Dynamic Response Group Inc. (fka DRGZ)

[RandyKCMO]

DRGP Dynamic Response Group. This morning I posted the follwoing is on Silicon Investor Basement

I'm new to this board but not to IHUB. I read through the Original Post and I think this stock fits the criteria for this board. It is a bulletin board stock with around 81 million shares outstanding, of which around 30 million is in the float.

Pros
1. DRGP was reverse merged into a public shell last year and changed its name from Youth Enhancement ?? in March-April 2007.
2. The company's business plan is practical and working. So far in 2007 year over year revenues have been around 80-90% with their 4Q which is historically their strongest, they will likely end the year with revenue increases of over 100%.
3. Management expects they will double their revenues to over $50 million next year.
4. I expect they will be profitable from this point (4Q) forward.
5. There's a pretty decent report/evaluation of the company on Dutton Associates (see http://www.jmdutton.com/research/DRGP/index.html
6. They have numerous products being marketed and many more in the pipeline.
7. They were looking for additinal financing, but have turned down offers as they were too dilutive to suit management. So I don't think future dilution will be a factor. Management has stated they believe they will be able to fund future growth with present cash flow.
8. Stock is trading pretty near to it's 52 week low. I wasn't sure whether to list this under pro or con. :)
9. I've heard that they company is signing on with a traditional IR company and that there will be some stock promotion in early 2008--take that for what its worth.


Cons
1. I have been disappointed lately that they have not been putting out press releases as they should. (see con #5)
2. For instance their 3Q was not reported with a press release, instead their 10Q just showed up on the SEC.
3. More recently instead of releasing new news, they just posted two articles on their home page http://www.dynamicresponsegroup.com WHY?? Huge news and guidance for 2008 and they don't broadcast it with a PR.
4. Allegedly, the reason for the low stock price is some members of board or management gave "millions" of shares to promoters to hype the stock. As a result even though share prices has been up to .30 six months ago, it has come down to current levels. Why anyone would sell shares at current levels is beyond me?
5. Current CEO is somewhat new to ceo'ing...though she has been a securities attorney for many years. She commented [to me] a while back that, "It seems like whenever we put out news the stock price falls...maybe we shouldn't put out new press releases."





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