Message-ID: <6015157.1075862082548.JavaMail.evans@thyme> Date: Mon, 5 Nov 2001 13:33:06 -0800 (PST) From: bounce-otcjournal-1011326@lyris.otcjournal.com To: mike.carson@enron.com Subject: Trading Alert- Cross Media Marketing- Up 27% The Last Time We Covered It Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: "OTCJournal ListServer" X-To: Carson, Mike X-cc: X-bcc: X-Folder: \MCARSON2 (Non-Privileged)\Carson, Mike\Deleted Items X-Origin: Carson-M X-FileName: MCARSON2 (Non-Privileged).pst If you are reading this message in plaintext or if you have an AOL address = you must click on this link: http://listserv.otcjournal.com/otcjournal/2001= 1105-1.html and wait for a web page to automatically open up to properly r= ead this newsletter.=20 [IMAGE]=09=09[IMAGE][IMAGE]=09 [IMAGE]=09 [IMAGE] November 5, 2001 [IMAGE] [IMAGE] Volume IV, Issue 95 [IMAGE] = Email : info@otcjournal.com URL : http://www.otcjournal.com To OTC J= ournal Members: Quick Note- Before deciding if you want to participate, p= lease read the OTC Journal's section on Trading Alerts found on the left h= and menu bar of our home page. For a Track Record of former Trading Alerts,= Click Here . [IMAGE] Trading Alert- Cross Media Marketing (AMEX: XMM)= [IMAGE] [IMAGE] Our last Trading Alert on September 5th was Cross Media= Marketing at $1.30. The stock traded up to $1.65 for a 27% return five day= s after our release, making many of our members very happy with a nice shor= t term gain. In fact, we are convinced the stock would have continued highe= r had the September 11th disaster not derailed the entire market. Just li= ke the stray cat you have fed, the OTC Journal is back for more as we had s= uch a great meal the first time around. Cross Media closed at $6.70 today= , but it is really back at the $1.30 level from September 5th. The company = completed its merger with Lifeminders on October 25th and did a 1 for 5 rev= erse stock split. Therefore, split adjusted the stock has returned to the $= 1.30 level we had so much success with the first time around. Breaking ne= ws on the company just after the market closed today puts Cross Media back = on our radar screen. The OTC Journal is bringing this breaking news to you = first. With the Lifeminders merger finally completed, Cross Media is now = positioned to enlighten us about future performance. The company revealed t= oday that it anticipates 50% organic growth in 2002, leading to revenues in= excess of $150 million, and EBITDA earnings of $23 million. Net earnings a= re expected to be $15 million, or $1.15 per share post reverse split. For= investors who still believe in looking at PE Ratios, the stock is therefor= e trading at 5.8 times projected 2002 net earnings with a 50% growth rate. = Here is an excerpt from today's news release: Preliminary projections c= all for the Company achieving record revenues and earnings for the year end= ing December 31, 2002. Revenues are projected to be in excess of $150 mill= ion, representing a 50% increase over expected revenues for 2001. The reve= nue projection is based on organic growth from all operations and do not gi= ve effect to any potential acquisitions. Net income is expected to grow i= n excess of 50% resulting in a minimum of $15 million of net earnings and $= 1.15 earnings per share based on a fully diluted base of approximately 13 m= illion common shares outstanding. EBITDA (defined as earnings before intere= st, taxes, goodwill, amortization, interest charges and non-cash operating = expense) is projected to be in excess of $23 million compared to calendar 2= 001's projection of $16 million to $18 million. [IMAGE] Recent Devel= opments [IMAGE] [IMAGE] We have interviewed management extensively about = the state of their business, and have learned the company has benefited dra= matically from the Attack on America. Since the attack, consumers are sta= ying home more. Ratings on TV shows are up, and rental activity at Blockbus= ter is exploding. People are more prone to consume their entertainment and = media at home. This is a mega trend that analysts expect to continue. The= company describes itself as "a technology- driven cross media marketing co= mpany integrating its sophisticated direct marketing skills with cutting-ed= ge technologies, including interactive voice response and web-based systems= , resulting in a multi-dimensional marketing platform for the international= exploitation of products and services." Cross Media had the most success= ful week in its history just after September 11th. Magazine subscription sa= les, which represent 75% of the company's revenues, went through the roof. = Consumers were demonstrating a desire to stay at home and be informed. Wi= th market conditions improving, investors are seeking undervalued situation= s with real growth. Cross Media, head quartered just a few miles