Key Points about BMII: - BMII projects a total run rate of between $80-100 million in 2002.
- BMII currently manages an advertising and promotional campaign for MET-Rx, the nation's leader in sports supplements.
- Century Media, BMII's pending acquisition target, is one of the nation's largest direct marketing firms, with a dozen Fortune 1000 companies as clients.
- BMII has the exclusive rights to market and advertise the national video release of a four video collector's set of the best of "The Red Skelton Show."
Company Name | Blagman Media International (OTCBB: BMII) | Current Price | $0.0012 (12 hundredths of one cent) | 52-Week High | $0.56 | 52-Week Low | $0.0011 |
Today we have a look at a classic merge and conquer scenario in the $200 billion dollar Direct Response sector. The conqueror-to-be is called BMII (Blagman Media International, Inc.) The new company will combine the talents and clients of some of the biggest names in the infomercial world under the Blagman name. With its announced plans to acquire major companies such as Century Media Inc. and Wellworld Group Ltd., BMII has quickly established a gateway for major immediate revenue stream coupled with rapid internal growth. A-List clients have included the likes of Proctor & Gamble, Kodak, Dainler-Chrysler, Black and Decker, Home Shopping Network, and TriStar. Total combined billings for BMII upon the completion of its acquisitions are expected to run from $80 to $100 million dollars in 2002. This will give BMII the financial leverage and the know-how to change the face of the Direct Response industry.
According to the Direct Marketing Association (DMA), U.S. direct marketing expenditures , currently at $191.6 billion, are expected to continue to grow annually at 7.1% from 2002 until 2005. Moreover, U.S. sales revenue due to direct marketing is estimated to reach more than $1.8 trillion for 2001. Through 2005, such sales are estimated to grow by 9.6% annually to reach $2.7 trillion. Again- Direct Response will cause $2.7 trillion (estimated) in sales by 2005. This figure goes to show the effectiveness of direct marketing as well as the likelihood that demand for Direct Response will continue to grow over the years.
Recognizing the opportunity for strategic consolidation in the Direct Response industry, the management of Century Media and Blagman decided to utilize BMII to facilitate the acquisition strategy. Through its public position, BMII assumed the lead role in the financing and negotiated the acquisition for a combination of stock and cash The company's senior management and board will consist of a combination of senior managers from both companies. Currently, no other direct independent competitor to BMII is in the field of Direct Response having the breadth and depth of its combined enterprises. At present, 99% of the pure play infomercial business is privately held. And for good reason. The margins offered by Direct Response sales are three and four times greater than traditional bricks-and-mortar retail. Profit potential that makes BMII a stock with tremendous upside. BMII CEO Robert Blagman understands the Infomercial sector. Says Blagman, "The primary purpose of these reverse mergers was to make BMII public and create a new BMII, a vehicle with which to build a media-buying infrastructure. BMII will streamline operations, combine miscellaneous expenses, and create synergies within this larger structure to increase economies of scale and lower costs-per-eyeball for their clients."
Given its accomplishments and current plans, BMII appears to have great upside potential in the exciting infomercial market. Blagman Media International has demonstrated is ability to capture substantial clients, as evidenced by its impressive client base. The acquisitions of Century Media and Wellworld will provide BMII with an even larger client base with plenty of experience under its wing. With an expected $80-100 million in billings for 2002 and the prospect of additional mergers, acquisitions, and new ventures, BMII gives investors plenty to look at given its price of just fractions of a penny per share.
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