Provision Holding Inc

(Public, OTC:PVHO)

Provision Interactive announced several key company developments which should continue to help the company expand going forward. Amidst the rapidly growing 3D technology marketplace, this should be seen as exciting news for current and potential shareholders, as the company marches onwards into a highly profitable dominant player. Based on our and other analyst evaluations, the company’s stock should be trading at a much higher price per share than current base levels. With a float of only 9.6M shares, it is easy to see why the upcoming pending headlines can really move this stock, thus we’ve set PVHO on outperform, with a target of $0.45 in the short-term based on the recent news. Additionally, further signs of future success is seen by the ownership and major holders. There is only around 30% of the shares available to the public float, as the executive team owns 46%, catalpa with 13% and other stakeholders at 11%, courtsey of the company’s facts sheet available to view on the right side. With a cash burn rate of only $50,000 a month, and millions of dollars in revenue coming in for the next couple of years, the upside potential certainly outweighs the downside in a landslide.

2010 is the year of 3D displays. 7,000 new 3D cinema screens are predicted to be installed globally and another 9,000 in 2011. The only problem, or obstacle, to potential mass consumption of 3D technology (with the exception of the cost of course) is that users will have to wear glasses in order to enjoy 3D cinema or TV. One company in particular, Provision Interactive, is keen to prove otherwise with their product line of autostereoscopic (does not require glasses) 3D displays. The only obstacle with this technology is that viewers have to be standing in a specific place for each eye to view different versions of the images, thus viewing the images in 3D. The question is how can this be perfected? And if indeed it will, in what may become a race to the top for manufacturers (just as HD DVD and Blu-ray Disc went head-to-head). These types of companies are highly susceptible to partnerships, and our sources tell us Provision, which could see an announcement anyday now, is in hot pursuit by many of the industry’s top firms such as Apple, Sony and Microsoft.

Glasses has long been a problem for the 3D marketplace, causing many implications for the users. A select few of these include motion sickness, perceptual after effects, disorientation, eye strain and decreased postural stability. Samsung was one of the brands which has suffered from this consequnce, as seen from their Website manager’s message, “It is recommended that users take frequent breaks to lessen the potential of these effects. If your eyes show signs of fatigue or dryness or if you have any of the above symptoms, immediately discontinue use of this device and do not resume using it for at least thirty minutes after the symptoms have subsided.” Could they be the one’s interested in Provision’s technology which fixes this issue in its entirety?

This isn’t just about cinema and TV of course. New research has bought about some amazing predictions. Developments of 3D technology will inevitably have an impact on our mobile phones—the mobile phone market is forecasted to be the most popular category in terms of sales of 3D displays. Units of 3D ready products sold (TVs, mobile phones, digital cameras/camcorders, notebook computers) are expected to grow from 0.7 million to 196 million by 2018 (that’s revenue of US $22 billion- 3D-ready TVs alone are predicted to grow from 0.2 million to 64 million by 2018). That’s big business. Courtesy of the following TrendHunter Report.
Insight Media, the recognized leader in Emerging Display Technology Market Research, says that the stereoscopic 3D market is poised to grow from a handful of 3D-capable displays and a few thousand gamers, to an expected worldwide market of over 40 million 3D-capable displays by 2014. The results were published in Insight Media’s groundbreaking 2009 Stereoscopic 3D Gaming Report: A Comprehensive Analysis of S-3D Technology for Gaming.

The following updates were discussed with the company’s CEO, Curt Thornton featuring his remarks in quotations.

1.       8k, Circle K, and the logistics of the roll out; “Current planned roll out is an operations test of up to 5 store locations, located in LA, to check out connectivity, communication, installation, aesthetics, and store logistics with local management.  Once completed, the roll out of approximately 500 stores on an agreed upon schedule in the western region of the US.” noted Curt Thornton.

2.       Planned financing for the Circle K project; “The company has unfunded commitment to finance the project roll out of circle k; details will be announced when completed.” he added.

3.       Institutional Financing progress; “The company has two unfunded commitments for financing of up to $10 million, and is in the process of documentation.  Details will be announced when completed.”

4.       Signed contract in gaming market; “Plans and activities; the company has signed a one year agreement with a top tier gaming company to develop the future generation of slot machines.”

5.       Launch of LA grocery store 3D network; “Advertisers pending; the company is readying to launch its first 25 3DEO Rewards Centers into the LA market during this Q2.  Working with the independent chain, KV Mart, Provision will be deploying their 3D screens at/near the front door of these Hispanic grocery stores.  Advertising is currently being sold directly by Provision and through several strategic partners.  As advertisers purchase advertising, Provision will be announcing them throughout the year.”

6.       Ready to announce signed contact with NY agency; “Provision is readying the announcement of a major contract with a media agency, based in NYC, to assist PVHO in selling the advertising across the Hispanic Grocery Network being launched in the LA area.”

7.       Digital Signage Expo in Las Vegas this week; “PVHO will be sharing its technology at the annual Digital Signage Expo and Self Service Expo in Las Vegas this week.  Provision’s 3D rewards center will be featured in the Flextronics booth at the event.”

8.       Upcoming Intel Conference speaking engagement; “PVHO CEO, Curt Thornton, will be speaking at the upcoming Intel Capital Conference to be held at Intel corporate headquarters later in April; sharing their story of 3D software platform and their 3D hardware going into the retail marketplace.”

