Herb Greenberg positioned NM as the "undiscovered Internet" stock to buy. Here's the text.
interview with Herb Greenberg of The Street.com. If anyone is still a dis-believer, shame on them. With the NM short position being 25 % of the entire float and with what's about to be launched by NM soon to be ETV, it's going to be a run ride upwards from here.
"Stealth ecommerce play? National Media (NM:NYSE) has been operating below the radar in a market where e-commerce is the rage. The company, which bills itself as the world's largest infomercial and direct-response company, was a mess a little over three months ago when it was taken over by an investment group led by Stephen Lehman, the former CEO of Premier Radio, a large operator of radio stations. Several years ago Premier was sold to Jacor Communications, another big operator of radio stations that was recently sold to Clear Channel Communications (CCU:NYSE). Jacor, spurred by Lehman, became a major investor in National Media. Other new, large investors in National Media include Steve Hicks of Hicks Muse, David Salzman, former Chairman of Lorimar Television and Andy Schuon, the former No. 2 at Viacom's (VIA:AMEX) MTV who now runs Time Warner's (TWX:NYSE) Warner Bros. Records.
With Lehman in, old management was out, as was the old business model and the old name. (It's being changed to E4L.) Lehman says the company plans to merge television infomercials and radio infomercials with the company's E4L and Everything4Less Web sites. He plans to spend $120 million buying media time for those infomercials. The idea, he says, is to help brand E4L; every infomercial will start by flashing the E4L web address. "E4L will be the brand," he says. The E4L web site, meanwhile, provides a link to Everything4Less, which is really Everything4Less's name on top of Cendant's (CD:NYSE) NetMarket, which offer 800,000 products. Says Lehman: "Who else has layered an entirely new Internet strategy onto an infrastructure that can support an e-commerce platform built entirely on leverage?"
Beats me, but if it's so great, why have so few people heard of it, and why does National Media trade at 8 7/16? "I've only been here 100 days," Lehman said. "I built Premier based on performance, and we delivered on what we told Wall Street we were going to do."
He says he plans to do the same thing with National Media. Great on paper, now let's see if he can do it in practice.
(National Media is part of the recently announced TheStreet.com E-commerce Index.)
I hope my retrieving this interview is helpful to all folks frequenting the NM (National Media Board). Have a nice day.