Is iHub A Scam?

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To: Mark Johnson who started this subject 5/17/1998 11:28:00 AM
From: Mark Johnson Read Replies (1) of 2

http://siliconinvestor.advfn.com/readmsg.aspx?msgid=4489288

The original version can be found at
http://www.techstocks.com/~wsapi/investor/newsletter-25

Medialink Worldwide

Geoffrey Eiten of OTC Growth Stock Watch http://www.otcgsw.com
provides the following stock idea on Medialink Worldwide (MDLK 20).
Below is the write up.

BUSINESS SUMMARY

"Medialink is the world leader in providing video and audio production and
satellite distribution services to thousands of television and radio stations for
corporations and other organizations seeking to communicate their news to
the public. Medialink produces video news releases (VNRs) and distributes
them via satellite to more than 1,000 television newsrooms worldwide. The
company also offers a full range of radio production, distribution and print
services and provides research and analysis to determine service effectiveness
and assess return on investment. The company serves more than 1,300 clients
including dozens of Fortune 500 and Fortune 100 companies.

Founded in 1986 and based in New York, Medialink maintains offices in Los
Angeles, Washington, DC, Chicago, Dallas, Atlanta and Norwalk, CT;
international headquarters in London; and a network of affiliates in more than
17 countries in Europe, Asia, the Pacific Rim and Latin America. Medialink
concluded its Initial Public Offering on February 4 of this year to become the
first public company in the PR service industry.

INDUSTRY OVERVIEW

The worldwide market for Medialink's services is estimated to be $500
million and is growing at an annual rate of 20% to 25%. In addition to
international deregulation of the airwaves for television and radio, there are
two main forces fueling this growth: First, television and radio broadcasters
have an unquenchable need for material. The demand for broadcast media
news programming has grown to some 2,100 hours of television news per
day, while radio programmers must fill an incredible 31,000 hours per day.
Medialink provides television and radio stations with quality audio and video
to fill those hours at minimal cost to the stations.

The second force driving Medialink's growing market is the thousands of
corporations, organizations and individuals seeking to influence public opinion
and consumer behavior through television news. These clients and potential
clients are increasingly looking to outsource public relations work to
competent and cost-effective agencies. In fact, outsourcing of public relations
services has been growing at an average annual rate of 25% to an estimated
$625 million in 1996.

Television is a powerful medium and studies show that its influence on
consumers and viewers is much greater than that of either radio or print. A
study done in 1994 by the Roper organization found that 72% of Americans
get most of their news from television and Americans over 18 years of age
watch an average of 30 hours of television per week. Getting one's message
across as a television news clip rather than creating a traditional ad is another
growing trend as the line between "news" and "advertising" is increasingly
blurred. Since 80% of Medialink's business comes from VNRs, business is
likely to remain strong.

COMPETITION

Medialink has a decided edge over the six or so private companies that offer
services similar to those of the company. Medialink has developed a sterling
reputation for quality and customer service and its staff is replete with
top-notch media professionals. On the services side, Medialink is able to
distribute VNRs via satellite to 700 television stations while most other
companies rely on overnight delivery. The cost of cassette distribution, which
is usually borne by the producer of the VNR itself, is much greater than that of
satellite distribution and cassette distribution takes much more time.

Medialink benefits from exclusive contracts with both the Associated Press
and the ABC NewsWire. Medialink's satellite-fed VNRs are seen by station
news personnel because the advisories are transmitted several times on the
Medialink/AP Express Newswire directly into the newsroom computer
queues or to a dedicated high-speed teleprinter. Medialink's exclusive
agreement with ABC NewsWire enables the company to transmit the text
advisories of Medialink radio projects into more than 1,000 radio newsrooms
and provides Medialink with a direct data transmission pathway to all ABC
NewsWire affiliates across the U.S.

With its recent acquisition of London-based On Line Broadcasting and its
several foreign offices, Medialink is the only company of its kind with
international capabilities. Business Strategy

Medialink follows a four-point strategy for growth that is both straightforward
and intelligent. The company's goals are to: 1) seek accretive acquisitions and
strategic alliances, 2) develop new services, either through acquisition or
internally, 3) leverage its client base to increase the rate of repeat business,
and 4) take an aggressive, yet deliberate, approach to global expansion.

Medialink has had thirteen consecutive quarters of strong revenue
and earnings growth

Thus far, the company is satisfying these goals at a rapid clip. In June 1997,
Medialink acquired Corporate Television Group, Inc. (CTV), a preeminent
business video communications company whose clients include Microsoft,
Philip Morris Cos. Inc., General Instruments, Compaq Computer, and others.
The acquisition was immediately accretive to earnings (contributing
approximately $600,000 in the first two weeks as a division of Medialink);
increased Medialink's available services, and expanded Medialink's presence
and potential abroad.

In August the company acquired London-based On Line Broadcasting Ltd., a
leading specialist provider of audio and video communications services. This
acquisition enables Medialink to give its clients broadcast exposure in Great
Britain and establishes a gateway to the countries served by British news
networks. recent results
Medialink has had thirteen consecutive quarters of strong revenue and
earnings growth. The company has approximately $12.2 million in cash and
cash equivalents and only about $260,000 in long-term debt. Revenues for
the second quarter of 1997 increased 62% to $6,639,000, from $4,102,000
for the second quarter ended June 30, 1996. Net income for the 1997
second quarter of $729,000, up 143% over net income of $300,000 for the
comparable 1996 quarter. Earnings per share for the second quarter reached
13 cents on a weighted average of 5,443,000 shares outstanding, an increase
of 44% from pro forma earnings per share of 9 cents on a weighted average
of 3,453,000 shares outstanding in the prior year's second quarter.

