E-Mitch-EMI

[davidrob]

EMI: Internet Media Buying Company--most significant player of its type in this niche in Australia.--Focus on buying, producing and managing on-line media(such as Banner Advertising on frequently visited sites such as Ninemsn, Google etc--tagets Aotomotive, Finance & Banking Media Sectors;including credit card products and Government Agency work.
Here is a lovely little Bargain IMO.:D Was consistently trading at between 14-16 cents, now in the 10-11 cents range, which I believe to be somewhat of a steal.
EMI is a repeat regular revenue oportunity, that last year declared profit of about $500K, minimum debt and regular and increasing revenues.
Very litle capitalization costs.
Have now become most established and proven Brand/Player in this segment. .
Proven Management; with Mitchell's being one of the Biggest Buyers of Media in Australasia, pumping work through them.
Large Banks (eg: ANZ);auto-eg: NISSAN Australia; and other Corporate and Government Agency Clients(eg: Department of ARMY, NAVY & AIRFORCE--Recruitment Co's etc--eg: Slade;seem to very loyal. New clients are being consistently added--so revenue is repeat and Increasing at a steady clip. This is even better given that it is being achieved off a relatively unchanged Cost base.

Have a peek at the Balance Sheet for yourselves.
My primary reason for this posting however, is just to POINT out that as at the time of writing, IT is, (in my humble opinion ONLY); IN extreme--Bargain Territory, compared to even a fortnight ago.
Disclosure: yes; I do own EMI , and hold, and am not selling EMI. The above is naturally just my personal views only and is said on a totally without prejudice basis and does not constitute financial advice. As always, please do your own research, and make your own decisions.

[David Hardman]

Emitch has come off quite a bit recently.

Interesting little company. Market cap of 18mil, 8mil cash in the bank, very little debt, earnings positive.

Google mania may also push this one along as well.

David

[davidrob]

David...from one, who shares a real Christian name with yourself--Hi There mate!! By the way Dave, tell us a little bit about yourself.
Are you an Aussie or Kiwi?? Young, middling or, ancient and over the hill!!. errr....Student, Fellow-"worker-with the masses", or playboy millionaire residing in Monacco?
Dave, what sort of ASX Stocks do you like??--and/or actually own?? Go on Dave, be a sport and 'fess up!!;)
Anyway, if you look at my last posting where I Confess to my Sheer Stupidity & Sins, re. BQT, you will see that I am now taking advantage, and Buying anything in EMI at below 12-13 cents.
As I remarked on the BQT posting,... also, I note today, that an EMI Director buys EMI stock-($30,000 worth) through a related party transaction. This might just validate my Call on Buying EMI somewhat.
To me, EMI is a bit of a no-brainer at these Prices--I've got plus 130% return pencilled in, for EMI to achieve over the next 12 months or so.
Great expectations, I know, but at these prices, and with the Revenues and Profits going north and compounding, I think quite achievable. Why? This is largely bec. I know of, and am quite close to;.... the Major Stake-Holders(Mitchell)and know of his reputation, Track-Record--(20 Plus Years)-- and Media Buying Clout in Sydney and Australian Advertising Market.
Also Advertising geneally is Trending Up, as is Ninemsn, Faifax online and Google etc. Dave, Take a little squiz at emitch's Own web-site; and their current clients.
Very impressive.Good margins too, that I believe will Increase; if anything.
Banner Advertising on Domains(Not to be Confused with Spam by the way...)is Unique in Advertising---in that for the Clients(ie: the ANZ banks of this world)-- it is directly trackable and measurable. ie: The Client can see, and measure; that for: xyz $$Spend they, the Client, received xyz quantity responses which was convertible to xyz-Sales Revenue.
In this way, EMI's offering; is a bit like,.... say Readers Digest Coupons--with Self Addressed Return Mail--the Advertisers can quantify how much they spent and measure it against--the $$$Return
For a finance co, Motor Car Co, FMCG(Fast Moving Consumer Good)etc etc co's marketing department; justifying their ad spend to the financial people, say at Nestle or AMEX--this is A HUGE HUGE Plus, compared to say a Radio, TV or Glossy Magazine Full Page Inside Back Cover Advertisement--which is just: "I wonder whether it worked? Oh well, the bikini girls in the ad, next to our product, looked really cute though..."
Now;... when I did my research on EMI, what got me very interested, was that I spoke to Emitch's Large Corporate clients--and they raved!
More than raving, they re-signed their Advertising Contracts---and tried to request Exclusivity--ie: they wanted no "like with like" Advertisers: as it was such a solid and quantifably measurable money spinner for them.
One other thing I did like is that EMI know how to say No THANKS. They did due diligence on another Direct Marketing Media Co., as a potential acquisition---and publicly pulled out. I actually respect that.
David, your last posting was succinct AND really Good.[8D] I had overlooked EMI's $8million dollars cash at Bank and little debt position.
Many thanks mate.
cheers,
davidrob--(Robbo) quote]Originally posted by David Hardman

Emitch has come off quite a bit recently.

Interesting little company. Market cap of 18mil, 8mil cash in the bank, very little debt, earnings positive.

Google mania may also push this one along as well.

David





[/quote]

[David Hardman]

David

Young(ish) self employed Kiwi living in Sydney. Reasonably happy with last nights budget (does that cover it?)

Normally invest in industries I understand (or think I do)

Very very long on SWT. Also holding SOH (again), OTI (thanks guys), AFC and GDY(huge potential in my view - ten bagger)

Most of my money is tied up in property (both sides of the Tasman).

My share investments are normally 1-2year plays on the more speculative side.

I picked up a small 4k parcel of EMI today.

.......

Also have had good dealings with Emitch however my contact goes back at least 3 years ago.

It looks like the "Mitchell's" all have serious stakes in this business. The top 20 shareholders list looks more like a family tree.

EMI only employ 13 staff. This I like.

As you have said costs easily contained within this business.

$8mil I suspect could buy quite a bit of revenue. But who to buy?

David

[David Hardman]

5 million shares (3% of the coy) change hands at 10cents

Expect to see a SSH announcement or Directors interest notice soon.

Maybe more juggling between the extended Mitchell family.

[David Hardman]

As soon as any decent volume pokes its head up on the buyside its gets snapped up. Largish seller in this market ATM.

500,000 thru in single hit this morning.

David

[tracker]

very careful with this one. I was fortunate to have been given stock before it floated (my broker F;'./; up so i actually got double lol)
I sold within the first2 mins of opening , and i havent looked back since
nothing has ever come from all the hype,nothing even close to the mark as far as prospectus is concerned
it has had its time to get it all together, and it hasnt makes me wonder thats all
trade well
stop loss as always
tracker

[davidrob]

Hi guys. The largesh Seller was Andrew Kroger(Peppercorn Childcare and OZEMAIL fame) related Co. selling through a Corporate Broker...Did he sell because he wanted to divert money elsewhere, I'll guess we'll never know. It probably has spooked the market a little.
Therefore releasing quite an artificially lot of Shares into the Wash. Kroger sold millions of shares at 10 cents, so these merchant broker guys will probably sell/dilute back into market at around the 11-11/2 cent mark. Therefore EMI price will be artificially suprressed for another couple of Weeks until we start seeing some profits and Revenue into the Balance Sheet. Good buying at 10-11 cents in my view, but Tracker of course is always to be respected. Tracker could you elaborate a little bit, re. Prospectus forecasts versus what has happened. Prospectuses are notoriously optimistic, I mean that after all is Their reason for being!!!:)
With EMI note that a positive is that Advertising Buying Companies are different to Advertising Agencies in many respects--and;although Emitch is effectively Both: its strength and USP (Unique Sales postion) to Mitchell, as a Media Buying Company--much more of a Toll Road.As Tracker alludes to..how long before Emitch get critcal Mass is the question. Little bird says they may have landed Diners Club and Thomas Travel...but these are just rumours. How eliable? First one--7.5 out of 10, may-be even an 8. second rumour is say a 6.5 out of 10.;) One thing for sure, by Monday/Tuesday;Iwill be able to be a lot more definitive as to where I believe this Co. is truly heading.
Although a little speculative, remember EMI is up over 200% since onbly 12 months ago---and advertsing generally is coming OUT OF quite a long time slump. Personally I am cautiusly up-beat; and believe that with little to no debt, cash in bank and compounding nature of repeat Revenue of a fixed smallish capital base and gaining Branding as the Premium Internet Media BUYING agency in Oz, and looking at what other Co's such as Adcorp are priced at--there is rather more Upside than down side. Secondly exposure and Risk is Very minimal...
Cheers,
davidrob
]Originally posted by tracker[/i]

very careful with this one.
I was fortunate to have been given stock before it floated (my broker F;'./; up so i actually got double lol)
I sold within the first2 mins of opening , and i havent looked back since
nothing has ever come from all the hype,nothing even close to the mark as far as prospectus is concerned
it has had its time to get it all together, and it hasnt makes me wonder thats all
trade well
stop loss as always
tracker
[/quote]

[tracker]

heydavidrob,
from memory I sold at like 450ish something around there,
as a trader I took a spectacular profit,a fundamantal guy I know, and worked closely with, was just 100% these where gonna be the next $10 stock, what happened well, i dunno but it never even came close to meeting any forcast, revenue income, the mark spoke, and quiet harshly at that
I think the fundamental guy sold for just above what they cost in order to avoid a loss so around 50 cents etc
its been a long time, BUT it has had time to get it together, and I am afraid the fact that it went from 3 odd cents to 10ish is no real consalation.Hope it works out for you it take alot more to get me back into thois one
P.S wherent those days the greatest, at least for trading I mean
stop loss as always
tracker

[David Hardman]

There is no denying that EMI was over priced back in 2000. But so was everything tech.

The real point should be does it represent good value now?

Article in today SMH (copy below) says Australian online ad spend is expected to be greater then 300m. An increase of 50%.

2000 was the right time to raise a whole lot of cash from the market for EMI. 2004 maybe the right time to actually operate a legit online ad business.

Disc - own small parcel of EMI
*********************
http://www.smh.com.au/articles/2004/05/19/1084917655413.html?from=storylhs#

The online advertising market could break through the $300 million threshold this year, with key players saying savvy advertisers are continuing to fuel increases of more than 50 per cent this year.

According to the heads of ninemsn and f2, which have finalised deals in the past week with the Yahoo!-owned Overture for paid search listings, online advertising demand is matching last year's growth.

The Audit Bureau of Circulations says online revenues increased from $140 million in 2002 to $236 million last year. Online advertising covers classifieds, display advertisements such as banners and sponsorships, and search and directories.

The figure of $300 million was "very likely", said ninemsn's chief executive, Martin Hoffman, who announced last week the company had dumped LookSmart in favour of Overture for the delivery of "paid search" advertisements across ninemsn's online properties. "We're in the middle of the advertising cycle and we're seeing strong growth across the board."
Advertisement Advertisement

Nick Leeder, f2's chief operating officer, said classified and paid search advertising was growing at about 60 per cent this year, with display ads up about 30 per cent. "[The market] will probably make it to $300 million this year - if not in 2004, certainly within 18 months," he said. "As a network we certainly know traffic goes up 40 per cent per annum. Every year I think 'this will be the year it will stop', and every year I'm wrong. You're just getting more people with broadband and we're making site services better."

Mr Hoffman of ninemsn said paid search would be "the big story over the next 12 to 18 months".

Overture's managing director, Mel Bohse, said the paid search market was worth an estimated $35 million. About 60 per cent of Overture's revenues came from blue-chip companies and 40 per cent from small and medium- sized enterprises. "For us, the growth will definitely come from the SME market - because it doesn't require creative, it's not at the high end. Our entry point is very low. There's a minimum of 10c to get into a placement."

[davidrob]

Hi Dave. Yeah we Both saw that article. Very good Back-Ground on the actual reality and potential of This Market-Place. I am Having Lunch with NSW General Mger of Emitch mid next week, so if there is anything I should ask him let me know.
Tracker's comments are very interesting--but shares like Looksmart and Sausage Software were very big prices in 2000 too. Dotbomb/com Pricing of course; reflecting Future Perceivied Earnings on Blue Sky....
Tracker also raises a very interesting question, as To How long does a business like Emitch have to realistically Hit some sort of critical Mass. What sort of Co's could we benchmark this with?? Any ideas..The next Financials WILL be So So VERY important indicator for this Company, as their first profits are either going to be significantly improved upon to put together 2 consistent profit figures, or its back to the Drawing Board.
If Figures are in the very good to excellent range; relative to last modest but first Profits; then EMI could potentially be re-rated. Another Big question, does Revenue for EMI grow Incrementally OR at some point soon EXpedentially...
Errr, just one final small point, the Managing Director paid up $250, 000 today to Buy Stock--presumably the stock that was on the Market through Kroger. This was a little helpful and a plus for yours truly. As they say: "Gentleman, place your bets."

Thanks for your info, comments and insights on EMI Dave. Your comments are very helpful and appreciated.
Stay in touch,
davidrob

[quote]quote:Originally posted by David Hardman

There is no denying that EMI was over priced back in 2000. But so was everything tech.

The real point should be does it represent good value now?

Article in today SMH (copy below) says Australian online ad spend is expected to be greater then 300m. An increase of 50%.

2000 was the right time to raise a whole lot of cash from the market for EMI. 2004 maybe the right time to actually operate a legit online ad business.

Disc - own small parcel of EMI
*********************
http://www.smh.com.au/articles/2004/05/19/1084917655413.html?from=storylhs#

The online advertising market could break through the $300 million threshold this year, with key players saying savvy advertisers are continuing to fuel increases of more than 50 per cent this year.

According to the heads of ninemsn and f2, which have finalised deals in the past week with the Yahoo!-owned Overture for paid search listings, online advertising demand is matching last year's growth.

The Audit Bureau of Circulations says online revenues increased from $140 million in 2002 to $236 million last year. Online advertising covers classifieds, display advertisements such as banners and sponsorships, and search and directories.

The figure of $300 million was "very likely", said ninemsn's chief executive, Martin Hoffman, who announced last week the company had dumped LookSmart in favour of Overture for the delivery of "paid search" advertisements across ninemsn's online properties. "We're in the middle of the advertising cycle and we're seeing strong growth across the board."
Advertisement Advertisement

Nick Leeder, f2's chief operating officer, said classified and paid search advertising was growing at about 60 per cent this year, with display ads up about 30 per cent. "[The market] will probably make it to $300 million this year - if not in 2004, certainly within 18 months," he said. "As a network we certainly know traffic goes up 40 per cent per annum. Every year I think 'this will be the year it will stop', and every year I'm wrong. You're just getting more people with broadband and we're making site services better."

Mr Hoffman of ninemsn said paid search would be "the big story over the next 12 to 18 months".

Overture's managing director, Mel Bohse, said the paid search market was worth an estimated $35 mill

[David Hardman]

Robbo

How did you lunch with the GM go?

Here are some more interesting articles on Internet Ad spend growth.

The Interactive Advertising Bureau said Monday that online ad sales reached almost $2.3 billion in the first quarter of 2004, the highest three-month total since the group began tracking the sector in 1996.

http://news.com.com/Study%3A+Online+ad+sales+set+record-breaking+pace/2100-1024_3-5219121.html?tag=nl

and


A resurgence in online advertising is not only putting more money in Web publishers' pockets, it's also allowing them to be more selective about the ads they allow on their websites. The resulting shift in power could lead to a trend in less-intrusive advertising, some of the Web's top publishers predicted Monday.

http://www.wired.com/news/business/0,1367,63585,00.html?tw=newsletter_topstories_html

[davidrob]

Dear Dave,

Unfortunately the guy has been off work with the FLU. He did take the trouble to contact me through his P.A. though, to say he wants to see me on his return, when he is well.

By the way mate, what else; ASX wise...looks good to you at present. I still like OCL--Objective Corp--they won yet another contract the other day(sixth such successful win of a largish Tender this year), and Credit Corp(CCP) look quite promising.
Also do like Sonnet(SNN), but as I own EMI and OCL, that's probably enough Software/IT related stocks. OTI is rather illiquid at present, and getting them for 13-14 cents seems at present to be more of a historical whimsical wish!!
Saw GUD came out with some nice solid announcements and has achieved at the upper end of expectations. Really do like GUD and do own some, but are they sill good Buying at Eight Bucks ??? Can you buy such well watched Growth stocks at Barqain prices..??? Hmmmm

Interested in your thoughts, re these and maybe others YOU like,
Regards,
Robbo.

quote:Originally posted by David Hardman

Robbo

How did you lunch with the GM go?

Here are some more interesting articles on Internet Ad spend growth.

The Interactive Advertising Bureau said Monday that online ad sales reached almost $2.3 billion in the first quarter of 2004, the highest three-month total since the group began tracking the sector in 1996.

http://news.com.com/Study%3A+Online+ad+sales+set+record-breaking+pace/2100-1024_3-5219121.html?tag=nl

and


A resurgence in online advertising is not only putting more money in Web publishers' pockets, it's also allowing them to be more selective about the ads they allow on their websites. The resulting shift in power could lead to a trend in less-intrusive advertising, some of the Web's top publishers predicted Monday.

http://www.wired.com/news/business/0,1367,63585,00.html?tw=newsletter_topstories_html

[David Hardman]

Robbo

You still in this one?

Has had a great little run recently.

Riding on the back of good advertising spend and a favourable article in the AFR.

Did you ever have that meeting?

Interesting to note that David Spence (Unwired CEO) also served on Emitchs board. I wonder if any of the 3.5m ad spend they are undertaking is going to find its way to Emitch?

