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I think wit would be a good idea. What could it hurt? If you want I could try calling BLLB today and inquire if they'd be open to giving a tour or showing visitors around. I don't think they would be hostile to the idea of a visitor....my guess is they'd be more than willing to show someone around. I don't think showing up to see the financial records is too viable, but who knows?
If you do make your visit and get some pictures, I'd be interested in seeing them and posting them in the IBOX. I don't know that it would reveal much financial-wise, but we could at least have an idea of the number of employees, size of the facilities and such.
Let me know.
Randy
Does anybody think this company will ever make money?
Randy
Well folks, I'm not in the money yet....but so far my options have gone up. Another 8% and my Sept 50 calls will be in the money. The stock is trading pretty strong. Hard to say just where it stops and retraces. Big money on both sides of the deal.
Regards,
Randy
I don't mean to pump....(well maybe I do a little), but if I was a public company that had some news to release....I think I'd wait till next tuesday to release any news I might have.
Which means that if you're watching this stock, you just might want to take a position before then.
Just my thoughts (backed up by my actions of course).
Randy
I was actually wondered the same thing. I thought maybe the difference between the July 22 press release when DRG reported $9.1 Million in Second Quarter Sells....and the final numbers which came out at $9.5 Million...might be explained as coming from International sales....but who knows?
It is not disclosed in the 10Q. Good question.
Randy
Hey Guys...for the last 6-9 months we've complained on and off about the "Dumper." I might be mistaken, but it seems there's a new guy in town. Not sure what we're going to have to call him (or her).
The "Buyer" seems so generic. Maybe we'll have to call him (or her--not wanting to be sexist)....the "Acquirer." That has a nice ring to it. If you look at yesterday's time and sales....the "Acquirer" showed up around the same time.
We we'll see how many cheap shares are available at these levels.
Nice to see some action...anyway.
Randy
That sounds a lot like the one that was issued a few days ago. I'm surprised by the date on it.... today.
Tried calling the phone number for GXPI but it was busy.
Randy
What I heard on the CEOcast Interview. A few thoughts...
1. Her comment that they knew they were going to be seeing a loss this quarter would have been nice to know. It sounds like things are moving ahead full speed.
2. I thought the comment on the agreement with NASCAR was interesting. NASCAR provides them with leads that they follow up with phone center call backs.
3. Turbo-cooker test results were positive and they are ready to go for the pre-holiday season.
4. Riddex was the focus of their marketing in Q2.... attempting to further brand the item.....which should result in additional sales in present and future quarters.
5. Procede is being given a breather....Not being advertised as much. Will probably make additional push on it down the road.
6. In house customer call center will be fairly small (4-5 persons) but will allow them to screen/sample the calls coming in when new products and/or offers are being made.
7. Reference was made again to the software program being developed that will help them better capture the data from their customers. Mentioned before...but intriguing.
8. DRG will be moving from their current offices to their new offices over the weekend.
Overall I though it was well presented..
Randy
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Investorman....Are you still around? I've followed LUK for quite a while and since I'm a fairly small time investor, I've only purchased options.
What are you thoughts?
I just posted this on Yahoo Finance:
Hello, I was looking over the key statistics on yahoo finance and noticed that it says the float is 16.3 Million shares. A little bit lower it says that the sort position is 10.1 Million shares.
If this is anywhere near accurate...I think we could see a pretty serious short squeeze if price continues to trade higher.
BTW, I'm hoping so as I picked up a handful of Sept 50 calls at a dime the other day. A long shot...but it could happen with Fall approaching. We shall see.
Randy
Well Long, ... that was kind of my point. LOL
This is teh "PROMISING LONG TERM INVESTMENT board. :)
Just yanking your chain.
Randy
Well, it's a little soon to be concluding that. :)
Randy.....
I've been wondering the same thing. :)
Glad to have you around K-Squared. Throwing ideas around and evaluating various sectors is exactly what I was looking for.
Good night.
Randy
Oh yeah, what do you think of our 10 criteria in the ibox?
Randy
Interesting...but another chinese play that sounds pretty impressive. Seems a lot of chinese companies can double their revenues pretty consistently...almost too consistently.
BTW, GHII was another GTEC company that became public through the old GTEC. I will probably watch UTVG to see how it progresses. If/when these companies actually uplist and gain some wider followings I'm thinking there's going to be a good deal of money to be made.
