POPM here's the whole report from:
integritycapital.net
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Recent Price: $.80
Public Float: 17.6 Million
EPS: ($2.56)
52 Week High: $7.13
Shares Out: 36,354,928
Book Value: $1.13
52 Week Low: $.68
Market Cap: $29,083,942
FY End Dec 31
Investment Summary
According to Forrester Research, the e-mail marketing industry will reach $4.8 billion by 2003. Companies will
have sent more than 200 billion pieces of e-mail correspondence by 2004 with the average household receiving
upwards of 9 pieces of e-mail marketing per day.
E-mail marketing is increasingly becoming the most effective way to increase web traffic, retention, reduce marketing costs and
increase sales and the demand for e-marketing solutions is on the rise. PopMail.com has focused on becoming the largest,
most trusted and efficient source to the broadcast media, athletic and entertainment industries. The company has successfully
penetrated this prime market opportunity by creating two major proprietary product solutions: ENEWSNOTIFIER (ENN) and
PopMail. Each of these mediums targets a niche, affinity audience in a permission-based environment.
PopMail.com's powerful e-mail marketing solutions enable Internet enterprises to eliminate inefficiencies associated with
traditional marketing. Companies have the ability to control and tailor the information to their specific subscriber base,
maintaining integrity of content, brand identity and loyalty to vast audiences of viewers, listeners, fans and customers.
PopMail.com's mission is to empower corporations with vital solutions to turn their website visitors into voluntary participants of
affinity-based information.
Currently, PopMail boasts over 500 affiliates whose promotional power can reach approximately 100 million PopMail constituents
weekly. Their current affiliates account for some of the largest broadcasting companies in America including over 50 major
television stations, 325 radio stations, 29 NBA teams, 16 WNBA, and the NFL. Given their current affiliates and substantial
market share, this billion-dollar e-marketing industry places PopMail.com's sophisticated e-mail product applications at the
forefront of their rivals.
There are few other channels where revenues are accelerating with such momentum at this point in time, especially at the
e-marketing level. The e-commerce community is rapidly maturing and has become a staple of the US economy. The Internet
is now the accepted medium for doing business and rapidly, businesses have outgrown the ability to internally manage
databases and e-mail distribution to thousands. PopMail.com provides a simple and efficient tool for outsourcing e-mail activities
and already has an existing and sophisticated infrastructure in place to sustain virtually limitless growth. Current revenues are
derived from initial set-up fees, hosting, licensing, advertising, merchandise sales, website management services, and
production fees. Quarter for quarter, growth continues to exceed 300% from PopMail's email marketing division. Additional
future revenue streams are anticipated through transaction sharing, and by leveraging their product technology into new
markets.
Forrester Research finds that businesses using specialized e-mail service bureaus achieve quadruple purchase
rates when compared to in-house operations. Therefore, businesses will increasingly outsource their e-mail
operations, rapidly building up this industry.
Company Profile
Popmail.com is a fully reporting issuer of the SEC and trades on the NASDAQ Small-Cap under the symbol POPM. The company
PopMail.com, Inc. (f/k/a Cafe Odyeey, Inc.) consists of two divisions, the restauraunt division and the e-mail services division.
While the core focus is permission and affinity based marketing, the restauraunt division is a well-established and highly
profitable entity, returning $2.3 million in revenues in the first quarter of FY00 and $12.1 million for FY99. PopMail.com has
undergone aggressive expansion over the past 12 months through several strategic acquisitions including ROI Interactive,
IZ.com and Fan Asylum. Through consolidation of PopMail and ROI Interactive, the PopMail Network offers two major
proprietary product solutions to market: PopMail and ENEWSNOTIFIER™.
PopMail is an "affinity" based e-mail service that allows companies to offer free web-based e-mail boxes on their home page.
Individuals sign up for free, personal e-mail boxes that contain the company's name. Through PopMail, affiliates can increase
web traffic, create loyalty and strengthen brand identity by providing a free and valuable service to their website visitors.
