WBXU Has The Right Ingredients For Rapid Growth & Revenues
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http://ymlp349.net/zwQAkJ ——————————————————————————– April 2, 2013 Penny Stock Profile ….
Webxu, Inc.
(OTCBB: WBXU) For complete profile, CLICK HERE: (http://www.allpennystocks.com/aps_us/company_spotlights/archives/wbxu.asp).
“Controlling the reigns at Webxu are Chairman Matt Hill and CEO Keith Schaefer, two experienced, proven entrepreneurs with plenty of skin in the game to make Webxu another success on their resumes of building millions in wealth for earlier investors in companies for which they get involved. Hill has been a leader in Internet marketing since the tech boom began in the 1990’s. He was a founding investor in Shopping.com, which sold to Compaq in 1999 for$220 million. Early investors in Shopping.com experienced cool 1,500% returns.” Company Profile (http://www.allpennystocks.com/aps_us/company_spotlights/archives/wbxu.asp) Quote & News (http://app.quotemedia.com/quotetools/clientForwardtargetURL=http://www.baystreet.ca/quotedata/partners/allpennystocks/quotes.asp&action=showDetailedQuote&symbol=WBXU) WBXU Profile Investors are always looking for the next “Internet boom”to bring a whirlwind of companies that can experience parabolic growth in the short term. Well, the bad news is that doesn’t happen very often.
The good news is that there is an industry that is outstripping the growth rate of companies in the heat of the Internet boom in the late 1990’s. That industry is online advertising. More succinctly, it is online advertising targeting mobile Internet devices, the fastest growing sector in communications.
As they old adage goes, “the proof is in the pudding.”Adoption of use during the PC age took nearly 17 years to reach its current number of users. Mobile usage is nearly at the same level in just four years.
Research by Morgan Stanley shows that shipments of smartphones and tablets worldwide lapped PC shipments in the first quarter of 2011 and there hasn’t been a close comparison since.
What’s even more mind-blowing is the number of people using mobile devices to access the web. In November 2012, the International Telecommunication Union estimated that there were 6 BILLION mobile phone subscriptions at the end of 2011 amid the global population of 7 billion inhabitants. Further, the agency said that about 2.3 billion people were users of the Internet at the end of 2011.
While the number of users certainly has to reach a point of terminal velocity for the sale of devices, the true opportunity for both legacy computer users and mobile devices in 2013 and beyond resides in companies that are utilizing data captured from the billions of users and delivering it in a refined advertising format.
Most people have heard the phrase “Big Data,” the phenomenon of massive, comprehensive collections of data, that’s the core of the advertising business. Globally, we are fully immersed in the digital world and there’s money, big money, in delineating target demographics, generating leads and delivering the information that those groups want.
According to ReviMedia, lead generation is the number one digital marketing objective of business-to-business organizations and number two objective of business-to-consumer companies. The research firm also details that 74 percent of marketers consider generating high-quality leads as their top challenge. These facts explain why the lead gen business (as a smaller component of overall digital advertising) grew by 15 percent from $1.32 billion in 2010 to $1.52 billion in 2011.
Venture Capital is pouring into the mobile industry. Researchers Rutburg & Co. found that VCs put $6.3 billion, or 42.4 percent of their budgets, into mobile in 2011. That’s up 40 percent from the $4.5 billion invested in 2010(which was about 30 percent of VC budgets). Inside the broad figure, VC money put into mobile marketing and advertising companies in 2011 surged by 362 percent to $592 million compared to $128 million in 2010.
Companies that are properly aligned with an accomplished management team and business model stand to prosper generously in both the near and long term from the paradigm shift to mobile device use. That seems quite clear just by looking where big money is going.
Nothing exemplifies that future value more than Hellman &Friedman spending about $640 million in a leveraged buyout in September 2010 of Internet Brands, Inc., a company that had estimated revenue of $113 million and EBITDA of $40 million in 2010. There’s a reason that Hellman & Friedman were willing to pay about 6x revenue and 16x EBITDA for the company that owns websites, marketing solutions and the vBulletin forum business. Although now private, current estimates put Internet Brands’ revenue in the area of $300 million annually.
Now that Internet Brands is a member of the private equity marketplace, investors should be taking a close look at Webxu Inc.
(OTCBB:WBXU), a company with a similar business model, growing revenue and a stellar management team that can execute on the corporate business model.
Webxu is a media company that owns and operates a network of consumer branded websites and businesses focused on Customer Acquisition, E-Commerce and Mobile Media. Through its branded consumer websites and mobile advertising, Webxu generates revenue by providing advertiser clients with targeted consumer traffic.
In November 2011, shortly after Webxu went public, the Company completed its acquisition of Lot6 Media, Inc., a successful, revenue-generating online marketing company, to bolster is solutions package for online businesses, media marketing agencies and marketers.
