Replies to post #143377 on CASH COW

[stockmann]

Modavox to Launch Webcast Wizard(TM)
Wednesday January 3, 8:28 am ET
Self Publishing Technology Provides Robust Conversion, Publishing and Distribution Infrastructure Fortified by Akamai's World Leading Content Delivery Network


PHOENIX--(BUSINESS WIRE)--Modavox, Inc. (OTCBB: MDVX - News) Internet broadcasting pioneer in producing and syndicating online audio and video, today announced it has developed a Webcast publishing technology leveraging the patented BoomBox(TM) video delivery system. Combined with multimedia synchronization technology, Webcast Wizard(TM) allows companies, organizations and individual consumers to seamlessly publish streaming audio, video, and multimedia presentations to the Internet with every collaborative feature of a professionally authored Webcast.


Webcast Wizard(TM) 2.0 continues Modavox's patented Web 2.0 software applications providing access for users to robust conversion, publishing and distribution fortified by Akamai's world leading content delivery network. The fully beta tested software is currently in use by Modavox clientele and will continue to be sold through Modavox Interactive direct sales. The company is also completing a consumer portal site located at www.webcastwizard.com which will allow customers to access, purchase, and utilize the technology.

Nathaniel Bradley, EVP of Business Development commented, "Having patented infrastructure to build upon gives Modavox a distinct market advantage as we position Webcast Wizard(TM) for a successful launch. The product combines our software with Akamai's network, creating powerful results for Modavox clients who now have access to secure self publishing applications allowing their Vision, Voice, and Identity to prevail as opposed to alternative models not exclusively branded, robust, or proprietary enough to exceed their expectations."

David Ide, Chief Executive Officer stated, "Self publishing models such as YouTube have received a great deal of attention over a very short time. Just yesterday, the Wall Street Journal highlighted the cost savings which may be derived through video streaming in corporate communications. Patented Web 2.0 software applications like Webcast Wizard(TM) not only generate revenues for Modavox, they provide our clients a low cost, highly scaleable, and robust distribution model. We fully believe our tenure in the market along with our vigorous efforts to protect and distribute our technology will be enhanced with the launch of Webcast Wizard(TM) 2.0."

About Modavox:

Modavox, Inc. (www.modavox.com), a pioneer in Internet broadcasting, producing and syndicating online audio and video, offers innovative, effective and comprehensive online tools for reaching targeted niche communities worldwide. Through patented Modavox technology, Modavox delivers content straight to desktops and internet-enabled devices. Modavox provides managed access for live and on-demand internet radio broadcasting, e-learning and rich media advertising.

Forward-Looking Statements

This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Modavox's actual results to differ materially from those currently anticipated, including the risk factors identified in Modavox's filings with the Securities and Exchange Commission.

[stockmann]

Lor,

You see this? From another forum....Good stuff

Interesting point you make.

As you note, others in the space like ONSM for example have in fact been buring cash having yet to reach profitability. Ironically, I don't believe YouTube or any other recent acquisitions in the space have actually even been close to profitability prior to their acquisition.

Despite investors and the markets excitement about Modavox having rewarded the company with nice gains in recent months, people are still not fully aware of one of the most compelling investment attributes of the company, it's EARNINGS LEVERAGE.

The new management team of Modavox runs this company like they're spending their own money, and they essentially are since they own over 12 million shares. They run lean and mean only taking nominal salaries often not seen in many public companies. To them, it's a complete equity play and they too are betting on the company's stock along with all of us shareholders and I think we all know the only way they are able to cash in their own chips is through an eventual liquidity event i.e. sale of the company.

Here's the other key aspect of the story that most don't yet comprehend, their margins run around 70%! As they scale and ramp their topline, the majority of it goes straight to the bottom line generating substantial eps. Although we began to see this leverage materialize last quarter when they turned a million loss into a 50k profit, it should become much more apparent in forthcoming quarters and filings.

At such point when this company is eventually doing $20-$30 million in revenues over the next few years, assuming they are not bought long before, don't be surprised to see roughly $14-$23 million of it flow straight to the bottom line resulting in huge net income and amazing eps. The company is literally a "cash cow".

In conclusion,

Modavox has excellent management with major skin in the game and their goals alligned with ours, they have valuable patented technology and IP, they own the premier on-line internet radio station with premium in house produced content and over 5 million unique visitors, they have an established multi-year old patent likely being infringed upon by some major media companies, they are partenered with Akamai, they are likely acquired within 12 months by a host of companies and last but not, they have incredible EARNINGS LEVERAGE which will drive eps and share value as they ramp revenues.

I am adding on recent weakness viewing it as a buying opportunity with my 12 month target price currently remaining at $5.