Regards,
Randy
Oddly enough LOTUS Ph. is part of GTEC's history. GTEC used to be Genesis-China and LTUS was one of the companies they brought public.
The only down side with both GTEC and LTUS and a few others is that they are chinese....which is OK...but definitely puts them at arm's length in some respects. I think this is in part why most chinese BB stocks trade at such low multiples.
I'll take a look at some of the others you've mentioned.
Randy
The Light has come into the world, but men have preferred darkness. Want an eye-opener? Check out http://www.thetruthproject.org
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Hey K-Squared, I checked out TISI and the others you mention and they all look pretty sound. I think it was TISI that had a bunch of debt compared to cash but obviously are able to service and grow with it. I think servicing the natural gas producers wll be an ever increasing sector in the US.
As far as the board goes....the design of the board is to try to find TISI and companies like them while there still trading in the $5 range....like back in 2003 when a person could have loaded up on TISI for $2.50 per share.
Finding companies like this is pretty tough....but if you do they can return a fortune over time.
I would say the basic plan is to weed out the fluff and scams...that in all likelihood will never amount to anything....and then try and figure out which companies have the greatest likelihood of long term success.
They're hard to find, but not impossible.
One company that I am perhaps most impressed with lately is GTEC...it is a chinese pharmaceutical company that was reverse mergered into a BB shell. Revenues will top $100 Million for teh fiscal year that ended June 30th...net income will be over 20% of this revenue. They're long term success is not in question. It's just a matter of time.
Little risk...huge upside potential.
WEGI, I don't know about it being a longterm investment. It seems to me that people jump on it when there's bad weather and off when things ease up. I'm not absolute on this one...but I remember reading a recommendation about it once.
Regards,
Randy
I checked with Ameritrade yesterday and they said they have a request in for the shares and will let me know when they arrive.
Randy
FUTURE DRG PRODUCTS: (quoting from the 10Q):
"In addition to the products we currently offer, we have several products in varying stages of testing and development as follows:
• "Turbo Cooker - steams, bakes, roasts and fries with easy clean-up. The Turbo Cooker has internal steam racks that cook different entrees on multiple layers allowing for preparation of a full course meal all in one unit. This product is in the testing and sourcing phases and we anticipate introducing this product nationally in the third or early fourth quarter of this year. this product.
• "Spin Fryer – a patented technology that allows for the cooking of fried foods with 50% less oil on the food after cooking. This product is in the development and design stage, has not been market tested and is not slated for testing until early 2009.
• "Polar Delight – a patented technology that allows for the creation of low calorie, gourmet style deserts using a secret formula of ingredients that is prepackaged for the consumer. This product has not been market tested and is not slated for testing until later this year.
• "Vibio – an exercise platform wholly owned and developed by us. It is currently in the testing phase and we anticipate rolling out and sourcing this product in late 2008 in time for the first of the year exercise demand when consumers renew their interest in health and weight loss.
• "AbFlexer - a patented product that targets the muscles of the abdomen. We are currently under contract with the product owner and have begun testing to make a determination as to market viability for the first of the year health and weight loss shopping."
Will any of these become blockbusters? Who knows? It seems clear that at least some of these have incurred Second Quarter expenses that hopefully will yield later income and profits.
DRG is not going to market products that don't make money (at least not for long). They are not tied to any product in that way. If they can't turn a profit with a product the product goes away (see previous post).
I'm hoping that we hear about how things are going in the current quarter and will hear about management's expectations for the rest of the 2008 and 2009.
Regards,
Randy
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CURRENT DRG PRODUCTS: (quoting from the 10Q):
"We are a marketing company, developer and distributor of branded lifestyle products and solutions to retail consumers. Our products are designed to appeal to consumers who value personal development, wellness, spirituality and entertainment and currently include:"
• ProCede - a hair thickening treatment system for men with thinning hair.
• Riddex Plus - an electronic pest control product that incorporates patented Digital Pulse Technology to create an irritating environment for rodents, roaches and other pests inside walls, chasing them from homes and preventing future pests from entering.
• “Legends of Soul” - a DVD and CD series of current concerts of ten classic soul artists.
