BFN PREMIUM STOCK PICK NEWSLETTER
April 27, 1999
A Business Financial Network Publication
bizfn.com
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Dear Premium Subscriber-
First of all, we would like to welcome all new subscribers to the Premium
Newsletter. Our mailing last night encouraged many of you to sign up so
you would receive our latest "Stock of the Month" ASAP.
As we told described in last night's Best of BFN, the stock we are featuring
as our Ahead of the Street Stock of the Month for May now trades on the
"Pink Sheets." These are publicly traded stocks, but often ignored by
investors, even many small cap investors. These stocks also generally have
fewer market makers. As a result, Pink Sheet stocks are often less liquid
and some quote services do not even produce a bid/ask quote. We have found
a quote service which does provide delayed quotes at
stockguide.com . You should also be able to get a quote by
calling your full service broker or the 1-800 number of your discount
brokers. They should be able to get quotes by using the Cusip: 55972-V-109
The May "Stock of the Month" is:
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Magnum Ventures, Inc.
Symbol: MGVN - Pink Sheets
Cusip: 55972-V-109
Recent Price: $4.00 (4/26/99)
Link to Stock Quote:
quicken.excite.com
Shares Outstanding: ~ 10 million
Float: ~ 2.2 million
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Magnum Ventures, Inc.
#325-48 Broad Street Red Bank
New Jersey, USA 07701
mailto: profit@radiotower.com
radiotower.com
CONTACT:
Magnum Ventures Inc.
Investor Relations: Kevin Brawley
E-Mail: kbrawley@radiotower.com
Toll Free: 1-877-454-0385
We believe the stock will trade on a more liquid and visible exchange very
soon. Investors who feel comfortable taking on a speculative investment
with a portion of their portfolio could be extremely well rewarded for
considering Magnum Ventures, Inc. before it trades on the OTC and before it
attracts a much broader audience of investors. It is our opinion that the
temporary lack of liquidity will serve to the benefit of early investors and
thus wanted to notify our Premium Newsletter readers about this company as
early as
possible. It is our plan to send the report to the "Ahead of the Street"
subscribers as soon as the stock trades on the OTC BB or when we have an even
clearer picture of the timing of the listing.
By sending the report out early, while the company still trades on the
"Pink Sheets,"
we also hope to give investors bonus time to research the company before it
trades on a more liquid and visible exchange. We think you are capable of
following up our research with your own and we expect and encourage our
readers to do their own due diligence. You are unlikely to find many
newsletters presenting stocks to their readers while they are on the "Pink
Sheets." We feel this will serve to the advantage of our readers, because we
will truly fulfill our mission to bring you exciting stocks "Ahead of the
Street."
CORPORATE BACKGROUND & INTRODUCTION
On April 19, 199, Magnum Ventures Inc. (Pink Sheets: MGVN) acquired
Radiotower.com and has applied for a change of name to reflect this event.
The expected name will be Radiotower.com. The name change is expected to
take effect shortly.
Radiotower.com is a free online directory of radio stations that webcast on
the Internet. Radiotower makes it easy to tune in and listen to over 900
radio stations from around the world in dozens of genres (top 40, news,
alternative, rock, sports, etc.). All stations listed can be tuned in from
radiotower.com . The company also provides information and
descriptions for each station and links to the stations' own home page.
Users can select radio stations by name, place, or genre. The audio signal
broadcast continuously as user surf's other stations, sites, or works on
other applications like Word, or Excel. The company's mission is to become
one of the most informative, entertaining and interactive audio sites on the
Internet-- A Full Service Audio Portal to the World.
HIGHLIGHTS:
· Free online directory of live audio sites.
· Provides information about and access to radio stations that broadcast on
the Internet.
· RadioTower.com projects a user base of 2 million users per month in
'99/00.
· 854 radio stations vs. Broadcast.com's 385
· Growing market niche
· Early entry advantage/Solid market presence
· Multiple marketing opportunities and revenue sources
· Attractive acquisition target
GROWING MARKET NICHE
20 million people currently listen to Internet audio. The market is expected
to more than double by year 2000. Higher bandwidth and greater PC
penetration will fuel additional growth. Quality, choices, and reach of
internet radio will also increase. Much sooner than any of us expect,
listening to internet audio will be as commonplace as turning on the radio.
