Dynamic Response Group Inc. (fka DRGZ)

[RandyKCMO]

DRGP Frequently Asked Questions (FAQ)

1. On what exchange does DRGP trade?
Company is fully reporting and trades on the OTC Bulletin Board. Company has opening expressed it's intent to uplist to a broader exchange as soon as practical

2. How many shares outstanding and in public float?
As of Q1 10Q filing on 5/15/08 there were 90.5 Million shares O/S. I don't believe actual float numbers are known. Estimates 18-40 Million.

3. Isnt' DRGP (earlier known as Youth Enhancement) just a Procede hair care product company?
They were at one time. However, as CEO Melissa Rice has noted, in 2007 DRG has broadened itself to be a marketing and branding company. This means that DRG is not tied to any one product...but is free to find, develop and market products that it believes will make it the most money. DRG is a at the junior stage (at penny prices) but is heading for the major leagues...or should I say broader markets. All this is of course just my opinion, but I expect great things in the years to come.

4. How much insider Ownership?
Often a good guage for management's expectation for the future is how many shares they own and have they been buying of selling. The 2007 10K showed that CEO Rice owns 2.6 million shares and Emus 2.3 million shares. Company has just started filing initial Form 3's/4's. We know that at least CEO Melissa Rice has been buying shares in the public market. We're still wating to hear what others are doing.

5. How much dilution has been taking place?
Well, since August 2007 filing when there were 81.1 million shares outstanding, the company has added around 10 million shares (see May 15, 2008 count). In the last CC, CEO Rice indicated her desire to increase the number of authorized shares rather than do a reverse stock split...which is good news for investors. ALSO, management has repeated stated that it believes it can manage growth through "increasing cash flows and profits" so it is not looking for any additional capital financing!

6. Can DRG possibly maintain this rate of revenue growth?
The company has grown revenue from $9.3 Million in 2006 to $20.1 in 2008...and expects to exceed $40 Million in 2008. This is only expected growth from their current products. Any new products will be add revenue to these numbers. I've said before that if the company could grow this much revenue on a shoe string budget, just imagine how it will grow them with increasing cash flow and profits.
ADDENDUM: Over the last four quarters, DRG has reported over $28 Million in revenue. If revenue exceeds $7 million for Q2, DRG will have generated over $30 Million in revenue between Q3 2007 and Q2 2008. Amazing!

7. Where can get additional information about Dynamic Response Group?
I think the best resource is the string of reports by Dutton Associates. The original report and updates can be found at:
http://www.duttonassociates.com/research/DRGP/index.html Hopefully, DRG will soon update their website. I've been told the update is going to be very nice...but right now it gives the investing public a somewhat cheesy look and that's not good.

8. If you gross margins are so large (over 80%) and our profits are so small (1.8% in Q1), is the company being run efficiently?
I think this is a pretty important question to understand and think about. Generating revenue without making a profit isn't really all that impressive or exciting. However, it is my understanding that DRG is at a growth stage of amazing proportions. Not only have they been doubling or maybe even tripling their revenue year over year, they have also been expanding their product base and business/personal infra-structure. One of the points I have often made is that if DRG was able to grow like they have on a shoe-string budget, they will be able to grow even more with increasing sales and profits.

REMEMBER this FAQ post is a work in process. If you have questions, or a FAQ you think should be included, please post it as a response to thisp post and (if I agree) I will add it to this list as FAQs when I repost them in the future.

Regards and GLTA.

Randy


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