David

[davidrob]

Yep,

still with small holding EMI Dave...

Plusses and minuses..

Profit as a percentage improvement is GREAT, but Percentage margin on Revenue would like to see higher I guess....(as so would Market overall--IMO-- as getting higher.)

and the market will Not get excited at a mere $$Million only on the Bottom Line--at this stage---need to see 3-4 milion before market willl get too enthusiastic, in my opinion.[?]

however...

Big,big...Plus with FinalFive Recruitment Toll/ concept--this is of Huge potential value to SME's--as traditional recruitment fees--12%-& up to 18% of someones Total Overall Salary-...is Too high and not representative of Fair Value in their(SME's) perception- [eg: say middle management average salary is $75,000--and Exec Recruitment fee is: # $11,250 plus Display advertising of say $4-$6 K in traditional Press Media]--so you can see the advantage of Internet based Finalfive concept propsed and outlined in some detail in This latest Report from emitch....One of the trial partners for Emitch's Finalfive concept/ is Slade & Co--Geoff Slade--who I believe is one of the doyens of the Recruiment industry in Australia...so Dave,take up could be quite strong on this one.... watch this space...

Plus emitch are also BEING somewhat well placed/becoming[?]dominant??--in This Media/Advertising internet/online Sector-Niche of the market.; which Emitch is focussing in--EMI are definitely in a Huge Growth Sector--and the statistics are NOW in to prove it: whether Ad News; BT Media; and/or articles in all Media/Advertising journals; they all point to 3 or 4 central issues, which are potential plusses:

(1) Internet advertising is growing expodentially and is here to stay... Obviously: internet advertising--banner advertising needs to be differentiated from SPAM, but the efficacy of advertising with the ninemsns and googles of this world--indeed even frequently visitied Sites/Domains like sharetraders owner[8D][8D];) should contact emitch--as they (Emitich) will on-sell/broker the banner ads....and head the income earning traffic S/T's way....hmmmmm

(2) Large tradtional Companies/Advertisers: who know they absolutely must advertize to maintain & grow all-important market share: ie: companies such as McDonalds, Coca Cola, Nestle, Qantas,panasonic, Samsung, LG. the Rag-Trade--just jeans, Target, David Jones, K-Mart, Virgin, Hertz/Avis, Cadbury Schweppes, Hyundi, Holden & Ford & FMCG generally....etc etc etc all accept the Need and Value to have internet advertising as part of the Mix--and therefore importantly as a growing and allocated part of their strategic ad/marketing SPEND & STRATEGY--which is normally decided six months in advance...SO THIS potentially AUGERS WELL FOR emi....

(3) Multi-media, public relations and product placement in shows like Big Brother, & the Olympics and in Cinemas: ie James Bond and BMW etc--all tie in well with having an internet campaign as part of this MIX/strategy--again potentially good for emitch

E-mitch, in my opinion' needs big Volumes/Gross revenue and intrinsic brand awareness within the Emitch brand itself: as they are really primarilly a Internet Media Broker/Buyer--and this gets a small cut of big spends..
so that is the Investment question: can EMI get say: $500 Million plus in revenue: and then their 5-7% will look very good indeed,

Good to hear from ya Dave,

Kind Regards,

Robbo
Disclaimer: The above comments are made on a "without prejudice" basis. The above thoughts and comments are the personal opinions of the authour only; and are not represented as financial advice; and should not be taken, or interpreted as such. Please, as always; always do your own research.
Robbo.





[quote]quote:Originally posted by David Hardman

Robbo

You still in this one?

Has had a great little run recently.

Riding on the back of good advertising spend and a favourable article in the AF

[Sauce]

Net ads grow at high speed
Jane Schulze
August 31, 2004
THE internet has finally emerged as a major advertising platform, with the latest audited results revealing the market grew to $300 million in advertising revenue last year.

The Audit Bureau of Verification Services said the greatest percentage growth came from general online advertising, which lifted revenue 70 per cent to $104.7 million.

That was followed by search and directories advertising (up 61 per cent to $92.6 million), then classified advertising (up 45 per cent to $102.6 million.)

Total revenue in the 2004 financial year grew 58 per cent beyond the previous year to $300 million.

That makes the internet a larger advertising market than the outdoor or cinema markets, which, according to the Commercial Economic Advisory Service of Australia, were worth $296.6 million and $65.8 million respectively in 2003.

If growth continues at the same rate, the internet could overtake magazines as the fourth-largest advertising media in 2005.

CEASA said the magazine market took $599.8 million in advertising revenue in 2003.

The ABVS data shows growth in the second half of 2004 was stronger than in the first, with the market growing 65 per cent to $163 million.

Within that, general online advertising lifted 79 per cent; search and directories increased 79 per cent; and classified advertising 43 per cent.

However, the search figures are the first to include a full year of revenue from Google's search business.

The ABVS does not reveal the revenue shares of individual companies, but the general manager of Telstra's Sensis Search business Greg Ellis said it had more than 23 per cent of online advertising and about 70 per cent of the combined search and directories market.

And he said early usage of its new sensis.com.au search engine was above initial forecasts.

"It's this level of commercial search activity that will ultimately drive the advertiser value of search engines," he said.

Revenue growth at the online division of News Limited (owner of The Australian), News Interactive, was above industry growth levels, according to its managing director Nic Jones.

"We are growing faster than the market and I thought the (ABVS) numbers might be a bit higher," he said.

Last year, bundled print and online advertising represented 10-15 per cent of total News Interactive revenue but Mr Jones wants that to grow.

He believes most revenues moving online are new to the market.

"A lot of our increase has been new money, but then again we are in a very buoyant market," he said.

The chief operating officer of John Fairfax Holdings' online business Fairfax Digital, Mike Game, said it experienced similar growth rates to the ABVS data.

Fairfax recently began online registration of its internet users, and Mr Game said it would soon go to media buyers with premium-priced advertising packages.

"The sector is quickly moving from niche to mainstream . . . so we are proactively targeting media buyers with the virtues of online as it allows them to achieve both brand and direct response outcomes," he said.

[davidrob]

Emitch

EMITCH EMI

Glad and happy to notice THAT:

"Life's Not A ***** with E-Mitch !!"[8D]:):)

New All Time Share Price highs,
and obviously BIG Increase in Volume,

Market seems to be backing EMI for potential of this as commercially very viable and growing Advertsing Medium....

Go Emitch !!

Robbo.


quote:Originally posted by Sauce

Net ads grow at high speed
Jane Schulze
August 31, 2004
THE internet has finally emerged as a major advertising platform, with the latest audited results revealing the market grew to $300 million in advertising revenue last year.

The Audit Bureau of Verification Services said the greatest percentage growth came from general online advertising, which lifted revenue 70 per cent to $104.7 million.

That was followed by search and directories advertising (up 61 per cent to $92.6 million), then classified advertising (up 45 per cent to $102.6 million.)

Total revenue in the 2004 financial year grew 58 per cent beyond the previous year to $300 million.

That makes the internet a larger advertising market than the outdoor or cinema markets, which, according to the Commercial Economic Advisory Service of Australia, were worth $296.6 million and $65.8 million respectively in 2003.

If growth continues at the same rate, the internet could overtake magazines as the fourth-largest advertising media in 2005.

CEASA said the magazine market took $599.8 million in advertising revenue in 2003.

The ABVS data shows growth in the second half of 2004 was stronger than in the first, with the market growing 65 per cent to $163 million.

Within that, general online advertising lifted 79 per cent; search and directories increased 79 per cent; and classified advertising 43 per cent.

However, the search figures are the first to include a full year of revenue from Google's search business.

The ABVS does not reveal the revenue shares of individual companies, but the general manager of Telstra's Sensis Search business Greg Ellis said it had more than 23 per cent of online advertising and about 70 per cent of the combined search and directories market.

And he said early usage of its new sensis.com.au search engine was above initial forecasts.

"It's this level of commercial search activity that will ultimately drive the advertiser value of search engines," he said.

Revenue growth at the online division of News Limited (owner of The Australian), News Interactive, was above industry growth levels, according to its managing director Nic Jones.

"We are growing faster than the market and I thought the (ABVS) numbers might be a bit higher," he said.

Last year, bundled print and online advertising represented 10-15 per cent of total News Interactive revenue but Mr Jones wants that to grow.

He believes most revenues moving online are new to the market.

"A lot of our increase has been new money, but then again we are in a very buoyant market," he said.

The chief operating officer of John Fairfax Holdings' online business Fairfax Digital, Mike Game, said it experienced similar growth rates to the ABVS data.

Fairfax recently began online registration of its internet users, and Mr Game said it would soon go to media buyers with premium-priced advertising packages.

"The sector is quickly moving from niche to mainstream . . . so we are proactively targeting media buyers with the virtues of online as it allows them to achieve both brand and direct response outcomes," he said.

[tracker]

well done robbo
you got alot more faith than i
has been nice for you
make a packet
tracker

[davidrob]

Hi Tracker,

I don't know much about tracking,charting and tech anlaysis,

BUT

it might interest you to knowm that Emitch (EMI) hitting 18 cents today--:)[:p][:p]...has now Hit and broken through all-time and therefore 52 weeks Highs
which to some tech analysts, I believe,[?] speaks well in terms of resistance[?][?]

and reaching a New level,

So it'll either re-trace a Tad....or now challenge the all-important 20 cents plus barrier...

Having Got mine at 10-11 cents and a few below, I'm in for The Long Patient Haul,

But just thought you'd like to know this tech data,

kind regards,

Robbo
quote:Originally posted by tracker

well done robbo
you got alot more faith than i
has been nice for you
make a packet
tracker

[davidrob]

Second day, for Emitch hitting New All Time high @ 18.5 cents...and with massively increased Volumes, at between $160,000 to north of $185,000 daily bucks daily turnover...

Resistance is obviously 20 cents....and I'm staying on board this choo choo...

Do hope my fellow share-trades ahve been watching this thread and enjoying this ride!:)[8D]:)

Kindest regards,

Robbo.
quote:Originally posted by davidrob

Hi Tracker,

I don't know much about tracking,charting and tech anlaysis,

BUT

it might interest you to knowm that Emitch (EMI) hitting 18 cents today--:)[:p][:p]...has now Hit and broken through all-time and therefore 52 weeks Highs
which to some tech analysts, I believe,[?] speaks well in terms of resistance[?][?]

and reaching a New level,

So it'll either re-trace a Tad....or now challenge the all-important 20 cents plus barrier...

Having Got mine at 10-11 cents and a few below, I'm in for The Long Patient Haul,

But just thought you'd like to know this tech data,

kind regards,

Robbo
quote:Originally posted by tracker

well done robbo
you got alot more faith than i
has been nice for you
make a packet
tracker

[tracker]

nice play
well done Robbo

tracker

[davidrob]

No News....for EMI...

just a rather lazy afternoon for Emitch really,

but...ahem...by the way....

it was Up 17.3%...to an ....


All Time New high

of 21.5 cents !!!

Go emitch....:)[:p]:)

and yes Cap...just do please
keep kissin my ass...

IT FEELS SOoooooo Goooood.

Kind Regards,:)
Robbo.[8D]

and big sloppy kisses to

...my new love..Cap...[:X]

[Packersoldkidney]

Robbo! Have a look at the manipulation fora thing thread here posted by Capitalist! It's a pearler. Are you in Melbourne? Next time I'm down there I insist we catch up for a brew or three! Please! I insist! I'll bring the camera! :):D[8D][:I][:o)];)[}:)][:p][B)][8]:([8)][|)][xx(]:([:0][:X][^][V][?]

[tracker]

scares me, depth a little too thin either side for my liking,chart certainly looking better, so go forard and kick butt for those that hold the faith
tracker

[davidrob]

Ditto comments for FAN, SEN, HSC, UGL and KIA...

Has now broken 20 cents...which..

may or may not be maybe okay,

Signing Off,

Robbo.

[davidrob]

E-Mitch(EMI) ...is now igniting The Tri-Rocket After-Burners, with Maxie's special Rocket powered Internet Media Fuel....by the looks[:p][:p]:):):)

Up another Twenty Per-Cent (20%) !! [:p] on impressive volumes...

So it is now more than doubled in last 50 Days or so, which is quite nice really.....:)

See ya all soon At The Pub !![:p]

Kind Regards,

Robbo.

[davidrob]

Emitch (EMI)

"Life's never realy a ***** With Emitch...";);):)

up another 8% and keeps testing New highs at 26 cents....

WOW !! Love it:)[:p]:)

Do really, Hope other fellow subscribers still on-board this beauty...

Kind Regards,

Robbo.:):)[8D]:)

[lacmur]

quote:Originally posted by davidrob

Emitch (EMI)

up another 8% and keeps testing New highs at 26 cents....



Do really, Hope other fellow subscribers still on-board this beauty...

Kind Regards,

Robbo.:):)[8D]:)





Robbo,

Just having a look at this one. I have been in some shares over the last twelve months that have been geared to picking up on the boom in advertising. Can't stand it myself (advertising that is), but if I have to suffer through it then I may as well make some money out of the time it steals from my more important pursuits.

Would have to beg to differ on the claim that EMI has been testing new highs or reaching all time highs. My charts show that this one did an awful lot of nasty business from around $3.20 at float in March 2000 down to $0.025 on 24 Sep 2001 - to be precise. OOOOUCH!!! [:0][:0][:0] Anyone who bought, held and actually checked their EMI holdings at least once a week over those 18 months deserves a medal. It can be awarded to them in the locked ward at Callum Park.

Anyhow I'm big on anything internet just at the mo, so this one might get me in. I use the net soooo much myself and generally try to ignore the ads but with improvements in graphics and burgeoning broadband take up in Oz these screens and banner ads can only get more attractive and eyecatching. I had one ad teleport across the screen in front of me the other day, a little annoying but also fascinating.

Important to remember that we are now growing up with an internet generation that can only spell opportunities for net advertisers. Heard some interesting stats last night on the percentage of basic ticket bookings made online these days. Something like 60% of total bookings of domestic airfares - can that be right??

Like your stuff about the quantifiable nature of the impact of the advertising and think this one may have some more running up to do.

[FileAnt]

I have not looked at EMI but keep in mind that online advertising does not work well for most people, and when the general population works that out 'again', online marketing companies will dive again. Over the years I have monitored hits to my website and banner ads generate almost no hits at all, a very few search engines such as google provide steady growth, magazines newspapers etc generate 4000% spikes. Advertising on the whole only works well if it is hand fed or you can afford to flood the market with it like Coca Cola does from time to time. Successful online marketing companies currently spend a lot of effort attracting people to use there services and have to do a lot of hands on work to achieve any result. Google is successful so far because its system allows them to automatically pick what they advertise based on the popularity of the advertising. Google became popular because it has a monopoly on what used to be called 'Deja News' and they avoided putting pictures on their pages. Before this Alta Vista was technically the best search engine and probably still is.

I am currently developing a cool commsec interface which I will release in about a month (you will need a commsec account). I will list it here soonish... http://www.fileant.com

Does anyone here know anyone who has influence at commsec... can you send me their email?

[davidrob]

Yeah,

Fair enough Lacmur...

Have NOT looked it up, but that $3.20 figure is obviously outrageously & ridiculously HIGH//and over-valued....>>>>... for a stock like Emitch(EMI)...

Must have been the Dot Com Bubble--days of Sausage Software, Looksmart and One-Tel, making Rooster Billionairres out of the fortunate few, and feather-dusters of the rest who got caught up in such Giddy forward earnings projections, when P/E ratio's were completely discarded; becasue they had to be !!... Why ? Bec their were NO Earnings (how ridiculous, needing earnings anyway....)--to ratio a Price against !!

So my "new highs" posts for Emitch (EMI)refered to EMI since the days when emitch fell to 3 cents...and although I got a few then, most of mine were got around 10 cents-12 cents mark, six months or so ago !!

In future, will qualify, for EMI new high for past 2 years or some such !!

Yes, Lacmur, I too, would be long gone out of EMITCH at anything mildly approaching half of the $3,20 you referred to !!--in the next 12 months; I would have thought !![:p][:p]:)

Even at these current levels of 27-28 cents for EMI--it is arguable straining the earnings friendship, and these EMI--Highs are obviously now factoring in (1) Industry Trends re. Online Advertising Buying Statistics, now for the first time quantifiable by the Marketing Analysis Researchers--(a very big industry in itself);, and the now, v.recent historical statistics and trends regarding Advertising Take-Up by the Majors.... (multi-national and/or muliti-millions dollars annual advertising spend here in Australia/New Zealand);.....(as a proportion of their overall Advertising Budget/Spend).... and following from this: factoring in these growth nubers re. advertising spend; and modelling a forward earnings from there....

All that said; the points you DO make... are always very well worth being totally mindful and cognizant of & many many thanks for sharing these obsevations lacmur....:):)[8D]

At least, I suppose, with Emitch(EMI).... it can be argued that; unlike many Exploring mining outfits, or many biotech hopefuls; .....we do now have real quantifiable Growing Revenue streams and real growing Earnings profits with Emitch now, --for two reported historical successive half years, coming off a (I would argue)--relatively small and often fixed Cost base...:)

The question;....>>>... of course is, how much, and to what degree/extent; will such (EMI) Revenue and (EMI) Profit grow, and has the current Market Price, for EMI; been too optimistic for the near term, or is it about right, or is there more to go...[?][?]:):)

Therein alwasys lies The Question.[?][?]:):):)[8]:)

For me I gave up "timing' the Market, or even TRYING to "time" the market years ago !!