EARLY ENTRY ADVANTAGE / SOLID MARKET PRESENCE
RadioTower.com launched its service June 9, 1996. The company is a pioneer
within
the industry, developing one of the first web sites with a live audio
directory. The company has in depth knowledge of internet and internet
audio. The company has a fully developed web site
(http://www.radiotower.com ), regular users, site recognition, and strategic
alliances with important industry players. Before 1999, RadioTower.com had
no marketing budget and already 20,000 registered users. The user base has
developed from word of mouth, high listings on all major search engines, and
links from 1000s of other sites. The site has also received numerous
favorable reviews from the L.A. Times, HotWired, and the Vancouver Sun.
RadioTower.com's awards include Yahoo Picks and Windows Magazine Site of the
Day.
MULTIPLE MARKETING OPPORTUNITIES AND REVENUE SOURCES
Radiotower has licensing agreements and affiliations with a variety of
e-commerce companies and content providers. The company markets a range of
e-commerce products such as CDs, videos, and books that are targeted at
specific audiences. Current/Recent advertisers include Rolling Stone
Magazine, Gillette, and credit card companies. E-commerce partnerships have
already been initiated with: Music Previews, Audio Book Club, Beyond.com, IQ
(audio software), and Wall Street Journal. Specific RadioTower.com pages
can be targeted at particular audiences. For instance, business and
financial news radio listeners will be offered subscriptions to Wall Street
Journal Online and see targeted financial/investment banner ads. 0nline
advertising was a $1 billion enterprise in 1997 and will grow to over $15
billion in 2003. E-commerce is projected to grow from $8 billion in 1998 to
$327 billion in 2003.
There are 30,000 radio stations in the world. 6,000 of these stations have
web sites and 1,500 of these webcast their audio signal. Radiotower is
developing multiple services to offer these radio stations including audio
hosting capabilities for stations which are not currently webcasting and
e-commerce capabilities. There are a great deal of opportunities for
RadioTower.com in this arena.
ATTRACTIVE ACQUISITION TARGET BY MAJOR PORTAL
The demand for web sites within this niche is proven. For example,
Broadcast.com, a similar web site, broadcasts 385 radio stations.
Radiotower.com broadcasts 854 stations. Broadcast.com will be acquired by
Yahoo and currently trades around $140.00 per share with a market
capitalization of approximately $5 billion. With expected increases in
bandwidth, non-text content (audio and video) are prime assets. The major
portals are very interested in adding to their text dominated content with
audio as demonstrated by the bidding war that took place for Broadcast.com.
It is our opinion that the end game scenario for RadioTower.com is an
acquisition by a major portal or other media company seeking an online audio
presence. While this scenario is not certain, it was our impression from
discussions with both founders that an acquisition or partnership with a
major online portal such as AOL, Excite, Lycos, etc. is the goal of
RadioTower.com.
FUTURE PRODUCTS AND SERVICES
The site and new services are constantly under development. The company is
working to create more powerful software and initiate additional
partnerships with content providers and other internet sites. The site is
adding services and content to create a much more useful, entertaining,
dynamic site.
The company will soon offer:
· Highly targeted rich media ads (audio banners)
· Customizable one-click access to an array of pre-selected audio reports.
· "Playing Now" feature - Information about song and artist currently
playing
· Relevant links and one-click album purchase
· Internet audio hosting services
· Advanced search, customization and interactivity.
· Business radio listeners will get one-click access to stock information
and business links
· Customized local versions that will include local news, weather, and
traffic.
· Ways for visitors to rate content and interact with other users.
It is our opinion, that the Pink Sheet status of Magnum Ventures, Inc. (Pink
Sheets: MGVN) is very temporary. Small companies are risky investments and
investors can realize impressive profits, but also may suffer substantial
losses. We would place Magnum Ventures (Soon to be named "RadioTower.com")
in the speculative corner, in part because of its listing on the Pink
Sheets. That being said, we think the stock will offer early investors very
promising upside potential to compensate for the level of risk. The early
alert through our newsletters also offers a head start to our Readers, not
only before Wall Street catches on, but also before most retail small cap
investors.