• The Official NASCAR Members Club - a bundled package consisting of the NASCAR membership and select merchandise.
I believe that if DRG only wanted to turn a profit in a current quarter, they could by only selling these products.
What did DRGP do wrong this quarter?
I think the main answer is that they didn't make money. In fact, they recorded a loss of $1.8 Million for the quarter.
If DRG had managed to pull off a profit (I know BIG IF), a lot of those declaring how lousy a company DRG is would be keeping their mouths shut....and maybe even buying shares in anticipation of DRG future success.
This brings out the next logical question....WHY DIDN'T DRGP MAKE A PROFIT THIS QUARTER?
I've read over the 10Q (parts of it several times) and I think the answer are pretty clear. I comment on a few of these, but for the most part each one speaks for itself. Could DRG have turned a profit in Q2? I think that is pretty certain, but they seem pretty well intent to continue growing and developing themselves into something more. Hindsight is 20-20, whereas business decisions are made in real time, if not ahead of time.
1. "The losses in the current period are due to an increase in media expenses which are cyclical in nature and generally more expensive in [sic] during the second quarter."
2. "During the second quarter of 2008, Dynamic developed a direct-to-consumer business plan for Medico Express, a licensed durable medical equipment provider that will operate as a wholly owned subsidiary of Dynamic. Management intends Medico Express to be a provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community in the United States, Puerto Rico and the Virgin Islands. In addition to developing the business plan, in June 2008, Medico Express submitted a licensing application to Medicare and is currently waiting on approval."
NOTE: It would have been nice if funds expended would have been quantified. Certainly part is included in the new hires and whatever sign on bonuses they received.
3. "We also experienced a 180% increase in fulfillment and freight due to higher fuel/transportation costs to ship products; and a 181% increase in costs to maintain our call center which is tied to our fulfillment agreement."
4. "During the second quarter of 2008, we undertook testing of several potential products including Mother Mary, New Credit, Celluless, Set N Slice, Fridge Buddy, Sidney Phonics, InstaCurls, SRO Laundry and The U-turn Bra. Based on our analysis of test results, we determined that we would not pursue marketing and sales of these items. As a result, our other marketing expenses increased during the second quarter of 2008 as compared to the second quarter of 2007."
NOTE: In order to test market, commercials have to be made, and airtime needs to be purchase. Yeah, this costs money. That many products being tested and now dropped is one of the advantages of being a marketing company like DRG.
5. "General and administrative expenses increased $1,137,981 or 129% from $880,801 compared to the second quarter of 2007 primarily as a result of an across the board cost of living increase and payment of bonuses to employees; the hiring of two additional senior staff personnel; and increased legal and investor relations expenses."
NOTE: At least some of the Second Quarter loss is attributable to the value of the shares paid to management in luei of cash.
6. "We also began reviewing and updating our ecommerce division to assess how we can reduce our reliance on third party vendors and began development of a new database that will allow us to provide state of the art marketing and direct selling to our customers. In connection with our review, we incurred additional expenses for upgrades and improvements to our websites. As a result our other marketing expenses increased during the second quarter of 2008 as compared to the second quarter of 2007."
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K, well if you'd read through the ibox you would have noticed that this is fundamentals based board.
Basically, we're looking for undiscovered, revenue producing, profitable or nearly so companies that in every likelihood will succeed in carrying out their business plan.
I especially like Peter Lynch's Golden Rule #5
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.
We'll listen to most posters howerever.
Would you say your stocks are fundemental plays or T/A based?
Randy
K-squared. Great to have you stop by. I'm hoping that as we assemble more experience and diverse view points we will be able to be of benefit to each other.
Although the board hasn't really been functioning the way I supposed, I think there is the realization that multiple perspectives can be a good thing.
If you want to give the board a try, mention a company or two that you're looking at and perhaps some will take a look tell you what they think. Perhaps a few others will also.
Randy
BBB, are you trying to tell us GTEC traded up today?? :)
Well, there appears to be a pretty well established trend.
And I don't think the last chapter has been written for either of the companies we've discussed. Until then I think we are pretty well stuck waiting to see what the next quarterly report brings.
Later.
Randy
DRGP PRO/CON DISCUSSION POINTS
I don't suppose I'm a very good gauge of public sentiment... as I've been singing DRG's praises and buying shares while we went from 7 cents down to 2.2...however, here are a few of the things I like/don't like about DRGP.
