Thursday, July 23, 2009

Options Media Group (OTC BB: OPMG): Monster Upside Potential For Today's Investor

There's breaking news, and it's huge. Just this week OPMG announced it entered into a Letter of Intent to acquire Bullroarer Corporation, a leading Australia-based mobile technology and content provider, with offices in Australia, United Kingdom, Italy, Los Angeles and San Francisco.

Permission based text messaging is projected to be a huge growth area for the digital marketing world. Companies like WalMart, Kraft/Nabisco, and Sears are embracing text messaging as a low cost way to get their message directly to the consumer.

The Bullroarer acquisition will provide Options Media with the most technologically advanced SMS platform available today, and the combined companies will nearly double in size.

This potential merger promises to make OPMG a one stop shopping digital marketing power house. In the Digital Marketing arena, Fortune 500 advertisers need look no farther than Options Media.

Options Media Group is an under followed and undervalued company riding the growing tide of digital advertising. They do it all: Permission Based Emails, Email Service Provider, and SMS Text Messaging. They have the most advanced technology platforms available to advertisers.

Company Name: Options Media Group Holdings, Inc.
Stock Symbol : OPMG
Coverage Initiated: July 2009
Current Price: $0.22
Avg. Volume (3 mo.): 75,000
52 Week Range: $0.20 - $1.85
Market Cap: $12M
Rating: Strong Speculative Buy

Their advanced technology has allowed them to deploy campaigns for the likes of Mercedes Benz, Honda, Nordstrom, Nieman Marcus, Subway, Wynn Hotels, Palms Casino, Best Western Hotels, Jamba Juice, Army National Guard, Toyota Dealerships, and Gerber.

OPMG delivers just under $1 million a month in revenues, and has huge gross margins. Last quarter, gross margins were a whopping 70% of $2.186 million in revenues. At their current clip, I expect the company to turn profitable later this year, and be in position for a profitable year in 2010.

I estimate the immediate upside in OPMG to be about $1 per share, which is 5 times the current price. There's an opportunity to make as much as 500% return on invested capital for those with speculative capital to invest.

Do your own due diligence, and sign up for the OTC Journal. It's free- no strings attached, and I'll provide regular updates on Options Media. When there's breaking news, you'll have it first.

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