Dynamic Response Group Inc. (fka DRGZ)

[RandyKCMO]

LATEST DYNAMIC RESPONSE GROUP (DRGP) DD SUMMARY

DRGP is an innovative marketing solutions company that specializes in short form infomercial and internet sales. They have been rapidly growing their revenues and appear to be accelerating this growth for the foreseeable future. From 2006 to 2007 they increased their gross revenue 65% from $12.3 to $20.1 Million. They expect gross revenue to increase in 2008 to "at least $40 Million." In the First Quarter the company grew their revenues by 130% and did just over $10 Million in revenue for the first quarter of 2008. This confirms that they are on track for the minimum revenue estimates for 2008. PLUS DRG reported net income of $180,000 for the quarter.

In their June PR we heard that through May 31, 2008 the company had MORE THAN TRIPLED their 2007 revenues for the same time period. Plus last week CEO Melissa Rice filed her initial Form 4's showing that she has accumulated over 450,000 shares on the open Market. This is a pretty encouraging!


RECENT HEADLINES:
May 15: Dynamic Response Group, Inc. Announces First Quarter 2008 Financial Results
-- Company Generates Record Revenue of $10 Million
-- Reaches Profitability and Maintains Positive Cash Flow
-- Reiterates Guidance of at Least $40 Million in 2008
http://biz.yahoo.com/bw/080515/20080515005560.html?.v=1

June 4: Dynamic Response Group Expands Operations to Service Hispanic Community Pharmaceutical and Medical Needs
Alarming Increase in Type 2 Diabetes Among Hispanics Leads to Launch of Subsidiary, Medico Express, Inc.
http://biz.yahoo.com/iw/080604/0403619.html

June 12: Dynamic Response Group on Torrid Sales Pace; Gross Sales Triple Over Same Period of '07
Led by Riddex and NASCAR, Company Expects to Surpass All Forecasts for '08, Bucking National Downturn at Retail
http://biz.yahoo.com/iw/080612/0406285.html


RESEARCHING DRGP
If you're beginning your research, most people start at Yahoo Finance. Since the company if fully reporting, you will have access to all their SEC filings, statistics, financial information and latest news: http://finance.yahoo.com/q?s=drgp.ob

If you want to dig deeper, I would suggest starting with Jonathon Ziegler's analysis on Dutton Associates. FYI, Dutton receives a fee for coverage...but then make their own independent decision about whether to recommend or not. As of April 22, 2008 there is an updated report available at the site.
http://www.jmdutton.com/research/DRGP/index.html

To see if there has been any more press releases, check:
http://ih.advfn.com/p.php?pid=news&cb=1208144235&symbol=DRGP
Anticipated Announcements: Update of website, additional Form 4's, Initial Form 3, Success/milestones of new product initiatives.


COMPANY'S STRATEGIC PLAN
On Jan 22, 2008 DRG announced one of the more significant events, retaining Burson-Marsteller, a global public relations firm. If anyone can get DRG's story out to the right people, it will be Burson-Marsteller. Here's the PR announcement:
http://www.reuters.com/article/pressRelease/idUS252375+22-Jan-2008+BW20080122 If you want to be impressed check out B-S's website: http://www.burson-marsteller.com.

On February 19, 2008 CEO Melissa Rice released a letter for shareholders that tells of some of the company's past accomplishments and goals for the future. Among them is their stated plan to uplist to a broader index.
http://www.dynamicresponsegroup.com/doc1.pdf

If you want to hear management's perspective on what's ahead for DRG, their recent Conference Calls are very informative. They are still in the process of building their infrastructure, but clearly have big plans for the future. If you have some time, give it a listen. If you listen to the Questions and Answers you will even hear a couple questions from me!
http://www.investorcalendar.com/IC/CEPage.asp?ID=127601


SUMMARY OF RANDYKSD'S PREVIOUS POSTS
As I've been a pretty vocal long you can review some of my posts below. Some have proved to be overly optimistic...but on the whole they have been pretty well on track. Here are a few posts that pretty well state my perspective, predictions and expectations for DRG's future.

7/18/2008 DRGP PRO/CON DISCUSSION POINTS
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30790985

7/18/2008 DRGP Frequently Asked Questions (FAQ)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30791223

7/5/2009 ONE MORE POSSIBEL REASON...MAYBE MOST PREVALENT
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30482071

7/2/2008 POSSIBLE REASONS DRGP IS TRADING AT 3 CENTS
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30450265

5/31/2008 Why is the Share Price So Low?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29687573

5/30/2008 DEBT, DILUTION, AND INCREASING AUTHORIZED SHARES
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29678740

5/19/08 Interesting Conference Call Excerpts
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29420464

5/13/2008 ACCUMULATION OF CHEAP SHARES CONTINUES
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29248401

4/15/2008 Tracking Down Every Share in 2007
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28511720

4/14/2008 Addressing Long Term Potential: Is $4-5.00 Possible?
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28492322

4/4/2008 SMART MONEY WILL FIND THE VALUE: Good things in the 10K
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28217514

3/29/2008 What to Expect Monday Morning (3/31)?
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28026485

3/22/2008 In 2007 DRG Refocussed Self as a Marketing Company
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27837339

3/6/2008 My Story and Confidence in DRG's Long-term Success
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27418067


CONCLUDING CHALLENGE AND THOUGHTS
If you have any questions or see any RED FLAGS, please post them as a response and someone will try to answer your questions or address your concerns.

I've already made my decision with regard to DRG and invested quite heavily in it. At present I own over 1% of the company. As the companies marketcap increases, so will my investment (and unfortunately vice-versa if it goes down). A handful of acquaintances have done the same. I believe that in time the market will more accurately reflect the true value of DRGP. SMART MONEY WILL FIND THE VALUE. DRG is still a largely undiscovered gem. As a IHUB board we only have 36 boardmarks. I do not doubt that DRG's day will come...will it be when they put out doubled revenues, their first sizable profit, some new block buster product? Who knows? All are possible.

Over the last months we've had several of the highest volume days of trading in the stock's history. As the stock price has declined I do not doubt some of these buyers have grown impatient or worried and sold shares into this decline.

What do I expect for stock price? Well, I surely expect that it will trade up from current levels for starters. The revised Dutton Associates report states that they expect DRG to earn $.02 per share this year, that would be just under $1.8 Million. What percentage gain bring to DRG's share? Who knows? Patience will be the key. If the company is growing and following a business plan that's working, we can expect good things for years to come.

Let me finish with a quote that I think applies directly to DRG from Peter Lynch's Golden Rules:

Rule 5: Often, there is no correlation between the success of a company's operations and the success of its stock over a few months or even a few years. In the long-term, there is a 100% correlation between the success of the company and the success of its stock. This disparity is the key to making money; it pays to be patient, and to own successful companies.

(For all 25 Rules and Bill Matthew's Cheap Investor Principles see Ibox at: http://investorshub.advfn.com/boards/board.asp?board_id=12482 )

(Notice: this DD Summary should not be considered my recommendation for you to buy shares of this company--do your own Due Dilagence):





The Light has come into the world, but men have preferred darkness. If you want to know the Truth, just ask. :)

Check out a new Ihub board I've started:
AS IRON SHARPENS IRON http://investorshub.advfn.com/boards/board.aspx?board_id=12482