ENEWSNOTIFIER™ (ENN) is a "permission marketing" e-mail service that allows companies to use their web site to collect
preferences and demographic information from their web site visitors. With this information, companies will be able to distribute
targeted, personalized and customized messages. Through ENN, companies can cross reference user profiles and preferences,
allowing affiliates to target their messages in a more efficient and productive manner.
Fan Asylum, acquired on June 15, 2000, is a tremendous compliment to PopMail's business strategy. Fan Asylum was founded
in 1984 and is headquartered in San Francisco with offices in London and Tokyo. Fan Asylum operates and manages fan clubs
for some of the most popular names in music including Aerosmith, as well as Billy Crawford, Boyz II Men, Bree Sharp, Bush,
Jordan Knight, Lenny Kravitz, Maxwell, Melissa Etheridge, MYA, Paula Cole, TLC and Whitney Houston. Their website,
www.fanasylum.com boasts over 20 million hits a month, 4 million page views a month and more than 400,000 unique users
per month with average user sessions exceeding 10 minutes. Fan Asylum reported approximately $5 million in revenues for
FY99.
Recent Corporate Highlights
PopMail.com Signs Agreement With Pepsi Center and Colorado Avalanche: On June 5, 2000, PopMail.com, Inc.
announced the signing of an agreement with Ascent Sports, owner of the Colorado Avalanche of the National Hockey League
(NHL) to provide the Company's permission marketing e-mail service (ENN) on the organization's Web site,
www.coloradoavalanche.com.
PopMail.com Reaches Agreement With Denver Broncos: On May 17, 2000, PopMail.com, Inc. announced that it would
provide its permission marketing e-mail services (ENN) to the Denver Broncos of the National Football League (NFL) through
the team's Web site, www.DenverBroncos.com .
Popmail.com to Provide Permission-Based E-Mail Marketing Services for World's Largest Online Ticketing
Company: On May 10, 2000, Popmail.com, Inc. announced an agreement to provide permission marketing e-mail services for
Ticketmaster.com . Ticketmaster.com will use Popmail.com's e-mail marketing tool (ENN), to target ticket buyers, who have
elected to receive emails, with customized offers and specialized content.
Management Team
Stephen King, CEO and Interim Chairman
Mr. King is the founder and CEO of Café Odyssey, a company he took public in 1997, and CEO of PopMail.com, Inc. A
well-respected business executive with extensive experience, Mr. King is a managing partner of Barycenter Capital Management
with a proven track record in seizing small companies and franchises and taking them to the next level. Previously, Mr. King
served as the General Partner Mr. King's impressive record also includes the launch of several successful theme restaurants in
The Mall of America, Denver, and Cincinnati. Mr. King has a proven ability to raise capital and manage a public company. As
CEO, Mr. King will pursue additional acquisitions, capital investments and ways to increase shareholder value.
Jesse Berst COO and Director
Mr. Berst has enjoyed a tremendous career and is highly sought after by national media for his technological expertise. Mr.
Berst is the originator and editorial director of ZDNet Anchor Desk, one of the most prominent news sources on the Internet. In
1999, Mr. Berst was named "Most Prominent Cyber Journalist" by the PRESStige awards. His columns and articles have
frequently appeared in leading computer magazines not only in the United States, but internationally as well. Mr. Berst has been
quoted in The Wall Street Journal, Newsweek, Business Week, The New York Times and many others. He is also an
accomplished author with his latest endeavor, "The Magnet Effect: What Comes Next In The Internet and How To Know In
Time To Cash In" is due out in the Summer of 2000 from McGraw Hill. Mr. Berst has been a keynote speaker at the largest
technology conferences and expos and has appeared on Good Morning America, ABC World News Tonight, CNBC, CNN and
has given interviews on CBS Radio among many others.
Scott Sternberg-Director, PopMail
Mr. Sternberg has recently joined PopMail as Director of Content for the Company's Entertainment vertical and with his
extensive experience, should serve to solidify PopMail's position among entertainment industry groups. Mr. Sternberg is a
respected entertainment industry executive and Co-President of Iz.com, a brand new Internet venture. Mr. Sternberg has
enjoyed a prestigious career and earned an Emmy Award for for Best Informational Special. He has earned a Cable Ace award
for his talk show, " Remember With Roy Firestone" and an NAACP Image Award nomination for the special, " Mike Tyson:
Portrait of The Peoples Champion."