PRO/POSITIVES:
1. Revenue Growth. I think all agree this is DRG's trump card. By any standard, DRG's Market cap should not equal the total revenue of just one month...make that 3 weeks. That's silly. While gross revenues were $20 Million in 2007, after Q2 is reported we should have over $30 Million in the preceding 4 quarters and we then have our biggest two quarters to come. I think $50-60 Million in revenue in 2008 is likely.
2. Management/Current Talent that is Producing this Growth. If it was easy, everyone would be doing it. DRG stands out above the crowd. It's one think to double or triple you revenue from 300K or 600K....but to do this increasingly with 10's of millions of dollars is incredible!
3. Fiscal/Financial Control and Creativity. Generating the revenue growth on a shoe string budget was amazing. As cash flows and profits increase, our growth curve should continue to accelerate. When will it slow down? Who knows? I've been told 2007 was a restructuring year, 2008 will be a foundation building year, and 2009 will be a growth year. Hmm...and we're doubling and tripling revenue now. Could next year actually get better than this?
4. Building a Real Company for the long haul. The company is not trying to create a quick turn or provide quick fixes/profits. They've signed on with Burson-Marsteller for a reason....heck they've even signed on with a respected SEC Attorney to set beginning stages of uplisting to AMEX or NASDAQ.
5. Growing Stable of Marketable Products. Current products are selling well. CC told of several new products to be marketed. We should hear about some of them soon. Year-end CC referred to two pieces of exercise equipment and two cooking items...and I believe Melissa also mentioned a green item on Q1 CC. Will any of these become block-busters? It's possible, but we shall have to wait and see.
6. Increasing Investor Awareness. At least for the present we seem to be holding a trend reversal and a higher stock price. (about the time I say this, it could change). We have at least a few new eyes on the company, ihub boardmarks 35. I've also noticed a few new names on the Yahoo Message Board.
7. Medico Express. Who knows what all this will involve and result in? Perhaps a drag on near term revenues and earnings, but longer term could be huge.
8. Management Believes in the future of the company. Check out the open market buying of CEO Melissa Rice!! There are actually two full pages of buys....hundreds of thousands of shares. http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6048172-1344-11528&type=sect&TabIndex=2&companyid=69343&ppu=%252fdefault.aspx%253fcik%253d1098685
CONS/CONCERNS:
1. Company Doesn't Care about Shareholders. Since company has gone public it has mostly gone down in price. Here we sit at 3 and 4 cents a share. If this company really had a bright future shouldn't it be reflected in the share price?
My Response: Herein lies the dilimma. Revenues every 3 weeks are more than current market cap. Management is clearly concerned and has committed to doing what it can. Says fundementals are a great way to increase shareholder value. I agree!
2. Company is a Diluting Machine. The company has gone from 65 Million shares outstanding in early 2007 to just over 90 Million shares outstanding on May 15, 2008.
My Response: While this is true, since CEO Melissa Rice has come on board, dilution has been greatly slowed and better managed.
3. Company's Balance Sheet is Weak. Cash position down from $571K on 12/31/07 to $141K as of March 31, 2008. Plus company's liabilities are greater than it's assets.
My Resposne: All this is true. I bought/am buying this stock because I believe this will be changing as company continues to grow.
4. There are millions of shares out there that will be sold into any rally. This was Rich2rich's main point.
My Response: Yep, this is a partial problem, OR depending how you look at it, an incredible opportunity. I know, we've all heard this before. Question to answer. Is there real value here?
5. DRGP is just like every other stinky pinky and bulletin board company. How many companies have you actually seen succeed? That is actually become profitable and uplist to AMEX or NASDAQ? That's how likely DRG is to succeed.
My Response: Isn't that the point...some do succeed. Isn't that what you're trying to figure out by reading this thread? Just maybe this will be one of them.
6. Better Business Concerns as stated in post #940. There have been 30-40 complaints filed for some products and 4-8 for others. This is bad.
My Response: While there are some negative reports out there, what I could gather most have been resolved and by comparison to the number of products being sold, the number is amazingly small. See my response post #944.
I'm sure there are more. These are just for starters. If you have suggestions, post them and I will try to include them in my next Pro/Con Post. Thanks.
