CMG Holdings Group Inc (CMGO)

[User-65225]

The KEY is that this stock would be undervalued without ANY of these lawsuits. The recent lawsuit win is all EXTRA cash, which does not require any more overhead to collect = profit/free cash flow... and with this ultra low market cap, it makes this ticker a screaming buy, hence the buybacks!

Glenn and his legal team have PROVEN that they can win against these clowns. I think this 2nd case is a slam dunk and they know it... but again its all EXTRA, not the CORE of the investment here: https://backend.otcmarkets.com/otcapi/company/dns/news/document/35739/content

The $2.7 million lawsuit is paid over 30 months, so last quarters record/net profitable growth was mostly from the underlying biz, not the lawsuit. This is important to remember, cause some inaccurately assume it was boosted heavily from of the lawsuit win.

We are investing in a THRIVING biz... and these new multi billion customers (EA Sports= $30 billion) were not included in last Qs record growth. Proper perspective is important to understand the value here and get in EARLY.

Revenues of $1MM+ up 358% YoY, Profitability Maintained
XA Sales Funnel Builds with Multiple Seven-Figure Contract Bids Progressing
Approved 100MM Share Repurchase and Began Returning Capital to Stockholders
Company Pursuing Legal Action Against Former Attorneys

https://www.otcmarkets.com/stock/CMGO/news/CMG-Holdings-Reports-Strong-Second-Quarter-Results-and-Provides-Update?id=237087

Forward Revs are less than the market cap and if they continue to rapidly rise via "Multiple Seven-Figure contracts", i dont see how this wont move higher

... and not only are the numbers increasing, the OS is decreasing.

Taking profits under 1X revenues/1-2 PE ratio is not savvy imo.

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CMG finished the quarter with a cash position of $409,589

Thats some nice ammo for buybacks, acquisitions, etc esp if it continues to grow each Q... and remember, the cash position is growing because of SALES, not because of dilution.

Many CEOs would use their excess cash to just pay out big bonuses, but Glenn plans to buyback a ton of shares and who knows what else he could do to push the needle.

Great position for a $4 million dollar company.
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Additionally, CMG would like to give an update on its business outlook. During the quarter, XA, the Company’s operating subsidiary, closed a six-figure contract with a world-renowned clothing retailer which has the potential to become a seven-figure relationship after its initial scope of work is completed. Further, XA continues to work with several new clients on installations each to be in excess of $1 million and expects to close at least a couple of these opportunities this year which will become 2019 and 2020 business. XA continues to see clients returning with $50K - $100K jobs on a continual basis, which builds its book of business and provides visibility to future results.

Said Laken: “Overall, we have returned XA to strong growth and sustained profitability, which management projected heading into this year. With this operational momentum and our expected cash proceeds from non-operating activities, the Company is in the best state of operational health and liquidity position it has enjoyed in years. I believe we have laid the foundation for a great future for the Company and expect to create substantial value for shareholders in the future. For these reasons, our Board of Directors approved a 100 million share repurchase program, which we initiated in June and which continues to be executed today.”

https://www.otcmarkets.com/stock/CMGO/news/CMG-Holdings-Reports-Strong-Second-Quarter-Results-and-Provides-Update?id=237087

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CMGO buyback DD/proof:

CMG Holdings Group Inc. pursuant to their Board of Directors approved a repurchase program on June 10, 2019 to buy back up to 100 million common shares over the next two years. The Company announced today that it has started the repurchase program by purchasing 1,050,098 common shares in the market at an average price of .00769. The shares purchased in this announcement and future purchases will be retired to the treasury which will reduce the corresponding amount from the outstanding total share pool.
https://www.otcmarkets.com/filing/html?id=13508886&guid=_ehIU6mgIW7cO3h
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CMG Holdings Group Inc. pursuant to their Board of Directors approved a repurchase program on June 10, 2019 to buy back up to 100 million common shares over the next two years. The Company announced today that it is continuing the repurchase program by purchasing 990,000 common shares in the market at an average price of .0073. The shares purchased in this announcement and future purchases will be retired to the treasury which will reduce the corresponding amount from the outstanding total share pool.

