To OTC Journal Members: 

It's fun to have the worst behind us. It's clear the bank system is past it's "crisis" point. Yes, we're a long way from the end of the recession, but the market is starting to get healthier, and money is starting to flow back into growth situations.

And, as the market is getting healthier, I'm coming up with profitable ideas. China Energy Recovery (CGYV) is moving up the charts very nicely. Ufood Grill (UFFC) was a triple in just three trading days. FXI- The China Large Cap ETF I have been recommending since it was $25 is now $33. Even current problem child Single Touch (SITO) provided a 20% return in the first three trading days. 

DGP, EWX, FAS, TBT- the list goes on for recently profitable ideas. Today, I have a new idea. This company is flying. When Q1 numbers come up, you'll see about a 200% growth rate, all driven by the massive transformation from traditional advertising to digital advertising.

We're in a recession. Advertisers need their ad dollars to go farther and be more efficient. Newspapers are closing their doors all over the country- why? Because their advertising dollars are going elsewhere- and they're going to.......
 

Options Media (OTC BB: OPMG): Advertising's New Frontier

Google (NASDAQ: GOOG) announced Q1 numbers last night after the close. Lest you think Google is a technology company- think again.

Google is a digital advertising company. So, how healthy is digital advertising? Well, here's the current chart of Google. All they did was deliver $1.42 billion in profits on $5.51 billion in revenues- up about 10% in Q1 '08.  So, how about a smaller, but much faster growing digital advertising company?

Options Media- trading at about $.50, is probably worth twice its current level today. Once it achieves it's real value, organic growth will take it even higher. They're in the digital advertising space, and this sector is stealing market share from traditional advertisers hand over fist.

Here's a few factoids about growth in this sector: 

• The total revenue for this market grew by 10.1% in 2008. (Yes:growth in Armageddon)
• In terms of revenue, at its current growth pace this line of digital advertising will overtake the television advertising market within a decade. (Yet, this segment of the advertising industry currently only makes up about 9.0% of the total advertising market, which leaves enormous room for rapid growth.) 
• Gross margins in this business can be ridiculously high, as in the 75% to 80% range. Net margins can become very wide as well with just minimal revenues. 

OPMG opened it's doors in July of '08, and today is delivering about $1 million per month in revenues- last year's $3.4 million in revs will undoubtedly be north of $12 million this year. Catch your interest? Read on.
 

The Three Legs of Their Digital Marketing Stool

Simply put, OPMG has mastered the art of digital marketing. The company offers that expertise and their information to third-party advertisers and marketers through three different business units. 

1. E-Mail Service Provider (or ESP) - An ESP is an email service provider.  Even large companies rarely have the capability or capacity to email to massive customer lists. OPMG will house your database, and provide you an interface to mail anything you want to your customers, and do it efficiently.
2. Lead Generation Services (or CPM) - This is the business of renting lists to marketers. Business flows to OPMG through advertising agencies, and companies like Mercedes Benz, Gerber, Nieman Marcus, Macy's, and Office Depot have used OPMG's demographic targeted lists for marketing campaigns. 
3. SMS Text Messaging Service - 'SMS' is just the fancy term for text messaging over a cell phone. It's one of the fastest-growing opt-in advertising venues because it creates a very rapid result. OPMG can deliver an SMS message to a pre-selected demographic that meets the client's particular need. Example: Subway Restaurants wants to promote a lunch special for a certain day at all the units in a particular geographical region; Options Media can make it happen by sending a brief text message to the appropriate cell phone users. 

The OTC Journal "First Look"

Today's edition is just the tip of the iceberg. It's only intended to be a "First Look" at OPMG. I can't help but be impressed by their 

phenom type growth rate- I mean, really- from start up to $1 million in monthly revenues in eight months.

The company lost money in its first year of operations. I expect them to turn cash flow positive about mid 2009, which is only a month or two away. Non cash charges will probably prevent the company from reporting net profits. However, there will be more cash coming in every month than going out, which usually leads to a higher stock price.

What can we tell from this chart? By now, I hope you're getting better at reading charts. Here's what we can learn from this one- nothing. Really, the stock has not really begun to trade in earnest. All we can learn is the $.50 level is the bottom since it began trading last September, and I like starting at the bottom whenever possible.

As volume starts to materialize, and investors learn about this company, my "First Look" members will have the first class seats on this plane when it takes off. 

Consider this- there are 40 million shares I&O according to their latest SEC filing. They are currently delivering about $1 million in monthly revenues- which suggests they will achieve at least $15 million in annual revenues in 2009.

One times revenues for this kind of growth and turning the corner to profitability? Certainly worth a first look, and certainly worth a portion of your higher risk, higher reward capital.

$1 is the first threshold price target wise, then we'll evaluate from there. Your SSL is $.30.

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