Consequently, I personally rarely; if ever; jump "IN AND OUT" of stock holdings.... I am "a medium-long term hold-guy"---approx # 95% of the time, with my stock Holdings.

Why am I usually a a long term holder??

: Unless Mr Market just offers outrageously Good Prices!! If that eventually does ocur then; I try not to be too sentimental;:)[}:)]:):)... and take him/her up on Him/Her offer.....[:p]:):)[:p]-- But I'm never ever;... the first to leave A Good Party !!-- :):)[:p]:)

Many thanks for your really great and informative post Lacmur. Enjoyed a lot.

Kind regards,

Robbo.:):)

quote]Originally posted by lacmur

[quote]quote:Originally posted by davidrob

Emitch (EMI)

up another 8% and keeps testing New highs at 26 cents....



Do really, Hope other fellow subscriber

[davidrob]

EMITCH (EMI)

WOW !!

Check out the ASX Announcement TODAY.....!!! yeah !! [:p][:p]:):)

Emitch reports a 55% Increase in Revenues for Sptember quarter, and the appointment of new CEO...

Check It Out guys !!

Kindest Regards,

Robbo. :):)

[davidrob]

EMITCH (EMI)

Just have to Love this Dot Com Internet Boiler !! [:p]:)[:p]-- EMITCH EMI --just keeps on keeping on [:p]:)

Hits New High again today; at 30 cents: looks like we migh get 200% in the 6 Month Period which will be GOOD

Hope many sharetraders are enjoying EMITCH as much as Robbo does --Go Emitch !! [8D] ;):)

Kindest Regards,
Robbo:):)

[davidrob]

Hope you all caught a HITCH....on good 'OL EMITCH gals & guys !!

EMI: Up another 10% ++ plus percents today [8D][:p][:p]:)

Cheers
Robbo:):)

[davidrob]

EMITCH...EMI

Was there more than a SUBTLE hint in todays Emitch (EMI) announcement on the ASX today I wonder ??? ;);) [:p][:p]

Seem to feel, (personal view only, of course...;);)[8D]) that an Up-Ward strong re-rating might be about to come through very nicely when Emitch's(EMI) Results are relesaed any day now...

Regards,
Robbo :)[:p]:)

[davidrob]

EMITCH (EMI)

Emitch EMI

Everyone Here at the Pub is Backing this Horse again at present...

and word from Chris The Cockatoo, is that she is betting, Gav the Galah, ODDS on, with HIGH STAKES mind you....;)..>>.. 5 (packets of Premium Salted Cashews), That Emitch will be first over the Barrier...to 1 WIN... Odds On...

That Emitch; is ready to Really rally forward ...crows Chris....

Could be just Bird-Brain talk really;.... and maybe I've had too many Crownies,[:o)][:o)]

But some of the PUB regulars....do seem to opine & even Reckon;.... that the Birds might be ACTUALLY onto something, hmmmmm,

....and intuition, and nothing more or less...;);):) [:p] tells them Birds and ME; errrrrr.... ...

"that some folk may just get a little rich; ... with emitch...[:p]

....>>>>>:...over the days and weeks ahead...;);)

Regards,

Robbo :)

From the Crownie Pub (next to The Bird Cage)

[davidrob]

EMITCH (EMI)

Better Be quick CATS...

This EMITCH Cat ... ---(Latest 1/2 yr result, just now released excellent financial result) is one straight OUT OF THE BAG....[:p][:p]:) [8D]

Kindest Regards, (and Happy Wedding Anniversary to Whitherron...fabulous, and genuinely heart warming...sincerest BEST WISHES to you.... and your Better Half and also "....She Who Must be Obeyed..." White Herron .. Well done to both of YOU!!)

Regards,

Robbo :)

Robbo. :):)

[lacmur]

quote:Originally posted by davidrob

EMITCH (EMI)

Better Be quick CATS...

This EMITCH Cat ... ---(Latest 1/2 yr result, just now released excellent financial result) is one straight OUT OF THE BAG....[:p][:p]:) [8D]

Robbo. :):)



Robbo,

Very nice. Half year result excellent with profit up 100%. Report Also indicates excellent prospects for future growth especially with financial services industry taking the lions share of internet advertising and the continuing increases in broadband connections making advertising more accessible to more internet users.

Patience is paying off with this one and this cat got some of the cream.

[davidrob]

Just also better quickly remind folks,

EMITCH (EMI) is a "Buying of Media"...Media Buying House, as opposed to an Ad agency....This is critical to understand when valuing and assessing EMITCH (EMI)

and is controlled (own 35% of the EMI share register...approx) by the Mitchell Family...Mitchell Media IS the largest Media Buying House in Austrlia for ALL FORMS of media..

ie: TV, Radio, Posters, Vogue, Newsweek, BRW, Magazines, Newspapers, etc etc etc...

So they are a True Tollway, as they are the ONLY recognized, focussed and now well established LEADER in Media BUYING..advertising/communications...
Agency in Australia....

And yep, we all hate Internet ads,

But the stats tell the: Pepsi Cola's, Lever Rexonas, Citi-- Banks, Toyotas, Proctor & Gambles, Sonys, Nestles, Ford Motor Co, Virgins, Coca Cola's Harvey Normans, Panasonics, Flight Centres, ANZ Banks, Diners Club, Amex's etc etc etc..

that Television is becoming less and less targetable/accountable... due to technological changes and Internet ads, especially BANNER versus pop ups by the way....are more and more demographically and category linked targetaable to likely intended audiences....

AND, of course, that internet can be measured and repeated and quantified for Return on Dollar spend, by the MAJORS....>>>....for whom ROI is critical... much more so than other Media Advertising forms....

It therefore for of all of these sort of companies mentioned above, that Internet Advertising is here to stay for forseeable future, and IS PART of undisputably the NEW accepted by tradtional advertisers,... Media Advertising Spend & MIX now, and that is simply not conjecture but an established fact. It is ALSO...predicted, and well documented now, by Marketing Communications Specialists, that this trend will continue....

For me this Emitch investment really is a typical Early Warren Buffet style play...exceptional predictable futue earnings, little cost blow risk, safe well established Focussed Niche working within their coimpetncy set, repeat coupon business...slot machine characteritics...over 50% and steadilly climbing of EMI's revenue is jsut now set and forget repeat...coz it works mathematically for the advertisiers, and so they just aoutomatically Book it every Advertisng season now....

EMITCH....Operates off a relatively fixed VERY very low capital Base, high Barrers to entry due to nature of Clients, not dependent on any one or two main clients, and needful regardless of interest rates or cyclical or seasonal factors....

also Good Strong spin off of Cash collection and incresing stron cash reserves, and again NO DEBT !!

By the way, also do the numbers if Emitch keep compouinding their Revenue and Net Profit by 37% and 101 Repectively year on year for say 3 or 4 years...!!and remeber there is practically no need for heavy capital expenditure, and Being a Buying Agency they do not compete with Fairfax, Consolidated Press, News Limited, Ninemsn, Google etc..

NO, NO, NO....:):)

...>>>... they, (Emitch)... BUY on behalf of clients for them,so EMI are on those Advertising Dependent A-ist and get nice Xmas presents etc etc...

and when you know/understand Media Advertising their is very good self interest resons why they do not usually want to go DIRECT...

Again, do your own research, and DO THE MATHS,

Regards,

Robbo. :):)

[tommy]

Hi EMI holders,

Joined the EMI bandwagon today and became a small shareholder of this very intersting stock.

I hate internet ads but hey, looks like this company is doing pretty well. Will shove this one under the carpet and see what happens at the end of the year:)

[Lane]

Hi,
I held EMI back at 11c and sold last year for a nice gain.
Recently bought back in as I like the potential. As a broadband user, i know the way the internet changes dramatically when your not hanging around waiting for pages to load - and some online advertising is getting pretty compelling with video etc etc.
BUT - despite great results from this co, the SP has been pulling back over the last few weeks - with significant drop today.
Any thoughts?
Robbo????:)

[tracker]

Steady on robbo, we wouldnt like people to loose money based on kitchy posting with NO stop loss would we?????
I am sure all the guys and gals can stand up for themselves BUT for the few who, or can,t? well judge responsibly please point out what i am talking about?? what should I say??????
A few words of advice mate ,
ya gotta take more care, and for the few out there who still believe that someone who is computor literate, and can post in diff colours and kitchy stuff isnt neccessarily correct well , enough said....
Unfortunately there are alot of "stock people" out there who cling literally to others words and until they find their footing ,well it can just be misleading
nothing personal, but as with stolly we go back to style and presentation etc
Hey I am stoked you are making money BUT tone it down as credibility is more important than diff colours,kitchy headers and basic pump style
ps I sold emi at like 370 (that is from mem as I would have to look back at contract notes etc, and that was from being long at 20 cents in the float, from memory and its funny to me to be talking at like 20 odd cents, so you have to understand my issues here, and thats what scares me ok. Hopefully it will be a rewarding stock for you and anyone that listens BUT to me it is a frivolous excercise, espcially with this stock, sorry BUT the truth, based purely on my last sale simple as that!!!!!!!!!
make heaps of money
tracker
ps if your stops are tight you will be ok
and maybe emi is a turn around story for all those involved but STOP LOSS rules either way and nothing anyone says will convince me either way
it is a fact and it is here to protect you either way just remember that
tracker

[KW]

Personally I think the market is still spooked by software companies, and will use any opportunity to bail out of them, despite the fact that IT was one of the best performing sectors over 2004, and things are looking even better for 2005 as companies invest some of their excess cash in upgrading infrastructure and assets.
I have software stocks that are sending strong TA sell signals, but also strong FA buy signals. Go figure.
On the other hand, well managed stocks with increasing revenues, profits, dividends, no debt, low P/Es ... usually are a good buy regardless of the sanity of the market. I've done alright out of IRI and TNE and both have been beaten over the head with a hockey stick lately. Used the opportunity to buy up more IRI :-)

[KW]

On the subject of EMI in particular, it is going to get hit with a tax bill on its next profit. Its used up all its tax losses, and only paid 2.5% last financial year. So it will be on the full 30% this time around - dont forget to factor that into your earnings calculation.

[lacmur]

From cat with the cream to sick puppy in just over a month. This one has dropped almost 33% since the results announcement down to 20c today. Sold out a few weeks back north of 25c for a small loss. Doesn't look good at the moment for holders. Pretty ugly in fact.

[davidrob]

Emitch (EMI)..

Hi ya guys,,,

EMI emitch---is NOT a software company...

It is Australia's lagrest on-Line Media Buying Agency....

Originally got into EMI at 11 cents...

....and now even at these lovely new lower levels of 20 and 21 cents..have been steadilly a BUYER...not a seller...

Remember...the adage: Buy in Gloom, Sell in Boom....not the other way around...especially if you are comfortable with your Margin of Safety, instrinsic Valuation of the companies likely future increased earnings and healthy Margins... and increasing ROE...!!

Kindest Regards gang,

Robbo :):)

[tommy]

Hi all EMI holders,

Some articles on online advertising market in general, which may be good for this battered stock of late. Here we go:

http://smh.com.au/articles/2005/04/11/1113071912531.html
http://smh.com.au/articles/2005/04/11/1113071912089.html

_____________

More advertisers choose net
By Julian Lee
Sydney
April 12, 2005

"New media" pose a serious challenge to traditional media as the proportion of ad money going online keeps growing.

The online advertising market grew more than six times faster than the overall ad market last year to hit $388 million, for the first time eclipsing its nearest rival, the outdoor ad industry.

Advertisers spent 64 per cent more online than in the previous year, making it the fastest-growing media, according to the latest revenue figures supplied to the Audit Bureau of Verification Services. Figures due out later this week are expected to show that the total ad market grew by 10 per cent to $9.1 billion.

The statistics also show definitively that "new media" is posing a serious challenge to traditional older media such as radio, magazines and, to a lesser extent, newspapers and television.

The amount spent on banner ads, classifieds and sponsored links through search engines was $61 million more than on posters, street furniture and buses and taxis, which last year claimed $327 million of the total ad market. Online has already overtaken radio in ad revenue in Britain and the US.

Publishers are hailing the figures as a milestone in the industry's recovery since the dark days of the dotcom boom, when budgets shrank along with the online ad market.
AdvertisementAdvertisement

Ninemsn, the joint venture between Microsoft and Publishing and Broadcasting Ltd, says more mainstream advertisers are going online to launch products and services. "The list of (our) top 25advertisers used to be dominated by online businesses but now they are the same as those you would find on the TV schedules," ninemsn chief executive Martin Hoffman said. McDonald's, Pfizer, Procter & Gamble and fast food chain KFC were all new advertisers online in the past year, he said.

Eleven million Australians are now online and 60 per cent are expected to be broadband users by the end of the year. An Australian study conducted last year by mobile phone operator Ericsson found the number of hours spent online weekly jumped from 17 to 23 when a user moved from dial-up to broadband. Although the finance category continues to be the biggest spender, pumping $31 million into the medium last year, according to ABVS' 2004 Online Advertising Expenditure Report, the amount spent by advertisers of fast-moving consumer goods leapt from $1.9million to $4.7 million.

"It's really brought home the fact that online is becoming an established medium," said Nic Cola, commercial director of Fairfax Digital, the online arm of John Fairfax Holdings.

The online market is split three ways: display (including banner ads, sponsorship); classifieds; and search, where an ad is served up in response to a query through a search engine. Search had the largest growth in ad revenue, rising 85 per cent to $127 million.

________________________

Boom in online ads challenges old media order
By Julian Lee
April 12, 2005

The online advertising market grew more than six times faster than the overall ad market last year to hit $388 million, for the first time eclipsing its nearest rival, the outdoor ad industry.

Australian advertisers spent 64 per cent more online in 2004 than in the previous year, making it the fastest-growing medium, according to the latest revenue figures supplied to the Audit Bureau of Verification Services.

Figures due out later this week are expected to show that the total Australian ad market grew by 10 per cent to $9.1 billion.

The figures confirm that "new media" is posing a serious challenge to traditional media such as radio, magazines and, to a lesser extent, newspapers and television for advertising dollars.

Spending on banner ads, classifieds and

[tommy]

Here comes another news article on online ads, with Emitch chairman's short comment today:

http://www.theaustralian.news.com.au/common/story_page/0,5744,12825399%255E7582,00.html
____________

Ads growing like topsy on the net
Lara Sinclair
April 12, 2005

ADVERTISING on the internet grew four times faster than the average across most main media last year.

Revenues of $388 million pushed the web ahead of billboard advertising for the first time.

Strong growth in general and classified advertising and a booming search and directories market saw online advertising rise 64 per cent last year, up from $236 million the previous year, Audit Bureau of Verification Services figures show.

Search and directories - which includes advertising revenue from directories such as the Yellow Pages website and the sensis.com.au search engine Telstra launched last year - had the fastest growth. It rose 85 per cent to $127.5 million to grab 33 per cent of the market. General advertising grew 59 per cent to $128.5 million and classifieds rose 53 per cent to $132 million, 34 per cent of the total. The figures reflected renewed confidence from advertisers in the medium after the 2000 dotcom crash, said Ninemsn chief executive Martin Hoffman, who added that online had benefited from fragmentation of other mass media audiences.

"If we get a cyclical downturn in advertising spend overall, it will be interesting to see how online fares. (We think) people will cut (online advertising budgets) last, not first."






Hoffman said the increased penetration of broadband connections was driving both internet usage and television-style rich media advertising.

Fierce competition in the search market between Ninemsn, Google, Yahoo and Sensis, which have all launched search initiatives in the past year, is also boosting search engine advertising.

Technology analyst firm Frost & Sullivan's research director Foad Fadaghi predicted the search advertising market, excluding directories, would grow from 20 per cent of all online advertising last year to 30 per cent by 2010: "Advertisers are now (advertising on) multiple search engines because they want greater reach."

He said online advertising should grow by an extra 50 per cent this year but Mr Fadaghi said growth in classified advertising could slow: "That industry is about to be subjected to bigger challenges as advertising-based (free listing) models such as Craigslist get some traction."

Fairfax Digital chief operating officer Mike Game said while free listings were a future threat, Fairfax expected growth in classifieds to top 30 per cent this year driven by the strength of the recruitment market.

Emitch chairman Stuart Simson predicted general advertising online, excluding classifieds and search, would grow from about 2 per cent of total advertising spending to about 4 per cent in the next few years.

Average growth across most main media was 14 per cent last year, Nielsen AdEx data shows.

[davidrob]

Howya Tommy,:)

Haven't said g'day for a while...terrific to catch up again...

Yep, and at 19.5 cents thru to 22 cents Emitch (EMI) has been, IMO Really fabulous BUYING !! [:p][:p]:)

Kind Regards,

Robbo :):)

[davidrob]

....interesting observations.....

.....hmmmm

For details see my previous posts on this Emitch thread....12/4/05...just behind this post....and the one on HWW Media on todays date 12/4/05 !!


Regards,

Robbo :):)


quote:Originally posted by lacmur

From cat with the cream to sick puppy in just over a month. This one has dropped almost 33% since the results announcement down to 20c today. Sold out a few weeks back north of 25c for a small loss. Doesn't look good at the moment for holders. Pretty ugly in fact.

[tommy]

Hi davidrob,

Good to hear too that you are still with HWW and EMI!

I have held HWW for some time and sticking to it, but only entered EMI recently... share price plummeted since buying though, so I obviously did not buy it at the right time! (Sitting on a 22% loss at the moment...mmm)

Not going to top up more EMI at this stage despite the cheap share price, contrary to you I find HWW to be of better value than EMI!

