It's very good to see some serious/professional downrampers join us (well on HC anyway - not on the ESN register...as yet).
What everyone doesn't realise is that these new faces are smart and successful individuals, with deep pockets. So, they will try to get some cheap shares and once they fail to do so, watch them scramble and jump over each other to get on board. Once they jump on, the lemmings won't take long to follow.
Anyway, that's all I have to say about the new faces - it's plain and clear for everyone, as it is for me, what the story is and what is trying to be achieved.
Back to the FACTS:
1. The company has just turned a massive corner and yesterday's presentation, with new information, would have caught a few people off guard;
2. Revenue is a certainty - the only question is how much, and if the presentation is anything to go by then it is likely to exceed what I was expecting when I bought in;
3. US ADR program (American Depositary Receipt - google it if you don't know what it is) will enable US investors to take the company to fair value;
4. Everything is now set up in the US and the hard work is about to pay off - expansion to other countries/regions will be swift as there "is no restriction to other regional access and substantial traffic is already being received from China, South America and Europe";
5. "Parallel strategy will focus on countries with large populations in the suitable demographic and therefore compelling revenue potential." (ie. China, etc.)
6. App is Child Online Privacy Protection Act (COPPA) approved on iTunes;
7. Partnership with PTA and access to 23 million students in the target audience (that's nearly the whole population of Australia);
8. ESN has done all the hard work and now PTA will get the revenue for us and for themselves ("US schools heavily reliant on PTA fund raising");
9. Substantial barriers to entry as the App world is changing very quickly ("effectively the 2 most common forms to monetize children’s games are being shut down") - ESN has a "fully compliant and parent approved simple subscription model which provides the opportunity to quickly deploy in a product vacuum and become a market leader". This aligns with the company's goal/strategy to "become one of the world’s leading game based learning publishers";
10. Rapidly changing games monetization: "Past revenue models for children and adults alike have principally been free to play then monetized with: •Pop-up advertising, breach of privacy and abuse personal data •In App purchases with added contextual links to increase spending
--> Kids racking up bills in the thousands of dollars via in-app purchases and then Apple having to refund the money.
--> ESN won't have that or any monetization problems or as the latest presentation states: "for many a great problem, for KNeoWORLD a great opportunity"
--> Looks like our own Noah Falstein (Monetization Design Consultant) did a pretty good job:
"In April 2013 Noah was appointed Chief Games Designer, Google and as a consultant to Knowledge Nation, designed the KNeoWORLD monetization system currently being implemented."
-----> No surprise that Google recruited him and made him Chief!
11. To say that the potential here is massive, is a massive understatement in itself (my opinion only of course);
12. "Yesterday we commenced our first non-deal roadshow in Melbourne to institutional and professional investors":
--> What this means is:
- Roadshow = Presenting ESN's potential to brokers and other deep-pocketed investors;
- Non-deal = "Big boys"/Brokers can't get any stock through a deal/placement and neither can any of their clients;
- With the big boys now aware of ESN's potential, watch for a lot of games to be played (bots selling $10 of shares every 7-8 minutes as per on Friday, new level 2 downrampers on HC, etc) and then watch for the Big Bang (my guess is early next week) when the big boys come to town and start line-wiping as on-market is the only way they/anyone can get any.
Big ride coming up - I'm holding mine tightly.
All of the above are my thoughts only, based on a lot of research, and the "quoted" information above was taken from the 29/11/2013 & 18/11/2013 presentations.
Looking forward to seeing this one play out!!!!!!
GL to everyone and their strategies.
ESN Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held