For the first half of 1997, revenues were $11,062,000, 49% ahead of
revenues of $7,431,000 for the first six months of 1996. Net income rose to
$1,058,000 over the $495,000 recorded for the first half of 1996, an
increase of 114%. Earnings per share rose 50% to 21 cents on a weighted
average of 5,116,000 shares outstanding, over pro forma net income per
share of 14 cents on a weighted average of 3,453,000 shares outstanding for
the comparable period in the prior year.

CONCLUSION

Although Medialink has a relatively short record as a public company, its 10
year reputation for quality and professionalism has made it a world leader in
video/audio production and satellite distribution services. Exclusive
agreements with the Associated Press and ABC Newswire serve as huge
barriers to competition, and the availability of stock with which to purchase
smaller competitors leaves Medialink well positioned for growth through
acquisition. The company's acquisitions thus far have furthered its goals of
expanding the services it can offer as well as increased the company's
international presence. With relatively little debt, approximately $12 million in
cash, and a solid strategy for growth, Medialink should continue to dominate
the worldwide market for public relations services."

Dionex Corp.

The Clean Yield provides the following stock idea. An annual subscription is
$80 for 12 issues and you can contact them at 802-533-7178. Dionex
Corp. (DNEX 49 1/2) is a recent selection from their newsletter. Below is
the write up.


"What do computer chips and chocolate chips have in common? For one
thing, both require a high level of purity; for another, both rely on advanced
chromatography to ensure their manufacture is contamination free. From
pharmaceuticals to power generation, from environmental law enforcement to
biophysics research, a glance at the cutting edge of applied science and
technology reveals a near-universal thrust-isolating and identifying substances
in increasingly minuet quantities. In rough analogy to the computer as a
processor of data, the chromatography column is a ubiquitous laboratory tool
for separating chemicals, and, like the computer, it is being called on in a vast
and expanding range of fields.

The growth in liquid and ion chromatography, in particular, is being sparked
internationally from established applications, such as monitoring water quality.
In the U.S., it is also coming form new uses, such as detecting ion
contamination in manufacturing integrated circuits. Such growth with diversity
makes for strong investment potential, but to separate out the best in the
competitive mix of instrument manufacturers, the investor also needs
columns-in this case the kind consisting of numbers.

The company's spare cash has gone into a stock repurchase program

In analysis by the numbers, Dionex is a winner. After 17 consecutive years of
record sales and earnings, DNEX is again projecting double-digit
year-over-year sales gains. DNEX has long been the market leader in ion
chromatography, and now it has become a major player in high-performance
liquid-chromatography systems as well. Building on a reputation for
top-quality products and service, Dionex's pattern has been to expand
through alliance rather than acquisition. The firm is committed to staying at the
technological frontier, and it funds an ambitious R&D program and aggressive
patent protection, the result being a continuing stream of products for new
markets. Overseas sales-now over 60% of the total-have been growing
fastest.

Dionex's penchant for purity extends to its balance sheet. With virtually no
long-term debt, DNEX uses its abundant flow of cash as a solvent for any
obstacles to development. Competition is stiff and international growth is
being tempered by a strong dollar, but sales gains, coupled with disciplined
expense-side management, have kept DNEX's net margins trending upward.

Few high-tech companies can point to the consistent, all-but-predictable
stock price rise that Dionex has seen. The company's spare cash has gone
into a stock repurchase program that has been injecting extra per-share zip
into more gradual earnings gains. With few shares in circulation and little
following on Wall St., volume is low. Our analysis? Buy at prices below 50."




Southern Energy Homes

Ripples In The Wave provides the following stock idea. An annual
subscription is $157 for 17 issues and you can contact them at
352-378-8008. Southern Energy Homes (SEHI 9 3/4) is a recent
selection from their newsletter. Below is the write up.


"Southern Energy Homes is a vertically integrated manufactured housing
company. They operate ten manufacturing facilities which produce
manufactured housing under six brand names. They sell these homes through
six company owned retail centers and through a network of independent
dealers at 859 locations in 30 states. The company also offers transportation
services to move these homes to their final site an has a finance division which
provides consumers the means to purchase the homes. The company also
owns four supply divisions producing wall panels, windows, doors and
countertops, wood molding and trim finishing and kitchen and dining room
furniture. These supply divisions generate about half of their annual sales to
third parties.

Manufactured housing accounts for about one in every three new homes sold
in this country due to a cost of less than half per square foot than a typical site
built home. (Excluding the cost of the land.) This puts home ownership within
reach of more people, especially when the economy is growing.

The market cap for this company is around $150 million versus
revenue over $300 million

Southern Energy has enjoyed an above average growth rate in the industry
and has maintained one of the highest operating profit margins of the public
companies in this group. The company has also strengthened its financial
position in recent years with a rise in stockholder equity of 35% last year.

The market cap for this company is around $150 million versus revenue over
$300 million for an attractive price-to-sales ratio of 1:2 while earnings of
$0.87 in the past four quarters places the P.E. ratio near 11, which is a
substantial discount to its historical and projected growth rate. Book value
near $5.00 per share places the stock at roughly twice book value. The
company has repurchased 485,000 shares of its stock in the past few months
at an average price of just under $10 per share. Insiders are neither buyers
nor sellers of shares in the past 18 months, but they own nearly a third of the
company collectively."