Randy
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?
At the end of Q2 filings on 7/31/08 there were still 90.5 Million shares O/S. Since then we know that at least 4 million additional restricted shares have been issued to CEOcast. Yahoo Finance reports that float to be 86.5 million shares.
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 gross revenue over $31.9 Million in revenue (net $20.6 Million).
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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2. The other company is Vertical Branding Inc. (Ticker: VBDG.OB).
Sales $32.77 Million
Net Loss: $6.0 Million
Cash Flow: -2.8 Million
Debt: $3.8 Million
Market Cap: $13.37 Million
Shares Outstanding: 29.70 millions. Float: 15.66 Million
Share Price: Bid: 44 cents Ask: 46 cents
How does this compare to DRGP...well, by the time you compare the difference in outstanding shares.....(by dividing by 3). Both companies have lost money in their recent fiscals. Both seem to heading for increasing revenues and hopefully profits. Both are the 'show me the profits' stage.
If the comparison was 1 to 1, DRG would be trading at least at Bid: 14.66 cents....ask 15.3 cents.
Thought this was a pretty interesting comparison.
If you compare their revenue to market cap.... approximately 40%. DRG's market cap should be ($20.6 million x 40%) $8.24 Million which would translate to a share price of ($8.24 million divided by 90.5 million) $.091 per share.
So what the world....I think DRG would be fairly valued at this point somewhere between .09 and .15.
Now if DRG continues to mature and make progress toward its long terms profitability I think it will exceed the range listed above.
Randy
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Well, I think that is the question that everyone would like to answer. Over the last months I've posted a couple comparable companies.....
1. One is International Commercial Television Inc. (ICTL.OB)
Check to the Business Summary on Yahoo Finance:
http://finance.yahoo.com/q/pr?s=ICTL.OB
ICTL Last Trade: $1.64
Bid/Ask: $1.60/1.64Market Cap:
Market Cap: 23.72M
Shares Outstanding: 14.47 million
PE Ratio: 21.30
EPS (ttm): .077
Revenue: 2006: $2.98 Million
2007:$11.3 Million
How does all this compare with DRGP?
Well, business model they are pretty comparable, but ICTL's balance sheet is stronger. They have almost $2 million in the bank. However, DRGP has more revenue and a broader range of products.
Another big difference is the number of shares outstanding.
90 Million shares o/s compared to ICTL's 14.4 million shares ...or a factor of 6.5. On that basis alone we could multiply DRGP .022 times 6.5 and it equals 14.3 cents per share.
ICTL is trading at a factor of almost 1 to 1.8 with sales. If you divide DRG's $32.2 Million in sales (from the trailing 12 months) by 90 million...that would translate to 35.7 cents per share.
Now DRG not being profitable throws this whole comparison off...but my next comparison will account for this.
Randy
What a biased presentation...[notice the bold print]
"There was another settlement on 22nd August 2008 & if they settled the whole $205,000 @ 9.74% of the prior days close price thats a settlement @ $0.001948 totaling 105,233,340 shares
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Gary, I think most of the people on this board are able to weigh the benefits and risks of this stock.
Yeah, I see now that I have been a bit over sold--overly optimistic on DRG. I know you're a pretty smart guy and have learned a fair amount from you on this board and back on the SI. I would enjoy your interaction on my As IRON Sharpens Iron board....it is there that we are working on evaluating BB companies on a more theoretical level.
Philosophically, I'm guessing there's not many BB company that you would invest more than a couple thousand dollars in. Besides the crooks and scams, there are very few companies that will grow through their developmental stages and actually uplist to Nasdaq or the AMEX. During this developmental stage there is a great deal of risk and business plans and operations are prone to setbacks and negative cash flow and need capital infusions. I don't know how DRG will come through all this, but I'm still hopeful they will. I think you've been following the company because of your acquaintance with me and because you thought that it just might be one of them that makes it. Time will tell.
One factor that you may not be factoring in is that the current results show expenses for product development that won't show up as revenues until late in the year and possibly until 2009.
Am I concerned about their carrying another Million dollars plus of Accounts Payable....while accounts receivables have gone up only 1/2 a million? Sure. Is DRG walking a tight rope by stretching their cash flow in order to continue growing revenues and develop their business operations? Undoubtedly.
