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VOLUME 01: ISSUE 17
InterFirst Capital Corporation Initiates Coverage
on Cross Media Marketing Corporation (XMM)
After the market close
today, Matthew S. Venardi of InterFirst Capital issued a
buy recommendation on Cross Media with a 12-month price target
of $13. This is the second institution to initiate coverage on Cross
Media with a buy rating. The steps that the company has taken to attract
institutions are beginning to pay off. With the LifeMinders acquisition
over the company can now concentrate on what it does best and that is direct
marketing and making money.
When the
SmallCap Digest presented our SHORT TERM TRADING ALERT
on Cross Media Marketing, Corp. (AMEX:
XMM
) we knew the company was poised to outperform. We recommended
the stock at $6.70 on Nov 6th (to view this alert please
click here
) which would equal a profit of over 32% based on Wednesday's
closing price of $8.90. Not a bad return for just fifteen
days of trading.
Some investors may
have hesitated and didn't pay serious attention to this company
until our second alert where we revised our TRADING TARGET
to $12.00 and upped our BUY LIMIT to
$8.25 per share from $7.25. At the time of
the alert the stock was trading at around $7.80-$7.90 which
would be an impressive 12.5% gain in 10 trading days.
The reason we issued
an alert on Cross Media is because a company of this caliber does
not stay unknown very long. The reverse split coupled with the
LifeMinders acquisition were things management had done to draw
more institutional attention to the company. We recognized this
and felt that the company is a blossoming story that would ultimately
lead to some impressive return for its shareholders.
Now it seems the first
wave has hit the shore with InterFirst Capital initiating
coverage on Cross Media with a BUY RATING and a 12-month
price target if $13.00. The company is starting to attract
some very serious investors. Keep in mind that the LifeMinders
acquisition is an extremely impressive accomplishment for Cross
Media. At one point during the internet bubble LifeMinders held
a market capitalization well into the billions. The company was
covered by such investment banks such as J.P. Morgan,
Merrill Lynch, Thomas Weisel Partners, and
Robertson Stephens. Cross Media was able to acquire this company
and its intellectual property at a bargain basement price.
It should not be a
surprise that the big institutional players had a "wait and see"
approach with Cross Media. The company has a proven track record
in direct marketing growing at tremendous rates and running a profitable
business that currently trades at a P/E of around 9. There were
those on the street that wanted to see some evidence of the synergies
the merger would create. Today's buy recommendation shows that
some of the institutions have done their due diligence and they
like what Cross Media has to offer. The SmallCap Digest
is increasing our BUY LIMIT to $10.00 per
share and feels that the company has the potential to reach
$15.00 over the next 6-8 months. This represents a 68%
gain from today's closing price but for the SmallCap Digest readers
that got in on our first alert this would represent a gain of over
110%. The lesson here is that "time equal's money".
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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