CMG Holdings Group Inc (CMGO)

[makingwaves]

POSTING JIM ENNIS' E-MAIL AS PROMISED from my earlier post. Twice this past week I was in e-mail correspondence with Jim Ennis and both times I was quite impressed that the gentleman responded immediately. I felt once again given the content of his response I could share his e-mail with the shareholders. The bold sections expand on what was said in his previous letter and shed new understanding as to what is going on with the company's progress. I advise reading my earlier post this morning because it parallels the same approach to CMGO as Fergus' and many other true long investors. I quote Fergus. "I'm not worried about CMGO, it will take care of itself on it's own time. You know I'm a real long, meaning I can sometimes accumulate shares and hold for two to three years. It's severely undervalued and will find its true valuation. And I will be there when it does". That being said if you've invested in CMGO for just the divvy and intend on selling off your CMGO shares afterwards, that's your perogative and hopefully all will work out for you. The future for both companies in my opinion definitely warrants holding steadfast with one's long position.

Mr. *****,


Thank you for your email.

The AudioEye, Inc. share exchange and work regarding the spinout was a complicated transaction that we anticipate will not disappoint our shareholders over the long term. Their registration statement has been recently filed. Our focus for 3rd Quarter and 4th Quarter is to reduce liabilities from our balance sheet, which will flow to our equity section of the balance sheet. Reducing liabilities along with increasing our assets via our shares in the registration of AudioEye, Inc., our consolidated balance sheet is forecasted to be significantly improved from our June 30, 2012 Quarter. This improvement of our balance sheet will be critically important to our expansion and allows our firm to partner with more traditional financing and investment firms regarding larger capital as we work to expand our platform. We are a holding company that is continuing to work through expansion strategy and we are working to enhance shareholder value over the long term.

We appreciate your support and thank you for your patience as we work through the short term issues.


Jim Ennis
Chief Executive Officer
CMG Holdings Group, Inc.
New York - Chicago - Miami - Tucson - New Haven
www.cmgholdingsinc.com
www.expagency.com
www.audioeye.com
5601 Biscayne Blvc
Miami, Florida 33137