[davidrob]

EMITCH...(EMI)

up 17 % on today's open and 22% on the low 2 days ago !!

Sentiment is such a funny thing....

Although in respect of the LOW and the now up trend not an offical WORd from the company directly on the ASX site.....

just shows...BUY in Gloom ...and Sell in Boom....:)[:p]:)

...by the way; how's 'ol.... "Waltzing M" doing now ....hmmmmm...
;);)

Kind Regards,

Robbo:)

[tommy]

Hi Robbo and other EMI holders,

EMI now up 14.89% to $0.270, probably attributable to yesterday's news articles. Now just a -5% unrealized loss for me[|)]

[David Hardman]

Good read for any EMI holders

"A PDF report looking back at the history of Internet marketing, (written by Rick Bruner, Research Director at DoubleClick, in association with NetRatings), examines major changes afoot today, including the shift to a seller's market, greater advertiser demand for accountability and greater demand from consumers for control. "

http://www.doubleclick.com/us/knowledge_central/documents/RESEARCH/dc_decaderinonline_0504.pdf

[tommy]

Article on Emitch, here we go:

http://australianit.news.com.au/articles/0,7204,15104518%5E15841%5E%5Enbv%5E,00.html
_________________

Online ad spree pushing $400m
Simon Canning
APRIL 28, 2005

A DECADE ago the sector didn't even exist, now it is the engine that is feeding interactive media's fastest growing area - media buying.

Companies such as Nextx, emitch, Overture and others have helped drive the sector from nothing to nearly $400 million in advertising spending last year.

Online advertising rose by 64 per cent last year to $388 million, taking the sector ahead of billboards for the first time. The biggest growth has been seen in search advertising, which has exploded over the past year.

The emergence of brands such as Telstra's Sensis and Overture have underlined the search market, which is worth $127 million.

Mel Bohse, managing director of Overture, which launched its Australian arm 14 months ago, says the company has more than doubled its staffing levels. "We really are starting to challenge traditional media because advertisers are becoming more educated about how to use online," Bohse says.

One issue that Overture has worked at is convincing big advertisers with well-known brands that they need to consider search engines as part of their media mix.

"People don't type in a brand name," she says. "They often rely on one or two key words. If people are looking for cheap flights, they don't type in Qantas, they type 'cheap flights'. So it needs to be there as a part of branding as well as traditional search."

Bohse also cites the increasing penetration of broadband as a key to the rise of search engines as an advertising tool.

In February, online media buying specialist emitch announced half-year profits had doubled, with revenue up by 37 per cent, confirming the increasing importance of online advertising. "We are excited at the opportunity broadband is offering clients in new creative advertising formats," emitch chairman Stuart Simson says.

"This should, over time, help us facilitate the use of the internet by marketers in a wider group of consumer industries and by those not only looking to acquire customers but build brands."

Last week Sensis launched its latest tool for media buyers, MediaSmart, part of the ongoing program to educate advertisers on how to use the internet.

Education is vital, says Bohse. "I think we are looking forward to more explosive growth and the biggest area for use will be in education and continued testing," she says. "With media planners and buyers, they have to get skilled up." Bohse says the biggest issue lies with older media planners who do not see the internet as a competitive medium to traditional media.

Miles Joyce, managing director of Australia's largest online media agency Netx, says although search engines have clearly been the booming area for advertisers, big brands are taking more notice of online possibilities. He says the online advertising industry has finally emerged from a period where it was obsessed with technology over the message.

"To me the industry generally lost its way for a while, obsessed with what it could do with Flash [a computer program]," Joyce says. "But the technology has become a commodity and now it is all about the creative message."

A report released last week by ad server company DoubleClick warned that the explosive growth experienced in online advertising was not sustainable in the longer term, but there would be strong growth for years to come. "Advertisers still lag behind consumers in their adoption of digital media," DoubleClick says

[tommy]

Is EMI gonna bounce back?? Up 11.11% today, but I'm still sitting on nearly 30% loss[|)]

Kerry Packer's talk on online advertising the other day (reported in the business news of Sydney Morning Herald) cannot be deterimental to EMI, considering that it has made the entire ad industry aware of the fact that online advertising is gonna take over TV in terms of ad expenditure soon...

[davidrob]

Emitch (EMI)

Me still a HUGE believer in Emitch (EMI) ....Tommy,

EMI is in my 5 - 7 Year Long Term Hold Box, for me, at present Tommy, and moreover, I have been buying more EMI (about # $57 K) this last three weeks...at between .185 cents --.19 cents

Hope you are really well Tommy :):)

Kindest Regards,

Robbo :)

[tommy]

Hi Robbo,

Good to hear that you are accumulating more EMI on the cheap! EMI (and HWW!) are obvious beneficiaries of the rapid progress in Internet (or mobile) technology, so I am being patient with a much longer investment horizons than others.

However, EMI's market cap is only $32 million at the moment, which seems damn cheap considering that existing TV media heavyweights have been calling for a major shift towards online advertising lately. I am hoping for EMI (and HWW too!) to be taken over in the not so-distant-future, because that seems like a logical step... but that might not take place for a while:(

[Lane]

some more activity here over the last little while. buy side drying up a bit recently. No news for a while and, like you, Robbo, have been picking up some chunks around 19-20cent mark. I have liked this for a while, yet doesnt seem to be benefitting from the international press surrounding internet advertising. I am very happy at this stage - Im sure more people will wake up to EMI

[davidrob]

Emitch (EMI).

Will swing a bit...up & down maybe....

although nicely up around 7% today....Depth is a bit hard to read either way..maybe "support" has moved up a peg or two...who knows ????

My opinion...AND ONLY personal view: is to hang in there with Emitch......and nibble away on the "dips".....

Personal Thoughts again only on EMI are:.... that Emitch(EMI) is a "early to mid July" bloomer....for the Buds to begin to sprout; with a lovely pink Autumn/September blossom ....when the true radiance of Emitch will finally really break through....[:I][:I][:o)] [8D]

Kind Regards,

Robbo :)

[tommy]

http://www.theage.com.au/news/Christopher-Webb/Ads-big-wheel-sues-Foxtel-media-group/2005/06/06/1117910243017.html

Ads big wheel sues Foxtel, media group
Strictly Private
By Christopher Webb
June 7, 2005


Harold Charles Mitchell is taking on the world's second-biggest media buying group, as well as Foxtel, after a dispute over advertising at Telstra Dome and the Melbourne Cricket Ground.

Stadia Media, a private company associated with Mitchell, has issued Supreme Court proceedings against French-based media buying and advertising group Publicis Communications.

The local Publicis company at last report had earnings of about $3.1 million pre-tax on about $50 million of sales a year.

The Stadia writ was also aimed at Foxtel Management, where the board includesSamuel Hewlings Chisholm, David Moffat, Christopher Anderson, John Hartigan, Zygmunt Switkowski and Foxtel chief Kimberley Williams.

Mitchell set up Stadia three years ago and since then has signed agreements allowing it to sell advertisements at football and cricket match stadiums across the country. The company reportedly is selling ads worth about $25 million a year.

Stadia Media forms part of Mitchell's media group, which includes media agency Mitchell & Partners and listed internet media buying outfit emitch.

Stadia's statement of claim, filed by Lamplugh McIntosh and drawn up over the names of John Langmead, QC, and Tomaso Di Lallo, alleged that Publicis agreed to buy from Stadia a package of advertising media, for the use of Foxtel, during this AFL premiership season.

The writ says the agreement covered 10 per cent of the full advertising scroll at Telstra Dome and the Melbourne Cricket Ground, six advertising executions a match, each 30 seconds long and on large video screens, and various other media segments.

The Mitchell company says the Publicis fee to Stadia would be $1,435,500.

The writ says that at the end of January, Publicis told Stadia that Publicis wanted to cancel the agreement and refused to carry out its obligations.

The news was conveyed orally by Henry Daglish on behalf of Publicis to Stadia general manager Anthony Charles on February 9.

Stadia says it made the agreement with Publicis to promote, develop and sell stadium advertising and signage.

The Mitchell company says cancellation of the agreement would have an adverse financial impact and that the cancellation so close to the start of the football season would not allow Stadia sufficient opportunity to get alternative buyers for the media, and that Stadia clients would be less likely to continue to retain Stadia if the media under the agreement was underutilised.

Stadia says Publicis' conduct was arbitrary and capricious and motivated by irrelevant concerns and was unconscionable conduct under the Trade Practices Act.

Stadia says it organised a site visit to Telstra Dome in mid-January for Publicis and Foxtel representatives and that it spent $3832 on air fares.

Stadia claims Foxtel wrongfully induced Publicis to breach the agreement and that a Foxtel representative had told Publicis to cancel the agreement. It wants the $3832 air fares repaid and $978,816 for loss and damage.

The defences of Publicis and Foxtel will not be known until they are filed.
Requests and resolutions appear across the boards

It seems to be the season for trying to throw people off boards.

An extraordinary meeting was called recently to install one Evan Ryan on the board of Atlas Group Holdings. But the other day, the requisition was withdrawn.

Then there is Harry Cooper's resolution aimed at removing Paul James Byrne from the Pacific Magnesium Corporation board.

Byrne has attacked Pacific Magnesium's research and development spending.

But Emmanuel Althaus has branded Byrne's letter to shareholders as factually incorrect.

Althaus told shareholders: "I regret that you have been drawn into the groundless allegations that Mr Byrne has chosen to address to you in his letter."

The latest requisition to change a board has been lodged by t

[davidrob]

Emitch (EMI)

So Tommy, now we might be able to look forward to construing Earnings for Emitch in a different framework perhaps....

How does stating Emitch Earnings for 2005/6 as:

"...Earnings @ :Seven Times Legal Fees..." sound to you Tommy !! [:o)]

Kind Regards,

Robbo :)

[tommy]

[:I][:I][:I]

[Lane]

This from Cnet news.com - more of what we already know

Web ad sales were at their height in the first three months of 2005, after two years of steady growth in online advertising following the dot-com fallout.

Online-ad revenue totaled $2.8 billion in the first quarter, a 26 percent boost from the same period in 2004, according to a study by the Interactive Advertising Bureau, or IAB, and auditor PricewaterhouseCoopers. Consecutively, first-quarter sales were up 4.3 percent from $2.7 billion in the fourth quarter of 2004.

Researchers attributed the sales rise to a broader online audience and more households connecting to the Net via broadband. High-speed connections let marketers deliver rich, brand advertising to a mass market that was once only targeted via television. But as the TV audience fragments with the advent of hundreds of cable and satellite channels, marketers are looking for cheaper ways to target customers, such as search-engine marketing via Google and Yahoo.

"The economics (online) are too compelling for marketers to ignore," Tom Hyland, new media group chair at PricewaterhouseCoopers, said in a statement.

The figures come as several researchers have predicted a banner year for online advertising. Forrester Research has forecast that sales will grow by 23 percent to $14.7 billion in 2005, based partly on marketers allotting nearly 25 percent more of their budgets to interactive advertising this year. Investment bank Goldman Sachs recently increased its estimates, saying that interactive ad sales will rise 28 percent to $12.3 billion and make up 4.4 percent of total advertising revenue.

The IAB reported Web ad sales of $9.6 billion for the full year in 2004, up 33 percent from 2003 revenue. Last year's sales exceeded the previous revenue record in 2000 by nearly 20 percent.

The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers. First-quarter estimates represent data from all companies that report meaningful online advertising revenue

[davidrob]

Emitch (EMI) Up

Emitch has risen a handy 25 % in the last 3 days....[:p]:)

So Lane....your comments a couple of Posts agon on this Emitch thread: were very nice....and my prophesy was Good Too....its just that the Blooming started earlier than predicted....:)[:p]

It'll be interesting to see what EMI retraces too --if indeed it actually does...certainly I am NOT selling as it is Too close now till August etc...so, thoughts are that if it dips again THEN I will simply BUY more...

Coz...as ya know... I always say....

"....Life's never a B.... ch .....with Emitch..." [:o)]

Regards,

Robbo:)

[Lane]

Robbo,
I bought emitch ages ago at around 11cents, partially on some research i did after reading one of your posts here. I sold out at 15cents feeling very nice only to watch them crack over 30c. But I really like this co, and have gotten back in recently at an average of 19cents. So......I am very happy with the last few days - but like yourself, beleive there is more to this share.
Thanks for your comments on this thread - I read with interest your thoughts, particularly around your august predictions - on what basis do you make those?
thanks again - look forward to further goods from emitch

[davidrob]

Emitch (EMI)

Hi Lane !

Re: my predictions:

Simple forecasting methodologies really....

(1) Seasonally the second half of the financial year; is nearly always stronger than the first half...in Advertising generally and especialy for this company historically ...if you look at the last 36 -48 months of Emitch's own Trading Figures; as per their anounced previous half yearly Released Results viewed historically.....

(2) And if the Industry Trend is for the overall Australian and Western Economy' "Internet Versus Total Corporate Ad Spend" .... drifting to the Internet from TV, Print and Radio etc.....is only half, or even one third correct & right....and taking into account the timing of Emitch's own Corporate Business Development; post the major Smash associated with the dot com Bubble Burst ....in 1999....

and....

(3a) The "repeat and accrual Nature" ...... of the Emitch style of business which IMO....should logically compound, at least to a larger degree..... assuming that Emitch (EMI) RETAIN a decently large percentage of thier already existing Corporate Clients......

(3b) ....as well as Increase the size of the Advertising Budget from the previous Reporting Period of those that they can successfully Retain ...

and

(3c) ....as well as Gain significant NEW Corporate Internet Advertsing Clients....
and hopefully

(4) Build Their Brand ....... and//but that is another HUGE story for another day Lane !!!

---which, IMO....Lane, ought to happen as Emitch(EMI) refine their own Internal Business Development and Retention Customer Service and Sales Systems ....and get a greater amount of new Business through referrals because of their: .... incremental "growing footprint".... in the Interent Advertising "Space" /// Market.....

---->>>> So there Lane, is my rationale behind my optimistic predicitions for Emitch; going foward over the next: approx: 30-60 -75 days....IMO.... Lane !! :)

As I said in last post Lane , I'll be "technically" interested--but will be non participative; except that is to BUY if it happens... to see if a retracement for Emitch comes into play re. a Pull Back, after this strong Run Up.....happens in the Interval ?? .....

So Lane, Hope that gives you some slight insight into the weird// mad Mind of Robbo, !! [:o)][:o)]

Have a good one Lane...

Kind Regards,

Robbo :)

[tommy]

Hi robbo and lane,

There's been so much media coverage about the growth of the online advertising market, so recovery of emitch's share price is not surprising but still doesn't seem to be attracting enough attention as I had hoped... this should be going up, up and up!

BTW, who are the direct competitors to emitch in the online media market in Australia? Are there any?

[Lane]

Robbo, Tommy.

Well, theres the re-trace you were expecting, albeit on very low volume. courtesy of the weird mad mind of robbo.
Robbo, like you, i expect news from EMI that continues to show growth in revenue that will see this climb over the next 6 weeks or so.
Can someone help me out with a question? I hear a lot about australian investors selling holdings around this time of the year. I realise this is to do with tax. But, what effect does it usually have on the market in general and is it likely to see a pull back up until end of june? can anyone offer clarity?

[tommy]

Check out this article:

http://www.thecouriermail.news.com.au/common/story_page/0,5936,15646520%255E3122,00.html

______________
Ad biz is buzzing, but if you aren't interactive forget it

A new breed is emerging in Australia's advertising industry #8211; one to whom clicks are as important as audience share or circulation. James McCullough reports
18jun05


MICHAEL Burke is a face of advertising in the New Millennium.

Burke is the youthful managing director of the hip West End-based Liquid Interactive, an online advertising agency division of Liquid Animation.

Liquid Interactive would not have existed 10 years ago. It offers a complete interactive strategy for a client, including website design and is one of a growing number of online advertising groups which have sprung up over the past five years to cope with the rapid growth of the Internet.

"If you come to us we create an entire interactive strategy for your business," he says, claiming that the company is one of the largest in its field in Queensland, employing 40 people and working for Warner Bros and Disney.

"A lot of the advertising agencies picked it (Internet strategy) up around the time of the dot-com boom and got their fingers burnt but now interactive agencies are springing up around and it is growing."

Internet search giant Google was this month declared the most valuable media company on the planet, surpassing Time Warner in just 10 months trading as a public company.

Google is now capitalised at $US80 billion ($A105 billion), throwing up serious challenges for the traditional print media and advertising world in the process.

And Google's most valuable asset is an algorithm.

The new trend has seen traditional advertising agencies either forming alliances or establishing their own interactive online organisations.

The clients experiencing the most growth in the online sector include consumer finance, travel and communications.

There has also been a flight to quality by traditional advertising clients now seeking more bang for their buck, and advertising agencies which cannot offer an Internet or interactive alternative simply are not surviving.

In the highly competitive advertising world, Mitchells is the big kahuna. The national agency, headed in Queensland by Tina Jameson, is the largest media buying operation in the country, handling close to $1 billion a year in media spend.

Like many agencies, it saw the need to embrace the Internet and several years ago established an interactive arm, Emitch, headed by chief executive Lee Stephens.

He said the Internet as a proportion of overall media spend was growing rapidly.

"Forecasts are that it is going to grow at 25 per cent to 30 per cent compounded every year and that is the evidence we are seeing this calendar year," Stephens says.

Traditionally June is a slow time for all forms of advertising ahead of the end of the financial year but this month is looking better than many over the past year, according to Stephens.

"It (online advertising) is operating on a cycle that is independent of the traditional media cycle," he says.