To better understand the company, we recommend you read the past reports here:

http://www.themarketfinancial.com/provision-confirms-further-contract-talks-new-business-strategies/1533

http://www.themarketfinancial.com/provision-holding-conference-call-to-be-released-on-30110/1525

http://www.themarketfinancial.com/conference-call-announced-on-29110-for-provision-regarding-important-company-updates/1506

http://www.themarketfinancial.com/conference-call-provision-aims-to-establish-3d-digital-out-of-home-advertising/925

http://www.themarketfinancial.com/provision-interactive-set-to-revolutionize-the-billion-dollar-advertising-market-otcpvho-ob/832

ProVision Holding, Inc. (ProVision) is focused on the development and distribution of its three-dimensional (3D), holographic interactive video displays focused at grabbing and holding consumer attention particularly and initially in the advertising and product merchandising markets. The systems display a moving 3D image size 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 far distances. The nearest comparable to this technology can be seen in motion pictures, such as Star Wars and Minority Report, where objects and humans are represented through full-motion holograms. In addition to selling the hardware for its patented three-dimensional, holographic interactive video displays, The Company is building its business into a digital media company offering advertising on a network of its 3D holographic video displays.

The following is a list of highly touted movies which will all be featured in  3D for 2010 and beyond.
Fall 2010 Sanctum
Fall 2010 Alice in Wonderland
March 5, 2010 Hubble 3D
March 19, 2010 How to Train Your Dragon
March 26, 2010 Clash of the Titans
April 1, 2010 Kenny Chesney: Summer in 3D
April 21, 2010 Shrek Forever After
May 21, 2010 Toy Story 3
June 18, 2010 Despicable Me
July 9, 2010 Cats & Dogs: the Revenge of Kitty Galore
July 30, 2010 Step Up 3D
August 6, 2010 Piranha 3-D
August 27, 2010 Legend of the Guardians
September 24, 2010 Alpha and Omega
October 1, 2010 Jackass 3D
October 15, 2010 Saw VII
October 22, 2010 MegaMind
November 5, 2010 Tangled
November 12, 2010 Harry Potter and the Deathly Hallows: Part 1
November 19, 2010 Yogi Bear
December 17, 2010 Tron Legacy
December 17, 2010 Beauty and the Beast
2011 A Monster in Paris
2011 The Cabin in the Woods
January 14, 2011 Resident Evil: Afterlife
January 14, 2011 Priest
January 14, 2011 Drive Angry
February 11, 2011 Sucker Punch!
March 25, 2011 Rio
April 8, 2011 Kung Fu Panda: the Kaboom of Doom
June 3, 2011 The Green Lantern
June 17, 2011 Cars 2
June 24, 2011 Harry Potter and the Deathly Hallows: Part 2
July 15, 2011 Smurfs 3D
August 3, 2011 Spy Kids 4: All the Time in the World
August 19, 2011 Puss in Boots
November 4, 2011 Arthur Christmas
November 11, 2011 Happy Feet 2 in 3D
November 18, 2011 Bear and the Bow
December 2011 Alvin and the Chipmunks 3D
December 16, 2011 The Adventures of Tintin: Secret of theUnicorn
December 23, 2011 Godzilla NEW!
2012 Stretch Armstrong
2012 Newt
Summer 2012 Hotel Transylvania
February 17, 2012 The Croods
March 30, 2012 Madagascar 3
May 18, 2012 Untitled Spider-man Reboot
July 3, 2012 The Guardians
November 2, 2012

Company Revenue Model
Provision partners with retailers in a revenue sharing arrangement whereby Provision provides the hardware and advertising sales support in exchange for attractive placement near points of purchase. Current signed contracts for over 1,000 retail locations utilizing Provision’s proprietary hardware platform require funding. These contracts have an associated recurring revenue backlog of ~$50 million per year. A strong pipeline of over 5,000 retail locations would deliver an additional ~$150 million in recurring revenue with a gross profit margin of ~65% and an operating margin ~30%.

~$50M + ~$150M = ~$200M.

~30% of ~200M = ~$60M earnings {absent of any other major expenses}

Let’s just say by that time {~$200M in recurring revenues} that ~30M more shares were issued giving an OS figure of ~60M

~$60M in earnings / by ~60M shares = ~$1 EPS {earnings per share}

Multiply the ~$1 EPS by ~25 {P/E ratio of ~25} = ~$25 PPS {price per share}

Notes / Convertible Debt Coming To An End

Convertible Debt

During October through November, 2009, the Company received $75,000 proceeds from the issuance of convertible notes payable. The convertible notes bear interest at 10%, are due fifteen months from the date of issuance and have a conversion price of $0.50. In connection with the convertible notes, the Company issued 150,000 warrants to the note holders with an exercise price of $0.50.

Promissory Notes

During November, 2009, the Company received $30,000 proceeds from the issuance of promissory notes payable. In connection with the issuance of the promissory notes, the Company will issue 500,000 shares of common stock to the holders of these notes as additional consideration for prior financial advisory services, consulting services, and introductory services provided to the Company. The promissory notes bear interest at 10% and mature in April 2010. The promissory notes are secured by two of the Company’s 3DEO kiosks. In connection with the issuance of the promissory notes, the Company will issue 500,000 shares of common stock to the holders of these notes.

More developments to come…

Disclosure: Long PVHO

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A young and savvy, yet experienced and accomplished investments mogul since ‘01; Michael has amassed a fortune as a private self investor. Recently starting his own successful blog and turning it in to a corporation — MIV Investments Inc., a company offering advice to thousands of people worldwide and attracting contracts from various reputable sources. His articles and publications have been linked to Forbes, CNN Money, Reuters, Bloomberg, and many other top worldwide mainstream media sources.

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