Videomoviehouse.com Inc., through its website www.videomoviehouse.com, sells and rents DVDs to both U.S. and Canadian residents. Customers are able to rent as many DVDs as they can watch for a flat monthly fee of $17.99 per month without having to worry about paying late fees. The company has an existing database of over 200,000 customers from DVD sales. By offering a truly one-stop shopping experience, the online customer will have the option to either buy or rent a DVD at anytime. With both options together on one site, the company expects to see increased traffic and sales in both divisions. The company currently has 37,000 unique titles in its movie database.
Publisher Note:
I've talked about VMHVF several times. I know the stock has not moved much up or down since that time, however, I still think this stock is a long term winner. The company has been quiet recently, but I believe that once their quarterly earnings come out they will also start coming out with a string of press releases, if not sooner. I personally keep buying shares whenever I can, and still think the stock can easily be in the $.50 range by the end of the year if the company comes through with regular PR's and investor updates between now and then. I've watched the level 2 quotes and very few existing investors in the stock are selling. VMHVF investors on the stock message boards, particularly RagingBull, are not talking about when to sell, they are talking about how to accumulate more shares which are somewhat hard to come by. I strongly feel this stock is ready to start rocking and rolling with a little news and publicity.
Today NetFlix announced that they expect to have between 3.35 to 3.5 million online rental subscribers by the end of Sept. 2005, and should reach 5 million subscribers before the end of 2006. They also stated that they expect their subscriber base to reach 20 million within the next 5 to 7 years. That is what the industry leader in online video rentals said today and it shows you the type of paradigm shift is going on in the industry. I won't go as far as saying that local bricks and mortar video stores are dead but it is my belief that they will soon be diminishing greatly. I believe that 5 years or so down the line the bricks and mortar Blockbuster stores and similar dedicated video rental chains will be gone and local rentals outlets will likely migrate to stores that are not just dedicated to video rental such as Wal-Mart, BestBuy, etc.
Once the company's affiliate program kicks into gear, their subscription rates will start to soar as will their revenue. Company expects to announce revenues between $3.5M to $4M for fiscal year in their quarterly earnings report expected out near the end of September. This year they will grow their video sales numbers by more than 300% to reach the $3.5M to $4M in revenues, of which 98% of that revenue is from video sales. If they achieve that same type of growth in video sales next year that would put that part of their business revenue between $10.5M and $12M. Then add to that an assumption that they could likely add maybe 250,000 new online video rental customers in the next 12 months, that would be the end point number so let's assume for the sake of hypotheticals that they averaged just 75,000 rental customers over the next 12 months. So if you do the math, 75,000 x $17.99 x 12 = $16.19M in gross video rental revenue and I think that number is very conservative. So, that would put the combined revenue of video sales and online rentals somewhere between $26M to $28M.
Today, with 32.09M share outstanding and the stock price at $.10/share that puts their market cap at $3.2M. YOU HAVE GOT TO BE KIDDING ME! That means that the current PRICE/SALES ratio is less than 1! A typical PRICE/SALES ratio in this type of stock might be 20 which in my calculations should peg this stock at around $2.
Rumor has it that company may be looking at online entertainment acquisition targets which could also quickly add to their revenue stream. Company is one of the biggest online DVD sellers on Amazon.com, Ebay, and Half.com. Their goal is to be #1 in Canada before end of 2005, and within next 12 months be #3 in US behind NetFlix and Blockbuster in online DVD rental market. They have publicly stated that their goal is to have 1 million DVD rental subscribers by June 2006. That may be a little ambitious, but even if they only reach 25% of that goal in the next 12 months they will experience huge revenue growth. I seriously expect their revenue next year to be between $30M to $40M and the year after that well over $100M, and those numbers are without any acquisitions to accelerate their revenues.
At this per share price I would seriously recommend stashing away some shares of this stock as a long term play. I seriously doubt that you will be sorry. I can see this moving to $2+ per share or more in next 12 months. On this one I feel comfortable being way out on the limb! Don't look back in 12 months and say to yourself, "I wish I'd have picked up a bunch of shares when it was at $.10!"
Note: We are not being compensated for this opinion, and we are not pumping this for a quick personal gain. We just believe in the company and stock and are firmly convinced of the future of this company and stock and wish to share this with our members. The Publisher personally does own shares bought on the open market and does not plan on selling those shares any time soon. We are holding out for at least $20 per share two years from now! Won't you join us for the ride? We are pushing back and will be taxiing to the runway shortly, so fasten your seat belts!
-------------------- Greedy Because I'm Broke!! Posts: 2093 | From: Leaving Your House | Registered: Apr 2004
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Up 11% on Thursday Up additional 10% on Friday Up additional 28% today (even with end of day sell off by daytraders)
Can't wait to see what tomorrow brings. Actually I can't wait to see what the next few months bring. Maybe a great Christmans present.
Posts: 100 | Registered: Aug 2005
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I have never done any extended hours trading so can someone answer my question? I'm showing extended bid is .15 and ask is .16. This is a good sign, right?
Posts: 100 | Registered: Aug 2005
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This is a recently traded company on the OTB Board,huge revenue already reported & expanding overseas already.This is way undervalued IMO.I believe this is why they have slowly been creeping the price up;look at a month ago & now! & still goin everyday.GL everyone.
Posts: 2093 | From: Leaving Your House | Registered: Apr 2004
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My favorite thing about this company is the news. Most penny stocks put out news with words "looking into" "we might" "hoping to" and then nothing comes of it. But with this company there is no pre-news hype up. They just come out and say new business in India go check out the web sight that is already in place. NO BS here, just straight in your face real news. This company is for real....be patient and enjoy the ride:)
Posts: 100 | Registered: Aug 2005
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It is laughable how low the share price is, I'm trying to get my entire family in this as a long term investment. At the very least they get bought out by Blockbuster or Netflix for at least $100M. This is awesome. As long as the price is this low I will continue to accumulate.
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I know what you mean cweston. I am still waiting on QBID to get on another exchange after like 4 months, while this one just said they are switching, got ready with no bs, and moved off the pennies.
-------------------- Still holding, Still waiting, ...
Don't forget to send your letter to Echostar/DISH Network. 20 letters a day gets Q some play :) Posts: 621 | Registered: Jun 2005
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Here it is... Hello. VMHVF currently staffs around 20 employees. VideoMovieHouse.com will advertise it's site using an initial email campaign, traditional search engine advertising and other traditional forms of internet media. Our authorized common stock consists of 200,000,000 shares of no par value common stock. As of August 3, 2005, 38,588,757 shares are issued and outstanding. 29,056,221 shares are freely tradeable without restriction or further registration under the Securities Act of 1933, as amended (the "Act") and 9,532,536 shares are "restricted securities" as that term is defined in Rule 144 promulgated under the Act. Any more questions please call investor relations at 1-800-962-0211.
Sincerely, Brian Holden
Posts: 100 | Registered: Aug 2005
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A pennystock with 20 employees, files financials ontime w/sec for years, rising revenues over past several quarters, estimated profits this quarter of alomost 1,000,0000, low float, and a beutiful chart. All this needs is exposure and volume and we will be through the roof.
Posts: 100 | Registered: Aug 2005
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& still goin everyday.GL everyone.
