**INVESTOR UPDATE**
MDMI: Outstanding shares--48 million / Float--18 million
Transfer Agent: stctransfer.com
Official MDMI site packed with information & pictures:
buymdmi.com
Bawls customers = 330
Bakery customers = 131
Sam's Club accts. = 50 (Total Sam's > 475)
Albertson's accts. = 15 (Total Albertson's > 980 )
Java Centrale franchises = 8
International locations = 1 (Switzerland)
Total sources of income = 535
Company History
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 mgmt. 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 firstyear he came on board was marked by his
Inception phase. All pre-bankruptcy debt had been erased, and all
unprofitable accounts closed. He then divided the company into three
divisions--Wholesale bakery, Java Centrale franchise network, and
an Internet cafe (Kiosk).
Wholesale Bakery
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. After an
unprofitable restaurant chain was closed, the bakery was the only
profitable business remaining coming out of bankruptcy. After
erasing all pre-bankruptcy debt, the first post-bankruptcy PR
informs us that the bakery had a profit of over $150,000 for 1997.
Adding to that success, this year we have seen 195 clients added
with prestigous names such as The Outback Steakhouse & Neiman
Marcus. A comprehensive list of these clients can be found at
buymdmi.com
An eyewitness account of operations at Massimos
ragingbull.com
As part of its reorganization plan, Verrill has equipped the bakery with
new equipment allowing Massimos to substantially increase
production. He also hired an experienced broker to negotiate deals with
large food chains. We have begun to see the fruits of this decision
with a deal struck to place MDMI pastries into 9 Albertsons
locations. 3 months later 6 more Albertson stores were
announced to carry Massimo's products which can only mean that
results look good for both Albertsons and MDMI. Albertsons is a
grocery chain similar to a Kroger or Randalls about 1000 stores
strong. The pastries are displayed in the coffee shops within the
new Albertson's stores offering great revenue producing potential
for MDMI. Freshstarts, a cafeterial type restaurant, has also
entered into an agreement to test MDMI products. An update is
pending. On Aug. 27th, Massimos unveiled yet another agreement
with Wal-mart to make their bakery products available in selected
Sam's Clubs. MDMI has since expanded that agreement and is
currently serving 50 of them throughout Louisiana and Texas.
Wal-mart is known for its intensive screening process of new
companies which almost guarantees the success of MDMI! You
can learn more about Sam's Club here.
samsclub.com
Java Centrale Franchise
Java Centrale is 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 management. 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
Coverage of the Stock
La Guardia is the PR firm covering this stock as a "strong buy and hold"
found at doscomercios.com They can assist you in your DD
and have been direct with all questions thus far. MDMI has until January,
2000 to file a 10-k and they have retained outside counsil to complete
their Form 10 filing. A less risky position would be to wait for numbers
and see, but perhaps a less rewarding position as well. With a company
expanding it's staff to meet demand, I believe what we have here is a
"diamond in the rough." Apparently another PR firm agrees. As of
Aug. 20th, another "Investor relations and reseach company" has
initiated coverage of MDMI as a strong buy. Found at
stocksecure.com this unsolicited firm prides itself on their
"work to reduce misinformation" and devotion to "strengthening
trustworthiness".
allstocks.com is another unsolicited "investor and
trader" website which rates MDMI as a "long term hold".
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. Not to be taken lightly is the issue of our Chief
Executive Officer with significant experience in building emerging
businesses and creating shareholder value.
Bawls Guarana
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 6 months time after
signing this contract, we have seen 330 customers added which will
mostly likely change tomorrow because new customers are coming
aboard on almost a daily basis. In fact the popularity of this drink is
reflected in a recently signed deal with Exxon USA. Exxon has begun
displaying Bawls Guarana in all of their corporate owned stores within
the Dallas/Ft. Worth area. To date total customer accounts equal 526!
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
APPENDIX I
Letter concerning Internet presence
ragingbull.com
Resume of CEO
ragingbull.com
Letter concerning Switzerland
ragingbull.com
Letter concerning SEC, Corporate lawyers, accountants,etc.
ragingbull.com
Letter concerning float and outstanding shares
ragingbull.com
Gross margin on a case of Bawls Guarana
ragingbull.com
APPENDIX II -- The CONS of MDMI
Past involvement with SEC
sec.gov
Rebuttals to the SEC
ragingbull.com
ragingbull.com |
