CMG Holdings Group, Inc. (CMGO)

CMGO will wake up soon...LONG DD POST!

CMGO.OB-Sleeping Giant-DD (Warning Long Read) and it's connections with
XA, Inc. (XAIN.pk)
Warning: This stock is a long term hold. This stock is undiscovered. No momentum here….yet.
First of all listen to this interview: http://smallcapvoice.com/blog/3-5-10-audio-interview-with-cmg-holdings-otcbb-cmgo/

http://www.creativemanagementgroup.com/index.php


They just closed the acquisition:

THIS STOCK PURCHASE AGREEMENT (this "Agreement") is entered
into as of March 31, 2010 by and among CMG HOLDINGS, INC., a
Nevada corporation with principal executive offices at 5601
Biscayne Boulevard, Miami, Florida 33137 (the "Buyer"), and
AUDIOEYE, INC.,


Why is this important….internet accessibility….Watch this:

http://audioeye.com/IFFactoryPlayerEngine//Modules/Player.aspx?
PlayerID=78
Read This:


Web-site accessibility for the disabled has been a rich source of litigation for the last four years, and the bete noire for major on-line retailers. Yesterday's announcement by Massachusetts' Attorney- General that it had reached an agreement with Apple to make all iTunes stores accessible to the blind is the latest development in what appears to bean inevitable slide to making access to web sites mandatory.

Even though the blind can purchase software and keyboards that will convert website content into braille or speech, the technologies won't work unless web sites have been properly coded. Relying on federal civil rights and diabilities legislation, the National Federation of the Blind has been moving to make such coding mandatory. This August, the federation scored its first major victory when Target settled a class action lawsuit, agreeing to pay $6 million in damages to the Federation for failing to make its web store accessible to the blind. By contrast, Apple got off relatively lightly, agreeing to make a $250,000 donation to a Massachhusetts charity as well as agreeing to a timetable to implement accessibility over the next 9 months.

Canada does not have any similar examples, although similar legislation protecting the rights of the disabled exists. But stay tuned.

Starting to see it………..


Check out the closed Captioning stuff to:

http://audioeye.com:81/blog/?cat=6


Yes they own and acquired XA, inc. ----A big powerful revenue driver:

http://www.experientialagency.com/


Awards & Recognition:

2008:
• Named one of the "Top 30 Powerhouse Event Companies in the World" by Special Events Magazine.

2007:
• Named one of the "Top Event Marketing Agencies" by Event Marketer Magazine.
• Best Event Marketing Campaign Gala Award (Real Simple Holiday Solutions) by Special Events Magazine.
• Best Corporate Event Concept Event Style Award (HBO's 6thSeason Celebration) by BIZBASH.

XA new business pipeline for 2010 is robust and growing rapidly, highlighted by the following three new Agency of Record (AOR) contracts:

1.  Bravo's "Top Chef Tour"(April-June 2010)
A 20+ city National tour throughout U.S. Marketing Services include: Mobile marketing and logistics, consumer activation and overall management of the Tour. In 2008, "Top Chef: The Tour" traveled 10,200 miles, stopped in 20 key cities and hosted three consumer demonstrations at 26 events, resulting in thousands of "Top Chef" fans served with an estimated 1,000 consumer impressions per day. The success of the tour was evident as fans camped out in multiple markets just to get on the waiting list.

2.  Microsoft Worldwide Partner Conference (July 2010)
One of the biggest Microsoft events each year (8,000-12,000 attendees, over 500 events & 300 training sessions. Services include: Consumer activation, interactive/full internet based mobile marketing, event management, etc. Worldwide Partner Conference 2009 Quick Facts: Established: 2003; Partners in Attendance: 5,500; Microsoft Employees in Attendance: 2,207; Training Sessions: 317 (228 Breakout Sessions, 89 Hands-On Labs); Countries Represented: 115; Number of Partners in Microsoft Partner Program: 360,000; Number of Partners Affiliated with Microsoft: over 640,000; Number of Partner Companies in the World:

3. USA Network's Character Projects (2010)
XA services include: Overall production of each Character Project.
Including the above referenced projects, XA currently has committed projects totaling approximately $4 million for FY 2010. XA is also in the bidding/proposal phase for new business in 2010 with the following companies: General Mills, Harrah's Entertainment, Guinness Believer Tour, Gold Eagle, and Conde Nast Reader Choice Awards.
.
As a wholly owned subsidiary of CMG Holdings, Inc., XA is projecting gross revenues of $13.7M USD and $16.1M USD and operating incomes of $2.3M USD and $2.8M USD respectively in years 2010 and 2011 (The above projections reflect the securing of capital financing).
________________________________________________________________________

Here is the independent patent evaluation:

Remember….the owner of the patent…Nathaniel Bradley…is the CEO of AudioEye…and has patents extended from Modavox…which recently changed names to

http://augme.com/


CMGO.OB owns these patents and has perpetual licensing….here is the evaluation…
Long read…look to the bold at the bottom>>and then realize CMGO.OB is only .03cents….It is a huge joke to be this undiscovered and this undervalued….

Modavox patent valuation:
VALUATION SERVICES FOR:

MODAVOX, INC.

