{"id":1098687,"date":"2019-02-06T15:05:59","date_gmt":"2019-02-06T15:05:59","guid":{"rendered":"https:\/\/oilandgas-investments.com\/?p=31116"},"modified":"2019-02-06T15:05:59","modified_gmt":"2019-02-06T15:05:59","slug":"thunderbird-tbrd-tsxv-has-what-amazon-netflix-and-disney-desperately-need","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1098687","title":{"rendered":"Thunderbird (TBRD-TSXv) has What Amazon, Netflix, and Disney Desperately Need"},"content":{"rendered":"

Thunderbird<\/strong><\/span> Entertainment (TBRD:TSXv\/THBRF-PINK)<\/strong><\/span> and their shareholders are laughing all the way to the bank as streamers, big studios and traditional networks pay big bucks for content.<\/p>\n

Every big business in any kind of media has \u2013 or is launching\u00a0\u2013 a subscription video service.\u00a0That is creating an epic supply\/demand imbalance.<\/p>\n

These companies are spending big money on content \u2013 and will for years to come \u2013 tens of billions each year.\u00a0It\u2019s the biggest tailwind I see for any sector anywhere in the Markets.<\/em><\/p>\n

The Biggest Mistake that the new streaming companies can make: is not having enough content.\u00a0Paying too much for that content is not the concern. The billions these companies are pouring into streaming services is wasted if they don\u2019t get subscribers fast \u2013 they need high quality content.<\/p>\n

Netflix<\/strong><\/span> spent $12-13B in 2018, Amazon<\/strong><\/span> $5B, Hulu<\/strong><\/span> $2.5B, Apple<\/strong><\/span> $1B\u2026\u00a0next year all of those budgets are going up.<\/p>\n

Netflix alone is expected to spend $18 billion and are especially desperate with Disney yanking its content off of Netflix to build their own streaming service.<\/p>\n

The timing for Thunderbird Entertainment could not be better–nor could the timing for buying shares in the company.<\/p>\n

That\u2019s why I got long! Because while investors don\u2019t know about it\u2026.<\/p>\n

Everybody in the industry is chasing T-Bird\u2019s creative team in this race to build paying subscriber bases.\u00a0You can\u2019t make $5 billion at the flip of a switch like Netflix when they jumped rates by $3\/month\u00a0\u2013 without a lot of subscribers!<\/p>\n

And you need high quality content to do that!<\/p>\n

All this frantic action is showing up in T-Bird’s financials \u2013 look at these EBITDA<\/span> numbers for the last three years:<\/p>\n

2016 – $2.2 million<\/p>\n

2017 – $5.1 million<\/p>\n

2018 – $10.1 million<\/p>\n

AND\u2026 they have a potential $170 million backlog on shows for next year \u2013 much of it with The Big Boys \u2013 what\u2019s called the OTT \u2013 Over The Top <\/b><\/em>content majors like Netflix.<\/p>\n

EBITDA<\/span> will keep growing with that kind of backlog.\u00a0And I get to buy all that growth at half price, as their valuation is half their peer group.\u00a0That\u2019s mostly because T-Bird only listed in November 2018, it really isn\u2019t on anyone\u2019s radar screens yet.<\/p>\n

I want everyone to understand the leverage here. This industry is now GLOBAL.\u00a0Netflix has 80 million international <\/em>subscribers.\u00a0If you get a hit show, EVERYBODY in the world will have a chance to see it now.\u00a0Asia, Europe, Australia, South America\u2026 you can get BIG in a hurry here and make HUGE money.<\/p>\n

And where that really pays off is in animation.\u00a0If you create a cartoon character the kids love, you could have another Paw Patrol, a Canadian-made animation that brings in as much as $300 million in annual sales from merchandising\u00a0\u00a0 That would have an incredible impact on T-Bird\u2019s $2 stock.<\/p>\n

The merchandising of these cartoon characters can absolutely dwarf what the show is worth \u2013 to the point where truly, the show is just a commercial for the toys, games, consumer products etc that surround a winning character.<\/p>\n

Get this: Toronto based eOne was offered 1 billion pounds (US$1.3 billion) in August 2016 just so they could have the rights to the animated Peppa Pig<\/em><\/span>. Over 1 billion dollars!!!!! <\/strong>(By the way, that would be $21.73\/TBRD share)<\/p>\n

\"1\"<\/a><\/p>\n

It’s the most un-appreciated part of the studio business by investors, yet it has been happening for years.You know why Star Wars director George Lucas is a multi-billionaire?\u00a0Because\u00a0he chose a paltry salary of $150,000 but wanted the merchandising rights.\u00a0That decision made him one of the richest men on earth.<\/em><\/p>\n

T-Bird’s stock has a huge tailwind with massive studio spending, and the leverage that ONE hit show or character can create a worldwide merchandising deal.\u00a0Given the talent and focus that T-Bird has on this (they just hired away a Pixar animator!) on animation, and only 50 million shares out \u2013 the leverage for investors is very real.<\/p>\n

Now, an animation homerun is the sizzle for investors.<\/p>\n

But honestly, the main reason I\u2019m buying the stock was the Chairman, Ivan Fecan. Fecan (pronounced Fees-an) is the\u00a0Ted Turner of his time. It\u2019s always about management.<\/p>\n

The media business is one where small companies came become multi-billion dollar juggernauts \u2013 provided the right entrepreneur is calling the shots.<\/p>\n

Ted Turner took over his father\u2019s billboard ad company in an emergency\u2026 the elder Turner had tragically took his own life.<\/p>\n

