InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
Subscribe Login/Register
S&P 500
5,475.09
(
0.27%
)
US TECH 100
19,250.80
(
0.45%
)
Dow Jones
39,169.52
(
0.13%
)
Brent Oil
86.68
(
0.17%
)
Bitcoin
62,943.29
(
0.15%
)
Post# of 2559
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next

RandyKCMO

Send PM Follow Ignore
Followers 41
Posts 3508
Boards Moderated 2
Alias Born 09/20/2007

RandyKCMO

Re: ProfitScout post# 316

Saturday, 03/22/2008 9:08:50 AM

Saturday, March 22, 2008 9:08:50 AM

Post# of 2559
I was running the numbers from the last press release...about Procede sales surpassing $26.5 Million. I actually thought the number would be higher. Back in May of 07 their press releases mention that their Procede sales were $22 Million. That means from January 05 to May 07 they sold an average of $785K of Procede..... since then they have sold $450K per month.

I'm thinking this is a major positive. It appears that DRG has re-evaluated its focus and asked what is it that they do well...are they a Procede company or a marketing company? Procede was returning a rate of return of 1.5 to 1. That is for every dollar spent on advertising was returning $1.50. Their other products... Legends and Riddex must be yeilding a much higher rate of return. Where are their resouces best used? Selling Procede or other products? The comment in the press release points us in that diretion:

|"our ability to translate that into valuable
| products and innovative marketing strategies
| that strongly appeal to consumers."

Well, I think they realized that their money is better spent elsewhere than mostly on Procede and this has been a good thing. As we look to the future, the simple arithmatic is really exciting. They spend x number of dollars on advertizing and they have a fairly predictable rate of return... x times 2 or 3 or whatever. On their website they talk about proprietary algorithms which they use to evaluate the results of their marketing.

As their cash flow increases... so will their ability to place more ads and yeild more revenue. If the business model works at current levels...it should continue working for years to come. I've been thinking--though I would be interested in the thoughts of others--that DRG's business model is probably quite recession proof. While big ticket items will bear the crunch of recession spending...personal hygene and household expenses items should well.

Now if we come up with additional blockbuster products the sky is the limit. Who knows what products are already in the pipeline or those that will eventually enter it? I believe that so far we have really only scratched the surface of the potential.

Pretty exciting.
Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Last Read Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up