Hi jefferies,As previously posted I believe that P1 have already...

Hi jefferies,

As previously posted I believe that P1 have already assumed the control of TTV since January of this year when the Company’s Managing Director, Mr Reichel, informed them that, "he wishes to move on."

Since January it has already been made quite apparent that P1 have assumed the control of TTV's market releases in that the author who can be cited on many of these documents is the Executive Director and CEO of Priority One Network Group.

On this basis, one may be encouraged to question whether P1 owe a duty of care to TTV shareholders - I would guess the answer to this question would be, no.

As you highlight the market was advised of an independant valuation for P1 of $200-$300m, assessed using some form of discounted cashflow method, which in itself presents a number of issues for any unlisted company to begin with, including but not limited to, having no real inputs for dilution calculated on a ps basis.

When any stock value is derived from forecasting future dreams using this type of valuation, assumptions can only be self justifying. Moreover, if you or I wanted to announce through a listed vehicle today that we intend to take over BHP sometime next year, does this automatically qualify adding $100b dollars to the value of our net worth today? Apparently for GCN and P1, it does.

Imo, any 'true' discounted cashflow model within this sector should always start with a company's net income, and for P1 this might be a problem as reported by PKF Chartered Accountants in October 2011

Net Income = $0.00?
- working capital = ?
+ Debt financing = ?
- Debt principal to be repaid = ?
- Purchasing of fixed assets = ?
+ Depreciation = ?

Assuming P1 have no debt, how could any person in their right mind, qualified or not, justify a fair value of anything more than $0.00 on a company which have reported no income?