CONCLUSION
Price targets are hard to formulate for many internet companies, but we
have recently witnessed a useful valuation measure with Yahoo!'s
acquisition of Broadcast.com. Broadcast.com presently trades for $4.7
billion dollars, while Magnum Ventures Inc. (RadioTower.com) trades at less
than 1% of that valuation. RadioTower.com does not yet have the traffic of
Broadcast.com, but it offers two to three times the radio content and has
been in the sector for almost three years - a century for an internet company.
Considering the Company's aggressive marketing plan for the next year and
the valuable niche the occupy, we feel the market cap disparities between
RadioTower.com and Broadcast.com are unreasonable. As a speculative
investment and potential acquisition play, it is our opinion that MGVN
offers a great potential reward relative to the risk involved. As the
company moves off the pink sheets and attracts visibility, liquitity, and
investors attention, we believe the stock may trade several multiples of
the current price of around $4. As such, we have placed a price target of
$13 - $15 per share over the next 6 - 12 months.
Contact Info:
MAGNUM VENTURES INC.
#325-48 Broad Street Red Bank
New Jersey, USA 07701
mailto:profit@radiotower.com
radiotower.com
CONTACT:
Magnum Ventures Inc.
Investor Relations: Kevin Brawley
E-Mail: kbrawley@radiotower.com
Toll Free: 1-877-454-0385
RadioTower Interactive
#8 - 4106 Albert Street
Burnaby, BC V5C 2E6, Canada
Tel: 604-299-5003
Paul Valkama
Founder and majority owner of RadioTower.com
604-299-5003
profit@radiotower.com
Henry Valkama
Partner and brother of Paul
604-420-0971
radiotower@home.com
DISCLAIMER
© Copyright 1999, Business Financial Network, Inc. All rights reserved.
Business Financial Network, Inc. is not a Registered Investment Advisor or a
Broker / Dealer. This communication reflects opinions from Magnum Ventures
Inc.
(the Company). Readers are advised that this electronic publication is
issued solely for information purposes and is not to be construed as an offer
to sell or the solicitation of an offer to buy.
The opinions and analysis included herein are based on sources believed to
be reliable and in good faith but no representation or warranty, expressed
or implied, is made as to their accuracy, completeness or correctness. This
information is not intended to be used as the sole basis of any investment
decisions, nor should it be construed as advice designed to meet the
investment needs of any particular investor. The foregoing discussion
contains forward-looking statements which are based on current expectations
and differences can be expected.
The information contained herein has been provided by the Company to
Business Financial Network, Inc. for information purposes only; in
addition, the information contained in this report is not intended to be a
complete discussion of information regarding some of the current and/or
intended business activities of the Company.
Readers are urged to consult with independent financial advisors with
respect to an investment in the shares mentioned herein. Investors should
review a complete information package on the Company, which should include,
but not be limited to, the Company's annual report, quarterly report, press
releases, as well as all regulatory filings. All information contained in
this report should be independently verified with the Company mentioned
herein. Any opinions expressed in this report are statements of judgment as
of the date of publication and are subject to change without further
notice, and may not necessarily be reprinted in future publications or
elsewhere. Neither Business Financial Network, Inc. nor its officers,
directors, partners or employees / consultants accept liability whatsoever
for any direct or consequential loss arising from any use of this report
or its contents.
Business Financial Network, Inc. has been paid a fee of 10,000 free trading
shares of Magnum Ventures Inc. (Pink Sheets: MGVN) by Tech Equities Inc. for
consulting services including, but not limited to, research, project
analysis, and electronic dissemination of this report and other updates on
The Company. Employees and/or principals of Business Financial Network,
Inc. may purchase shares on a voluntary basis in the open market and may buy
or sell shares in this company or others without prior notification
depending on market conditions and personal financial circumstances.
Prior to Business Financial Network, Inc. disseminating this information,
Tech Equities Inc. reviewed and approved the contents hereof.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE
INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS
SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
We encourage the reader to review the investing information available with
the Securities and Exchange Commission ("SEC") at sec.gov and /
or the National Association of Securities Dealers ("NASD") at
nasdr.com. Readers can review all public filings by the Company
at the SEC's EDGAR page. The NASD has published information on how to
invest carefully at its web site.
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