Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
 |
Investor
Forum Off To A Bumpy Start |
 |
If you caught the initial broadcast
of the OTC Journal's investor forum on Tuesday, you might have been
disappointed by the technical glitch. The timing of the audio track
was off by one slide. The problem has been corrected, and you can now view
the intended version.
I was not sure how the presentation
would look, but I was impressed. I particularly liked the option of using
the pull down menu for viewing the individual presentations. This can be
a big time saver if you are looking for specific information. You might
wish to review the NuTech Digital presentation in light of today's
news, which came out after the close.
Simply Click
Here to get to the investors forum, and log on to attend. Here
is the URL for you copy and past folks: http://www.informedinvestors.com/iif_forums/forum.cfm?forumID=345
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NuTech Digital
(OTC BB: NTDL) Gets a Jump On 2004- Revenues Up 33% |
|
In Tuesday's microcap forum, President
Lee
Kasper gave a presentation on NuTech. In the presentation,
Lee
let us know the company intends to vigorously pursue the "Music DVD" market,
and plans to use its revolutionary new DRM (digital rights management
) technology to become the 1200 lb gorilla for downloading music and
concert video over the internet. The DRM technology uses the Microsoft
Windows Media Player 9 to provide internet users the ability to flawlessly
download and view movies on their computers.
The OTC Journal's crack research
team has taken a hard look at the growth of music DVDs. 2003 was a record
breaking year for music DVDs. 18 million music DVDs were sold in 2003,
a double from 2002's 9 million unit pace.
The number of titles also doubled
in 2003. There are currently more than 4,000 DVD Music Video and DVD-Audio
titles available. In addition, 34 million DVD players were purchased by
consumers in 2003, a 34% increase from the previous year. The best sellers
from 2003 cover a broad range of styles and include DVDs from Cher, Dixie
Chicks, Norah Jones, Dave Matthews Band, Paul McCartney, Rolling Stones,
Tenacious D, and Led Zeppelin.
Personally, I am a huge fan of music
DVDs. My collection includes everything from the Rolling Stones to Andrea
Bocelli. The Eagles' DVD When Hell Freezes Over played in
DTS sound mode is the best I have ever heard.
I believe it will become common practice
for most artists to release both albums and concerts in DVD. It is the
logical extension of the MTV music video generation and the digital entertainment
revolution.
Shares of NuTech Digital roared
up the charts on huge volume when the company announced the release of
its new DRM technology, which in my opinion is the best technology for
downloading movies I have ever tried. My experience was flawless. The stock
nearly doubled in one day, closing at $.73 on January 23rd, and subsequently
closing at $1.40 bid the next trading day (26th).
As you can see from the chart, the
stock has since come back to Earth, finding support at $1, which
was the top of my recommended entry level.
The story is just starting on NuTech.
The company had earnings of $.05 per share on $3 million
in sales through September of 2003. Estimates for the year end have the
company delivering about $.07 per share in earnings for 2003 on
$4
million in revs once the numbers are in.
For you PE lovers, a 20 PE would
put the stock right back at the $1.40 level, which I believe is
an extremely low multiple for a company with NuTech's growth potential.
NuTech announced after the
close today that revenues in January were up 33% above the same
month in 2003. This company offers solid earnings, solid growth, and explosive
upside with the DRM internet product.
My price target of $2 over
the next 30 to 90 days remains intact. A pullback was inevitable
after the last run, and heaven sent for those who have not participated.
This is an exciting idea. Investors will love tonight's announcement, and
no doubt bid the stock up tomorrow. The right news on the DRM product could
send this stock to new highs.
President Lee Kasper has agreed to
provide free access to a free movie demonstration to all OTC Journal
members. Currently, the company does not have the bandwidth to handle
the load we would put on their servers, and they are working towards getting
ready. On a limited basis, sales are starting to come in using the DRM
technology.
Here is the complete text of today's
news release for your review:
| Press Release Source:
NuTech Digital, Inc.
NuTech Reports 33.6%
Increase in Revenues for January '04 Over January '03
Wednesday February 11,
4:00 pm ET
Key Monthly Metrics Reveal Consistent
Top-Line Growth as Company Aggressively Pursues Technological Developments,
Market Expansion
VAN NUYS, Calif.--(BUSINESS
WIRE)--Feb. 11, 2004-- NuTech Digital, Inc. (OTCBB:NTDL - News), committed
to setting the next generation standard for the provision of secured high
resolution entertainment content over the Internet, today announced revenues
for January 2004 of $323,749, a 33.6% increase over the same period in
2003 which reflected revenues of $249,455. News of significant growth follows
several recent announcements regarding the rollout of the Company's revolutionary
Digital Rights Management (DRM) platform, a 35-title licensing deal with
Wellspring, and the creation of a dedicated Music/Concert division.
Key Indicators:
-
33.6% growth in January
sales compared to January 2003
-
Recent profitability
-
Revenues for Q3 2003 demonstrated
a turnaround in earnings of $1.10 million over the comparable period in
2002
-
Earnings per share rose
from ($0.08) to $0.02 from Q3 2003 over Q3 2002
-
Technological leadership
with proprietary DRM platform
-
Aggressive expansion into
high-margin music DVD market
-
New licensing contracts
with key content vendors
"NuTech Digital has proven
its business strategy with real-world successes measured throughout 2003,"
stated Lee Kasper, president and CEO at NuTech. "And 2004 looks even more
promising. Buoyed by the Company's significant financial successes, our
focus has turned toward major expansion into more lucrative markets, relationships
and technologies. In addition to launching our music division, NuTech has
asserted its technological leadership with its DRM platform that will allow
us to stay well ahead of our competition as home entertainment distribution
migrates from retail storefronts to secured, rights-managed Internet delivery.
With these changes, our ability to leverage relationships with licensees
and other vendors has skyrocketed. The net result of NuTech's aggressive
growth and positive market traction is enhanced value to our shareholders."
About NuTech Digital
NuTech Digital is a pioneer
in the home entertainment product market, offering original and licensed
content via a worldwide network of distributors, retailers and Internet
entities. The Company enjoys significant competitive advantage with the
recent announcement of its proprietary DRM technology, which enables the
secure distribution of high-resolution digital content via the Internet.
NuTech's DRM platform allows its feature films, concerts, children's animated
films, video games, karaoke software, Japanese animation and late night
programming to be accessed via secure downloads, rented through pre-delivered
DVDs, and included in online subscription services. The Company also facilitates
authoring services to content providers in the entertainment industry.
Cautionary Statement
This press release contains
forward-looking statements that involve risks, uncertainties and assumptions
that if they never materialize or prove incorrect, could cause NuTech Digital,
Inc.'s results to differ materially from those expressed or implied by
such forward-looking statements. All statements other than statements of
historical fact are statements that could be deemed forward-looking statements,
including any projections of earnings, revenue, or other financial items,
any statements of the plans, strategies, and objectives of management for
future operations, any statements concerning proposed new products, services
or developments, any statements regarding future economic conditions or
performance, statements of belief and any statements of assumptions underlying
any of the foregoing. These statements are based on expectations as of
the date of this press release. Actual results may differ materially from
those projected because of a number of risks and uncertainties, including
those detailed from time to time in NuTech Digital, Inc.'s reports filed
with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
NuTech Digital, Inc.
Joe Giarmo, 818-994-3831, ext. 18
joe@nutechdvd.com
--------------------------------------------------------------------------------
Source: NuTech Digital,
Inc. |
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