IMMM looks like the word is getting out.
Stockprowler’s pick this week...
Intermedia Marketing Solutions, Inc. (OTC BB: IMMM)
Corporate Web Site:
intermediamarketingsolutions.com
Shares Outstanding: 12.6 million
Public Float: 1.5 million
Insider Ownership: 88%
Market Capitalization: $5.7 million
Closing Price Friday 8/10/01: 45 cents
Imagine a company trading at only 45 cents a share that has earnings of 17 cents a share (ttm), is rapidly growing revenues - year to date increase of over 69%, has no long term debt, has just 12.6 million shares outstanding, and a float of only 1.5 million. And if that were not enough to get your attention… the company has a business model very much like that of the highly successful direct marketer, Home Shopping Network, a division of USA Networks, Inc. (NASDAQ: USAI) …Sound interesting? Read on.
Headquartered in Pompano Beach, Florida, Intermedia Marketing Solutions, Inc. (OTC BB: IMMM) is engaged in the marketing, production and distribution of television programs, direct-response commercials and sale of consumer products associated with these programs. The company operates three divisions, including Site2Shop.com, which handles retail marketing and product sales activities, Tricom Pictures, which handles television production activities and the marketing of educational television programming, and Mirage Productions, a full-service multi-media production facility. The company sells unique, newly launched, and nationally-branded consumer products through 30-minute shop-at-home television programs. All programs are distributed to national audiences through a combination of ABC affiliates, NBC affiliates, CBS affiliates, FOX affiliates, UPN affiliates, Warner Brothers affiliates, independent television stations and targeted cable networks. Products and services featured on the Site2Shop.com television programs may be purchased through its telephone call centers, the company's Web sites, other e-commerce Web sites, and the company's retail store in South Florida.
The products offered by Site2Shop include jewelry, housewares, apparel, electronics, collectibles, toys, educational products, exercise and sporting equipment. A majority of the products offered by Site2shop comprise a combination of national brands as well as private brand or non-branded products. Site2shop purchases the merchandise offered by it on both a consignment basis and on a terms basis for products sold through fulfillment and on the Internet.
The company has developed into a vertically integrated full-service media company performing all aspects of television production and distribution. The company’s Tricom division is engaged in the marketing, production and distribution of 30-minute educational programs. These programs are distributed through a combination of any or all network affiliates, independent television stations and targeted cable networks. Topics for the programs, include, but are not limited to, parenting, health, cooking and home improvement, and are presented in a news magazine-style format with all segments having a strand of commonality about the topic. Companies, appearing on three to five segments of the program, apprise the viewer of their products or services in conjunction with the topic featured on the program, but there is no direct attempt by the companies to sell their products or services.
The Mirage Video and Production Division maintains the full-service, in-house production facilities for the company that includes editing facilities, camera crews, in-house studios and complete animation and graphic capabilities. The facility handles all site2shop.com projects, as well as providing production services to other organizations. It has the ability to create educational and promotional television programs, and can stream video for the Internet. Streaming video allows the company to use over 1,000 hours of its proprietary programming and raw footage on its Website. Since it owns the rights to its shows and controls the production process, the company can create and air programs using the diversified media. For more information, and to see a sample home-shopping video, visit the company's web-site www.site2shop.com.
Revenues for the quarter ended June 30, 2001 rose 64% to $4.8 million from $2.9 million in the quarter ended June 30, 2000. Net income for the second quarter of 2001 increased to $403,747 or $0.03 per fully diluted earnings per share, compared with a profit of $79,362 or $0.01 per fully diluted earnings per share for the quarter ended June 30, 2000. This represents an increase of $324,385 or 408%.
Revenues for the six months ended June 30, 2001 increased by 69% to $8.3 million from $4.9 million in the six months ended June 30, 2000. Net income for the six months of 2001 increased to $626,807 or $0.05 fully diluted earnings per share, compared with a loss of $(218,506) or $(0.02) fully diluted earnings per share for the six months ended June 30, 2000.
Commenting on the results, Jack Levine, Vice President and Chairman of the Board of Intermedia Marketing Solutions said, “We are pleased that we are continuing to develop growth and in turn building value for the company. During the last twelve months we have internally built the base to support our increased production in our shopping and educational shows and direct response commercials. In turn, we have also been able to manage our growth as shown by the increase in revenues of over 64% and increases in selling, marketing and administrative expenses of less than 3%.”
IMMM recently announced that it has obtained a line of credit with the prominent investment banking firm, Merrill Lynch. Mark Alfieri, President and Chief Executive Officer of the company said, “ We feel that the credit facility we have obtained with Merrill Lynch is a stepping stone to future endeavors between the two organizations that will enable us to continue our mission to become the leading integrated media company of unique customer products and education television shows by utilizing cutting edge technology”.
IMMM is currently trading at a P/E of 4… and, incredibly, its Price/Sales (ttm) is just 0.29. Combine that with the fact that, historically, the company’s best 2 quarters are still to come… IMMM could conceivably earn 25 cents a share in 2001. It is the opinion of Stockprowler.com that IMMM is grossly undervalued, largely because hardly anyone knows about it! Witness the thinly traded volumes and the almost non-existent message board postings. With a float of only 1.5 million shares, we believe that as the word gets out, this stock is a likely an easy double near term… and long term we could be looking at a real keeper.
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