Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Scooter who wrote (12888)	3/4/1999 3:42:00 PM
From: Joe Copia	Respond to of 25711

To: Silly Rabbit 1 (1165 ) From: Blitz Wednesday, Mar 3 1999 7:37PM ET Reply # of 1206 Here is the write-up, I put it in somewhat short-form, and added some comments of my own... DMEC has four operating divisions: Video distribution and marketing General merchandise Cine chrome cards E-commerce DMEC already does business with Best Buy, Musicland Group, Wallgreens, Sam's Club, Hallmark, Osco, and the Army and Air Force Exchange Service. They are also currently testing in Costco, are in discussions with large clearinghouse/mail order companies, and are negotiating to have inserts in all those monthly credit card statements we receive (Citicorp alone sends out more than 11 million statements each month.). They recently rebuilt their custom video duplication business and will be doing its own duplication in house as well as contract duplication. This will bring gross profit margin to over 40%. Also negotiating with a long time customer for a major duplication deal that could quadruple their revenues with a 20% net profit. The General Merchandise Division was established to sell toy products and sundry merchandise to large discount retailers. The Company has just given this division a face-lift and has entered into a deal with a marketing and Infomercial Company with guaranteed unit sales. Additionally, the Company will be adding product lines and has serious contacts with manufacturers in China. CineChrome Cards: their patented chromium card. Diamond just completed the first 20 cards with Norman Rockwell images licensed from Curtis Publishing. Cards are currently placed in Hallmark Gold Crown stores and sell through is encouraging. The Company will soon have 20 images from Universal Studios which will be marketed in retailers like Music Land. Diamond is also currently undergoing talks with several large corporations about doing CineChrome Holiday cards. This is a potentially enormous market. Imagine, if you will, Anheuser-Busch or Coca-Cola ordering a few hundred thousand cards to send out to employees and customers. Their new E. Commerce Division (to be launched in March), has massive potential. The Company is currently building a top quality web site for an E-Commerce shopping mall and is in discussions with numerous and varied retailers about distributing their products through DMEC's web site. The Company believes it will have over 100,000 items offered through its site within the next 6 months. In summary, the Company was severely hampered last year due to lack of capital. DMEC has spent the last 9 months cleaning up the balance sheet by eliminating debt and raising capital. This in turn has enabled the Company to acquire new video titles and other products, re-establish sales to clients they lost in 1998 and add additional mass merchants to their client base. The Company's Video, General Merchandise, and CineChrome Card divisions are conservatively expected to do a combined $15 million in sales in the fiscal year beginning April 1 and achieve a minimum $2.5 million in profits. This alone amounts to nearly $.06 per share on the approximately 43 million shares that will be outstanding . (11 mill in the float). If the Company is able to nail down any of the major contracts that are currently in discussion, an outcome that we consider to be highly likely, the above numbers will increase dramatically (probably more than double). The Company's E-Commerce site is just icing on the cake and could quickly make the numbers obsolete. Our near term target is $0.50 with a twelve month target of $1.00 Investors Alley, the one who did the write-up on DMEC, has picked ITEC, WCAP and DBCC, which have all done extremely well since they picked them: quote.yahoo.com Also, this very important blip caught my attention: The above recommendations are made using information we believe to reliable. We are not compensated for our picks. I am liking this company more and more each day :) Cheers!