In the Australian advertising world there are about five super players and about 10 to 15 medium players.

A breakdown reveals about 20 agencies doing somewhere between $10 million and $20 million and five or so in the $50 million-plus billing bracket.

UBS media analyst Nola Hodgson says the industry view, particularly on new advertising channels, is upbeat about the advertising market in the second half of calendar 2005.

"The general view is that the advertising market remains very robust," Ms Hodgson says.

"I thought they were a little more upbeat than we are about the second half of the year."

UBS expects 3 per cent growth in television in the second year and just more than 4 per cent in total advertising.

The drivers of growth in the second half would be the automotive industry with a raft of new car launches and telcos with small companies advertising, forcing big telcos to defend their position

[davidrob]

Emitch...(EMI)

...>>>> Emitch up again and this time a very solid increase of 16% Today on more Good News for Emitch (EMI)


NICE !!! ..... [:p];)[8D]

Kindest Regards,

Robbo :)

[tommy]

Hi robbo,

The announcement doesn't exactly explain what the joint venture will bring about to emitch. Can you elaborate on its significance?
___________

http://stocknessmonster.com/news-item?S=EMI&E=ASX&N=238254


emitch Limited Announcement

emitch Limited (ASX code: EMI) congratulate Mitchell & Partners on the announcement today of a Joint Venture agreement with major global media network, Media Planning Group. The emitch Board believes the new arrangements offer significant potential to emitch. Mitchell & Partners have confirmed to emitch that the Joint Venture will utilise the services of emitch for media buying of online advertising for the new Joint Venture.

The details of the arrangement with emitch will be announced shortly.

[davidrob]

Emitch..(EMI)

Sure Tommy,

and How are ya anyway ??...

Very Simply....Mitchell Partners(a non listed Private Media Buying House--Australia's most established, oldest and largest ....)....are the largest "controlling" share holders of Emitch (Mitchell being of course the "mitch" in the Emitch name), and the two companies therefore "feed" one another a lot of volume of work.

So with Mitchell Partners doing a deal--(Joint Venture) with the Global (USA I think??) firm, Media Planning Group=--and by the name Media Planing that means if there is a client like Sony or Coca Cola etc ..... who have a 'xyz million dollar quarterly Advertising Budget'...... then Media Planning "Plan" the Media Mix (Print, On-Line, Billboard, Television, Newspaper, Magazine, Catalogue, Radio etc etc...) - and deciding on the allocation of ad $$$$ and actually where the $$$ of Media Spend should be directed to each Media/Advertsing Sector for their Client (Sony, Coca Cola or whoever).... and then 'Media Planning' will outsource the actual "Buying/Purchasing" of the chosen relevant Media to Mitchell Partners .......

Advertising is all very incestuous....

Within this 'typical circumstance or variation thereof; every time there is required "buying/purchasing" of the Online Media component for 'Media Planning's' particular client; whether they be Coke or Sony or whoever ....... -- Guess who now will pick up the Internet Advertising // Online Banner ad etc etc... Component of the Coke or Sony account and the consequent flowing revenue/profits.....???? Answer: starts with "e" .....

Hope that helps Tommy,

Just let me know if any clarification of above would be helpful Tommy,

Kindest Regards,

Robbo
:):)

[tommy]

Hi Robbo,

Thanks for the explanation, I will be looking forward to the details to be announced by emitch... hopefully it will help lift its shareprice again[:p]

I managed to find Media Planning Group's profile:

_________

About MPG
MPG (Media Planning Group) is the global media network of Havas, the worldwide marketing communications group. MPG provides media planning, buying, strategic consulting and interactive services for a wide range of blue-chip clients. MPG has offices in 56 countries, with more than 2,000 media professionals working in a wide range of disciplines. MPG is a leader in North America and market leader in major European markets and Latin America. MPG USA units include MPG/Arnold, MPG Direct, MPG Diversity, Media Contacts and MPG Entertainment. MPG USA headquarters are located at 195 Broadway in New York City. To learn more about MPG USA and our global operations, please visit our website at www.mpg.com.

__________

From the sound of MPG's business, the scope of this joint venture might be huge... The extent to which much emitch will directly benefit remains to be seen, but it might be quite a big revenue booster for emitch don't you think?!

Nice to hear your opinion as always, robbo - keep up the good work:)

[Lane]

Tommy and robbo,
What a lovely day it was for emitch. Also, checked out MPG today - certainly do seem like a sizable group. When you look at this announcement after not hearing anything since feb, then it sounds good to me. Combo that up with the comment from the CEO in the article you posted tommy, and it certainly looks like the half year results may well be solid. Seriously looking forward to hearing more from Emitch
No doubt we will be reading more posts from each other soon

[Lane]

Strong performance today - more volume than weve seen for a while from EMI. Still waiting for further news from the recent comments from the company re: joint venture tie-in. Perhaps this is whats driving the price up - time will tell!!!

[mamos]

Just another article re: Internet Advertising which mentions Emitch specifically. Looks like we could be in for some good results next couple weeks perhaps.

Media firms go surfing for new business
27 July 2005
By NEIL SHOEBRIDGE - www.stuff.co.nz

If April 13 was the day Rupert Murdoch "got" the internet, July 18 was the day he put his money where his mouth was and showed that his News Corporation empire was prepared to pay big bucks to secure a place in the new media.

Mr Murdoch's $US580 million (NZ$850 million) purchase last week of Intermix, a company that owns 30 internet sites – including the "social networking" site MySpace.com – sent a clear signal: it is time for traditional media to get serious about the internet.

The price, which represents an eye-popping 46 times Intermix's projected 2005-06 earnings of $US12.6 million, stunned industry executives. "Murdoch took a gun to a knife fight," says one. But they were not surprised by the deal itself.

Three months earlier, Mr Murdoch had telegraphed his intentions. In a speech to the American Society of Newspaper Editors on April 13, he proclaimed the internet was threatening to turn newspapers into "also-rans", repeated the oft-heard statement that people aged 18 to 34 were abandoning papers, and called on publishers to "deliver . . . news in the way consumers want to receive it".

The Intermix purchase, like any decent deal, is driven by money: more specifically, the fear of losing existing money and the dream of capturing new money.

Traditional media companies have watched the explosion in the number of consumers using the internet. They have seen advertising revenue leak from traditional media to the online world. And they know that teenagers and people in their 20s are embracing new media, such as the internet and mobile phones, and spending less time with old media such as newspapers and free-to-air television.

News Corp is not the only old media company buying its way into the internet business. On July 11, John Fairfax Holdings, the publisher of The Dominion Post, paid $A38.9 million – $NZ43 million, or 9.7 times earnings – for RSVP.com.au which is an online dating service.
Advertisement
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In February, the New York Times plunked down $US410 million for About.com, a news and information site. In June, American newspaper giant Gannett paid about $US100 million for PointRoll, which sells online advertising technologies.

"It's a bit of a carrot-and-stick approach," said Tolman Geffs, managing director of the New York merger and acquisition firm Jordan Edmiston. "The carrot is the growth opportunity for ad-driven business online; the stick is the hole the internet is creating in the profits of traditional media, particularly newspapers.

"Online extensions of those newspapers are not enough to fill that hole. So what they are doing now is redeploying (resources) into faster growth businesses."

Stuart Simson, executive chairman of the online ad agency emitch and a former managing director of The Age newspaper, says traditional media companies have realised they are on a "hiding to nothing" if they stick with their existing products. "It's not too late for them to carve out big online territories, but they'll need to get their skates on and take some significant investment risks and forge some unusual partnerships."

The numbers tell part of the story: the London-based media agency Zenith Optimedia recently predicted that the global online ad market would march from US$16.4 billion this year to $US20.9 billion in 2007, with the internet's share of total worldwide ad spending rising from 4.1 per cent to 4.7 per cent.

In Australia, the online ad market jumped by 64 per cent to $A388 million in 2004 – 3.6 per cent of total ad spending – and is expected to grow by 40 to 50 per cent a year for the next five years or so.

"The traditional media companies have realised they need to jump on the internet bandwagon," says Cliff Rosenberg, managing director of Yahoo! Australia and New Zealand.

"In pa

[tommy]

EMI is gaining momentum boyz, keep an eye on this stock... cannot wait to hear the annual results from this little gem. In the long run, the only way is UP for Emitch! Sell side looking thinner than ever!

[Lee.Stephens]

Hi guys, My name is Lee Stephens and I am the CEO of Emitch. I watch your comments with some interest and appreciate the advice and feedback I receive from the forum. I just wanted to let you know that we are announcing our full year results on the 24th August. Should you have any inquiries I would be happy to answer them if I can - via email on lee.stephens@emitch.com.au. Thanks again for all the support last year and I look forward to making a positive contribution to your portfolios this financial year. Regards, Lee.

[davidrob]

To Lee Stephens. (CEO) --- of Emitch (ASX: EMI)

** Share-Traders --see previous POST above, from aforementioned poster ! **

..... Gee Thanks for honouring us with a: "Saying Hi" post Lee,

WOW !!

Having a ASX listed Co. CEO visit US all, here at Sharetrader, is a real privilege, and I am sure that we all here at Shartrader, join, in expressing our strong gratitude for your Kind response and for your hopefully fortuitious general comments...[:)

Certainly Lee, as everyone knows, -who have or are still currently, "Supporting Emitch" -- like certainly with myself,.... and going from the tone of the S/T posters, as are most of the other Emitch (EMI) POSTERS on this site/post, we have all either already done very well with our Ownership of an Emitch (EMI) shareholding, or are shortly ..... at least, hopefully about to DO so. [:p]

Who knows the moods & vagaries of the overall sentiment of the Sharemarket ...in the weeks ahead, though .... Lee !! :)

Again, we await The (EMI) August (05) Results, with strong interest, and Many, many thanks Lee, for letting us hear your appreciation, AS we we all in turn; extend to you also.

Kindest Regards ....... from all of US, here at Sharetrader,

Robbo :)

[tommy]

I would also like to thank Emitch CEO Mr. Stephens for his posting above.

In my opinion, the business climate for Emitch has never been more favorable considering the growth of the online advertising market and the anticipated cross-media ownership legislation which is likely to lead to a radical restructuring in the media giants. It will trigger mergers between different types of media companies as well as acquisitions, and with Emitch having secured a nice nitche on the online ad front, it should certainly come into the radar of those big players. Emitch should be able to exploit this new phase in the media market!

[tommy]

Here's another article on the internet, including short comment by emitch chairman.

http://www.smh.com.au/news/business/internet-dominated-by-same-old-gang/2005/08/09/1123353318776.html?oneclick=true

Internet dominated by same old gang
By Alan Kohler
August 10, 2005

It turns out that despite all the exciting possibilities, the internet is not much of an engine for media diversity. The same players who dominate print and television are battling for online classified advertising domination and will, as a group, succeed. What's more, three of them are partners in subscription TV, so they might not actually battle for very long.

And as for online journalism, there is some but it's mostly niche players beavering away in Fitzroy garages (like crikey.com.au). As Stuart Simson, the chairman of online advertising firm emitch, told the ACCC's annual regulatory conference two weeks ago: "There has been low investment in terms of dedicated staff by media players in 'new' online news and current affairs. The argument that the new media has seriously fostered diversity is, in my view, a mirage."

The only possible exceptions to the seamless transition of media concentration from the old to the new are three American multinationals: Google, eBay and Yahoo. How the battle between them and News Corp, Publishing & Broadcasting, Telstra and Fairfax plays out will have far more bearing on the future of media in this country than anything the Government does.
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News Corp has launched its inevitable bid for the 60 per cent it doesn't own of the No.1 online real estate classified advertising site, realestate.com.au, and although $2 a share ($120 million) looks too low, it will eventually mop up the company. Yahoo has sold out of the top employment site, seek.com.au, and left it to PBL. Fairfax has paid $39 million for the leader in what it calls the "fourth category", match-making, RSVP.com.au having, amazingly, lost first mover advantage in the other categories.

Fairfax also owns a 12 per cent stake (which it bought this year from Yahoo) in the leading motor vehicle advertising site, carsales.com.au, an unlisted public company largely owned by car dealers (its market leadership is disputed by Telstra's Sensis - more on that later). Fairfax is regarded by carsales.com.au as a hostile shareholder because it's also a competitor through drive.com.au but surely it won't be long before either Fairfax, News, PBL - or perhaps all three - attempt to take it over.

When asked if the business was for sale, managing director Greg Roebuck told me yesterday that "you never say never, but we're quite happy where we are".

The largest shareholder in carsales is chairman Wal Pisciotta with a bit more than 20 per cent. Fairfax is next, so it is an open register and the right price will win control. The company earned $3 million profit in 2004 (2005 results are not yet available) which makes it roughly the same size as realestate.com.au.

Underlying all the recent action is this dawning realisation: any notion that low barriers to entry on the internet would mean dominance is not possible and profit margins would therefore be much lower than the print "rivers of gold" classifieds is wrong. The online leaders are operating on at least 30 per cent profit margins - the same as print.

The barrier to entry that produced John Fairfax's domination of print classifieds in Melbourne and Sydney is not simply the ownership of a big printing press; it's the possession of inventory. Buyers go where most of the houses, cars and jobs are advertised, and the advertisers go where the buyers are. A clear leader can therefore achieve a virtuous cycle, where success breeds further success and dominance is locked in.

Over the years, News Corp's tabloids have periodically attempted to break Fairfax's stranglehold on classifieds but, despite ownership of similar presses and larger circulations, it never got there - beyond some limited success with cars.

The same applies online. Seek has 65 per cent of the job ads m

[davidrob]

Emitch (EMIO)

My personal view, is that going by all the previous Posts,and Media INformation of the Future Growth potnetial and current reality vis-a-vis Online Media and Advertising (falling continually more into the mainstream....) .... it might be seriously worth about NOW .... considering adding some Emithc EMI, to the Portfolio ... :);)

Disclaimer:
This is just however my view only.....

and is just only based on my interpretation of all of the evidence that I personally can now approaise, and NOT meant to be, in any way whatsoever, any form of financial advice.The above comments are not warranted as advice, not are warranted for their veracity or accuracy.

Kindest Regards,

Robbo :)

[mamos]

Hi Robbo.

Yes totally agree.

Lee advises that we can expect an announcement re Joint venture with MPG perhaps this week, but hopefully before the annual report is released.

Regards

Mark

[tommy]

Excellent announcement out!

___________

EMITCH ANNOUNCES MEDIA BUYING ALLIANCE WITH MEDIA CONTACTS

emitch Limited (ASX Code: EMI), Australia’s largest on-line media planner and buyer, announces details of a media buying alliance with Media Contacts, the interactive arm of
MPG Australia as part of the new alliance between Mitchell & Partners and Media Planning Group SA (MPG). This announcement is further to our earlier announcement of 20 June 2005 congratulating Mitchell & Partners on their alliance with MPG.
emitch will provide media buying services for Media Contacts Australia. Media Contacts will enter the Australian market performing the online media planning services as well as
developing the interactive strategy for MPG’s Australian clients and for clients that it develops on its own.

Announcing the alliance with Media Contacts Australia, emitch CEO Lee Stephens said the arrangement offered emitch the potential for some new revenue streams and offers
emitch clients the combination of powerful local and global network resources.

Media Contacts’ CEO, Don Epperson, commented that the company was very pleased with the agreement because it affords the company’s clients the opportunity to leverage emitch’s buying power.

Mr Epperson said the alliance implies a clear benefit for both interactive media agencies.

[davidrob]

Emitch..

All Locked in and certainly Looking Good .... for emitch Tommy ..

IMO .... for Emtich (EMI) over the days and weeks ahead Tommy..

Thank You Tommy ...; very much by the way, for posting that ASX Announceemnt on the MPG/Media Contacts Global Deal.....

Will definitely; .... be an arrangement; that will bode very well for Emitch with this MPG Global Deal; to consistently and repeatedly be NOW capable for EMI, to leverage nicely Off, and increase consistent repeatable revenue streams & Increased New Earnings & profits accordingly....

Note, that that they (EMI) snuck today's excellent ASX announcment(re. The Deal) in, just before Close of Trading......

----- hopefully as a "curtain raiser to The End OF Financial Emitch (EMI) Year Results; either at the end of the Week or at the latest; ..... very early next week !! :)[:p]

And ya know Tommy; ...... what I am due to say.... about Emitch. by around now ....;)

..." Life is never really a Bit%$# ch .... with Emtich !! "

Kind Regards,

Robbo :)

[tommy]

Hi robbo,

Indeed the time is now ripe for EMITCH[:p] I strongly believe this baby will grow into a giant one day. The partnership with MPG is just a stepping stone...

I cannot wait to see their results! We already know they have been and are growing, but the question is, how much? Anyone willing to do a back-of-the-envelope guestimation here? I would be VERY surprised if they failed to double their profits.

[davidrob]

Emitch (EMI)

Everything to my mind, points to a Good to Very Good Official Result.

Double Profits.. ?

That is very do-eable in my view, for EMITCH...on a same time last Year to Year Basis...

Even a tad better, say 120 % ?? ..... would be best guestimate.... since you asked Tommy !!

Regards,

Robbo :)

[OneUp]

KEY FINANCIALS FOR THE YEAR:

• Gross Billings of $17.83 million, an increase of 31 percent;
• Revenue from ordinary activities (after agency commissions and interest) up 30 per cent to $17.5m
• EBITDA of $1.581 million, an increase of 101 per cent;
• Net profit before tax of $2.03 million, an increase of 96 per cent;
• Net profit after tax of $2.39 million, an increase of 136 per cent (note this included a one off tax benefit of $372k);
• Net cash inflow from operations of $1.61 million
• Cash balance at 30 June 2005 of $9.44 million
• Earnings per Share of 1.34c, up 136%;
• Unfranked dividend of 1.0 cent a share.

