ANALYST PICKS MAGC WITH MASSIVE PRICE INCREASE POTENTIAL!!!
By: DrillBit $$$$
Reply To: None
Monday, 29 Jan 2001 at 7:39 AM EST
Post # of 866
Equity Analysts expects to see stock returns over 10 fold with
Magic Inc., (MAGC) within the next 3 months and continual stock price
appreciation the remainder of the year. The firm places such strapping
confidence based on new industry projections stating the diversified
entertainment fields are expected to top 1.2 trillion dollars next year
alone. "With smaller, well positioned companies like Magic Inc. deep in
the entertainment field breaking down further doors with their enormously
popular CYBARS.com, we see micro-caps of the world like this one making
great strides" stated Jeff Bloom, senior partner at Equity Analysts.
Before we get into why we feel MAGC will propel shareholders into
fortune, we wanted to answer a common question we frequently get: "why do
your analysts select so many entertainment companies?" The answer is
quite simple, they make investors lots of money and judging by our past
performance with entertainment companies, it should be a non issue as all
have exceeded even our highest expectations. In 1998, when we told you
Vista Entertainment at 80 cents was a good buy, it far exceeded our
expectations when it ran to 45 dollars a share before they were acquired,
the same thing with New Visual Entertainment in 1999, when it ran from
under a nickel to 32 dollars split reflective. In light of this, a
better question to be asked is not why we select so many Entertainment
companies, but why do so many Entertainment companies perform so well? The
answer to this great question is valuation. Entertainment has no
specific price to earnings worth for people, unlike brick and mortar indu!
strial companies do. Many Entertainment firms can easily justify a
Price to Earnings ratio of 200 as people know, one breakthrough, one
contract or one alliance with a bigger firm and a significant company is
made. Also, Entertainment is valued byeveryone differently and it is tough
to determine what price an Entertainment companies stock should be
traded at. Third of all, entertainment firms are extremely synergistic with
each other and offer more efficiency after merging with one another,
hence mergers/acquisitions are common in the entertainment industry. In
general, Entertainment firms are usually valued well beyond the S&P's
average PE ratio of 32, in some cases a PE as high as 1000 exists due to
the above circumstances.
Without further ado, here is why we feel Magic Inc. ticker:(MAGC) will
be our performer of 2001. Currently entertainment is a billion dollar
business worldwide and the Internet is quickly reaching into the
trillions of dollars worldwide when it comes to commerce. The key here is
finding a quality company that merges the two sectors together and get in
before it really takes off. Magic Inc. is that long awaited entity.
The company itself is a Delaware corporation based in Florida which
currently holds 5 major entertainment divisions. The newest addition
which proves immensely popular is CYBARS.com. A nightclub portal using
CyBarCam Internet cameras broadcasting live on the Internet nightclubs,
bands and bars on its own network Magicinternetwork.com. The division sets
forth constant revenues of one hundred thousand dollars per month for
every one hundred clubs that join them. Currently the company has one
hundred and twenty clubs under them and anticipates to have two thousand
by the end of 2001. In addition, multi faceted revenue streams make up
the rest of Magic Inc.'s bottom line. Big name advertisers make up for
a huge part of MAGC's revenues, as well as nightclub participation and
membership cards for the attendees also supplement revenues.
Furthermore, the Company looks to generate income from club link fees, general
advertisers, independent album sales and downloads, rebroadcast of in!
dependent content, independent movie sales, rentals and related
merchandise. Companies that solely provide nightclubs with live Internet
broadcasting are looking to tap into several hundred million dollar areas
within the next few years alone, factor in the album sales, rebroadcasts,
independent movies and rentals, and you have a revenue powerhouse far
exceeding those figures.
MAGICINTERNETWORK.com, a division of MAGC which is an independent
network of exclusive entertainment content owned or licensed to
Magicinc.com for distribution to the world market on the Internet.
Magicinternetwork.com is designed to broadcast all forms of independent content
utilizing the power of the Internet. A business so new, online cyberquest
digest has the forerunners such as MAGC, capturing the quickly evolving
ten million dollar niche market.
