discussion and Analysis, they are confident that they can continue to grow the company through new channel launches as well as increasing the subscriber base of current channels.

Advertising is their biggest revenue generator with ad revenue up over 70% in Q4 2011. More new channels mean more ad revenue opportunities and higher profits. As the economy recovers, ad revenues will benefit immensely.

For new channels they plan to roll out a steady HD strategy, as well as expanding regional news and regional lifestyle genres in many different languages.

They are in excellent financial condition. The company has no debt on the balance sheet, trading at about 11 times forward earnings by my estimates (most websites have the p/e very high because it's so unknown, they don't seem to update it. current p/e is 15), for a growth company that could grow 15-25%. It is a fair price given the nice run it already had and future potential. They also announced a permanent regular quarterly dividend which commenced on March 2012. Yield is about 2.8% at current levels.

It has no analyst coverage and is generally underappreciated and unknown on Bay Street – always a positive.

Their earnings accelerated considerably in Q3, Q4 2011 due to new channel launches at the beginning of 2011. I would expect them to continue steady channel launches over the long term with similar results.

Have a look at Canadian media company Corus Entertainment for the possibilities. They are a more mature company yet follow a very similar model to SAT and have a market capitalization of almost 2 billion dollars. SAT has a market capitalization of approx. 80 million dollars.

Be sure to check out SEDAR and do your own research. Use limit orders, it's very thinly traded.

[Axcell]

This is one of my favorites. Used the pullback today to add to my position. My expectation is I will hold this for 3-5 years.

In my opinion, this relatively unknown, underappreciated company will continue to grow steadily over the long term and eventually gain appreciation from analysts. Investors that are in before the Bay Street love should be rewarded accordingly.

They currently have 34 premium specialty channels ranging from regional news in several languages, to Bollywood, to sports and rugby, and lifestyle genres. Early this year, they announced the creation of their new state of the art broadcast facility which will allow them the capacity to operate up to 100 channels. That’s 3 times the channels they currently have. It’s scheduled to be completed in June 2012.

They maintain agreements with Rogers and Bell which allow them the platform to launch channels and have their channels available to a wide audience. Adding other Canadian carriers may be a future growth avenue.

Referring to their Q3 2011 Management Discussion and Analysis, they are confident that they can continue to grow the company through new channel launches as well as increasing the subscriber base of current channels.

Advertising is their biggest revenue generator with ad revenue up over 70% in Q4 2011. More new channels mean more ad revenue opportunities and higher profits. As the economy recovers, ad revenues will benefit immensely.

For new channels they plan to roll out a steady HD strategy, as well as expanding regional news and regional lifestyle genres in many different languages.

They are in excellent financial condition. The company has no debt on the balance sheet, trading at about 11 times forward earnings by my estimates (most websites have the p/e very high because it's so unknown, they don't seem to update it. current p/e is 15), for a growth company that could grow 15-25%. It is a fair price given the nice run it already had and future potential. They also announced a permanent regular quarterly dividend which commenced on March 2012. Yield is about 2.8% at current levels.

It has no analyst coverage and is generally underappreciated and unknown on Bay Street – always a positive.

Their earnings accelerated considerably in Q3, Q4 2011 due to new channel launches at the beginning of 2011. I would expect them to continue steady channel launches over the long term with similar results.

Have a look at Canadian media company Corus Entertainment for the possibilities. They are a more mature company yet follow a very similar model to SAT and have a market capitalization of almost 2 billion dollars. SAT has a market capitalization of approx. 80 million dollars.

Be sure to check out SEDAR and do your own research. Use limit orders, it's very thinly traded.

Too little volume for my liking... way too speculative. Market cap below $70M? Ugh.

[PMREdmonton]

This one is interesting as a possible growth stock but the thing I worry about is how much of their offerings get watched by 2nd generation immigrants here. More to the point, I wonder how much of the television gets watched by people between the ages of say 12-44 where advertisers are generally more interested in paying a premium.

I guess I wonder how much money they could get by selling subscriptions because I think they may need to tap into this revenue stream better to grow their top and bottom lines into the future.

I guess that is part of the problem with not having any analyst coverage. No one is really in there digging deep to get a sense of what kind of future revenues and earnings they can project for the company.

I do like the fact they seem to trade at a reasonable valuation right now and that they have the financial strength to offer a dividend. I also actually tend to like stocks with les analyst coverage so long as their earnings potential is more obvious. Now given the company's plans for expansion it would seem as though the company believes in its own growth.

Does anyone know how much of the stock is held be insiders? A healthy amount of insider ownership is also usually a positive for a company like this. I don't mind too much about the lack of liquidity as I would be unlikely to buy a huge amount of shares in a single small cap as an individual investor.

[riseofamillionaire]

Does anyone know how much of the stock is held be insiders? A healthy amount of insider ownership is also usually a positive for a company like this. I don't mind too much about the lack of liquidity as I would be unlikely to buy a huge amount of shares in a single small cap as an individual investor.

It is certainly a growth type of play. I have spoken to the CFO - he's quite positive on the growth path, especially once they get over some cost constraints because of their new broadcast facility which was opened in June. I got more positive on the story when they made that announcement for the new facility - Why would they be increasing compacity for more channels if there was no demand? He also confirmed that Q3 of last year was a turing point for the company with new revenue streams and investments in channel launches paying off.

Im not sure about the insider ownership.

[riseofamillionaire]

Of note, Q1 2012 had a negative comparision to Q1 2011 because of the Cricket world cup reveue stream of 2011. With the new braodcast facility and the costs associated, I would expect the stock to consolidate for some time to come. Early next year, amid Q4 2012 earnings release, should be an important measuring stick if the company can keep momentum up from q3 qnd q4 of last year.

[martinv]

Just checked and found the following which may have changed;
Shan Chandrasker,CEO owned 15,655,660 or 64.15% of the common shares as May 31, 2011.
Jaya Chandrasker owned 556,992.
This was from SEDAR.
Couldn't find Insider trades for the last 6 months.

[riseofamillionaire]

Just checked and found the following which may have changed;
Shan Chandrasker,CEO owned 15,655,660 or 64.15% of the common shares as May 31, 2011.
Jaya Chandrasker owned 556,992.
This was from SEDAR.
Couldn't find Insider trades for the last 6 months.

That seems like a high percentage. Anyone know if this is above average?? I don't follow insider ownership much.

[martinv]

It is very high but not unheard of. It is similar in ClubLink (CLK) in which the CEO Mr.K.(Rai) Sahi owns 66% of the shares. I own shares of CLK .

[riseofamillionaire]

It is very high but not unheard of. It is similar in ClubLink (CLK) in which the CEO Mr.K.(Rai) Sahi owns 66% of the shares. I own shares of CLK .

Never knew Clublink was public. Very interesting, seems like my kind of stock after a quick look. Thanks

[PMREdmonton]

That is an extremely high amount of insider ownership of a publically traded company. The fear is that the main owner can out-vote everyone else and use the company as his own personal piggy bank to the detriment of the minority owners. I wonder what kind of checks and balances there are for him at the board level to limit any possible malfeasance. This would make me very wary of investing in this company.

Generally I like insider ownership but more in the realm of 20-30% so that the other shareholders can control a rogue insider.

There is some protection legislatively but he could have done serious damage before it is noticed. The fact there are no analysts watching their moves makes this risk higher.