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Joshua PollackChief Executive OfficerNXTCOM CORP

The Dolans are the Challenge

October 10, 2006

Analysis of:Dolan Family Makes a New Play for Cablevision | online.wsj.com

This article is important because the two predominant players have established a precedent of relying on acquisitions to continue growing at such a substantial rate. 

Stephen MagrillAdjunct ProfessorUNLV, the University of Phoenix Inc; Regis University (Denver)

Timeshare Industry – Continues Steady Growth

October 9, 2006

Analysis of:Timeshare Industry Continues Strong Growth with 2005 Sales of 8.6 Billion, According to Ernst & Young Study | www.arda.org

The timeshare industry continues to grow with 2005 U.S. sales of $8.6 billion, but at a more steady pace with 9.3% growth in 2005 vs. 2004 versus the 14-15% CAGR of the past 15-20 years

More importantly, timeshare continues to represent an increasingly important segment of the overall hospitality industry as most major hotel brands including Marriott, Hyatt, Marriott, Hilton, Disney, Starwood, and Four Seasons all have burgeoning timeshare divisions. There are many key reasons for this interest:

1. occupancy at U.S. timeshare resorts averaged 82% in 2005 compared to 67% occupancy for U.S. hotels

2. the pre-sell, pre-paid feature of timeshare sales and emphasis on the leisure market is more resilient to economic declines than traditional hotel products, thereby providing a lower beta or risk tolerance to the companies overall portfolio mix. Timeshare consumers are also less sensitive to interest rates. According to the latest PricewaterhouseCoopers study on the timeshare industry, consumers financed 72% of their purchases in 2005 at an average interest rate of 13.9%.

3. the major timeshare hotel brands in the past have had a major structural advantage versus independents in such areas as sales and marketing costs, higher closing rates, and lower default rates, etc.

4. The number of timeshare owners grew 5.9% in 2005 vs. 2005 while the average price of a timeshare increased 3.1% during the same period

Despite a rosy picture of increased credibility, great demographics, there are still some concerns: several timeshare developers in 2006 have experienced financial declines due to supply issues, the industry still lacks a viable resale market and has relatively high sales and marketing costs.

Stephen MagrillAdjunct ProfessorUNLV, the University of Phoenix Inc; Regis University (Denver)

Destination Clubs – Need for Uniform Disclosure and Transparency

September 28, 2006

Analysis of:Helium Report Interviews Howard Nusbaum, CEO of American Resort Development Association (ARDA) | www.heliumreport.com

When Tanner & Halley, the second largest destination club next to industry leader, Exclusive Resorts filed for chapter 11 in July 2006 and left some 874 buyers with refundable deposits in doubt, it created enormous speculation and a tidal wave of scrutiny. Questions naturally arose as to why did this happen; how can the business practices become more transparent and how can this industry be regulated.

The destination club industry has grown rapidly without having to adhere to the type of regulatory requirements which govern the timeshare and real estate industries.

The Tanner Haley chapter 11 has led to a spirited debate for regulations from numerous sources including the Helium Report, and the American Resort Development association which has been making the case to get the destination clubs regulated under laws which govern the timeshare and more upscale fractional industry. Future regulations could take the form of uniform disclosure, protection to the large upfront fees via a bond, insurance, or escrow to ensure membership deposits can be refunded, guidelines as to the percentage of the portfolio that should be owned vs. leased, etc. Founding executives within the destination club industry started to meet this summer and created the Destination Club Association. The goal is develop their own best practices, guidelines and address key industry issues.

There are enormous opportunities and risks and significant due diligence is required to examine each clubs program, how it compares and the controls it has in place to address potential issues and risks.

Joshua PollackChief Executive OfficerNXTCOM CORP

A good idea drives stock up

August 21, 2006

Analysis of:Marwyn Investment Plans to Buy Alliance Atlantis Unit | www.bloomberg.com

This article is important becasue as the film business continues to be a driver of major content, owning key distribution and sales outlets remains a key competitive advantage.

Joshua PollackChief Executive OfficerNXTCOM CORP

It will happen...but not for a while

July 24, 2006

Analysis of:Targeted Ads Coming to Cable | www.tvweek.com

This article is important because indeed the technology is in place and targeted ads will become a reality.  However, this will take at least 24-36 months before its accepted by both the brands and networks.

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