I guess all this is a long way of saying that your analogy, though helpful is not the only possible scenario from this point.
Randy
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MeLikeMoney, I agree there is a bit of a funk overhanging the board and stock. While some of this is warranted...a million plus loss when many of us were expecting a profit is a bit of a disappointment.
We knew that there was going to be some pretty major investments during 2008.
1. DRG's present lease was up and they were going to be moving to other premises.
2. They told us about building their new customer care phone center. "In anticipation of launching Medico Express, management also anticipates expanding its current products and services both of which management believes will require the addition of a local customer call center.
3. They're getting their Medico Express off the ground. Marissa Diez was hired in May to get the Medico Express subsidiary off the ground. I don't know if you read through the 10Q but is says "Medico Express submitted a licensing application to Medicare and is currently waiting on approval."
4. They've hired some pretty important new employees.... Kristina Hammond as Vice President of Operations...a sixteen year veteran from Thane International.
Ordinarily with these developments we would have been glad to have another PR company telling our story (and probably providing some bid support to the stock right now.)
I think a week or two out will give us a different attitude.
Randy
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cgraut, I don't agree. Revenue projections have been based on current products, trends and spending. Mid-way through 2008 we've nearly matched the total sales in 2007.
Plus this was during the toughest part of the year. At mid-point 2008 we've increased revenues 233% over the first two quarters of last year.
While I have to agree with a previous poster that increasing revenues without increasing profitability isn't all that great, yet being able to generate this sort of revenue growth is pretty impressive. I believe revenues will eventually bring DRG into consistent profitability.
Apparently DRGP is still in the developmental stage....but so far has been able to fund their continued growth and development with increasing cashflows and gross profits...an not dilution.
SO FAR SO GOOD.
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Hey Guys...I had sent an email to CEO Melissa Rice last Friday asking two questions.
1. Does CEOcast being mentioned in the last press release indicate we are no longer under contract with Burson-Marstellar?
2. As no reference has been made RE a conference call, does that mean there will not be one?
I received the following response from CEOcast?
Mr. Klynsma,
I am with CEOcast, DRGP's new outside investor relations firm. I have been asked by Melissa Rice to respond to your email. We have assumed investor relations responsibilities for the company, replacing Burson. The company will not be holding a conference call in connection with its second quarter financial results, but will consider holding one in conjunction with its next quarterly announcement of its financial results. Please feel free to contact Dan Schustack or me at (212) 732-4300 with any questions.
Sincerely,
Michael Wachs
CEOcast, Inc.
369 Lexington Avenue - 4th Floor
New York, NY 10017
ph: (212 )732-4300
fax: (212) 732-1131
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I saw this on GTEC's Yahoo Finance Message Board. Is it true that the authorized shares have recently been increased or is this old news?
21-Aug-2008
Amendments to Articles of Inc. or Bylaws; Change in Fiscal Year
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
On August 19, 2008, the Company received confirmation from the Department of State of Florida that the certificate of amendment to its articles of incorporation to increase the number of authorized shares of common stock from 600,000,000 to 900,000,000 was duly filed on July 29, 2008. A copy of the amendment is filed as an exhibit hereto.
CEOcast Weekly Newsletter Begins Coverage of DRGP
Among the other companies they represent...they wrote this:
SPECIAL SITUATIONS:
Dynamic Response Group, Inc. (OTCBB: DRGP) $0.022
Very often small companies operating below the radar screen are undervalued as the investment community is unaware of their business or growth prospects. While DRGP has chosen to grow sales at a breakneck pace at the expense of immediate profitability, there are few companies, even in the current challenging environment, that are expected to generate more than $30 million in sales this year and have market capitalizations less than $2 million.
Dynamic Response Group, Inc. is a leading innovator of strategic marketing solutions. The company uses the knowledge of its customers to create, develop and market innovative products and services that build brand awareness and drive sales across large national and international consumer audiences. The company reaches customers across multiple channels, including direct response TV, the Internet, print, radio, direct mail, and ultimately retail.
The foundation of the company is its direct response TV and Internet advertising business, which has produced many highly effective products including: ProCede, a hair thickening system for men; Riddex, a pest control product; "Backyard Drills with Bill Parcells," a DVD series for fathers and sons; and "The Legends of Soul," a DVD series of current day concerts of classic soul artists. The company has also signed an exclusive three year deal to market The Official NASCAR Members Club to the over 75 million estimated NASCAR fans in the US.