OUTLOOK:

Mr Stephens said, “June quarter billings were $6 million or 39 per cent higher than the same last year. The month of June was the strongest month on record and this significant step-up in
revenues has continued into the new financial year.

“The addition of new clients, the continued high double digit growth in the general Internet advertising category, and the increased take-up of broadband, bode strongly for the company in FY2006 and beyond.”

[davidrob]

Emitch (EMI)

Great !! -- no, actually --- fabuous Results... for EMI

Organic non acquisition based Earnings Growth Excellent --130% plus

Dividends Increases

Free Cash Flow

Revenue Growth

PUT this one under The BED; for $1.00 in One Year.... IMO ....

ie : IMO.... a $50,000 Investment Today IN Emitch(EMI) , will reap a Return, in my view,.... realisically of $$ -- Cool Extra $100, 000 -- on top of your $50K capital invested in EMI shares.......is my view..

Why --?

Apart from their niche; wait for the just announced EMI Stragegic Partnership with Global Media Heavyweight --- MPG.... when this kicks into Emitch's Earnings and Revenues and Profits, Bottom Line .....

Only "problem" -- will be Emitch being a prime: News Ltd style Take over Target perhaps ??--

Hope not, but NEWS LTD did takeover last month Real Estate.com (REA) and has reported it (NEWS LTD) ... is now on the aquisition for dynamic On Line Media Listed ASX profit drivers.... Whichever way; EMI Shareholders will Do very very well now...in my view ...

This is a Buffett style classic: Year on Year on Year Dividends Growth, Earnings Growth, Profit Margin Griowth( now a very excellent 13.7%)-- Up 22% from Profit margins in and from last year; and also strong and almost doubling Revenues/Profits Growth story now; with a Toll Way niche, and very well Proven and successful management:

Here then, is the Emitch (EMI) Media Release:

EMITCH LIMITED ANNOUNCES 136% INCREASE IN PROFIT TO $2.4M

-- Leading online media buying company emitch Limited (ASX: EMI) today announced a net profit

-- after tax of $2.387 million for the year ended June 30, 2005. This compares with a profit of $1.011
million in FY2004, an increase of 136%.

-- The net profit after tax includes a one-off tax benefit of $372k. Net profit before tax was $2.027
million, an increase of 96% over the previous year.

--The Company also announced the payment of a one cent a share dividend with a record date of
October 7 and payable on October 21. The dividend will be unfranked.

-- KEY FINANCIALS FOR THE YEAR
•
Gross Billings of $17.830 million, an increase of 31 percent;
•
Revenue from ordinary activities (after agency commissions and interest) up 30 per cent to
$17.506 million;
•
EBITDA of $1.581 million, an increase of 101 per cent;
•
Net profit before tax of $2.027 million, an increase of 96 per cent;
•
Net profit after tax of $2.387 million, an increase of 136 per cent;
•
Net cash inflow from operations of $1.608 million
•
Cash balance at 30 June 2005 of $9.441 million
•
Earnings per Share of 1.34c, up 136 per cent;
•
Unfranked dividend of 1.0 cent a share.

Kindest Regards,

Robbo

PS -- Heh One Up, did you see my Guestimate/Prediction on this Emitch thread; in the Robbo post preceding your own last post ... ... ??! ;)
Robbo. :)[:p]

[tommy]

Hi robbo and oneup,

Absolutely brilliant results from EMI indeed, good guestimation robbo mate! Didn't expect EMI to beat your figures though;) Glad you share the same views on the future potential of EMI, and we don't even know the magnitude of the deal is with MPG! But a $1 price target in one year? Mmm... I love your optimism, but surely I won't be complaining if that happened so soon:D

[OneUp]

Hey guys,
yeah it was a good result from EMI. And an "I can't believe it's not butter" estimate from Robbo on the NPAT!

Just interested in how you got to a valuation of $1.00 per share or thereabouts for EMI, Robbo?

The way I value EMI is to seperate the valuation of the cash and the operations. As investors we should not pay a multiple for cash - what I'm interested in is the online advertising business. So if we take out the $9.4m cash from the approx $56m market cap, we get an adjusted market cap of $46.6m. Then we have to adjust the earnings likewise, to help with our valuation metrics. The $372k one off tax benefit should be excluded from adjusted earnings, but so too should the interest payments of $469k EMI received on its $9.4m.

Total adjustments = $841k

Adjusted earnings therefore come to $2.387m - $0.841m = $1.546m

Summary:
Market cap (online advertising business) = $46.6m
Earnings (online advertising business) = $1.546 - P/E ratio of 30
Cashflows (online advertising business) = $1.16m

(The discrepency between adjusted earnings and cashflows appears to have gone into funding increased working capital).

EMI looks to be richly valued on these metrics. On the other hand, growth is strong. The key to getting anything like a 200% gain from here is what EMI will earn this year. Just inquiring Robbo, what your estimates are for this year's profits?

[davidrob]

Emitch (EMI)

In response to Ruperts comment on my Emitch: Share Price Prediction.

But before getting to that: re MTN, I disagree with your analysis, and although I try to respect your opinion, I felt you were getting a bit vitriolic, to the point of suspecting some Rupe motivated third "agenda" ....

But Rupert, this is too good a forum to be, too sensitive about such matters, we can, vis a vis MTN- just agree to disagree. I still Hold MTN, and will await future further soon to be, developments with interest.

Back to Emitch (EMI)

Do not agree EMI ;) Results are already "factored" into share price, but yes, coz of my own PE calculation error, on the PE (explained below) I was perhaps a bit optimistic....

Then again Rupert, people here on S/T thought I was looney when I called Emitch 17 months ago, at 11 cents !! ..... :)

However; Rupe, your possibly right too, abuut immediate "timing" of Emitch Share price rising ???

--Timing is not my speciality ....

--Patience is where I ahve beeter outcomes.

--- and profiting from peoples "imaginary wall of needless worry" -- and sticking To my (what I assess as...) Margin of Safety Valuations,---- on stocks like MTN .....

... So, partly agree Rupe, re: some of your commenbts, on EMI Share price, May not necessarilly -- jump up tommorrow , on that I also agree. Could take a while, (the results) to be absorbed and analyzed by the market....)

That comment though could apply to a hold swag of other stocks....and as a Value Investor, doesn't worry me really ....

Must have a had a few too many Crownies last night though Rupe, ,
.... one of my PE assumptions was a bit awry...

.... Price Earnings (PE) for Emitch is now closer to the PE of 22-23 mark for Emitch,.....
( I had erroneously factored in around a lower PE of appros: PE of 17-18-- sorry Rupert !!)

-- which means, one of my calcs overlooked one of
the new KPI numbers. for Price Earnings ..... ... so confirm: Emitch PE is now: PE 22.

Still before these results';Emitch, IMO, still great Value now, PE last week for Emitch was officially a PE of 36.5, so we can see that it is much more a "value" stock,based on this latest set of EMI results ......

However, the Emitch PEG --- is now much much lower, being, a PEG, of only (peg:0.17) , and the annualized Retun on Assetts, is now up from the previous annualized 8% (ROA) --
to now being approx: 13.7% (ROA).

Herein we have, in my view, the All Important: the Margin of Safety

Even more importantly though...is the Emitch (eps) rise of 135.9% !!

And also..... my favourite Key Performance Indicator.... is the: -- year on year Return on Equity..... (or, as some analysists like to phrase it, the Return on Capital ) -- it is significantly increasing on a year Year on Year on Year --- ; which is one
of the first things I look for, along also with the dividend increase !!

ROE annumalized is now around the ROE of ROE: 19, up from previous
annualized of: ( ROE. 11.).

Per above para. Expressed as a Percentage, Return on emitch's (EMI) Capital is up by: -- > 61%.

All Very very Good signs, in my view, of sustainable and contunuing strong free cash flow, and Financially organic sustainable growth, .....in my view ......

One final point: note the Increases too, Year on Year on Year ....
(yep, that is three - four consecutive years now...) ... increases in gross Profit Margin, which correlates with the same factor occurong with 3 years plus of significantly increasing
Gross Sales //Revenues.

Revenue/Sales Growth this year; anualized for Emtich(EMI) was around > 30% , for Revenue growth. ...

This shows, that according to the last Emitch Reports for previous 3 years plus .. vis a vis Emitch's fundamental KPI's -- IMO --- that Emitch is not only a Value Company, but also a Growth Company -- the best style of combination, in my view.....

This is amply demonstrated by the Bottom Line: Adjusted Profit, no

[OneUp]

Robbo, just as a general valuation query, why would investors ascribe a multiple of 22x for interest earned on a bank deposit?

I work out EMI's underlying PE to be about 30, not 22.

[davidrob]

Emitch EMI

PE is yesterday 32 cents of market quoted EMI share price -- 32c, divided by the 1.34 cps (see EMI Report) (cents per share) = 23.9 PE

This is EMI (PE) As also quoted in todays Austn Fin Review.

One Up, honestly, Do not understand your Bank Deposit Querry?? More Detail perhaps ?

Regards,

Robbo

[OneUp]

Hi Robbo, just incase you missed my post from earlier this morning...

Hey guys,
yeah it was a good result from EMI. And an "I can't believe it's not butter" estimate from Robbo on the NPAT!

Just interested in how you got to a valuation of $1.00 per share or thereabouts for EMI, Robbo?

The way I value EMI is to seperate the valuation of the cash and the operations. As investors we should not pay a multiple for cash - what I'm interested in is the online advertising business. So if we take out the $9.4m cash from the approx $56m market cap, we get an adjusted market cap of $46.6m. Then we have to adjust the earnings likewise, to help with our valuation metrics. The $372k one off tax benefit should be excluded from adjusted earnings, but so too should the interest payments of $469k EMI received on its $9.4m.

Total adjustments = $841k

Adjusted earnings therefore come to $2.387m - $0.841m = $1.546m

Summary:
Market cap (online advertising business) = $46.6m
Earnings (online advertising business) = $1.546 - P/E ratio of 30
Cashflows (online advertising business) = $1.16m

(The discrepency between adjusted earnings and cashflows appears to have gone into funding increased working capital).

EMI looks to be richly valued on these metrics. On the other hand, growth is strong. The key to getting anything like a 200% gain from here is what EMI will earn this year. Just inquiring Robbo, what your estimates are for this year's profits?

[davidrob]

Hi One Up,

As you can see from my second last post, I admitted to making a mistake regards to earlier calculations vis a vis the $1.00

and revised to approx Target, for 75 cents...

That was posted two posts before your post this morn.... did you see that with attendant explanantion re the maths mix up ??

Still 75 cents needs to be justified.....

Let me maybe say; that it is not only quantatitive historical factors that come into Valuation/Share Price forecasting....

It is also Qualatatitve Factors:

Such as global socio political, political economical, Industry Trends, sector niches possibilities, Abnormal Money Movements, Migrations and Transfers from one niche to another, Global Corporate New alliances and Global Economies of Scale and Global Demands operating in global Markets (all very relevant for EMI, becasue many/most of EMI's Reveue comes from Global headquartered Advertisers and are Global multi-nationals, and the Emitch Business model exclusively is to leverage upon the Marketing and Advertising use of the Internet, which is the ultiamte in a Global approach to Advertising as a Medium and Branding Interface-- as, it is argued, will be the case, as Corporates move increasingly from traditional media to more and more On Line Marketing Media....

-- it is a Capitalist business aphorism that, in markets, money flows to where it feels it is most apprecaited, and ....where it can optimize its perceived "bang for the buck..."

Regards,

Robbo

[tommy]

http://stocknessmonster.com/news-item?S=EMI&E=ASX&N=241568

emitch / Roy Morgan Research
Internet Advertising Intentions and Attitudes Survey
STRONG ONLINE AD SPEND CONTINUING IN 2005

Advertisers, agencies and publishers are increasingly optimistic about the role of the internet as part of the overall media mix, with the majority of advertisers (73%, up fourteen percentage points from 59% in December 2004) agreeing that “the internet will be a vital component of my company’s marketing strategy over the next three years”.

Prominent advertisers allocated an average 5% of their advertising spend to online advertising in 2004-2005. This level of online advertising spend is slightly ahead of predictions made in June 2004, according to the latest emitch/Roy Morgan Internet Advertising Intentions and Attitudes Survey conducted in July. It is however down from predictions made in January 2005, largely due to some of
the previously more bullish advertisers tempering the size of their anticipated expenditure.

The strong trend is forecast to continue, with prominent advertisers reporting that they will invest 6% of their advertising dollars online in 2005-2006.

The survey found that general internet advertising continues to be the dominant online advertising form.

A majority of advertisers have now embraced the internet with 54% of advertisers having invested in online advertising in the past 12 months—similar to the last survey six months ago.
And there has been a significant increase over the past six months in the proportion of advertisers who see the internet as a vital component of their marketing strategy.

Seventy-one per cent of advertising agencies surveyed had placed advertising online in the past 12 months, similar to the last survey six months ago.

Online Advertising Behaviour
General internet advertising, which incorporates banners, tiles and the like, continues to attract the lion’s share (64%) of online advertising spend.

[davidrob]

emitch

"powering along...." [:p]

Sure Tommy, that you too -- Hope some s/traders got the "heads up",& considered getting on Board Emitch.... eh Tommy !!

Cheers,

Robbo:)

[tommy]

quote:Originally posted by davidrob

emitch
"powering along...." [:p]
Sure Tommy, that you too -- Hope some s/traders got the "heads up",& considered getting on Board Emitch.... eh Tommy !!
Cheers,
Robbo:)


Hi Robbo,

Obviously the market loved today's release by Emitch! Share price up 10% so far and reached 52-week high[:p] Now counting the number of months it might take for this baby to reach a market cap of $100 million [}:)]

[davidrob]

Emitch (EMI)

As ya know Tommy,

Am on the record (3 posts or so ago.....)

For 75 cents from 12 months since their (EMI) Report....

If they Get Raided (ie: News, PBL, Fairfax, Singleton, Photon .... or whoever ....
go The attempted Takeover, thinking more approx: $1.00

Whichever number will make the O.E. (Origninal Entry) of 11 cents start to look okay... (although I did Trade about 30% of EMI holding through some of the Dips....)

I really do feel this is a BUFFETT style of stock...

and has xcellent Economics and Demand Fundamentals, off a relatively low cost base...

Good news is that they have Got a real start onm tjhe Comp. in a fantastic growth "new economy" niche that is also a traditional economy Capitalist Speciality: namely "advertising combined with Online....

Emitch has tended to go in fits and starts....and as you allude to, probably needs to get to a Market Cap of $100 millions, to "really do the business re. Liquidity....

The Improved and repeated Dividends will be a nice BONUS too !! [:p]

Noted also that Debt levsls are basically non existent...

As Bert Newton was want to say,... (when interviewing Mohammed Ali at the Logies, one night....

: "... I like the Boy !! ... "

Kind Regards to all emitch investors,

Regards,
Robbo :)

[tommy]

Interesting forecast!

http://www.mrweb.com/drno/news4530.htm
_______________


China, Central Europe and the Internet Drive Ad Spend

September 7 2005


Carat, part of the Aegis Group, has increased its 2005 forecast of world ad spend growth to 5.2% -highest in China (18%) and Central Europe (11.4%) and lowest in Germany (1%). Its predictions for increased online ad spend are echoed by a new report from Roy Morgan in Australia.

Forecasts for every region are down on levels of growth the previous year, with even Asia Pacific growth steadying slightly, but spend is expected to accelerate again in most countries in 2006.


2004 actual 2005 forecast
(previous forecast) 2006 forecast
Global 6.7% 5.2% (5.0%) 5.8%
USA 5.8% 4.5% (4.5%) 5.0%
Asia-Pacific 7.4% 6.8% (5.8%) 7.2%
Europe 5.5% 4.2% (4.6%) 4.8%
Japan 5.4% 2.5% 3.0%
China 22.0% 18.0% 20.0%
UK 6.8% 3.7% (4.8%) 4.5%
Germany 1.0% 1.0% (1.3%) 2.0%
France 3.5% 2.0% (2.2%) 2.3%
Italy 7.9% 2.7% (3.3%) 4.7%
Spain 6.0% 5.1% (5.0%) 4.6%
Nordics 5.8% 4.7% 4.0%
CE Europe 17.5% 11.4% 10.9%


Carat predicts growth of more than 14% in China, Hong Kong, India and Indonesia this year, and believes Asian ad spend will overtake European spending by 2008. After three years of negative growth, the Japanese ad market is recovering, and Carat expects this to continue with the 2005 World Expo boosting the trend.

The European forecast has fallen by 0.4% to reflect slower growth in the UK, Germany, France and Italy, although ad spend remains strong in the Nordic countries and Central and Eastern Europe. Russia is now the 6th largest European market, just after Spain, and the company predicts that Central and Eastern Europe's share of European ad spend will reach 16% in 2006 (vs 12% four years ago). The UK sees the biggest fall in estimated growth – from 4.8% to 3.7%. For 2006, Carat expects that next year's Football World Cup in Germany and the Winter Olympics in Italy will boost spending in Europe.

The US economy is sending contradictory signals, according to Carat. On the one hand, GDP growth and consumer confidence are softer, but the job market and consumer spending remain strong. The 2005 forecast remains unchanged at 4.5% - the same level achieved for the first half of the year, according to a TNS announcement yesterday (see www.mrweb.com/drno/news4526.htm ).

