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mercredi 16 mai 2012

INT What's going on?

This is very interesting to see INT shares going down and down and down again day after day when it should be the complete opposite.

INT just had a fantastic event last week end with Ortsbo, their flagship product, that allows instant translation in 50 languages at the same time.

The event was phenomenal as when watching you were able to switch language at any time and continue to received translation in the selected language. That was simply amazing.

INT also announced that they will soon be adding voice translation to Ortsbo creating an unique product.

INT also announce that they will spin off Ortsbo from INT at a date that will be announce at the next AGM.

INT also indicated that they want to be trading on the TSX NOT the venture market anymore.

INT had at the end of December over 107M unique visitors and honestly that number should have risen to more than 140M already.

INT will be translating live feed from Cannes Festival and this by itself will sky rocket the user numbers.

So where is the problem, is it revenues??? NO...Surprisingly enough in the media world the most important factor is not the revenues during the first couple of year but the user numbers. The more people use a product, the more companies will be interested in to advertise or pay for that product. Interesting to point out that Ortsbo revenue stream is not only based upon ads that users click on but could very well be from licensing the product to others corporation that need a 50+ languages instant translator: tv shows, movies, events transalation, chatting rooms, mobile phones application etc. The list is too long and the applications are endless. Imagine a product that would eliminate the language barriers. That product is here now and it is called Ortsbo.

So why is it still not going up like crazy: volume and number of transactions.

INT actually is in talk with many funds manager and other private investors for the Ortsbo spin off coming soon and i  am convinced that those players CANNOT buy INT at the same time that they are having a tour at INT strategy and results as they would become insiders.

I think that when Q1 results will be released around end of May, this could very well be the signal for a major volume increase not because of the results but because that will be the end of black out period for all insiders, major investors and fund managers. Remember that all corporations have a blackout period where they are NOT allow to trade on their securities for legal reasons. Even during that blackout period the company generally speaking is not allow to issue options to insiders. I should also point oout that at this time INT cannot promote it's products and are very limited in what they can say about INT as a whole. They are dealing with TSX and their rules cannot be override. When that process is over, we will know for sure how well INT and Ortsbo are doing and from ther, we will most probably get back to the usual news released about results in a timely manner. Expect a lot of advertising about Ortsbo and INT right after TSX approbation for the proxy documents and listing of INT on the major exchange.

So is INT goin down forever? No, at the present time it is the retail investor who is keeping INT at the level where it is and the day traders that avoid major ups or down. Retail investors are getting really nervous and many do not fully understand what they are buying. Then at first sign of weakness they leave the ship. As for the day traders, well they will flip the stock for a couple of pennies each time they can do it. 20,000 shares flipped for 3 cents profit is 600$ and for most retail day trader, it is a good profit for 1 or 2 day of trades.

INT and Ortsbo will have their day soon. Get ready for it. Still not the time to buy the champaign, but you can at least start to select which one you will drink that day !

DISCLOSURE: I am long on INT and own a large number of shares. I do not have any intentions to sell any of those in the short or medium term but i could add to my position if stock continues to dip.

As usual do not invest more than you can afford to lose and always do your own due diligence before buying any stock. 

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