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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Phil Jacobson who wrote (15038)	4/17/1999 4:02:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

<MESG> Phil, did you see this ? iionline.com Judith Graham (4/16/99) We got the message, and hope you did too. Since we recommended MessageMedia (NASDAQ: MESG) on February 18th, the stock has skyrocketed by as much as 324%, from $6.31 to $26.75. Since then, the stock has pulled back to a recent $20. Is it too late to join the party? We don't think so. Like this Article? Following a ticker symbol change on the NASDAQ exchange from 'MAIL' to 'MESG' on March 30, the leading provider of E-mail-based direct marketing services shot up 40%, rising by as much as $8 in Tuesday's (4/13) trading. Why? MessageMedia inked a deal to provide e-mail messaging services for Standard & Poor's online investment information and advisory service. And the market appeared to love the news. By using MessageMedia's e-mail service, Standard & Poor's will be able to provide same-day financial news and market and investment information directly to subscribers in the first hour of stock trading. But the S&P deal doesn't explain entirely why the stock has been running up consistently for more than two weeks. Some investors are mystified. 'As are we,' says Larry Jones, president of MessageMedia. 'In our mind there's nothing other than the story is starting to get out about our company. If you look at the volume that's been trading, the story is really starting to get out to the street.' $10 Million Investment Last month, Pequot Private Equity Funds invested $10 million in exchange for newly issue shares of MessageMedia's common stock, providing much-needed financing. MessageMedia, which has yet to turn a profit, had suffered serious financial distress. Fortunately, Softbank Holdings now holds a 49% stake which helped MessageMedia's fortunes. With added support from Pequot, MessageMedia now has additional resources to accelerate marketing and development efforts to add new products and clients. The e-mail medium has taken off due to growing demand in the last year for corporate messaging, e-commerce, and public messaging. Companies such as MessageMedia are now getting increased attention. As more corporations outsource messaging jobs to messaging companies, a whole new market segment is emerging to help customers use e-mail for newsletter delivery, e-commerce transactions, marketing initiatives and customer care, Jones says. 'If you take those four functionalities and position them against a new emerging medium called e-mail, our business is, and will continue to grow dramatically, which I think the market is rewarding us for,' Jones says. As MessageMedia's sales force pursues more partnerships, investors can expect more S&P-type initiatives. And, more of those deals will help the company become profitable. 'The business model is price per messages and revenue grows proportionally to message growth,' he says. 'Inevitably we will try to acquire other business to our market space.' Bottom Line: Look for MessageMedia to gain momentum from further messaging initiatives and to benefit from the current enthusiasm for Internet-related issues.