Commenting on overall trends, Robert Lerwill, Chief Executive of Aegis Group, says ‘TV’s share of advertising spend is leveling out and newspaper's share is declining, with budgets shifting to the Internet’.

The latest emitch/Roy Morgan Internet Advertising Intentions and Attitudes Survey, conducted in July, also points to a growth in the importance of online advertising. It finds advertisers, agencies and publishers increasingly optimistic about Internet advertising, though the rise is far from meteoric, and some doubts remain.

This survey is the fourth wave of the series, and is based on telephone interviews conducted with marketing decision makers from 150 prominent Australian advertisers, as well as 28 advertising/media agency decision makers, and senior sales executives from 10 online publishers.

It found that the majority of advertisers (73%, up from 59% in December 2004) agree that ‘the Internet will be a vital component of my company’s marketing strategy over the next three years’. 54% of advertisers and 71% of agencies have invested in online advertising in the past 12 months – a similar figure to the last survey six months ago. However, prominent advertisers say they will commit an average of only 6% of their advertising spend to online advertising in 2005-2006 (up just slightly from 5% in 2004-2005).

Chart 1: Distribution of Online Advertising Dollars Across Internet Advertising Categories


The study shows that the mix of online advertising types is shifting. The proportion of the online budget spent on general Internet advertising (banners and the like) continues to grow. In 2004-2005, advertisers spent 64% of

[davidrob]

Emitch (EMI)

Hi Tommy and emitch Investors/watchers....

Looking Solid, as EMI inches up the charts...

Also, Check out the Top Four Lines in the Buy side Depth, and then Compare top same 4 lines or so, of Sell Side..

Heaps of Robbo;s fave: M. of Safety in my view, for Emitch...

Regards,

Robbo :)

[mamos]

Heres another positive story regarding online media:

Online's bigger slice of ad pie
By Christian Catalano
Media and Gaming Reporter
September 6, 2005
www.theage.com.au

SO MUCH for the hype about Australia's advertising market being off the boil - the online marketing category has stacked on a remarkable 61.3 per cent growth to $263 million for the six months to June 30 this year.

A survey by the Audit Bureau of Verification services shows that online search and directories is leading the way with 70.1 per cent growth to $74 million in the June half, followed by classifieds, with 67.3 per cent to $92 million, and general internet banner ads up 47 per cent to $80 million.

Internet analysts Frost & Sullivan said local advertisers were following a global trend of search and directories being used along with banner ads to drive brand awareness. "Search and directories is starting to have an impact on branding," research director Foad Fadaghi said. "You wouldn't expect that from something that is really transactional based, because it's a pay-for-performance model.

"The trends in Australia are starting to fall into line with the global trends. Typically, there is a flat period around the summer months and I'd be quite bullish that the second half will be even stronger than the first."
AdvertisementAdvertisement

Media buyers said they also expected the growth to continue, particularly as online still only accounts for roughly 5 per cent of Australia's total advertising spend. By comparison, 15 per cent of the total time consumers devote to all forms of media is spent surfing the internet.

"This continued growth is really just closing that gap," said Matt Houltham, the director of Interactive@Optimedia. "There is still a massive amount of opportunity for online as a media channel."

Mr Houltham said "second or third tier" advertisers were waking up to the measurability of results provided by online search and directories. "It's very much a case that the money that we spend for our clients online is able to be assessed against its performance . . . more so than any other media channel."

Telstra's classified and directories arm Sensis said internet traffic to its sites - which include yellowpages.com.au, tradingpost.com.au and whereis.com.au - had almost doubled in the past 18 months to 6.6 million in August alone.

"People using commercial search are advertising gold, because they're buyers looking to buy," said Sensis business analyst Wayne Aspland.

Fairfax digital's chief operating officer, Mike Game, said 2005 was so far proving a watershed year for online advertising.

"Marketers have a much more expansive canvas to work with than a year or so ago," he said.

"More and more marketers are embracing this and producing richer messages, creating opportunities for audiences to interact with their brands."

[davidrob]

Emitch (EMI)

Hi Mamos, and all Emitch followers....

Not a Question of: "whether" ... just a question of "when" .

See the Emitch price, going north of 55 - 60 cents by the next Reporting in approx five months time ....

More Good things are brewing, of that I am reasonably sure for Emitch....

Regards,

Robbo :)

[tommy]

Emitch (EMI) up 7%, closing at an all time high of $0.375[:p]

Considering that ad expenditure has reportedly stared to fall in traditional media in Australia, EMI's continual surge is very encouraging[:I]

[davidrob]

Emitch. (EMI)

We will probably see 45 cents within 10 trading days, looking at the insto Buying Today and yesterday...

Guestimate/Prediction for Emitch(EMI) Share Price ?? :

Here we go then: -- >> ... # 50 cents by 3-5 weeks ??

If we get Emitch(EMI) to 55 cents, then we have offically Got, as Peter Lynch would say, a Five (5) Bagger !! [:p]

Better not count the Emitch (EMI) chicks before they are hatched though....

Depth very Good, and Funds and Business News Media starting now to give Emitch (EMI) a bit of well earned positive consideration......

ie: See Emitch(EMI) market Depth currently.

Kind Regards,

Robbo :)

[davidrob]

Emitch (EMI)

Up another lazy 12%....

Now 42 cents... First Target is still 53-55 cents range....

Regards,

Robbo :)

[tommy]

Hi robbo,

Mmm, closed at $0.43, up 14.67% today[:p] What is going on? The price action over the past few days has been quite dramatic for this stock, is it driven by any rumor?

[davidrob]

Emitch (EMI)

No Rumour Tommy.

Just some small Cap Specialist Brokers who have decided to BUY this Stock, for at least The Medium TERM...

Buying coming out of Melbourne and Sydney, and nearly all Institutional.

View and Consensus Forecast, from these Insto Specialists, is obviously that not only are the "runs on the board" now for EMI.... BUT also that forward earnings-- quarter to quarter to quarter, presumably are also perceived to follow the similar Trend for organic gwth in Profits, Earnings, and Revenues... not including any acquisitions..whihc will only ADD to the situation IF that occurs. But the Buying as I say is underwritten not by that sort of rumour but by the Outlook for the enterprise...

Here is an interesting CASE Study where Technical Analysis, re. Predicting Future Share price for Emitch (EMI) : .... would have been as helpful as.... my Vegemite Sandwich .....


Instead, 'tis just a matter of waiting for The Market( 'The Market', Being propspective Significant Amount Long Term Buyers and Holders of the Security) .....to eventually evaluate the following: (a) current undervaluedness of the Business from an intrinsic valuation point of view (b)for The Same market to make a call on the ability and liklihood of management delevering (c) For The market to assess the historic record (d) For The Market to 'make a call' on the likely future nearish term (3-15 months say....>>>> prospects of the Industry Sector (and the actual business enterprise under consideration,Which is currently exposed & operating in that particular Sector).....

When precisely will that happen for any Stock ???

When the Technical Charting says so ?? When I eat my Vegemite sandwich ?? Or simply when the Valuation Model and the points above, become overwhelmingly fall into alignment and become clear and compelling.

----The trick for us humble private investors, is simply to see the trend forming; based on the maths of the period on period Balance Sheets, and the issues as stated above ..... Before they do !!

Then our role is to be contrarian and courageous AND to quietly build a position in the stock Before everyone else notices anything .......

. .... Then to DO NOTHING. Nothing at all. But simply wait.

Kindest Regards Tommy and all other Emitch Investors...,

Heh Tommy, BTW ... when/if ;) EMI hits 55 cents, it officially gets the Gong.... for achieving Five (5) Bagger status !

Robbo :)

[tommy]

Hi robbo,

Thank you for your post, good to hear that you are still optimistic in reaching your 55c goal:)

EMI is currently not cheap based on current PE ratio (x32) but I suppose growth is strong and its consitent track record helps keep EMI in the upward trajectory... but it still is a small cap stock (market cap: $77 million) and highly volatile, which is scary at times! I hope they hit the $100 million mark soon so that more insto investment will provide more stability to its share price;)

[davidrob]

Emitch (EMI)

Yeah good idea to keep an eye on those PE multiples...for any Stock...

However in past 12 to 18 months, PE for EMI has traded in the 39 to as high as 45....which is amitedly a bit toppy.... Note also that PEG ratio is only .29 currently....

High PEs can, and usually.... also means that Market " rates" the forward likeliood positive increased Earnings of the stock.

Heh Tommy, guess whihc sort of Stocks, --in say ASX Top 200---(so market caps above 1 Billion -- and from what Single particular Industry ASX SECTOR, typically have the highest consistent market attributed PE ratio's ???

That will get you having a think !!

It also is instructiuve, in the discussion of the PE of Emitch(EMI) in some senses as well..... IMHO ....

Being super conservative think that this HALF; EMITCH (EMI) will touch my Target of 54-55c, and romp in north of 75 cents in the second half ??-- Of course; .... ipso facto.... external "left field events" --positive or negative-- notwithstanding....

Kindest Regards,

Robbo :)

[tommy]

Hi robbo,


quote:Originally posted by davidrob

Emitch (EMI)
Heh Tommy, guess whihc sort of Stocks, --in say ASX Top 200---(so market caps above 1 Billion -- and from what Single particular Industry ASX SECTOR, typically have the highest consistent market attributed PE ratio's ???

EMI belongs to the media sector, although it does also belong to the tech sector to a certain degree for being a dedicated Internet media buyer. (Both sectors tend to have quite a few companies with inflated PE compared to other sectors.)

I believe EMI's earnings will be less volatile compared to traditional media which tend to directly reflect the cyclical fluctuations in ad expenditure by businesses... EMI is in a dominant position in the rapidly expanding Internet ad market. So yes, EMI seems to be able to justify a higher PE ratio like you said. Furthermore the magnitude of the alliance with Media Planning Group probably has not yet been fully factored in to its share price yet... do you have any new info on this alliance?

In any case, EMI seems to have only positive announcements to make in the months ahead:D They are in the right place at the right time, so I just hope your price predictions are fulfilled sooner than later!

[davidrob]

Emitch (EMI)

Very Good......

What I was sort of also alluding to; is that interestingly enough, it is the Health Sector that the MARKET ascribes the
Highest PE Ratio's to ..... namely on the ASX Top 200 listed Companies by Market Capitalization......

Companies therefore like Cochlear(COH), Resmed(RMD), Healthscope(HSP), Ramsay(RMS), CSL, Sonic Healthcare(SHC), Primary Health(PRY), Mayne Health(MAY) etc etc....

"What has this got to do with The Price of Eggs in China??? or EMITCH for that matter?"....I hear Tommy faintly ask??

Well the MARKET deems thoser co's to be more resilient to Risk and to tehrefore ahve an element of Intrinsic Value and more particularly Intrinsic Defensiveness about them....(....one of my fave investment adjectives is that "intrinsic".....)...

ie: High PE's tend to be able to weather financial storms more than most (at least that is The Theory !!)....and to be resilient to economic boom/bust cycles...... ie People always get sick......so they always need Blood or Ear implants, or Hospital Beds or Pahology etc etc....

So on this line of spurious LOGIC.....

Emitch(EMI) is also perceveid by the Market to be relatively resilient...ie: AMEX or the Bank will still use their services come rail hail or shine.....

Interestingly; another one of my earlier picks, here at good 'ol Sharetrader; that nowadays I grind an axe with,admitedly also does have a capacity for the Market to ascribe a Highish PE to.... and that is Senetas (SEN)... Again the amrket ascribes a sort of "must have & resilient to slight changes in the economy" quality to Senetas (SEN)....

--So Emitch(EMI) is also seemingly in this Class of Stock(as judged currently by The Market, not me!!) ...all a Good Overall Sign.... IMO .....Tommy....

Re: your other querry......on you reply last post Tommy ....

errrrr... how can I best put it/respond......???....

Let me maybe best just say;..."Watch This Space".... ;);)

Cheeers for Now...

Regards,

Robbo :):)

[tommy]

http://www.smh.com.au/news/technology/contest-for-online-ads-lures-more-big-players/2005/09/21/1126982122907.html


Contest for online ads lures more big players
By Paul McIntyre Marketing Editor
September 22, 2005

Runaway growth in Australia's $488 million online advertising market has spurred another two offshore online networks to rapidly establish operations here just as the PBL-controlled ninemsn has come under fire over its new in-house creative unit, which some agencies say could undermine their businesses.

One of the world's biggest online media buyers, Avenue A/Razorfish of the US, which last year controlled $US312 million ($407 million) in online spending, officially set up operations here two weeks ago.

This week listed online media buyer emitch struck an alliance with Media Contacts, the digital and direct response arm of global media house MPG.

Media Contact's global chief executive, Don Epperson, said Australia was the first leg in a plan to launch offices in five Asia-Pacific countries.

"It's a very sophisticated market here," Mr Epperson told the Herald. "Our business is doubling in size every two years and that's a result of more money coming into the [online] space."

He said that in sectors such as financial services, up to 25 per cent of media budgets was placed online and for travel companies, up to 50 per cent of budgets was allocated to internet advertising and marketing campaigns.

The online spending boom has also triggered controversial moves by online publishers such as ninemsn, which has launched its own creative services unit, Nine Pixels. This worries some online agencies, who suspect a broader move to corner revenue.

Intense discussions have taken place between ninemsn chief executive Martin Hoffman and key online players about the company's intentions. Mr Hoffman has told the market Nine Pixels was to only service ninemsn's internal requirements and small direct advertisers, but agencies remain cautious.

"We're still wary of it," said NetX chairman Craig Wilson, one of Australia's biggest online media buyers, along with emitch.

"They gave us an assurance they're not going to compete in the market with agencies. We'll see what happens. I suspect they will service Microsoft. That's a no-brainer."

One Digital managing director David Holmes said he was comfortable with ninemsn's pledge it would not get involved in competitive tenders or pitches on its own or with start-up operations such as Avenue A/Razorfish.

"If they do get involved in a pitch situation it will cost them a lot of money," he said, implying One Digital and others would withdraw budgets from ninemsn.

"Ninemsn makes very good margins on media - at least four-or fivefold on what they will get on creative, so why bother?"

The latest figures for the Australian online sector show advertisers lifted their online spending 63 per cent to $488 million in 2004-05, prompting proponents to become more vocal in countering claims from free-to-air TV networks that media fragmentation means it will become more expensive to reach large audiences.

TV broadcasters say they will become the most cost-effective option for mass marketing as more media options emerge.


"It's a silly argument," said emitch boss Lee Stephens. " Dancing with the Stars might pull 1.8 million people but I know everyone's in there from five-year-olds to 55-year-olds. I don't need all of them. I will pay double the effective cost per thousand [audience advertising] rate to get a target audience. TV is more expensive on a return-on-investment basis."

[tommy]

Has emitch run out of steam?! Perhaps I should have sold some at 44c the other day[|)]

[tommy]

Excellent report out by Emitch (EMI), with a very straightforward explanation of the market conditions and their business.

http://stocknessmonster.com/news-item?S=EMI&E=ASX&N=243175
__________
Extract:

emitch Limited and controlled entities
Review of operations and activities

Introduction
The principal activities of the economic entity constituted by emitch Limited and the entities it controls (the Group) are the provision of interactive marketing and communications strategy, and online media planning and buying.

The Year in Review
The financial year ended 30 June 2005 saw the Group maintain and improve on its position as Australia’s leading online media buying agency. Gross billings grew 31% to $17.830m, while revenue from operating activities grew 30% to $17.506m. Details of the billings growth over the past four years can be seen in figure 1. Net profit after tax grew 136% to $2.387m, which included a one off tax benefit of $0.372m (refer
figure 2). The tax benefit relates to the capitalisation of future tax losses onto the balance sheet for the first time. These losses will be utilised during the FY2006 year and will lead to a tax charge on the Group’s full year earnings in FY2006.

The last quarter of the financial year was the Groups largest on record at $6m, 39% higher that the same period last year. The month of June was the largest in history and this trend has continued into the new financial year. This step up in revenues reflects the spending by new clients won in the second half and reflects the focus brought by senior management, in particular Lee Stephens, the CEO.

A dividend of 1.0c per share, unfranked, has been declared. This represents a payout ratio of 75%. If the tax benefit is excluded, the payout ratio is 88%, in line with the previous year.

While billings continued to grow strongly, overhead costs, excluding nonrecurring, increased by 12.7%, or $287,000. This highlights the scalability of the business, with the major increase due to additional employee costs required to service the higher level of billings. Media delivery expenses grew in proportion to billings.

Operating cashflow increased 130% to $1.609m for the year. The closing bank balance at 30 June 2005 was $9.441m (refer figure 3). The Board will continue its conservative stance in relation to the cash balance, however the dividend payout ratio indicates that whilst cash earnings remain strong, shareholders will benefit through continuing dividend payments.

During the year, the Group’s main focus continued to be the general Internet advertising market which grew to $154m for the year ended 30 June 2005. This encompasses all display-type advertising seen on websites. The Group also operates increasingly in the Search Internet advertising market, which is the paid-for advertisements on sites such as Google and Overture, with most campaigns run now including an element
of search advertising. This market totalled $165m. Towards the end of the year, a creative department was established to service our existing clients, and encourage additional spending. (Source: Audit Bureau of Verification Services).
The year saw the general Internet advertising market consolidate its gains of the previous year and saw it move past cinema and subscription television advertising, making it a very important part of all clients’ media strategies. Our leadership position in the market, along with our expert
team of staff, ensures our clients receive industry leading levels of service.

