From RB:
**IMPROVED INVESTOR UPDATE**
MDMI: Outstanding shares--46 million / Float--5.7 million
Transfer Agent: stctransfer.com
Unofficial MDMI site packed with information:
brainwrap.com
MDMI is Massimos Da Milano, an Italian bakery extraordinaire which has been serving the Dallas market
for over 14 years. What a bonanza for the investors who have the courage to buy! This is a turnaround
pick which offers huge upside potential. MDMI came out of bankruptcy in
June of 1997 with new managment spearheaded by Dana Verrill, a CEO with a proven track record. He
founded and led Spectrum Information Technologies, a Nasdaq traded company, in the 80's to 100
million in yearly revenue. That proves he can build a profitable company and shareholder value. When
he resigned a decade later, he left the company with 20 million in cash and virtually no debt. He set
goals to do the same with MDMI by devising a plan which is just now starting to be implemented. The
first year he came on board was marked by his reorganization phase. All pre-bankruptcy debt had been
erased, and all unprofitable accounts closed. He then divided the company into 4
divisions--one of which is the Java Centrale, an Italian coffee house franchise, purchased from Paradise
Bakery for $1.5 million in January of 1998. This had been the only profitable division for Paradise
Bakery but it suffered from high turnover due to bad screening. Verrill has a
plan of turning this situation around. He hand picked the locations one by one which would come under
the ownership of MDMI. Currently we have 8 franchises in Texas, Arizona, and California and the
company has taken concrete steps to boost earnings. A kiosk has been developed with plans to enter
each location. The Long Beach, California store is the first to receive this Kiosk elaborated on in a
previous PR. Verrill intends to open future stores with the proper
screening required and introduce a Java Centrale Express modeled after the successful Subway
franchise in highly visible upscale locations. Possibly even a little proprietary. When a company in a
high growth industry is modernizing on all fronts and expanding at the same time, there are several
chances for earnings to improve. The best part of this story is that the expansion will be done under the
methodical eye of Verrill. The company is expanding carefully and with caution. You want to avoid the
retailers that expand too fast, especially if they're doing it on
borrowed money. This is precisely what spelled the demise for MDMI under previous mgmt. The
franchises currently in operation all seem to be doing well and under superior management. The
resume from this franchisee in Phoenix is quite impressive:
etailia.com
The Phoenix franchise is located in the Phoenix Metroplex, the focal point for the community. The store
according to eyewitness investor accounts appears to be well managed, with a young and enthusiastic
sales force of at least a dozen people. It's location, the Metroplex was once the largest mall in the U.S.
This link will give you a virtual tour of a Java Centrale once under the ownership of Paradise Bakery, yet
no longer in operation. It does however give a representative look into a Java Centrale franchise.
virtualvoyages.com
I took out my most sophisticated investment tool, a 15-year-old hand-held calcuclator, to do the
following math: 46 million outstanding shares * .15 (price per share) = $7 million. Clearly the company in
the realm of intuition
and right-brain chemistry is undervalued. What sells in one town is almost guaranteed to sell in another,
as it has with donuts and hamburgers. If you wish you had picked up Toys R Us when it was selling at
25 cents a share, this may be your second shot.
La Guardia is the PR firm covering this stock as a "strong buy and hold" found at
twotrades.com They can assist you in your DD and have been prompt and direct with all
questions thus far. MDMI has until January, 2000 to file a 10-k but La Guardia has informed investors
that the company currently has an accounting firm working on it. A less risky position would be to wait
for numbers and see, but perhaps a less rewarding position as well. I believe what we have here is a
"diamond in the rough."
1999 has been a very exciting year as we are just now beginning to see all of Verrill's efforts unfolding
in his implementation phase. The bakery has experienced tremendous growth. After unprofitable
accounts were closed, the customer list had dropped to virtually nothing. But this year we have seen
130 clients added with prestigous names such as The Outback Steakhouse & Neiman Marcus. A
comprehensive list of these clients can be found at
buymdmi.com
As part of its reorganization plan, Verrill has equipped the bakery with $50,000 in new equipment which
allows Massimos to substantially increase production. He also hired an experienced broker to negotiate
deals with large food chains. We are just starting to see the fruits of this
decision as Albertsons has just signed a deal to put MDMI pastries into 9 Albertsons "test" locations.
According to La Guardia, the results thus far look good for both Albertsons and MDMI. Albertsons is a
grocery chain similar to a Kroger or Randalls about 1000 stores strong. The
pastries would be placed in the coffee shops within the new Albertson's stores offering great revenue
producing potential for MDMI. Fresh Starts has also entered into an agreement to test MDMI products.
More retail food chains
are currently in negotiations with MDMI according to La Guardia Capital and we can expect news about
that progress soon.
MDMI also signed an exclusive agreement with the Hobarama
corporation to distribute Bawls guarana, a new softdrink, throughout Texas, Louisiana, Arkansas, and
Oklahoma. In just 4 months time after signing this contract, we have seen 188 customers added which
will mostly likely change tomorrow because new customers are coming aboard on almost
a daily basis. This brings total customer accounts to 318! Information on Bawls guarana can be found
at
bawls.com
Bawls received high reviews from the critics:
bevnet.com
Bawls guarana receives good press on CNN:
cnnfn.com
If you have "real player" you can listen to this advertising "jingle" airing
in Miami! bawls.com
Sex in advertising sells:
kaos2000.net
Testimony to Bawls success in Miami:
businessweek.com
Bawls has celebrity association:
oldcity.com
In addition, MDMI has added a new line of herbal softdrinks to compliment their new business plan.
Bawls is aimed at the 20-35 yr. old market, but this new line of drinks will be aimed at the teenage
counter culture which Coca-Cola and Pepsi have failed to capture. It is a niche that the Skeleteens
softdrinks (manufactured by Eat me foods inc.) have been able to exploit. It's apparent from this
commentary on ABC news that this will be a positive addition to MDMI's bottom line.
abcnews.go.com
Although a highly controversial product line, this strategy will allow MDMI to expand it's customer base
without cannibalizing any of its existing products. The softdrinks have no production costs associated
with them and offer high margins for MDMI. I have no doubt we will see many
customers come aboard shortly as we have seen with Bawls guarana. The following will give you a
better idea of what exactly the skeleteens softdrinks are.
Skeleteens gets coverage on ABC news. Here is commentary from Stefani Corri-Delivo, who is also
mentioned in our
recent PR.
abcnews.go.com
These guys rate all the softdrinks on the market:
thebevnet.com
Irritating adds sell!
globe.com.au
A site with a touch of cl###:
southflorida.sidewalk.msn.com
APPENDIX I
Letter concerning Internet presence
ragingbull.com
Resume of CEO
ragingbull.com
Interview with the CEO. Hear and see him on "Real Player"
executiveinterview.com
Letter concerning Switzerland
ragingbull.com
Letter concerning SEC, Corporate lawyers, accountants,etc.
ragingbull.com
APPENDIX II -- The CONS of MDMI
Past involvement with SEC
sec.gov
Rebuttal to the SEC
ragingbull.com |
