http://biz.yahoo.com/iw/090120/0467112.html

“Termination Options: Either party may terminate this agreement upon 30 days written notice to the other party.”

http://www.cocolatv.com/Public_Files/KGMC43/Public%20File%2003.08/Affiliation%20Agreements/KGMC%20Affiliate%20Air%20Time%20Agreement-America%27s%20Collectibles%20Network%202006%2006.28.06.pdf

http://www.information.tv/PTATCs/

Ken’s last blog post..PSD: Dividend announced

I’ll be sticking with VVTV and see what they say in Feb 09 regarding their strategic decision.
The notes regarding the obligation isn’t what I was expecting BUT it is important to note that this is not the first time either. This is part of the business and the industry it is in.

Hope Cannell pushes harder to liquidate or sell itself. Cannell still holds a position so we have one activist doing the work for us.

I too was thinking that even though the license and buildings all have value to them, they don’t provide the company with liquidity.

Note also that book value of an FCC license or a TV station may have little to do with realizable value in this economy. Ad-based media are being pummeled by declining results and multiples on these companies are way down because investors fear a secular change (to the Net) rather than a cyclical decline. If you want to dig down for value, spend some time on how that TV station/license value was booked and whether reality is more or less than that number (if the BV is old the real value might be higher).

Building value in Minnesota is also likely less than would be hoped, these days.

As for net working capital, it all revolves around the cash burn rate, and 3Q numbers look like the start of a trend. They will have to be very sharp working capital managers to avoid a cash crunch in this environment.

The company needs to get a major liquidity cushion to be assured of avoiding bankruptcy given its current numbers. No buyer looking at what is happening operationally would want to provide that cushion, IMO. The value here, if it exists, is solely from the expiration of carriage contracts and the potential for the station/license/studios to be worth something to someone who thinks it can be done better. Note that when the carriage contracts end and if they are negotiated to much lower costs, the dial position is likely to move from low (it’s channel 8 on my system) to high (JTV is 183 on my system; QVC might be in the 60s). Higher dial position means fewer chance eyeballs and probably lower sales, so don’t extrapolate profitability to the carriage contract in a linear fashion.

To me, this is all about the deal – an investment banking end-game. If the hard assets have enough value in liquidation to give upside to the common then they have enough value out of liquidation and a sale will occur. If it comes down to working capital liquidation, I would bet the preferred holder would work to pay that off and not care so much about the common. All speculation, of course. So, focus on the major assets.

I’ve been reading the past quarterly reports and now up to the 2007 10-K.

Do you have links to the Satellite transponder agreements you’ve read? I’ve never heard of such agreements and want to know. I’ve searched and read a few but was wondering which ones you’ve read.

1) Why hasn’t the details of the agreements been released? A: I believe if everyone knew how good of an opportunity this were, shareholder interest would dilute the final outcome.

2) According to many Satellite transponder agreements I’ve looked up as far back as 1997, a clause in each of them has allowed the company to dissolve the agreement if they were to go into liquidation or bankruptcy.

3) The agreement that is in effect with NBC concerning Trademarks is transferable and can be sold by VVTV (according to the fiscal 2007 10K).

Update by Greenbackd

But now that I’ve been looking into more net nets, I realise I should be looking at TUES from a different angle rather than a simple long.

Regarding VVTV, we’ll see whether the board decides to announce a sale on Feb 2, 2009. But there has to be some serious buying before it goes up but then again, we have time to help us out.

I havent seen CHRS before. Thanks for the tip.

Mark’s last blog post..Net-Net Tuesday Morning Corp. (TUES) In Play

Mark’s last blog post..Net-Net Tuesday Morning Corp. (TUES) In Play

One important thing to note is the comment regarding a huge operating lease.

Did I make a mistake? Operating leases are considered off balance sheet debt.

Read it for yourself. http://greenbackd.com/2008/12/17/valuevision-media-inc-nasdaqvvtv-q3/