Joe and ALL:
Just wondering if you had a chance to check out another undervalued stock IMHO.
VTCO - Virtual Technologies based in Minneapolis. They are an internet reseller that just posted an earnings rise of 2350% over the previous year's quarter. It looks like they have figured out the internet marketing strategy that alludes so many small companies.
I recently spoke to the "CVO". He was very knowledgable and had some very interesting ideas and results from his company. I will give you as much DD as I have found. These are just some of the topics that we discussed. This company seems to be going down the right path and could begin to realize it's potential in the very near future.
Just wanted to see if you or anyone else thought the same about this company as I do.
One other thing, he mentioned that one of their major competitors has filed a red herring with the SEC for an IPO. Their IPO is registered at ipocentral.com. It is called Cyberian Outpost and it is going for $15 to $20 per share.
Wazzy
Here are some of the points that were made in our conversations and e-mails.
Question: Do you know how many outstanding shares there are and many in the float?
Answer: As of Jan. 31 1998, <8.4 million outstanding and approx. 3.1 million in the float.
Very low share count. Most of the funding has been accomplished by the officers of the company and outside investors. With all the diluted penny stocks out there these days, this looks like a very promising situation. It doesn't appear that this company is short of money at this time or was in the past.
Question: Do you plan on submitting to the SEC in the near future?
Answer: Yes, we do. As a matter of fact, the annual report and the quarterly report ending April 30, 1998 should be out by the end of the month or very soon thereafter.
Very good news also
Question: How do the partnerships between CNet and ADNet work?
Answer: He said that the banners, etc. from ZDNET and C/Net do not directly
produce revenue in that they don't pay us, we pay them to advertise there.
However, having said that, we are in negotiations with several manufacturers
due to the fact that we have "bought out" several categories on these sites,
if Hitachi or Viewsonic or Sony want exposure in say the Monitor category of
C/Net or ZDNET, they would have to get into a marketing agreement with us
in order to do so, since we basically now own all the monitor real estate.
This is a strategy we have to try and wash some of our marketing costs with
vendor money. We are getting ready to sell ads on our own site, probably
by September, we've been contacted by many companies wanting to leverage our
traffic."
Two press releases in one day. The first:
Thursday June 4, 6:09 pm Eastern Time
Company Press Release
VTC Profits Multiply
MINNEAPOLIS--(BUSINESS WIRE)--June 4, 1998--In the first quarter of 1998, Virtual Technology Corporation (OTCBB:VTCO - news) posted net sales which were an amazing 235 times greater than those of first quarter 1997.
Ken Israel, chief virtual officer for the online computer hardware and software retailer, credits VTCO's recent success, to an aggressive new marketing program. Virtual Technology's net sales for the first quarter of 1997 were a meager $38,469.
Utilizing banner ads on CNET, ZDNet, USA Today's Marketplace and Digital River's home site, Virtual Technology's aggressive new campaign reaches thousands of potential buyers each day. The web sites publish prices from multiple sellers along with links directly to VTC's site to make buying quick and simple. VTC attracts buyers by providing secure online transactions, free same day shipping, technology reviews and a wide array of products at competitive prices.
Billed as the World Wide Web's premier source for speed, power and graphics, the company is currently one of the top three Internet resellers in the country, fulfilling the needs of a large audience of computer users and online shoppers.
Virtual Technology Corp.'s products may be purchased online via virtual-world.com or via telephone at 888/982-0245.
--------------------------------------------------------------------------------
Contact:
Virtual Technology Corp.
Ken Israel, 612/915-1122
va-mail.com
or
Makenna Delaney & Sullivan
Bob Sullivan, 760/931-2500
venturefinance.com
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The 2nd:
Thursday June 4, 6:05 pm Eastern Time
Company Press Release
VTC Partners With Ziff-Davis
MINNEAPOLIS--(BUSINESS WIRE)--June 4, 1998--Virtual Technology Corp. (OTCBB:VTCO - news) has formed a partnership with Ziff Davis; an online marketing specialty company hosts the ZDNet Web site along with a host of others.
VTC has direct links to ZDNet as part of its service to savvy online hardware and software buyers.
Virtual Technology Corp., one of the top three Internet resellers in the country, realized first quarter 1998 net sales which were 235 times greater than first quarter of 1997. Chief Virtual Officer Ken Israel credits an aggressive new marketing campaign launched in February with the astounding increase in first quarter net sales. The relationship with Ziff Davis contributed to this increase in sales.
Ziff Davis is an online marketing specialist offering links to shopping sites for computer shoppers. Ziff Davis publishes more than 800 ad-packed pages in each issue and its circulation is booming. Nearly all of its subscribers plan to purchase computer products through a direct channel in the near future. These sites cater to buyers who crave the best and want to know the full scope of products available.
Buyers are interested in the newest, faster, and most powerful products while maintaining an eye on price. Ziff Davis' typical computer shopper fits the following profile: they have a mean personal income of $66,100, 63% are college graduates, and they spent an average of $46,658 on direct purchases.
VTC launched its new marketing program on Feb. 9, 1998 with listings on CNET's pricewatch.com listings on six other shopping guide Web sites, including Ziff Davis' ZDNet site. Virtual Technology specializes in hardware and software to enhance computer users' power, speed, and graphics capabilities. The aggressive new marketing campaign targets potential buyers with banner ads on USA Today's Marketplace, and Digital River's home site, as well as ZDNet and CNET.
With direct links from price comparison sites from multiple sellers, ordering from VTC's site is safe and easy.
Virtual Technology Corp.'s products may be purchased online via virtual-world.com or via telephone at 888/982-0245.
1996 Annual Report from their website Here is an excerpt from the annual report. (location vtechco.com
Initial marketing of our Virtual Access E-Mail product has commenced, and the preliminary results are encouraging. Our web site had over one million visitors in first 30 days averaging 200-300 downloads of free trial software per day. One in four of the people who visit the site takes the software, a strong 25% "hit rate". |
