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YESD.022 Update 52wk range .01 to .23c

YesDTC Holdings (YESD) Uplisted to OTCBB – Update on Product Initiatives
by Joe on January 7, 2011

YesDTC Holdings (YESD) Uplisted to OTCBB – Update on Product Initiatives

Yesterday, we were informed by market regulator FINRA that YesDTC (YESD) had been accepted to trade on the over-the-counter bulletin board market (OTCBB). YesDTC had been dropped from the OTCBB because market makers had failed to maintain adequate quotes. This is happening more and more to small companies as it becomes more expensive for small broker-dealers to trade stocks. Nevertheless, we are clearly very excited to move back to the OTCBB.

Things at YesDTC continue to move forward at a rapid rate. As we announced earlier in the week, we completed the transition of the WordSmart program over to YesDTC and experienced no major glitches in the process. The result has been continuity of the revenue stream, which is now being recognized by YesDTC.

The ratios of media spending advertising costs to revenues are right in line with our projections. This allows us an approximately 50% gross margin from the media spend, before other expenses are subtracted. We are very happy with this ratio and plan to capitalize on our success by aggressively ramping our media spending costs over the coming weeks. In order to fund these significantly increased advertising expenses we have been approved to by one of the leading media funding groups in the country. This will allow us to increase our advertising spending levels over the coming weeks to our desired goal of approximately $100,000 per week.

Considering fact the ratio of revenue we are generating to media being spent is over 2.0, we should be able to generate approximately $200,000 of revenue per week from the WordSmart program alone. On annualized basis this equates to over $10 million.

We are also planning to launch additional versions of the WordSmart program in order to drive revenue growth further. For example, we will soon be launching a separate SAT/GRE/GMA preparation program that will also be endorsed and marketed via Alex Trebek. For the SAT preparation version we will be offering a guarantee of a 200-point boost on SAT scores. We think this will be an incredibly popular program as the difference of 200 points will allow thousands of students to be eligible for entry into universities to which they would previously be ineligible.

We are very excited about the acquisition of the WordSmart product line and want to emphasize that this substantial high-margin revenue stream was acquired at zero dilution to shareholders. It is clearly something I have never seen relative to small-cap companies.

The PureSleep (anti-snoring product see www.puresleep.com) product initiative is very exciting for us right now. We have converted the English version of the PureSleep infomercial into Cantonese and we have now scheduled its airing in Hong Kong and Southern China for February 15th. Our Chinese partner feel strongly that a launch right after Chinese New Year will be optimal. We have also started working on a Mandarin translation to target the more northern parts of China. We are also in discussions with the two largest drugstore chains in Hong Kong and southern China to carry the PureSleep product. No decision on this yet, but we are very hopeful.

Later this month we will be launching a new version of the Simply Music program, (www.trysimplymusic.com) which will include not only the DVD set that teaches people how to play the piano or keyboard, but also a high quality keyboard private labeled as the “Simply Music Keyboard.” Our price point will be approximately $200.00, which will allow us strong margins – and it is a terrific value for the customer as the keyboard along could easily sell for over $200.00.

Later this month we are also planning to launch a new version of MediPendant product based on our new in-house call center. We are excited about this because we think it will significantly improve our order closure rate. Approximate launch date is February 15th.

With YesDTC back on the OTCBB, we are prepared to continue our already substantial revenue growth into 2011. While we believe WordSmart, sponsored by Alex Trebeck, will remain our flagship revenue generator for 2011, we believe several other products will also be strong contributors.

Thank you for all your support thus far. We look forward to keeping you informed of developments as these initiatives continue to roll out and as our revenue base continues to grow at a rapid pace.



http://www.joenoelstocks.com/stocks-covered/yesdtc-inc-yesd/yesdtc-holdings-yesd-uplisted-to-otcbb-update-on-product-initiatives/