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To
OTC Journal Members:
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InterFirst Capital
Issues Buy Recommendation on Cross Media Marketing (AMEX: XMM) |
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Today, just after the market closed,
there was a news release concerning Cross Media, issued by InterFirst
Capital. Matthew S. Venardi, research analyst at InterFirst, has
issued a buy recommendation, with a 12 month price target of $13.
Based on today's closing price, InterFirst
Capital's projection offers a 44% return on investment if
the stock meets their expectations.
The OTC Journal continues
to believe that Cross Media will eventually trade to $15 within
the next six months barring any cataclysmic world or market events.
Today's chart offers an interesting
look at a potential ongoing winner. Since our
November 5th Trading Alert at $6.70, the stock has seen a high
of $9.40 on November 19th. Net Appreciation: 40% in three
weeks.
More importantly, volume has picked
up dramatically since the company completed the acquisition of LifeMinders
and the stock was reverse split 1:5 on October 25th.
After a 40% run up in just three
short weeks, the stock is now taking a little breather along with the NASDAQ,
and has pulled back to a very attractive entry level.
Support has clearly formed in the
$8.25 range, but today's news will bring an entire new audience for this
stock, and it would surprise us to see the stock pull back to support with
new players coming in.
More likely, XMM will move
back up the charts from here and challenge the $10 level next. The
analyst at InterFirst is conservatively projecting the company will earn
$1 per share in 2002, and even at $10 the stock will only be trading at
10X 2002 earnings.
With an annual growth rate of 50%,
a PE of 10 on next year's earnings seems extremely conservative, with many
growth companies trading at 20 to 30 times 2002 earnings.
The company needs to achieve several
more quarters of impressive sales and earnings growth to convince investors
the stock should trade at a 20 to 30 multiple. However, if this is achieved,
we are looking at $20 to $30 for the stock some time in 2002.
We strongly recommend accumulating
this stock up to $10, providing investors with a solid return if and when
the stock hits our target of $15. We also believe there will be
more coverage coming from various other brokerage firms as the company
is spending a significant amount of time in front of Wall Street Analysts.
In the interest of
full disclosure we inform 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 the shares at any time at his own discretion.
This should be viewed as a potential conflict of interest.
Buy XMM up to $10.
Here is the complete text of the news release for your review:
InterFirst
Capital Corp. Announces Investment Opinion on Cross Media Marketing Corp.
LOS ANGELES--(BUSINESS
WIRE)--Nov. 28, 2001--InterFirst Capital Corp. has initiated coverage on
Cross Media Marketing Corp. (XMM) with a buy rating and a 12-month price
target of $13.
The research report
titled "Long-Term Potential Upside Outweighs Near-term Uncertainties" highlights
Cross Media's strong management, scalable business model, and the synergistic
acquisition as well as some of the potential risks involved. For copies
of the report, call 800/227-2226.
Cross Media Marketing
is a multi-product, multi-channel direct marketing company that integrates
sophisticated marketing skills with new technologies, including e-mail
marketing, Web-based systems and interactive voice response, for the sale
of multi-magazine subscription packages, discount buying club memberships
and telecommunication services.
Through its various
direct marketing channels, the Company contacts and retains critical data
on more than 18 million consumers annually. For more information on Cross
Media Marketing and to download the InterFirst Capital research report,
visit the Company's Web site at www.xmmcorp.com.
Any recommendation
contained in this report may not be suitable for all investors. Moreover,
although the information herein has been obtained from sources believed
to be reliable, its accuracy and completeness cannot be guaranteed. InterFirst
Capital Corp. may make markets and effect transactions, including transactions
contrary to any recommendations herein, or have positions in the securities
mentioned herein (or options with respect thereto) and may have performed
investment banking services for the issuers of such securities. In addition,
employees of InterFirst Capital Corp. may have positions and effect transactions
in the securities or options of the issuers mentioned herein and may serve
as directors of such issuers.
CONTACT: InterFirst
Capital Corp.
Matthew S. Venardi, 310/234-2100
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Next week: We hope to have the entire
text of the InterFirst Capital research report up on the internet for you
to view.
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