FAIR MARKET VALUE ANALYSIS OF MODAVOX, INC. (AND ASSOCIATED PATENTS)

As of October 1, 2009
1250 Connecticut Avenue, NW, Suite 650
Washington, DC 20036
T : (202) 420-7680
F : (202) 429-5673

Shelly Meyers
Modavox, Inc.
1900 West University, Suite 230
Tempe, AZ 85281


Re: Modavox, Inc. - Project X Settlement Purposes Only

Dear Ms. Meyers:


Pursuant to your request, The Kenrich Group LLC ("Kenrich Group") has performed valuation services for Modavox, Inc. (the "Company" or "Modavox") for settlement purposes
in order to assist management in its evaluation of the fair market value of Modavox and Modavox's patented technology. Our analysis was performed as of October 1,
2009.


OBJECTIVE AND PURPOSE

We understand that Modavox is currently in the process of and, more specifically, in discussions with X regarding a settlement of their litigation.

We were asked to provide a current opinion of the fair market business enterprise value of Modavox on a consolidated basis In the course of our analysis, we have focused on the value related to the patented technology.

Our analysis incorporated a review of financial and other data provided to us, as well as discussions with the Company's senior management. Our analysis does not constitute an audit; we relied upon the information provided to us as accurate and representative of the operational history of the Company. The valuation process included consideration of factors affecting the operations of Modavox and its patented technology as well as the ability to generate future investment returns through operations and litigation. The factors considered in our analysis, when relevant and available, included:

The nature and history of the patent technology and the business;

•Financial and economic conditions affecting the patented technology, its industry and the general economy;

•Past results, current operations and future prospects of the business enterprise;

•Sales of similar businesses or capital stock of publicly and privately held similar businesses; and

•Prices, terms and conditions affecting past sales of similar business enterprises.

STANDARD OF VALUE

Fair market value ("FMV") is defined as the price at which property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.

VALUATION METHODOLOGY

Typically, there are three basic, generally accepted approaches for valuing a business or asset:

•Income Approach
•Market Approach
•Cost Approach


These approaches utilize the line of reasoning a prudent investor would follow in estimating the value of a business or assets. In a valuation study, all three approaches to value should be considered, as one or more may be appropriate. The appropriateness for the various valuation methods in any valuation varies with the particular company and industry. Due to the uniqueness of the current situation (Modavox's litigation pursuits as well as the fundamental aspects of their owned, patented technology), we expanded upon the income approach, including an analysis of several scenarios to determine the value of Modavox. To determine the appropriate value to a buyer in the current marketplace, we were required to determine the inherent value of the litigations currently being pursued as well as those that will inevitably occur. As discussed below, the value associated with the alleged exceed that which would be derived from an analysis of the Company's current operations. We have estimated a settlement value for both the value of the company as a pure acquisition as well as the value derived by licensing the patented technology. Additionally, we have also estimated the value of this technology to X internally in terms of increase profit, as well as to the online industry.

CONCLUSION


There are many factors that affect the ability of an appraiser to estimate the value of an entity such as Modavox. Some of the challenges we faced in our analysis are as follows:

•The relative infancy of the current behaviorally targeted advertising market. This aspect has reduced the amount of information available to determine both current and projected market rates associated with use of the technology.

•The lack of detailed information regarding the amount of profitability a potential purchaser will be able to derive from the use of the patented technology.

•The lack of certainty that is always associated with the litigation process.

These factors make it difficult to determine a point estimate of value. Therefore, we concentrated our analysis on developing ranges of value based on key assumptions related to growth, profitability, risk, development of the market and value of litigation (to both X and throughout the industry.) When possible and appropriate, we benchmarked key assumptions with industry data currently available as well as information received from Modavox's senior management.

The following analyses of value represent various value estimates indicative of the value of Modavox:


Preliminary FMV Low High

X Litigation/Licensing Value (Online) $ 146.27 $ 146.27
Industry Litigation Value for the Online Behavioral Targeting (Not Including X) $ 693.49 $ 1,456.69
Value to X Internally (Increased Profit) of Patent Portfolio to X (Online only) $ 569.99 $ 569.99
Value of Patent Portfolio to X Internally and the Industry Litigation Value (Online) Industry $ 1,263.48 $ 2,026.68
Litigation Value: Mobile Behavioral Targeting $ 141.96 $ 524.25
Value to X Internally (Increased Profit) of Patent Portfolio to X (Mobile only) $ 112.60 $ 188.35

Based upon the analysis presented in this report, information we have reviewed, and the fact and circumstances surrounding Modavox's patent portfolio, the of Modavox is between approximately $525 and $575 million.

This report is subject to the attached Statement of General Assumptions and Limiting Conditions. We appreciate the opportunity to be of service to Modavox. Please contact us if you have any questions concerning our analysis.

Very truly yours,



/s/ Krista F. Holt
The Kenrich Group
Krista F. Holt, Vice President


Bradley Patent Facts:
http://www.faqs.org/patents/app/20100095210
 

I think that should be enough for now….Grossly Undervalued!!!!!!!!!!

CMGO.OB is the buy here….

GLTA….this is my sleeper long term hold pick over 36months period.