The company was tiny, nothing.\u00a0Turner had a vision to build a giant media conglomerate.\u00a0He renamed the company Turner Broadcasting and went to work, building it from scratch to selling it to Time Warner for $7.5 billion in 1996. (T-Bird only has 50 million shares out, so that\u2019s about $152\/share if Ivan & team can do it.)
\n\"2\"<\/a><\/p>\n

Ivan is a great builder, manager, and seller of content.\u00a0 He has been the creative or executive head of THREE national\u00a0TV networks, and sold two of them.<\/p>\n

In other words Fecan is at the very top of the food chain in the entertainment industry. And this is the first time he\u2019s working for himself, with a BIG stock position.<\/em><\/p>\n

Joining Fecan as the lead director of Thunderbird is the founder of Lion\u2019s Gate Entertainment, one of if not THE largest independent studios in the world \u2013 Frank Giustra.<\/p>\n

Lions Gate also started from scratch, and now has an $8 billion enterprise value.\u00a0 These two men have built BIG media companies.\u00a0T-Bird just listed four months ago!\u00a0They’re just starting out and shareholders get them today at half price by any valuation metric.<\/span><\/em><\/p>\n

Their smartest move to date was promoting the head of Atomic Cartoons, Jennifer McCarron \u2013 to CEO.\u00a0This amazing woman built up Atomic from 60 to 600 employees, and developed their key relationship with Netflix.\u00a0McCarron was the executive producer of Beat Bugs, an animal cartoon series\u00a0built around the Beatles’ songs.<\/p>\n

Thunderbird pitched Netflix, and they bought it right away.\u00a0Not only did they pay tens of millions for the show \u2013 they wanted a two year exclusive.\u00a0McCarron produced that show \u2013 it was one of Netflix original shows \u2013\u00a0and was their top family hit for years. Netflix even has one of their main boardrooms in Los Angeles covered in Beat Bugs!<\/p>\n

She is now definitely IN with the OTT\u2013Over The Top<\/em>-crowd, and that is key for us shareholders.\u00a0Since then, she has literally walked into Netflix and walked out of there with another T-Bird deal worth tens of millions\u00a0\u2013 same day. SAME DAY. Cha Cha Cha!<\/p>\n

Yoda and Obi-wan have their Skywalker.<\/p>\n

This threesome’s experience, connections and financial discipline is why T-Bird\u2019s EBITDA<\/span> is up 500% in two years.\u00a0And that backlog will keep it growing.<\/p>\n

Their involvement is why Thunderbird is attracting top quality creative talent like no other studio this size (they just hired away an animator from PIXAR!)<\/p>\n

Their involvement is why I expect this little company to one day \u2013 and not too far away\u00a0\u2013 have a valuation in the billions \u2013 more 10x what it\u2019s trading at today. That has happened with every other company these two men have been involved with, and this\u00a0 time it should be so much easier now that content is going\u00a0 into (desperately) short supply.<\/p>\n

The stock has only been trading for four months.\u00a0A full, new set of financials have not come out yet.\u00a0I think investors get a pop when the first couple quarterlies come out, and then steadily build as the studio gets bigger.<\/p>\n

And they\u2019re already in with OTT crowd I spoke to earlier; The Big Boys.\u00a0In fact, studios like Disney and Netflix ask T-Bird to produce their shows!<\/em><\/p>\n

That sure makes it easier to get same-day, multi-million dollar deals \u2013 the OTT crowd has the confidence to push work onto T-Bird, so no wonder they can land big contracts.<\/p>\n

This stuff is happening all the time now.\u00a0They just signed a distribution deal for one of their half-hour comedy shows (Kim’s Convenience<\/em>) across all of Asia.\u00a0Their top ranked reality show, Highway to Hell<\/em>, is sold in over 170 countries, and has spawned TWO more reality TV series spinoffs.<\/p>\n

They\u2019re firing on all cylinders. And nobody in the investment world knows this T-Bird story.\u00a0Like I said, it trades at half the value of its studio peers, even the small ones.\u00a0And T-Bird is growing much faster.<\/p>\n

Of course, when they make their own shows, whether it\u2019s the cartoons from animation or the reality TV series, they own the rights to those shows.\u00a0The merchandising revenue alone from a hit show could make T-Bird stock a multi-bagger…and Atomic Cartoons is having great success<\/span><\/em>. And the distribution rights can be re-sold time and again, creating a recurring revenue stream for the company over time.<\/p>\n

T-Bird is growing revenue and cash flow like crazy.\u00a0They\u2019re making top-rated shows.\u00a0They\u2019re attracting both high quality creative talent (PIXAR\u2026) and being given shows to make by The Big Boys<\/em>. They\u2019ve got the two best media builders in the country who are just starting out on their big growth curve<\/span>\u00a0\u2013 right when the studios begin spending billions\u2026 could their timing have been any better?<\/p>\n

And the stock is trading at half price; half its peer-valuations. Whenever you can buy best-of-breed management already generating huge growth AND positive cash flow \u2013 at half price\u00a0\u2013 I make that trade all day long.<\/p>\n

I think my timing is great, owning the stock right now.\u00a0Quarterlies are coming, more analyst and institutional attention is coming, and as that potential $170 million backlog gets firm announcements, I think the stock moves up steadily.<\/p>\n

That\u2019s why I\u2019m long.<\/p>\n

\n



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Thunderbird Entertainment (TBRD:TSXv\/THBRF-PINK) and their shareholders are laughing all the way to the bank as streamers, big studios and traditional networks pay big bucks for content. Every big business in any kind of media has – or is launching – a subscription video service. That is creating an epic supply\/demand imbalance. These companies are spending big money […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[528],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1098687"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1098687"}],"version-history":[{"count":82,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1098687\/revisions"}],"predecessor-version":[{"id":1109896,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1098687\/revisions\/1109896"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1098687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1098687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1098687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}