https://www.otcmarkets.com/filing/html?id=13532613&guid=_ehIU6mgIW7cO3h
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CMG Holdings Group Inc. pursuant to their Board of Directors approved a repurchase program on June 10, 2019 to buy back up to 100 million common shares over the next two years. The Company announced today that it is continuing the repurchase program by purchasing 1,000,000 common shares in the market at an average price of .00735. The shares purchased in this announcement and future purchases will be retired to the treasury which will reduce the corresponding amount from the outstanding total share pool.

https://www.otcmarkets.com/filing/html?id=13664102&guid=46qfUF8KQDJcith
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We recently passed a resolution which has enabled us to buy 100MM shares of our stock to be retired. I discovered a rich vein of shares that I believe can be purchased way below the market. We have 38.5 m shares on our books that are restricted. They have been on deposit with the transfer agent and have remained untouched for 7 plus years. They are as small as 10k shares and as big as 500k to 1 million shares. One thing is for certain, they are never going to be deposited to trade. I have begun to call some of the listed owners. I have discussed buying them back by the company at severe discounts and there is good interest. I believe over the next couple of quarters, we will be able to repurchase the majority and reduce the OS by between 5-8 percent. I am very excited by this prospect and so should CMG shareholders be. As the process moves along, I will keep you informed.

https://www.otcmarkets.com/stock/CMGO/news/CMG-Provides-Corporate-Update?id=240325
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CMG Holdings Group's Board of Directors Authorizes 100 Million Share Repurchase Program
CHICAGO, June 13, 2019 (GLOBE NEWSWIRE) -- The Board of Directors of CMG Holdings Group, Inc. (OTC: CMGO) announces today the approval of a share buyback program of up to 100 million shares of the Company's common stock over the next two years. The share repurchases will be made at the discretion of the company through the open market purchases and/or privately negotiated transactions.

CMG's Chairman and CEO Glenn Laken said, "We are very excited by the prospects for the company going forward and have decided to implement this buyback based on our view that the price of the stock does not accurately reflect the value of the company and its increasingly positive prospects. We believe that this program is a very important step in increasing shareholder value. I'd like to thank our loyal shareholders for their support. Further information on CMG developments can be found at @CMGOnews on Twitter." The repurchases will be made with cash on hand, free cash flow from operations, and potential bank financing. Full details of the stock repurchase program may be found in CMG's report on Form 8K which will be filed within the next few business days.

About CMG Holdings Group, Inc.

CMG Holdings Group, Inc. is a Chicago holding company whose primary operating subsidiary is XA – The Experiential Agency, Inc. (http://www.experientialagency.com) - which engages in the alternative advertising, digital media, experiential and interactive marketing, and entertainment sectors. XA is involved in production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. The business also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks to design and develop individual broadcasting digital media channels to sell, promote, and enhance their digital media video content through mobile, online, and social media. XA serves clients across the marketing communication industry. Separately, CMG Holdings Group owns Lincoln Acquisition Corp., a subsidiary formed to manage its portfolio investments.
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Lets do some simple math: $481,000 NET profits for the quarter X 4 quarters = $1,924,000 Forward NET profit pace

$3,416,246(current market cap) divided by $1,924,000 (forward net profit) = a current 1-2 Forward PE ratio.

Then add in the fact that the OS is shrinking via buybacks, which are being fuel by these numbers... along with the fact that they dont have any significant convertible debt + revenues and their cash position is increasing.

I dont see how this wont move higher than this valuation level. Even do-nothing crap tickers can maintain levels much higher than $3 million cap. This should move to at least a 10 forward PE (.04+), which is STILL relatively cheap compared to its peers.

The people that are selling are not paying attention to the dramatic fundamental shift that is taking place... and will regret it imo. Its simple math

“As you can see, CMG executed well during the three-month period ended June 30, 2019. Total revenues of $1.06MM were up 358% YoY from $232K in the prior year’s same period aided by strong execution and financial management. The Company generated a net profit of $481K up significantly from a loss of ($183K) in 2Q18. We remain debt free at the XA level leaving the business in a great position going forward. XA’s fundamentals are improving and the unit has a very clean capital structure, which are the best of both worlds.
https://www.otcmarkets.com/stock/CMGO/news/CMG-Holdings-Reports-Strong-Second-Quarter-Results-and-Provides-Update?id=237087