Through the first nine months of 2011, Lot6 generated about $16.4 million in revenue with EBITDA of approximately $3.2 million.
In addition to its web brands, which include 24hourautoinsurancequote.com, 24hourautoloan.com, 24hourcarquote.com, carsblvd.com, degreebuilder.com and degreestep.com, Webxu also has Bonus Interactive Inc., a wholly-owned subsidiary, engaged in the customer acquisition and retention, both online and offline.
Like many other online companies, Webxu has faced its fair share of challenges in the past year, but not all may be as it appears. The management team chose to revamp some operations through a transitional stage in 2012 to be better aligned for growth going forward. These modifications depressed share value, creating a unique opportunity with a company arguable undervalued at current valuations.
This is not dissimilar to the consolidation initiatives of Internet Brands to stick to the guns of its management team following the Internet collapse, eventually turning the company from zero revenue to more than $110 million in a few, short years.
Controlling the reigns at Webxu are Chairman Matt Hill and CEO Keith Schaefer, two experienced, proven entrepreneurs with plenty of skin in the game to make Webxu another success on their resumes of building millions in wealth for earlier investors in companies for which they get involved.
Hill has been a leader in Internet marketing since the tech boom began in the 1990’s. He was a founding investor in Shopping.com, which sold to Compaq in 1999 for $220 million. Early investors in Shopping.com experienced cool 1,500%returns.
Hill also invested in Prime Ventures and its portfolio of companies, including serving as Chairman of SuperNation, LLC, overseeing its acquisition in 2003 by Intermix Media, formerly EUNIVERSE (AMEX:MIX), for one million shares. MIX was then sold to Fox for $12 per share, netting early investors more than 1,000% in returns from start-to-finish.
In 2005, Hill founded the E-Commerce entity Shopit.com, which he sold in 2009 to Atrinsic, Inc. After that, Hill moved on to his most recent Internet brand service, Adjuice, Inc., which he sold in 2010. If that isn’t enough, he has served as an investor in Reunion.com, Realty Tracker (sold to Guthy-Renker in 2007), Demand Media (NYSE:DMD), Weblo.com, Vator.tv, Dolphin Search, Consumer Direct, Hollywood RX, and F3 Family Entertainment.
Keith Schaefer brings a long history of executive management, media and mobile experience to Webxu, including being involved in more than 50 Internet and technology acquisitions. Prior to Webxu, Mr. Schaefer was CEO of Moonshado, Inc., a mobile technology provider. Prior to Moonshado, he held executive positions as CEO and Co-founder BPL Global, Ltd., Senior Partner Constellation Partners, Executive Committee Member of US Web, and with Procter &Gamble and Clorox. Mr.
Schaefer also served as EVP with Atari Corporation, EVP at NEC Technologies, EVP at Viacom and President of Paramount Communications Technology Group.
Hill and Schaefer aren’t doing this for a paycheck today;they see the opportunity. Hill accepts no salary and holds 11 million shares of WBXU. Schaeffer only takes a minimal salary, primarily accepting equity (3 million shares and options) as compensation. Now, that speaks volumes for what these two expect to do with Webxu for its shareholders.
Highly profitable exit strategies are obviously a forte of these serial entrepreneurs, so there is no reason to question them when they decide to implement changes in operations. Further it would take quite a cynic to think that they won’t be successful with Webxu based upon their track records. In fact, Webxu is projecting $13 million to$15 million in sales during 2013, giving it considerable, immediate upside potential.
Webxu has financial backing to see their strategies through.
Breakwater Investment Management has funded the company up to $3 million, half of which Webxu has already paid back as of the end of the first quarter, paving the way for a successful capital partner through the company’s maturation.
Trading at only 40 cents per share equates to a tiny market capitalization of $10.29 million for Webxu. With the high insider holdings, there are less than 10 million freely tradable shares in the public float. Any seasoned investor knows that a tiny float like that can lead to substantial movements in the blink of an eye as a sheer matter of demand outpacing supply.
(Tech Analysis Chart: http://www.allpennystocks.com/images/Tech_Analysis_Charts/wbxu_tech_analysis_chart_april_2_2013.jpg) Technically speaking, the WebXu chart is making a multiple bottom pattern. A look at the weekly, six-month chart shows the stock has dipped to a bottom support at 24 cents three times in the past five months with a resounding bounce back upward. On the first occasion in October/November of 2012, the stock price shot all the way up to 55 cents for a 129 percent move. In February, the stock found support at 25 cents and promptly followed that with a rise to 50 cents for a clean double in share value in two weeks. This key level of support should be closely monitored for buying activity again as the stock closed at 25.5 cents on Tuesday with the knowledge that primary resistance won’t enter the picture again until 50 cents.
