Here is an older news release but I think one worth repeating:
Integrity Music has investor's blessing
By Thom Calandra, CBS MarketWatch
Last Update: 10:36 AM ET Dec 1, 1998
Columns & Opinions
SAN FRANCISCO (CBS.MW) -- One of the early investors in Didax,
the evangelical Web site whose stock is flirting with heavenly levels, has
another tiny company whose shares might be ready for a ride.
Kyle Krueger, president of Apollo Capital Corp., saw shares of Didax
(AMEN) explode this past week after investors hankered for U.S.
Internet companies of all types and sizes. Didax (market cap $60 million)
created www.crosswalk.com, a Christian Web site.
Didax, a money-losing company like most Internet
plays, generates revenues through the sale of
sponsorships and advertising and the online retailing
of Christian and family-friendly products. It also
gets commissions and referral fees from
co-marketing partners.
"One micro-cap idea, which I own, is Integrity
Music (ITGR)," says Krueger. Integrity Music
shares popped higher this week, doubling in a day
amid the rush for tiny Internet companies that could
benefit from Americans' increased use of the
Internet to shop and harvest information.
The Mobile, Ala., company, he says, sells at less
than 10 times earnings per share and three times
debt-adjusted cash flow. That's right: this company
is profitable. In the nine months ended Sept. 30,
Integrity made $1.1 million, or 19 cents a share.
Nine-month sales rose 10.9 percent to $27.1
million.
Integrity publishes and produces Christian music, including categories
known as praise and worship, children's and gospel. The Nasdaq Stock
Market moved the company's stock in October to its small-cap listings
after Integrity failed to meet listing requirements for the far larger Nasdaq
National Market.
Nasdaq had said that Integrity's market cap, aside from shares held by
insiders, didn't meet or exceed $5 million. That's when the company's
shares sold for less than $2 each. Now they sell for about 5, with a
market cap of $27 million.
Krueger says Integrity generates $4 million to $5 million of free cash flow
annually. He says the shares, based on the company's "real business
value," is closer to $9 a share. Integrity's stock fell early Tuesday to 5,
before this column was published. On Monday, the stock rose 3 1/8 to 6
1/8.
Krueger estimates Integrity's song catalog will generate $5 million of
royalties in 1999. Integrity has about a 40 percent market share of a $75
million category in Christian music, he says.
By the way, "the company has an Internet presence that is totally
undiscovered by investors," Krueger says. The Web site is at
integinc.com.
"There's no doubt that the ministry of Integrity would be impossible
without the talented and anointed group of people that God has assembled
for the task," the Web site says. "Each of our artists and worship leaders
have their own testimony of the way God led them to become a part of
Integrity's team."
Integrity's artists include Martin Ball, the son of Dennis Ball, a leader in the
early Charismatic movement in England.
Latest from Red Chip: Red Chip, the Portland, Ore., shop of
independent stock analysts, recently upgraded several of the tiny stocks it
follows. Red Chip, says it upgraded Timberline Software (TMBS) and
Interlinq Software Corp. (INLQ) to "A" ratings.
Interlink Computer Sciences (INLK) received an upgraded to "B."
|
