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NAMC Newswire
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IMPART Media Group Focused on the Future
Wednesday, 19 April 2006
IMPART Media Group Focused on the Future
NEW YORK, NY, (NAMC) – The NAMC Newswire has been following a particular growth company by the name of IMPART Media Group (OTCBB: IMMG) that is involved in the digital signage business. This is an industry that has been growing rapidly as technology has been advancing and advertisers have been seeking alternatives to television and print advertising.
In our last report we made mention of the major players in the digital signage business such as the privately held PRN Corporation, who are one of the driving forces in the digital signage business in the United States today, they boast clients such as Wal-Mart (NYSE: WMT), Costco (NASDAQ: COST), Best Buy (NYSE: BBY), Circuit City (NYSE: CC) and Albertsons (NYSE: ABS). We also mentioned the Shanghai, China based Focus Media (NASDAQ: FMCN) who are the leaders in digital signage in Asia, we also mentioned a lesser known company by the name of IMPART Media Group that is based in Seattle, Washington, in the state that China’s President Hu Jintao is currently visiting.
Now, prior to the arrival of China’s President Hu Jintao, China made several deals with U.S. based companies such as Microsoft (NASDAQ: MSFT) as it relates to Lenovo and Boeing (NYSE: BA) as it relates to a purchase of aircrafts by China.
With China and Chinese companies looking to be global players, they are looking at all the possibilities from the automotive industry as they look to import the Geely in 2008 to the Technology and Software industries, the digital signage industry is no different. It presents a major revenue generating possibility for Focus Media in the United States, this is why we view IMPART as a potential acquisition candidate for Focus Media. But that is not the only reason why we happen to like IMPART, it runs deeper than a potential acquisition.
Just yesterday afternoon the Seattle, Washington based IMPART Media Group released their annual report, which stated that the company had revenues of only $4.9million for the year ended 2005. Now this figure does not come as a surprise to those familiar with the company but for those that aren’t we need to make it crystal clear so that there is a full understanding of what we are looking at.
The year 2005 was a transformation year for the IMPART and it was only in 2006 that they were able to secure funding of upwards of $4.5 million and commenced with certain acquisitions at that point, which included the acquisition of the New York advertising firm E&M Advertising.
Now the acquisition of E&M Advertising closed on or about February 28, 2006 so the revenue stream from the acquisition was not reflected in the annual report for 2005 obviously. This is what makes IMPART a very interesting situation as their growth has just begun.
In the latter half of 2005 IMPART posted a majority of their revenue and according to certain public documents E&M had revenues in the vicinity of $40 million in 2005 or approximately $10 million per quarter or $3.5 million per month. Now IMPART was only able to book one months worth of revenue from E&M Advertising and IMPART booked a little under $1.5 million for the entire last quarter without E&M. Now if you do the math, even if IMPART made no further acquisitions and went forward with E&M and their current business model, they would still do in the vicinity of $40 million for the year, that is over an 800 percent increase in revenues for the year.
Now put aside acquisitions and possible suitors, lets look at the numbers and the center of their potential. Currently IMPART is trading at $2.45, where it closed on Tuesday, April 18, 2006, this is based on $4.9 million in annual revenue. Now when the company does post their current quarter’s numbers, which should be north of $10 million, the increased revenue should give a jolt to the stock price and it will begin to reflect its true value. A situation such as this is where you want to be settled in before it happens, this is why as an investor you need to do your homework, read the company’s filings, look at their press releases, read the article in the Wall Street Transcript that featured IMPART Media Groups CEO Joe Martinez, it’s all there in black and white but it’s useless if you do not utilize the information to benefit from.
Keep in mind that the company should be planning to become listed on the Nasdaq Capital Markets shortly and based on the numbers that we just went over it should be moving forward sooner than later.
Typically, the NAMC Newswire would not endorse a stock that trades on the OTC Bulletin Board market unless it presented a unique growth situation, and based on everything that we have researched and what we have stated to date, we see IMPART Media Group potentially trading in the $7 to $10 range in the next quarter or so. This is taking into account that they file for a listing on the Nasdaq Capital Markets, which we see as imminent.
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