The company recently reported net revenue of $7.2 million for its 2008 second quarter ended June 30, 2008, which increased 166% compared to net revenue of $2.7 million for the three months ended June 30, 2007. The company's record revenue growth nearly surpassed its sales for all of 2007. Gross profit of $6.2 million, which was the highest in the company's history, increased 169% versus the year-earlier period gross profit of $2.3 million. The second quarter is typically a slower quarter for the company, yet it managed to more than double revenue without the contribution of any new products in the quarter. While still not profitable (loss of $1.4 million for first six months '08) primarily due to investments in sales and marketing, the company has generated $15.2 million in revenue for the first six months of '08, nearly triple the revenue from the same period last year.
The company expects to continue the strong sales growth it experienced in the first half of the year, but plans to focus on increasing efficiencies in other areas of operations to drive bottom-line results. The company is also focusing on strategically expanding and diversifying its suite of products and services. Over the coming months the company said it expects to make several announcements about new products and lines of business.
DRG also recently started Phase I of its direct-to-consumer business plan for its new subsidiary Medico Express, Inc., which will become a licensed durable medical equipment provider. Medico plans to be a provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the rapidly growing Hispanic community in the United States, Puerto Rico and the Virgin Islands. It is the only company positioned to serve this growing market segment a s a direct-to-consumer Medicare provider on a national level. Given the company's favorable market position, existing and new product inventory, as well as its impressive revenue growth, with a current market cap of less than $2 million, the stock could provide intriguing upside potential.
DISCLAIMER....among other things we are told at the bottom:
Dynamic Response Group, ten thousand dollars per month and four million shares for a one-year program.
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PRocessor....I think you have put your finger squarely on the problem of boards like Ihub.
I think the first board anyone on ihub should read is Money 101.
http://investorshub.advfn.com/boards/board.aspx?board_id=7489
First things, first!
#1). You have money. Other people want it. All of it!
#2). You want easy money. So does everybody else. They'll get it, too....yours! (and all of it!)
#3). You tell yourself you're smart. You won't lose your money. Fact: Other people are smarter, and they'll still get your money (and all of it!).
#4). People KILL for money. Lying to you, for your's, is cakework. Don't let your money be the icing on someone else's cake.
#5). Re-read the first four caveats again! Read them so many times, you can recite them while passed out drunk! They are THAT important!
Hey Guys,
I have a few questions for the six people that have boardmarked this board.
1. How did you hear about or discover EENR?
2. What was it about EENR's story that is most appealing to you?
3. How long do you think it will take for EENR to generate substantial revenue (over a million dollars)?
4. Would you continue holding your present shares if the stock price went up to 40 cents?
Regards,
Randy
Well, over the last couple weeks we've seen the Ask go down to a pennny a few times. Each time this has happened someone has scooped up the available shares.
Why would someone buy them? Well, my guess is that they believe that ENUI will one day come out of the dark.
On the Bid side there has been a slight improvement. It had been hovering between .008 and .007...but lately it has been bumped a little to .0085.
My guess it is that it is probably the market maker was willing to sell shares at the penny, but who knows? If this is not the case, the sell side can be explained by yet another discouraged shareholder deciding to sell out their position...but then who would be increasing their bid on the other side?
Just some questions I've been pondering. Any other ideas?
IACPA and Gary, I thing the high percentage returns probably has as much to do with how their revenues are recorded as anything.
I remember reading in their 10Q Accounting policies that they record revenues with there is reasonable indication that the customer is going to pay for the item (wording might be a little different).
They sell most alot of their products try our product free for 30 days, just pay for shipping and handling. The customer then has to decide within those 30 days whether or not to keep the product.
Accountingwise....when the product is shipped I'm thinking they book the revenue and then those that return before the 30 days are credited for the revenue returned. I don't believe the shipping and handling is refunded, so at least part of the expense is wash to the company.
I think this also indicates why the sales tax adustments are shown on the bottom of the income statement because they first record the sales tax when product is sold, but they get a credit back if/when products are returned. The profit from Q1 was almost entirely based on this credit.
RK