Broadmark Capital Announces Investment Opinion on GlobalMedia.com.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by Broadmark Capital SEATTLE--(BUSINESS WIRE)--June 12, 2000 GlobalMedia.com (GLMC GLMC Glacial Lakes Motorcycle Club GLMC Great Lake Music Camps ) Nasdaq. (Vancouver, B.C.) GLOBALMEDIA.COM (Nasdaq:GLMC) (4 7/16) STRONG BUY Outsourced Interactive Streaming Solutions Initiating Coverage June 12, 2000
Recent Price $4 1/2
52 Week Range $4- 9 5/8
Shares Outstanding (MM) 23.4
Float (MM) 5.6
Market Capitalization (MM) $106.1
Average Daily Volume (000) 93,818
Total Debt (000) $0
Cash Per Share $0.33
18 Month Target Price $16
Fiscal Year Ends: July 31 2000E 2001E 2002E
----- ----- -----
FY Revenue (MM) $1.08 $27.43 -
Earnings Per Share
Q1 $(.08) $(.19) $.00
Q2 $(.11) $(.14) $.03
Q3 $(.16) $(.09) -
Q4 $(.19) $(.05) -
Year $(.54) $(.47) -
P/E NM NM NM
Shares Fully Diluted (MM) 22.0 31.5 -
Company Description: GlobalMedia.com enables businesses to lever lever, simple machine consisting of a bar supported at some stationary point along its length and used to overcome resistance at a second point by application of force at a third point. The stationary point of a lever is known as its fulcrum. their existing brand, customer base and content over the Internet through a private labeled, interactive streaming media See streaming audio, streaming video and digital media hub. and e-commerce solution that provides businesses with incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenues and engages their audiences online. Key Points -- We are initiating coverage of GlobalMedia.com with a Strong Buy rating and an 18 month price target of $16 based upon 7x our estimated CY2001 revenues. This represents a 360% increase over today's price level. -- Streaming media services are key instruments in transforming the Net from a static text-based experience into a dynamic interactive experience that embodies the visual and audio richness of television. These services are excellent ways of attracting traffic to web sites and maintaining the viewer's interest. For e-tailers, streaming content generates incremental advertising and e-commerce revenue by increasing traffic and providing interactive information on products and services. -- While GlobalMedia.com is developing a large network of radio stations that use its streaming audio A one-way audio transmission over a data network. It is widely used on the Web as well as company networks to play audio clips and Internet radio. Computers in home networks stream audio (mostly music) to digital media hubs connected to home theaters. capabilities, we believe the greatest opportunity lies in enabling content rich web sites such as corporate sites, e-commerce providers and infomediaries. GlobalMedia.com engages site visitors through a private labeled GlobalMedia Player, which provides websites with a medium to capitalize upon their content through interactive rich media advertising and e-commerce. We believe streaming media services, such as those provided by GlobalMedia.com, will enjoy strong growth as high-speed Internet access See how to access the Internet. becomes widely available and that the GlobalMedia Player will become widely adopted as streaming media becomes a "must have" feature. -- We believe the fragmented frag·ment n. 1. A small part broken off or detached. 2. An incomplete or isolated portion; a bit: overheard fragments of their conversation; extant fragments of an old manuscript. 3. industry of companies serving broadcasters with streaming solutions is ripe for consolidation. On June 8, the company announced the acquisition contracts to provide streaming and e-commerce solutions to 212 radio stations, demonstrating its leadership in this consolidation. -- The Company recently arranged a private equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. that will provide up to $10 million, of which $5 million has been closed. The addition of these funds strengthens the company's balance sheet and in our opinion will be adequate to fund the company through Q2 FY2001. It is anticipated that GlobalMedia.com will require an additional capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. to finance the company until it is cash flow positive, which we project will occur in Q1 FY2002. -- The company bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. its management team with the addition of Jeff Mandelbaum as its President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Mr. Mandelbaum brings GlobalMedia.com leadership from senior executive experience building emerging technology companies such as RealNetworks, CommerceOne, and Sybase. -- GlobalMedia.com commenced trading on the Nasdaq National Market on April 25th. This was a major stepping stone for the company that will expand its exposure to the investment community and improve access to capital. We believe GlobalMedia.com should be a key long term holding for diversified diversified (di·verˑ·s portfolios seeking exposure to streaming media technologies through a basket of infrastructure and enabling technology stocks. |
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