AIRB Check this one out, it has been hot! MDI Entertainment - symbol MDIH - currently trading at $2.13.
MDI Entertainment, Inc. (a fully reporting company) specializes in creating, marketing and implementing entertainment-based promotions to the North American lottery industry. More than likely you have run across some of their promotions at your local convenience store: MDI Entertainment's current lottery promotions include scratch games featuring properties such as Harley-Davidson, Star Trek, Wheel of Fortune, Twilight Zone and Louisville Slugger. A significant aspect of MDI Entertainment's promotion is the awarding of merchandise tied to the various properties as prizes.
Revenues and profits for MDIH are on fire: For the most recent 9 months they created over $6,000,000 in sales, with over $1,100,000 in profits or .14 per share. These revenues represent an increase of over 400%. If MDIH comes out between .16 and .19 per share for the full 12 month period (which we expect they will), then applying a mediocre PE span of around 15 to 20 would be equivalent to a share price of near $3 to $3.75. A much higher PE (and therefore stock price) could be attained when the company becomes listed on a larger exchange (NASDAQ, AMEX, etc.). The company has talked of such a move.
MDIH has some interesting developments that could help propel the stock to new heights: one of their new sites http://www.lotterydeal.com will enable lottery players holding non-winning tickets to purchase themed merchandise. The site will offer a vast array of different merchandise items associated with MDI's licensed lottery properties. The non-winning tickets will, in effect, be valuable coupons. Ticket holders will be able to apply the original price of the ticket for discounts towards the purchase of the merchandise available on the web site. Tickets can be aggregated for discounts of up to 20%.
Recent news announced that New Jersey will be the first state lottery with an MDI web site. The state will receive 10% of the merchandise revenues. If all states begin moving toward some type of merchandise web site in conjunction with their lotteries, we would expect huge revenue increases as a result.
The big news is that they reported a small profit, vs. the estimated loss and the CEO is gone. You may recall that the stock price started plummeting shortly after the CFO became the CEO and he pretty much got it all wrong. Even did a stock buy back at 15 and then watched the stock go down to 7.
IMHO, the stock may touch 5 in the period before a new CEO is announced, but if they get the right person, and replace the mgt. team where appropriate, this stock could very easily see 50 in the next three years.
to be heading down to test it's lows prior to earnings. I hope this does not mean that the earnings will be worse than forecast, but rather investor impatience from those that bought after the drop and were looking for a pop that did not happen.
If the stock drops any lower it may qualify as one of the better values in the market today.
AIRB just opened a store in the Chicago suburbs(dundee). Now I see a number of tv ads. Is this common practice or are the spending cash more aggressivelly. Then I find out my father has three of these beds and loves them. They're either good beds or cheap. bought in at 6.