from the W= all Street Financial district, is bound to end up on the radar screens of i= nstitutional investors now that the stock has been recapitalized into the $= 6.75 range where fund managers will look at it. [IMAGE] Trading Alert D= etails [IMAGE] Here are our thoughts on this Trading Alert on Cross Media = Marketing (AMEX: XMM). The early September move in the stock from the hig= h $6's to nearly $9 came in conjunction with the OTC Journal's last Trading= Alert on the stock. According to the company, earnings for 2002 will come = in at about $1.22 per share. At $6.75 this makes the stock ridiculously und= ervalued. The first analyst report on the company was issued August 30th, p= rojecting $27 (split adjusted) in 18 to 24 months. The stock is sitting dir= ectly on its support line with volume increasing. Clearly, it is under accu= mulation and today's news could be the required catalyst to move this stock= to the upside. Buy up to $7.25 which gives you room to make money if the = stock trades in our favor. If you can get in under $7 it would be ideal. Ve= ry low risk entry level. Set your Stop Loss at $6.00 to give you some room = for a short term pullback or what ever your risk tolerance is. If the stock= can get through $8.50 in the next few weeks should go higher it could find= its way to nearly $10 with a little luck and favorable market conditions. = A move to $8.50 would be the same percentage return we provided from our la= st Trading Alert on this stock. Because of their growth and profitability y= ou can comfortably put this one in your long term speculative portfolio. = The OTC Journal intends to publish follow-up editions on this company. Thi= s stock has the potential to be a huge winner. This newsletter is our opi= nion only, and not a solicitation to buy this stock. Make up your own mind.= If you are looking for a short term trade limit your loss if the stock goe= s against you. As always, we remind you before making any investment decisi= ons please review the section on our home page on Trading Alerts. Read our= section on Successful Microcap Investing , paying particular attention to = the Trading Strategies Section. The track record on our previous alerts can= be obtained by clicking here. In the interest of full disclosure we inf= orm you that one of our editors owns 3000 shares of Cross Media in his own = account with an average cost basis of $8.28. Our editor may buy and sell th= e shares at any time at his own discretion. This should be viewed as a pote= ntial conflict of interest. Here is the complete text of today's news rel= ease for your review: Monday November 5, 4:05 pm Eastern Time Press Re= lease SOURCE: Cross Media Marketing Corporation Cross Media Expects 2002= Revenues and Earnings to Grow by 50+% Revenues Projected to Surge to $150= Million, Earnings to $15 Million, EPS to $1.15 New York, NY - November 5,= 2001 -- Cross Media Marketing Corporation (AMEX: XMM), a leading technolog= y-driven marketing company committed to redefining the art and science of d= irect marketing, today announced that it expects both revenues and earnings= for 2002 to increase in excess of 50%. The announcement was made by Ronald= Altbach, Cross Media Marketing's Chairman and Chief Executive Officer. P= reliminary projections call for the Company achieving record revenues and e= arnings for the year ending December 31, 2002. Revenues are projected to b= e in excess of $150 million, representing a 50% increase over expected reve= nues for 2001. The revenue projection is based on organic growth from all = operations and do not give effect to any potential acquisitions. Net inco= me is expected to grow in excess of 50% resulting in a minimum of $15 milli= on of net earnings and $1.15 earnings per share based on a fully diluted ba= se of approximately 13 million common shares outstanding. EBITDA (defined a= s earnings before interest, taxes, goodwill, amortization, interest charges= and non-cash operating expense) is projected to be in excess of $23 millio= n compared to calendar 2001's projection of $16 million to $18 million. "= Notwithstanding the serious disruptions in our economy, our growth continue= s unabated as we continue to demonstrate the inherent strength and stabilit= y of this remarkably powerful and responsible multi-channel, multi-product,= earnings-generating marketing organization we are building," stated Mr. Al= tbach. "We continue to be extremely successful in our pursuit of earnings a= nd revenues as the numerous and impressive Cross Media milestones proved wi= th $55 million in revenues for 2000; $100 million expected for 2001; and no= w revenues in excess of $150 million for 2002 with earnings in excess of $1= 5 million." Mr. Altbach continued, "As a result of our acquisition of Lif= eMinders last week, we are now well fortified with a solid