MAGIC STUDIOS is an independent studio to produce independent films,
music videos, commercials and other core content for magicinternetwork
and licensing to other broadcast mediums. A well known billion dollar
market MAGC is currently tapping into. One well known artist alone can
generate tens of millions for the company virtually overnight. A segment
that cannot be ignored.
Magic Inc.'s music division known as MAGIC MUSIC rounds out their
diversification. An independent music label utilizing the cybars.com portal
and the magicinternetwork to distribute independent music artists over
the Internet. Magic intends to distribute CD's singles of musical
artists with videos, as well as indie film trailers in the local
nightclubs. After the patron downloads the disc, and watches the artists and
(decides to purchase or not), with their next forward click it takes the
user to the Magic home page. Magic Inc. could very well act as the record
companies currently do to their top performers, raking in literally
hundreds of millions of dollars.
The January 2001 issue of Entertainment Weekly sponsored by Reuters
stated that entertainment companies are re-surging and the sector as a
whole should see large market cap revitalization. We believe our MAGC
find will not only ride the explosive entertainment surge, but far exceed
the industry as a whole as the companies size lets them maneuver
quickly and take advantage of synergistic situations. We believe MAGC's
strides in the Internet opens up massive markets, and their niche portals
offer them an almost unfair advantage over any other entertainment
network out there. The sheer dynamics of the business plan represent that of
firms ten times the size, yet succeeding with such a plan to a firm of
this size can make it literally explode with ten times the force. One
of the many benefits of having such a small amount of shares
outstanding. Reuters sees the entertainment industry going to new heights, we see
MAGC being sling shot well past the industry gains called for by the!
m.
Now that we see what Magic Inc. is all about, we asked ourselves what
kind of price valuations can we place on its stock based on fundamental
PE's and the current size of the firm. Based on similar firms in the
same business, such as Ascent Entertainment Group with revenues over 280
million and Champs Entertainment Group with revenues topping 120
million. Based on these developing fellow firms and taking MAGC's business
plan into account, we feel it is a good bet, Magic Inc. has strong
inroads to making 25 million next year alone. With roughly half of that as
net income, we then placed an entertainment industry average PE of 52 on
the stock discounted by 20 due to the relatively poor performance of
the equities earlier this year, for a PE of 32. The company itself has
less than 16,000,000 shares outstanding. Net income of 12.5 million over
16 million shares gives us a $.78 eps, and factoring our conservative
PE of 32, the markets can justify over 24 dollars per share. At 24 d!
ollars per share the market capitalization of the company would be a
tad over 384 million dollars in line with our past performing
entertainment companies. A market cap of such size is surely attainable and not
unreasonable, especially since most all entertainment firms today still
trade at PE's of 52 and higher. Hence our initial statement of 10 fold
during the next 3 months seems a likelihood as that puts the companies
stock just under 2 dollars per share. As 2001 progresses, a rise to
even more fair market valuations ($24) is likely. MAGC fits the mold for
the next super performing story stock.
Keep in mind that on Monday, January 8th Magic Inc. Announced ADS
Media to aggressively promote Cybars.com and on Wednesday, January 17th
Magic Inc. Entered into an Agreement with Pay for View for advertising
revenues. In addition, known firms like Phillip Morris, Wrigley and Miller
Brewing are expected to advertise with Cybars in the coming weeks. On
November 7th, the company teamed with MCI and Hughes to broadcast their
content all over the country. The ball has begun to roll on this
company will you be part of it?
Take note that Equity Analysts performed an independent analysis of
Magic Inc. and has thus forwarded a comprehensive report to its
subscribers. For more information go to our members section and review the
entertainment data compiled and the research report for Magic Inc. You may
also want to contact the company at:
1-954-764-0579
www.magicinc.com
Equity Analysts are an independent publication in business to provide
its paid members stock selections it feels will benefit its subscribers.
Magic Inc., has not endorsed this publication or compensated Equity
Analysts in any way, shape or form for this report.
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy) |
