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Microcap & Penny Stocks : MDMI - Italian Bakery Extraordinaire! -- Ignore unavailable to you. Want to Upgrade?

To: bob sims who wrote (3488)	10/27/1999 1:18:00 AM
From: Due Diligence	Read Replies (1) \| Respond to of 3584

INVESTOR UPDATE MDMI: Outstanding shares--48 million / Float--18 million Transfer Agent: stctransfer.com Official MDMI site packed with information & pictures: buymdmi.com Bawls customers = 330 Bakery customers = 131 Sam's Club accts. = 50 (Total Sam's > 475) Albertson's accts. = 15 (Total Albertson's > 980 ) Java Centrale franchises = 8 International locations = 1 (Switzerland) Total sources of income = 535 Company History MDMI is Massimos Da Milano, an Italian bakery extraordinaire which has been serving the Dallas market for over 14 years. What a bonanza for the investors who have the courage to buy! This is a turnaround pick which offers huge upside potential. MDMI came out of bankruptcy in June of 1997 with new mgmt. spearheaded by Dana Verrill, a CEO with a proven track record. He founded and led Spectrum Information Technologies, a Nasdaq traded company, in the 80's to 100 million in yearly revenue. That proves he can build a profitable company and shareholder value. When he resigned a decade later, he left the company with 20 million in cash and virtually no debt. He set goals to do the same with MDMI by devising a plan which is just now starting to be implemented. The firstyear he came on board was marked by his Inception phase. All pre-bankruptcy debt had been erased, and all unprofitable accounts closed. He then divided the company into three divisions--Wholesale bakery, Java Centrale franchise network, and an Internet cafe (Kiosk). Wholesale Bakery 1999 has been a very exciting year as we are just now beginning to see all of Verrill's efforts unfolding in his implementation phase. After an unprofitable restaurant chain was closed, the bakery was the only profitable business remaining coming out of bankruptcy. After erasing all pre-bankruptcy debt, the first post-bankruptcy PR informs us that the bakery had a profit of over $150,000 for 1997. Adding to that success, this year we have seen 195 clients added with prestigous names such as The Outback Steakhouse & Neiman Marcus. A comprehensive list of these clients can be found at buymdmi.com An eyewitness account of operations at Massimos ragingbull.com As part of its reorganization plan, Verrill has equipped the bakery with new equipment allowing Massimos to substantially increase production. He also hired an experienced broker to negotiate deals with large food chains. We have begun to see the fruits of this decision with a deal struck to place MDMI pastries into 9 Albertsons locations. 3 months later 6 more Albertson stores were announced to carry Massimo's products which can only mean that results look good for both Albertsons and MDMI. Albertsons is a grocery chain similar to a Kroger or Randalls about 1000 stores strong. The pastries are displayed in the coffee shops within the new Albertson's stores offering great revenue producing potential for MDMI. Freshstarts, a cafeterial type restaurant, has also entered into an agreement to test MDMI products. An update is pending. On Aug. 27th, Massimos unveiled yet another agreement with Wal-mart to make their bakery products available in selected Sam's Clubs. MDMI has since expanded that agreement and is currently serving 50 of them throughout Louisiana and Texas. Wal-mart is known for its intensive screening process of new companies which almost guarantees the success of MDMI! You can learn more about Sam's Club here. samsclub.com Java Centrale Franchise Java Centrale is an Italian coffee house franchise, purchased from Paradise Bakery for $1.5 million in January of 1998. This had been the only profitable division for Paradise Bakery but it suffered from high turnover due to bad screening. Verrill has a plan of turning this situation around. He hand picked the locations one by one which would come under the ownership of MDMI. Currently we have 8 franchises in Texas, Arizona, and California and the company has taken concrete steps to boost earnings. A kiosk has been developed with plans to enter each location. The Long Beach, California store is the first to receive this Kiosk elaborated on in a previous PR. Verrill intends to open future stores with the proper screening required and introduce a Java Centrale Express modeled after the successful Subway franchise in highly visible upscale locations. Possibly even a little proprietary. When a company in a high growth industry is modernizing on all fronts and expanding at the same time, there are several chances for earnings to improve. The best part of this story is that the expansion will be done under the methodical eye of Verrill. The company is expanding carefully and with caution. You want to avoid the retailers that expand too fast, especially if they're doing it on borrowed money. This is precisely what spelled the demise for MDMI under previous management. The franchises currently in operation all seem to be doing well and under superior management. The resume from this franchisee in Phoenix is quite impressive: etailia.com The Phoenix franchise is located in the Phoenix Metroplex, the focal point for the community. The store according to eyewitness investor accounts appears to be well managed, with a young and enthusiastic sales force of at least a dozen people. It's location, the Metroplex, was once the largest mall in the U.S. This link will give you a virtual tour of a Java Centrale once under the ownership of Paradise Bakery, yet no longer in operation. It does however give a representative look into a Java Centrale franchise. virtualvoyages.com Coverage of the Stock La Guardia is the PR firm covering this stock as a "strong buy and hold" found at doscomercios.com They can assist you in your DD and have been direct with all questions thus far. MDMI has until January, 2000 to file a 10-k and they have retained outside counsil to complete their Form 10 filing. A less risky position would be to wait for numbers and see, but perhaps a less rewarding position as well. With a company expanding it's staff to meet demand, I believe what we have here is a "diamond in the rough." Apparently another PR firm agrees. As of Aug. 20th, another "Investor relations and reseach company" has initiated coverage of MDMI as a strong buy. Found at stocksecure.com this unsolicited firm prides itself on their "work to reduce misinformation" and devotion to "strengthening trustworthiness". allstocks.com is another unsolicited "investor and trader" website which rates MDMI as a "long term hold". Clearly the company in the realm of intuition and right-brain chemistry is undervalued. What sells in one town is almost guaranteed to sell in another, as it has with donuts and hamburgers. If you wish you had picked up Toys R Us when it was selling at 25 cents a share, this may be your second shot. Not to be taken lightly is the issue of our Chief Executive Officer with significant experience in building emerging businesses and creating shareholder value. Bawls Guarana MDMI also signed an exclusive agreement with the Hobarama corporation to distribute Bawls Guarana, a new softdrink, throughout Texas, Louisiana, Arkansas, and Oklahoma. In just 6 months time after signing this contract, we have seen 330 customers added which will mostly likely change tomorrow because new customers are coming aboard on almost a daily basis. In fact the popularity of this drink is reflected in a recently signed deal with Exxon USA. Exxon has begun displaying Bawls Guarana in all of their corporate owned stores within the Dallas/Ft. Worth area. To date total customer accounts equal 526! Information on Bawls guarana can be found at bawls.com Bawls received high reviews from the critics: bevnet.com Bawls guarana receives good press on CNN: cnnfn.com If you have "Real Player" you can listen to this advertising "jingle" airing in Miami! bawls.com Sex in advertising sells: kaos2000.net Testimony to Bawls success in Miami: businessweek.com Bawls has celebrity association: oldcity.com APPENDIX I Letter concerning Internet presence ragingbull.com Resume of CEO ragingbull.com Letter concerning Switzerland ragingbull.com Letter concerning SEC, Corporate lawyers, accountants,etc. ragingbull.com Letter concerning float and outstanding shares ragingbull.com Gross margin on a case of Bawls Guarana ragingbull.com APPENDIX II -- The CONS of MDMI Past involvement with SEC sec.gov Rebuttals to the SEC ragingbull.com ragingbull.com