Broadmark Capital Announces Investment Opinion on GlobalMedia.com
Mon Jun 12 13:57:00 EDT 2000
SEATTLE, Jun 12, 2000 (BUSINESS WIRE) --
GlobalMedia.com (GLMC) Nasdaq. (Vancouver, B.C.)
GLOBALMEDIA.COM
(Nasdaq:GLMC) (4 7/16) STRONG BUY
Outsourced Interactive Streaming Solutions
Initiating Coverage June 12, 2000
Recent Price $4 1/2
52 Week Range $4- 9 5/8
Shares Outstanding (MM) 23.4
Float (MM) 5.6
Market Capitalization (MM) $106.1
Average Daily Volume (000) 93,818
Total Debt (000) $0
Cash Per Share $0.33
18 Month Target Price $16
Fiscal Year Ends: July 31 2000E 2001E 2002E
----- ----- -----
FY Revenue (MM) $1.08 $27.43 -
Earnings Per Share
Q1 $(.08) $(.19) $.00
Q2 $(.11) $(.14) $.03
Q3 $(.16) $(.09) -
Q4 $(.19) $(.05) -
Year $(.54) $(.47) -
P/E NM NM NM
Shares Fully Diluted (MM) 22.0 31.5 -
Company Description: GlobalMedia.com enables businesses to lever their existing
brand, customer base and content over the Internet through a private labeled,
interactive streaming media and e-commerce solution that provides businesses
with incremental revenues and engages their audiences online.
Key Points
-- We are initiating coverage of GlobalMedia.com with a Strong
Buy rating and an 18 month price target of $16 based upon 7x
our estimated CY2001 revenues. This represents a 360% increase
over today's price level.
-- Streaming media services are key instruments in transforming
the Net from a static text-based experience into a dynamic
interactive experience that embodies the visual and audio
richness of television. These services are excellent ways of
attracting traffic to web sites and maintaining the viewer's
interest. For e-tailers, streaming content generates
incremental advertising and e-commerce revenue by increasing
traffic and providing interactive information on products and
services.
-- While GlobalMedia.com is developing a large network of radio
stations that use its streaming audio capabilities, we believe
the greatest opportunity lies in enabling content rich web
sites such as corporate sites, e-commerce providers and
infomediaries. GlobalMedia.com engages site visitors through a
private labeled GlobalMedia Player, which provides websites
with a medium to capitalize upon their content through
interactive rich media advertising and e-commerce. We believe
streaming media services, such as those provided by
GlobalMedia.com, will enjoy strong growth as high-speed
Internet access becomes widely available and that the
GlobalMedia Player will become widely adopted as streaming
media becomes a "must have" feature.
-- We believe the fragmented industry of companies serving
broadcasters with streaming solutions is ripe for
consolidation. On June 8, the company announced the
acquisition contracts to provide streaming and e-commerce
solutions to 212 radio stations, demonstrating its leadership
in this consolidation.
-- The Company recently arranged a private equity financing that
will provide up to $10 million, of which $5 million has been
closed. The addition of these funds strengthens the company's
balance sheet and in our opinion will be adequate to fund the
company through Q2 FY2001. It is anticipated that
GlobalMedia.com will require an additional capital infusion to
finance the company until it is cash flow positive, which we
project will occur in Q1 FY2002.
-- The company bolstered its management team with the addition of
Jeff Mandelbaum as its President and CEO. Mr. Mandelbaum
brings GlobalMedia.com leadership from senior executive
experience building emerging technology companies such as
RealNetworks, CommerceOne, and Sybase.
-- GlobalMedia.com commenced trading on the Nasdaq National
Market on April 25th. This was a major stepping stone for the
company that will expand its exposure to the investment
community and improve access to capital. We believe
GlobalMedia.com should be a key long term holding for
diversified portfolios seeking exposure to streaming media
technologies through a basket of infrastructure and enabling
technology stocks.
CONTACT: Broadmark Capital
Andrew Summers, 206/623-1200
206/623-2213 FAX
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