balance sheet, a= significant cash position, a remarkable 25 million consumer database, stat= e-of-the-art technology and a proven management team. Our mantras are growt= h, earnings and increasing shareholder value." "During 2001, the Company= has converted or retired all subordinated debt and redeemed or converted o= ur preferred stock resulting in a highly simplified balance sheet," conclud= ed Mr. Altbach." About Cross Media Marketing Corporation Cross Media = Marketing Corporation is a leading technology-driven marketing company enga= ged in sophisticated targeted marketing utilizing multiple direct marketing= channels including email, voice, direct mail, interactive voice response a= nd Internet with its proprietary X-ID? profiling technology, resulting in a= multi-dimensional marketing platform. In October, 2001, Cross Media acquir= ed LifeMinders, an online direct marketer, which resulted in an aggregate 2= 5 million consumer database, a significantly improved balance sheet and a s= ubstantial addition to the Company's technology platforms for targeted emai= l delivery. Cross Media Marketing seeks to achieve revenue growth and earni= ngs leverage by cross marketing a broad array of products and services, inc= luding membership services, telecom services and high-end bundled periodica= ls, through multiple channels to an expanding multi-million customer base u= tilizing state-of-the-art direct marketing strategies. Through Cross Media= Marketing's voice-driven customer acquisition programs, Cross Media Market= ing contacts and retains critical data on more than thirteen million person= s annually. The Company continues to exploit its expansive database in othe= r technology-driven marketing channels, facilitating additional e-commerce = transactions to increase revenues while concurrently lowering costs and inc= reasing margins. For more information about Cross Media Marketing, visit t= he Investor Relations section of www.xmmcorp.com or email investor-relation= s@xmmcorp.com. Cautionary Statement Regarding Forward-Looking Statements= This announcement contains forward-looking statements that involve risk= s and uncertainties that could affect Cross Media's ability to achieve the = anticipated financial results. Additionally, certain statements contained = herein and in the information posted on the web site of Cross Media that ar= e not based on historical fact are "forward looking statements" within the = meaning of the Private Securities Litigation Reform Act of 1995. Cross Med= ia intends that forward-looking statements contained herein and on its web = site be subject to the safe harbor created thereby. Such forward-looking s= tatements are based on current expectations of management, including the we= ighted average number of shares outstanding, and involve certain risks and = uncertainties. Cross Media's actual results, performance or achievements c= ould differ materially from the results, performance or achievements projec= ted in, or implied by, such forward-looking statements as a result of risk = factors, including, without limitation, the following: Cross media's abilit= y to integrate the recently acquired LifeMinders, Inc. operations and to ma= ke additional strategically appropriate acquisitions; the adequacy of accou= nts receivable reserves, changes in economic conditions or a material decli= ne in the availability of consumer credit, interest rate fluctuations, Cros= s Media's limited operating history, competitive factors, the need to manag= e growth, volatility in the market price of the common stock and the securi= ties markets generally, risks relating to government regulation of telemark= eting and Internet marketing activities, Cross Media's ability to exploit i= ts database and technological innovations and potential dilution. These fa= ctors are described in detail in Cross Media's filings with the Securities = and Exchange Commission, including, where applicable, its most recent filin= gs on Forms 10-KSB, 10-QSB and 8-K, and registration statement on Form S-4.= Cross Media's filings with the SEC are available to the public from comme= rcial document-retrieval services and at the web site maintained by the Sec= free of charge at http://www.sec.gov . Cross Media does not assume any re= sponsibility to update the information included in this press release or on= its web site, whether as a result of new information, future events or oth= erwise. FOR: Cross Media Marketing Corporation Middleberg Euro for = Cross Media Marketing CONTACT: Alfonso J. Cervantes, Senior Vice Presiden= t Bill Ferguson 212.457.1179 212.699.2742 acervantes@xmmcorp.com = williamf@middleberg.com Charts Provided Courtesy Of TradePortal.com = The OTC Journal is a proud partner of the SwingWire.com Online Investment= Community . 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