Gary Schneider-CEO of PopMail NetWorks
Mr. Schneider has a wealth of experience in the broadcast media industry and is founder, Chairman and CEO of ROI
Interactive. Mr. Schneider conceptualized and created ENEWSNOTIFIER™ and was the driving force for launching the service
and ROI Interactive. Mr. Schneider previously served as President of Sky TV, a high-end computer video company specializing
in in-flight videos and computer television programs.. Additionally, Mr. Schneider served as Vice President and General Manager
of KHTV in Houston and KSTW in Seattle. Mr. Schneider will continue to focus on the overall direction of PopMail.com's
corporate development and strategic sales initiatives.
Investment Thesis
PopMail.com has positioned itself to become the top e-mail marketing firm in the entertainment arena. By focusing solely on
radio, television, sports and other entertainment mediums, the Company has built a solid network of well-known affiliates and
has enabled these organizations to promote and brand more effectively and efficiently to their viewers, listeners, fans and
customers. Popmail.com's comprehensive and integrated solutions turn the affiliates' web-site visitors into members at a
fraction of the cost of maintaining an in-house email management system, harnessing PopMails' ability to establish and maintain
a global presence within the e-marketing industry.
Affiliates of PopMail.com typically aspire to create one-to-one relationships with their members who have a strong loyalty
towards distinct products and services such as a favorite team, radio station or upcoming broadcast or publication. Pop Mail's
impressive list of affiliates include CBS Radio, ABC Radio, New York Post, Ticketmaster, all NBA and WNBA teams, CBS Radio,
ABC Radio, Clear Channel Communications, Chancellor Media, Susquehanna Radio, Hearst Broadcasting, Jefferson Pilot
Communications, Emmis Broadcasting, Bonneville International and many others. NY Yankees, targeted Fan Asylum artists
such as Melissa Ethridge, Whitney Houston, Aerosmith, and many other premier customers.
Self-service publishing makes the solutions that PopMail offers a convenient and effective means of communicating for any
business. Newsletters and promotions are all authored by the affiliates and sent out through Pop Mail's servers. PopMail can
handle up to 1,000,000 emails per hour, ensuring timely delivery and paving a tremendous capacity for growth.
PopMail.com has amassed an impressive database of users, their preferences and has cemented successful relationships. With
this resource, a well branded affinity base and an experienced management team, PopMail.com is positioned to increase the
company's scalability and secure an industry-wide leadership position. Moreover, additional strategic relationships and joint
ventures will enhance PopMail.com's network capabilities to accommodate the financial service industry, travel and leisure, and
cable network platforms.
While the company provides an invaluable service to well known organizations, PopMail.com, up until now, has focused solely on
the business of doing business. The Company is prepared to achieve the next level of success through an aggressive
marketing campaign and has recently retained a well-known investment banking firm to assist in presenting PopMail.com to the
financial community.
Based on the recent acquisition of Fan Asylum and historic revenues, we believe that PopMail will earn revenues of at least $20
million for the FY ending Dec 2000. In addition, by leveraging the ENN to the current 165 affiliates, transaction sharing could
potentially represent $1.875 million to $9.375 million in additional revenue flows per affiliate, potentially exceeding our current
revenue projections.
Integrity Capital believes that POPM is an extremely undervalued opportunity. POPM has recently been trading in the $ .90 to
$1.00 range. With additional acquisitions, the planned media campaign and a successful presentation to the financial
community, POPM has the potential to reach the $12.00-$14.00 range over the next 12 months. We will re-visit our target in
October 2000 and based on new business developments, acquisitions and revenue forecasts, will adjust our projections
accordingly.
Integrity Capital selected PopMail.com because of the leading position the company maintains in the e-mail marketing sector. Integrity Capital
does not have a stock/option position in the company but has received $15,000 to cover expenses associated with generating this report and to
cover expenses for future work performed. |