The Moving Average Convergence/Divergence (MACD), a main indicator of trend is climbing back towards zero while the price fluctuates between support and resistance. The MACD rising towards the zero line is an indication that a bullish trend shift for the chart could be on the horizon. Technical traders watch for the MACD to break above zero, referencing it with a “breaking the money line” as a signal that a bullish trend has begun.
It should also be noted that the Relative Strength Index (RSI)and Full Stochastics (STO) are in similar positions as when the stock bounced from bottom support the last two times. Traders will be watching for this to lend support to another move off the bottom and look for continuation of those indicators into bullish positions to lend validation that a stronger move could be happening to potential break through the top resistance.
It’s rare that we use a phrase like “calm before the storm,”but at these compressed share prices with a developing infrastructure, proven leadership, financial backing and an industry that has unparalleled growth predicted, Webxu looks well positioned for upward movement possibly before this quarter ends. They’re following a proven business model of slow and steady leading to hockey-stick shaped revenue growth. It is for these reasons, as well as the ones mentioned above, that we at AllPennyStocks.com have decided to turn our latest US corporate spotlight on Webxu, Inc. (OTCBB:WBXU)and encourage our members to immediately begin their due diligence and add it to their watchlist.
As always, more information on the Company can be found on AllPennyStocks.com, or by clicking here: (http://www.allpennystocks.com/aps_us/company_spotlights/archives/wbxu.asp).
INVESTMENT HIGHLIGHTS * Booming Industry. Advertising, lead generation and mobile markets cumulatively are outstripping virtually every other industry today.
The mobile markets have in four years what it took the PC industry nearly 17 years to generate. There were 6 BILLION mobile subscriptions globally at the end of 2011. VC investment in mobile marketing and advertising increased 362% in 2011 from 2010.
* Wholly-Owned Subsidiaries. In November 2011, Webxu completed its acquisition of Lot6 Media, Inc., a revenue-generating online marketing company, that, through the first nine months of 2011, generated about $16.4 million in revenue with EBITDA of approximately $3.2 million.
Webxu also has Bonus Interactive Inc., a company engaged in the customer acquisition and retention, both online and offline.
* Portfolio of Properties. Webxu has a series of highly focused websites to help in generating leads as well as collect data, including, 24hourautoinsurancequote.com, 24hourautoloan.com, 24hourcarquote.com, carsblvd.com, degreebuilder.com and degreestep.com.
* Unparalled Management. American Chairman Hill and CEO Schaeffer have a strong history as serial entrepreneurs in Internet and technology companies with proven exit strategies that have netted investors substantial returns.
* Financial Partner. Breakwater Investment Management has funded Webxu up to $3 million, half of which Webxu has already paid back as of the end of the first quarter, paving the way for a successful capital partner through the company’s maturation.
OVERVIEW Webxu, Inc. is a media company that owns and operates a network of consumer branded websites and businesses focused on Customer Acquisition, E-Commerce and Mobile Media. Through its branded consumer websites, Webxu generates revenue by providing Advertiser clients with targeted consumer traffic. Webxu is headquartered in Los Angeles, CA.
Corporate Information * Exchange: OTCBB * Market Cap: 6.6 Million * Outstanding Shares: 25.7 Million * Price: $0.255 * 52 Week Low / High:$0.23 / $1.75 * Information As Of April 2, 2013 Useful Profile Links * Corporate Write-Up (http://www.allpennystocks.com/aps_us/company_spotlights/archives/wbxu.asp) * Recent News & Press Releases (http://www.allpennystocks.com/aps_us/company_spotlights/archives/wbxu.asp) * Management Team (http://www.allpennystocks.com/aps_us/company_spotlights/archives/wbxu.asp) * Contact Information (http://www.allpennystocks.com/aps_us/company_spotlights/archives/wbxu.asp) Forward Looking Statements This report includes forward-looking statements that reflect Webxu, Inc. current expectations about its future results, performance, prospects and opportunities. Webxu, Inc. has tried to identify these forward-looking statements by using words and phrases such as “may,” “will,” “expects,””anticipates,” “believes,” “intends,””estimates,” “plan,” “should,” “typical,””preliminary,” “we are confident” or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Webxu, Inc.`s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company`s growth expectations and ongoing funding requirements, and specifically, the Company`s growth prospects with scalable customers, and those outlined above. Other risks include the Company`s limited operating history, the Company`s history of operating losses, consumers` acceptance, the Company`s use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company`s securities, the possible volatility of the Company`s stock price, the concentration of ownership, and the potential fluctuation in the Company`s operating results.
Disclaimer AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable.
For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company`s expectations and estimates.
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