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Microcap & Penny Stocks : MSGI Marketing Services Group Inc -- Ignore unavailable to you. Want to Upgrade?

To: Kurt_Ruckus who wrote (18)	12/13/1998 2:06:00 PM
From: Kurt_Ruckus	Respond to of 244

Info and thoughts about the pending acquisition from the Yahoo board. (The poster Travelup offers very concise responses to peoples questions.) First if anyone knew the real details and disclosed them before their announced they may be in violation of SEC rules so you won't get a whole lot. But from what I've learned they've been in the process of evaluating a couple opportunities for many months and are close to something. Close means any day to within 6-8 weeks. I'm hopeful its another List Management/Brokerage company equal to MMI size, as they're very profitable and offer more national exposure and opportunities to the parent, not to mention improved earnings potential. I think the goal is end up with an organization with sales in excess of 100 million which will increase the ability to promote to the institutional investing community. The other thing I've learned is GE Capital is committed and behind the company. GE capital has a lot of financial services business that should/may/could/will ultimately end up with MSGI, MMI and Metro. This I will not expand upon because I'll surely be accused of hyping the company. The other thing is there is a solid group of investors/owners in the company as I stated once before. Insiders, GE Capital, and a Fund Manager hold significant positions in the stock at ranges of $3.50-$4.50 per share. Any dips in the stock price are typically caused by retail selling giving Market Makers the small opportunity to turn the price down. This stock will move.....$10 will be tough by 8 is doable...I suspect GE could lighten up around $8.50 to $9.00, just a guess. Compared to competitors like Harte and Hanks, May and Spah, Abacus, Axiom, this company is easily worth $10 but will require a turnaround in earnings. The real benny is that MSGI has an internet company in the product mix which I don't think the competitors have......and the internet market is hot. Hell if people realized that and we accomplish the rush that other internet companies have realized $10 might not be out of the question. I do worry that the last quarter was anticipated to break even to making a penny a share and they ended up with a bit of a surprise by losing almost 6 cents. The whisper numbers for the year were better than .26 but with the first qtr loss it may be difficult to beat the .26 number.

To: Kurt_Ruckus who wrote (18)	12/13/1998 2:14:00 PM
From: Kurt_Ruckus	Read Replies (1) \| Respond to of 244

Thoughts on the AMEX deal in response to a Yahoo basher (posted by Travelup) First MMI is a big part, if not the biggest part of the MSGI business and story. MMI represents at least 50% of the companies total sales and is profitable. As a matter of fact, they are more profitable than MSGI prior to merger.....period end of story. So don't be mistaken about the significance of their role, its key to their continued success. The merge was designed to provide MSGI with cross selling service opportunities. MMI can bring in the large national multi million dollar accounts which MSGI wants to service. WHY? Because they already have them! Arrangements such as the AMEX deal shows their continued contribution to the process. The 3 million dollars represents sales and yes list managers receive 10% commission on sales....but these type of relationships typically expand into larger relationships. By the way wasn't it you who stated the Amex deal was only worth a $1000? If you review MMI's story you'll see they've brought a many deals to the table over the past 6 months some just management, some brokerage and management, some exclusive ad placement. You view the Amex deal as hype I view it as another feather in the hat with positive impact on earnings. So what's wrong with that? By the way every $300,000 adds over two cents to earnings.....so I have no problem learning about every $300,000 deal we come across. The way I figure it with World Wildlife, Nature Conservancy, Green Peace and National Parks will easily add another 3-5 cents to earnings. And I'd rather hear about the progress of all deals small or large. Obviously you think only big deals are worth mentioning but in the direct marketing industry the biggies are far and few between and a deal worth 3 million in sales is relatively large. So I suspect one of two things, your either a competitor of MMI or MSGI and are down playing their continued success.......or your negativism is the result of your attempt to drive the price down for whatever reason! Good luck with your efforts!