14 solid reasons to buy MSGI now:
1. Explosive growth in direct & Internet marketing industry, $205 billion by 2001 ($153 billion in 1997);
2. Industry is very fragmented market with no powerhouse leader, YET; (MSGI is already actively pursuing consolidation. The infomediary who becomes dominant in this market may have a $20 billion market cap within 5 years);
3. MSGI's revenue has grown from $16 million in 1996 to $100 million (annualized for 1999)- now that's explosive and we've just begun!;
4. MSGI moving to Nasdaq Nat'l Market within next 3 months or less, biz.yahoo.com;
5. MSGI will become a $250+ million company this year (there will be more acquisitions and growth, J. Barbera has said so - I believe Barbera will over deliver on this goal for a $300+ million);
6. MSGI will get major (well known) analyst coverage within next 3 months or sooner (stock will jump 3 - 6 points on this news, imho);
7. MSGI has two very credible strategic investors who have a clearly defined track record of investing in winners, they are: CMGI with 15% and GE Capital with 24%; (These investors will deliver more business and revenue to MSGI's doorstep, and GE is already doing this. Just look at MSGI's customer list in its most recent annual report. Also, CMGI will assist in management and business strategies going forward);
8. MSGI will close the CMGI (CMG Direct) acquisition on or before May 15, 1999. This will result in another Press Release further emphasizing CMGI's involvement and confidence in MSGI;
9. MSGI is virtually undiscovered bc/ it is not yet listed on Nasdaq Nat'l Market and has no analyst coverage except from a Denver regional firm. (Plus MSGI already has a very small float - in reality probably less than 4 million shares);
10. MSGI only lost .37 last year on $51 million revenue. .31 of that loss was a one time interest payment to GE Capital and approximately .02 of the loss is attributable to MSGI's MFI division which was spun-off majority interest)http://biz.yahoo.com/bw/990401/ny_msgi_1.html.
11. In 16 days, MSGI will be able to force GE Capital to convert its preferred shares (provided MSGI closes above $8 3/4 for the next 16 trading days, which is a given.) This means MSGI will not have to make any more interest payments to GE Capital. (Remeber that .31 cents from last year.) MSGI will be headed straight towards profitablity, which is almost unheard of for a company like this that is this young and enlarging its Internet involvement and presence. (Compare DCLK).
12. A somewhat different yet very similar and comparable company is DCLK which is trading at $180+. MSGI for 1999 (on annualized basis) will generate more revenue than DCLK and 5x closer to making a profit than DCLK. MSGI's growth is incredible and will grow even more rapidly from here - in my opinion. CMGI only selects and invests in companies with EXPLOSIVE growth. This is what MSGI has show and will continue to do, imho.
13. Excellent management to boot, which explains why MSGI was invited to be a presenting company at the 1999 Alley to the Valley Conference a few weeks back in March of 1999 in San Francisco. alleyvalley.com
14. If MSGI is good enough for the likes of CMGI, who is taking a 15% stake in MSGI then you can be sure that MSGI is looking for a 10,000+ percent return, not just a $50 - $70 point gain. If MSGI becomes a major player with a market cap of $5 billion or the "dominant player" with a $20 billion market cap in 5 years, then we're looking at a range of $425 to $1525 stock in 5 years.
Do you now understand the huge potential here - the potential that CMGI recognizes?
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