Monday, December 14, 2009

Provision Holding

Provision (OTC: PVHO.OB) is focused on the development and distribution of their patented 3D holographic displays. The systems display moving 3D holographic images up to forty inches in front of the display, projecting a digital video image out into space detached from any screen, rendering truly independent floating images featuring high definition and crisp visibility from distances up to 100 feet.

The nearest comparable to this technology can be remembered in motion pictures such as Star Wars and Minority Report, where objects and humans are represented through full-motion holograms.

With 3DEO, Provision is focusing its efforts on the $6 billion point-of-purchase and out-of-home advertising markets. Within these markets, Digital Out-Of-Home Media represents a $2.43 billion segment in 2008 and continues to grow at a pace of 12.9% in 2009, despite a slowdown in 2009 due to economic crisis (PQ Media 10/27/08).

3DEO

The 3DEO platform uses Provision's patented 3D holographic displays to draw consumer attention to featured products and can dispense related coupons and promotions. Provision generates monthly recurring revenues from advertising across the 3DEO network of kiosks.

Current State of the Business

While continuing to accept hardware sales orders from distributors, Provision’s main focus is finishing the exceedingly successful market test of their 3DEO kiosks. Twenty-eight stores have installed the kiosks, with coupon redemption rates up to 43%, compared to industry standards of 1.5%. The network includes advertising from Warner Brothers, CBS Records, L’Oreal, and Kimberly Clark.

3DEO are currently deployed in Los Angeles as this market represents the #2 demographic market for national advertising and the #1 demographic market for Hispanic advertising in the country. Provision has a total of 1,686 additional retail locations under contract, which can potentially deliver an estimated annual total of $50 million dollars of recurring advertising revenue once investment capital has been received.

For more information visit www.provision.tv and see the demo video below:




Disclosure: The above is a sponsored post from Diversified Web Holdings, which has made a strategic investment in Provision Holdings.

8 comments:

Anonymous said...

Wow, a pump and dump post about an absolute garbage company.

I've lost a lot of respect for you guys. You know anyone who buys into this thing is probably a sucker and more likely than not to lose money, yet for a price you allow this stuff to be put up on your blog, putting your credibility on sale for a price.

I really hope the next post is an analysis of PVHO, by any metric it's in deep trouble, look at their financial statements and just puke..

Saj Karsan said...

Hi Anon,

It's not the first time we've had a sponsored post, nor will it likely be the last. When we disclose that the post is sponsored, think of it as an advertisement rather than content. Unfortunately, ads are necessary to pay the bills.

By the way, the financials you are looking at don't include the investment (that was clearly necessary, as you identified) of the sponsoring company.

Anonymous said...

It might be honest to limit one's advertising -- and the implicit endorsement that running these ads conveys -- to products/services that you would gladly purchase yourself.

Would you purchase PVHO?

Saj Karsan said...

Hi Anon,

That limitation appears both difficult to implement and overly restrictive. The nature of how ads are served (for example, in the upper-right portion of this page) makes it impossible for me to look at every sponsor. I will also readily admit that I am probably not interested in purchasing the products of 99% of the advertisers on this page, but this should hardly constitute a moral requirement. For one thing, I'm particularly stingy; my ad revenues relative to other sites would therefore be particularly low. Furthermore, this practice is completely out of line with the entire media industry. For example, when you see an ad on tv, there is no requirement for the show's writers, actors, or the broadcaster to 'gladly purchase' the product!

Would a disclaimer help? For example, if the disclosure included a line that the site does not necessarily endorse the sponsored product?

Anonymous said...

there's a pretty big difference here... google ads are one thing, banner ads, whatever, but typing some big pitch for a stock and at the bottom saying "sorry this is an ad" is something wholly different.

you wouldn't go near this stock, i hope they paid you a lot of money (although i'm sure they didn't pay you near enough to buy your credibility.)

"ads are necessary to pay the bills" is a funny way of saying it as well. do you really need the money that badly? i thought you were a good investor, what, you need an extra 500 or 1000 bucks? are they even giving you that much? or do they pay you in shares? the whole "oh i just have to pay the bills" sounds like the justification a prostitute would make, i know that's stretching it a little but seriously (i didn't know having a tiny website and a blog on blogger were so capital-intensive...)

Saj Karsan said...

Hi Anon,

I didn't write that post, but it seems that you think I did, which is maybe why we are not seeing eye-to-eye. I can see how this could happen, because only in the "by" line (under the title) is that identified. Perhaps in the future I should add a line making it clear that I did not write the post, and maybe change the font of the post, would that help?

Regarding your other questions, you are quite right that the blog is not capital intensive, but the costs are labour, for which there is an opportunity cost. The blog is my primary source of income, because earnings that the fund generates stay inside the fund to grow it. No, I was not paid in options, as per a previous post where I outlined what the guidelines are for paid posts.

Anonymous said...

This is another anon, yes please change the font or something. Thanks!

Saj Karsan said...

Ok, will do! Thanks for the feedback!

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