Market Conditions
Strong trading conditions have seen the general Internet advertising market increase by 47% (year-on-year) from $104.7m
in FY2004 to $154.0m (source: ABVS) in FY2005 (see Figure 4).
The state of the market this financial year represents the continuing move of general Internet advertising towards the mainstream. With the market now outstripping both cinema and subscription television revenue, it is now on the radar of all marketing executives in Australia.

There are several fundamental reasons w

[davidrob]

Emitch (EMI)

Seems to ahve consolidated for time being and trading in range b/w approx: 45-50 cents ...

Whihc given the gains in the last 30-45 days--puts it right up thier in the elite category of Share Performers with Earnings and Profits etc...

Not a steady trickle of smaller instos joinig register...

See that EMI are probably headed for S & P 300 by next 12 months ???

Still Gotta get to $1.10 to be a ten bagger... Should be there in next 18 months or so....???

Regards,

Robbo :)

[lacmur]

quote:Originally posted by davidrob

Emitch (EMI)

Seems to ahve consolidated for time being and trading in range b/w approx: 45-50 cents ...

Still Gotta get to $1.10 to be a ten bagger... Should be there in next 18 months or so....???

Regards,

Robbo :)


Cheers Robbo. Very nice mover over the last few days and has broken through the 50c resistance you spoke of. Will be interesting to see if it can hold above. I re-hitched my wagon to this band at 40c a few weeks ago. Only regret is that I didn't buy more. All the best to holders.

[davidrob]

Emitch (EMI)

Thanks for the encouragement there Lacmur. Very nice of you mate !

How-ya been anyway Lacmur ?,

DSo hope that you and your loved ones are fit and well....

Am Sure you enjoyed Lacmur, .... The Market's answer to your question about: Emitch's ability vis a vis the EMI share price and .... "holding up" .....[:p][:p]

- Emitch (EMI) up another >> 10.7% -- again--- Today ....:)

Although that with that sort of one day Gain for EMI, logic says a re trace//partial pullback is probably/possibly soon on: "the cards"--

Certainly now by the looks; think we'll see share price for EMI in the early 60's by mid month.....

What a year some of these Good quality sahres are having. wow....

So good news for Emitch investors, is that IT ---IMO--- looks like we are now moving into an even Higher base level of Good fundamental and sustainable real Support for higher valuation on Emitch .....

Kindest Regards,

Robbo :)

----------------------------------------------------------------
----------------------------------------------------------------


quote:Originally posted by lacmur


quote:Originally posted by davidrob

Emitch (EMI)

Seems to ahve consolidated for time being and trading in range b/w approx: 45-50 cents ...

Still Gotta get to $1.10 to be a ten bagger... Should be there in next 18 months or so....???

Regards,

Robbo :)


Cheers Robbo. Very nice mover over the last few days and has broken through the 50c resistance you spoke of. Will be interesting to see if it can hold above. I re-hitched my wagon to this band at 40c a few weeks ago. Only regret is that I didn't buy more. All the best to holders.



:)

[David Hardman]

Broker research - for what its worth

http://www.intersuisse.com.au/upload/Companies/EMI0905.pdf

Kicking myself for not getting in.

[tommy]

Thanks dave for the research! EMI p/e ratio is getting a bit too high, so there should be an opportunity to buy EMI[:I] Excellent stock, thanks robbo again for alerting us to EMI!

[davidrob]

Emitch (EMI)

Hi Ya Tommy,

Agrre Toomy fundamnetally with your post.

Agree on the PE being a bit on the highish now....all depends on your view also on future likely forward earnings; as that is the divisibve by which PE .... is of course calculated....

As a little morsel to ponder however also: ----errrrr....
Except maybe an idea to watch out for a possible EMITCH Acquisition ??--- which would make a (ASX:IWL) situation "come intoplay"--- and potentially happen ---which could make the PE "cheaper" and placed into a new perspective....

Just a thought Tommy..... ;)

Emitch have little/no debt, excellent free cash flows , and a "clean bal;ance sheet"...

They could soon, sort of do a "Photon" (PGA) and acquire some earnings accretive plays... ;);)

Regards,

Robbo:)

[lacmur]

quote:Originally posted by davidrob


Emitch (EMI)

Thanks for the encouragement there Lacmur. Very nice of you mate !

How-ya been anyway Lacmur ?,

DSo hope that you and your loved ones are fit and well....

Am Sure you enjoyed Lacmur, .... The Market's answer to your question about: Emitch's ability vis a vis the EMI share price and .... "holding up" .....[:p][:p]

- Emitch (EMI) up another >> 10.7% -- again--- Today ....:)

Although that with that sort of one day Gain for EMI, logic says a re trace//partial pullback is probably/possibly soon on: "the cards"--

Certainly now by the looks; think we'll see share price for EMI in the early 60's by mid month.....

What a year some of these Good quality sahres are having. wow....


Kindest Regards,

Robbo :)


Cheers Robbo thanks for the best wishes. All's well and good in the wilds of South West Sydney. Keeping fit and well dodging bullets down at the Babylon Cafe this week. Makes for good exercise but does bring adrenaline levels to a crescendo.

Good day for EMI. Appreciate you putting us on to this one Robbo.
I'm now clawing my way back from the deptths the portfolio reached around 20 October.

BTW has anyone seen a week chart for EMI over the last three-four years? Makes very interesting viewing. Distinct cup and handle formation. Bit like that other one of yours Robbo, OCL.

[davidrob]

Hi Lacmur,

Yeah... re your comments regards the Babylon Cafe....

I wish those killer guys would go back to Babylon or Baghdad or wherever or whichever hole they originally emerged from ...... No concept of the sanctity of Human life, they way they carry on.....[}:)][}:)][}:)]

And I see Lacmur, that the cops reckon that the Killer Hitmen in South West Sydney; probably "got" the wrong targets...

ie: the poor murdered and injured people were probably just 'in the wrong place at the wrong time' and were innocent By Standers, which is totally horrendous and despicable.

Who do these killer 'so and so's' jsut reckon they are??

Probably a Drug Deal gone wrong I s'pose.

Wonder whether the cops will catch 'em? Probably not.....

We live in violent and worrying times that is for sure.

Kindest Regards,

Robbo:)

PS. >> Do Hope Emitch (EMI) --- is.... and has, been really profitable for you, and your family, and your loved ones Lacmur...

That is really great.... IMO this really does Make it truly all very worthwhile [:p]:)

[davidrob]

Emitch EMI

Hit sexy sixty (60 c ) today--- which has seen Emitch (EMI)settle up 5% for the day from close on Friday ... :)in the 56-58 range... :):)

Regards,

Robbo :)

[tommy]

Hi roboo!

Another great day for EMI, I could not help cashing in today to collect all profits[:p]

EMI may have some steam left but it is just going up too fast for my liking, which is why I decided to let it go for a while and wait for re-entry until it drops again. Good luck holders, this stock is definitely a winner in the years ahead!

[davidrob]

Emitch (EMI)

Good Call Tommy.

Agree PE is fundamedntally now too High with EMITCH (EMI) ...

Only other factor to "weigh up" potentially, is the potential small funds// insto influence vis a vis the 'ASX 300 Effect'.... ??...

But, whatever all of that may or may not be, fundamentally ....and on any 'Margin of Safety basis', rationality says: "the PE is the PE is the PE....."

:):) >>> Heh Tommy;...>>> BTW, what price did you "average" in when you bought EMI, with your EMI holding ?? at....??

You must have made a very very Healthy and good PROFIT !! [^][^]:)

You totally and absolutely should feel contented and good with this Tommy....

You really do deserve this mate.

Just now avoid ..... the assured 'hubris trap' after you have a win.

Psychologically this can, and does happen to EVERYONE !! -- and is a dangerous subtle psychological Trap ......

ie: You feel ...." more bullet-proof after a nice win effect", and you can fail to exercise the normal caution,stand back and fullsomely research and disciplined approach and prudent planning etc etc etc....

Anyway. Not to worry Tommy ....

Well done, And excellent Job Tommy !!.

Great investing mate ; >>> IMO.... ( including the Very very hardest part, ie: the ... " When to be disciplined and yes, pull the Sell Trigger" --- and actualy Sell the said Share you own, according to your previously set and assessed; pre- set firm Rules.....

That is the often the very hardest part, IMO .... often of the whole Investment Strategy !!!" ) --

Actually Tommy, , IMO, it is.... in the ....

--- " Correct execution of Selling a particular Share" , and Removing the Emotions of either fear or greed or procrastination or not enough patience (and in those last two, there is, IMO, a very, very fine, balance !!), ---- which really sorts out: "the real Men from the Boys, in Making long term & good compounding Money in Shares"

-- and for that matter, is critical IN the overall long termedness of successful Share Investing ... but only IMO....

So overall, in my view Tommy ..... you did just .... so Good, indeed Exceeelllent Execution Strategy demonstrated with EMI there .... Tommy mate. !! [8D]

Again, deserved congrats ......

Kindest Regards,

Robbo :)

[tommy]

Hi robbo,

I got into EMI at $0.305 and topped up a few times after that, so I think it's a 60% gain or something like that overall... better than sticking the money into a bank account;)

I have also sold out Senetas (SEN), collecting some healthy profits! My current holdings are MAL, DDT, GRO, ENG, DFT, CIR, CCE, BOW, BKA, SAI and TRS. (Meanwhile I'm waiting to re-enter ACL and EMI on any weakness).

I agree with you that discipline is a hard thing to follow through in stock investment. Actually I find it much easier to sell than to buy; I am terrible when it comes to buying stocks on the cheap, so I compensate that by not hesitating to push the sell button when the gains reach a certain level!

I wonder how much EMI will continue rising? Are the big boys buying?

[davidrob]

emitch (EMI)

Great Quarterly Results and outlook.

(see Chairmans Report on ASX announceemnts today) -- [:p][:p]

Looks like The Market likes EMITCH with these Numbers again too.

Up 4-5% today.

Regards,

Robbo :)

[Lee.Stephens]

Hi gents, I read your comments a lot here and value the advice you give as sophisticated investors. This is really the only forum I do read and trust.

I thought I would give you some insight into the Chairman's and my address as I am permitted within the restraints of a public company framework. The important part of the Chairman's adress is reporting a "strong growth trend" going forward from our 43% growth (YOY) in the September quarter. As you would all know we do not give market forcasts, but what this means is this:

1. The December quarter will grow in revenue dollar terms over the September quarter.
2. The rate of year on year growth is also accelerating.

You may be watching market forecasts in the media predicting market growth of between 30 and 60% (depending on who you read). Emitch is not alarmed by this sort of growth in the market as we work to retain and extend our leadership position. As I said in my presentation, we are agressive in our actions and detirmination to build Australia's leading digital advertising company. Our extension to New Zealand within three months will add a new dimension to our growth and potential.

Another factor you may want to consider in understanding our prospects is to look at the seasonality of media revenues. This may help you strip out real growth from seasonal growth.

Tommy, congratulations on your financial gain from supporting emitch. Your investment is very much appreciated and we look forward to seeing you on the register again soon.

Thanks again for all your support and advice and I hope to be able to give you a detailed update when we release our 1/2 yearly results.

Warm Regards,

Lee.

[tommy]

Thank you very much for your contribution and the latest information Mr. Stephens, Emitch is definitely one of the highly regarded companies at this forum in terms of past performance and future potential.

Now, there is a new announcement after the close of the market:
______
DATE: 28th November, 2005

Return of Capital – Notice of General Meeting
The Directors of Citadel Pooled Development Limited are pleased to announce that, subject to shareholder approval, the Company will undertake:

1 a cash return of capital of $0.05 per share; and
2 a return of capital effected by the in-specie distribution of the emitch limited shares owned by the Company to its shareholders.

Please refer to the attached Notice of General Meeting
Hugh Gurner
Director
_________
The details are available here, click on "CID: Return of Capital & Notice of Meeting" (It's not available on stockness yet, sorry):

http://www.asx.com.au/asx/statistics/announcementSearch.do?method=searchByCode&releasedDuringCode=W&issuerCode=EMI

What kind of impact will this have on EMI share price? I'm a bit surprised to be honest! What is your analysis robbo?

[davidrob]

Emitch (EMI)

Yes, ditto.

Thanks for that Lee.

We now Join to watch Emitch going from a Micro-Cap to a Small Cap, and then who knows? ---- ASX 300 and beyond !

What is rewarding to know also Lee, about Emitch, over and above the Share Price Gains for us profit crazy Investors, is that the Co. has A Community Consciousness and ethics base:(witness your Chairmans's -- Harold Mitchell's speech the other day) -- and believes sincerely in the Tripple Bottom Line....

--Also in this day and age of co's sometimes treating employees as just like commodites or machines, it is re assuring and gratifying to know that Emitch really operates so so differently... and that its employees, its People, are at the real heart of the Emitch enterprise.

-Again thanks Lee, for taking the time to give all us here at Sharetrader, your time, and to pay us a little compliment too. [:I][:I]



Hi Tommy,

At first glance..... re the latest EMI notice:

Just has a minor tightening of the Share Register 'Effect' of a lot of minorities in a (I guess now) defunct subsidary Tommy.

Q: Effect on EMI Share Price...? A: IMO, Almost Nil

Really just some Housekeeping from the Dot Com Bubble Deals of yesteryear, I suspect, to tidy up some inactive 'overhang' of very minor parcels of share holdings....

Kindest Regards as Always,

Robbo :)

[tommy]

Thanks for your prompt reply Robbo, appreciate your opinion as always;)

I have been waiting for a re-entry point for EMI for a while now, but it's not going below 50c so I'm not back in yet.

PE ratio is still too high but growth is strong... the only concern I have is that although Internet ad market is growing rapidly, search engine marketing is probably the biggest growth sector at the moment (for example, look at google's revenue growth!!). I'm not sure what emitch does in this field, must do some research in this area[:I]

[David Hardman]

Tommy

Google have search sewn up and there is nothing EMI (or anyone else) can do about it in the short term. Don't think EMI play in this sector of the market anyway...

If I was EMI I would be more conerned about Googles move into media buying etc.

Good article in SMH recently

http://www.smh.com.au/news/technology/the-search-engine-powered-by-money/2005/11/25/1132703376511.html

I guess EMI have the advantage of being a local player. Would not want to be an EMI type business in the states!

Got to admire google - what a great business!

Then again - what would I know. I sold EMI a year ago for around 12cents :)

[tommy]

Hi Dave!

I read that article too, pretty impressive isn't it. Banner ads appear to be so out-of-date now, considering the relevancy of ads based on fine-tuned keyword search.

Google is no doubt the heavyweight in search engine marketing worldwide, but in Australia, a serious rival would be SENSIS (advertising arm of Tel$tra), which has sensis.com.au, Yellowpages/Whitepages and Trading Post under its thumb. On sensis.com.au, the "bidsmart" ad system seems to imitate AdWords (Google) and Overture (Yahoo! and ninemsn). It's such a shame that SENSIS isn't spun-off and floated independently, I'd definitely buy their stock!!

Anyway, as long as Google and sensis remain text-oriented, I don't think they will encroach EMI's target market... at least for the time being!

[tommy]

EMI fell 10%, long-awaited retrace has finally started[:p] Now how low will this go? Buy side thin.

[absolut-advance]

Hope so tommy would like to pick some more of these up, but looking at the depth im not so sure i will, Sell Quantity for the two top sellers is light compared to buy quantity for the two top buyers. but depth changes fast, so lets see

[davidrob]

emitch (EMI)

Good to see that all of us shartraders were, it seems... finally!!--- on top ---of this rather abrupt 'retrace for EMI down deal'.... before she got too bubbly and just had to blow ......now no more of your usual porno jokes Hardman!! [:0][B)][}:)]

Here I re-print the emtich EMI post
from: 9/11/05 (4 weeks ago exactly!)--

--Emitch (EMI)

Good Call Tommy.

Agree PE is fundamedntally now too High with EMITCH (EMI) ...

Only other factor to "weigh up" potentially, is the potential small funds// insto influence vis a vis the 'ASX 300 Effect'.... ??...

But, whatever all of that may or may not be, fundamentally ....and on any 'Margin of Safety basis', rationality says: "the PE is the PE is the PE....."
----------------------------------------------------------------------
Now the struggle is between, on one hand (1) the Bottom finders ... and ... on the other hand.... (2) those who are not into catching falling sharp knives ...... ouch! "

My own only personal preference; is to try to get 'em; on the third consecutive day of confirmation of going up..... with strongish improving volumes too..... and it is great if the specific stock in question .... also goes up on one of those days, agaianst the trend of the Whole Market (ASX all Ords) , (....and also nice if it defies the Sector in which it operates --- errr.. is Emitch really Media or IT -- [:0][?][?] !! )....

We all saw a Good example, IMHO.... of this sort of 'Proof of Confirmation'-- of a likely firm Break Out and Up Swing today, was with Amadeus OPil & Energy (AMU) today...... third day of a rise, and against the general Market trend on today, the third day.... [:p][:p]

So then: Emitch (EMI) on all of our respective Watch lists
eh what !!

PS. (1) Might be a good idea if one of us, watches what market cap Deep Blue Sea (DBS) and Melbourne IT (MLB) which both have hit new highs today, rise up too as well ...... could be some indicators here....ie: peer valuation signs...... maybe ...

(2) Another trick someone taught me with this sort of deal; is to also cluster ...so in Emitch's (EMI) case, he would allow a pace setter like In his opinion, .... the Photon Group (PGA) to again sort of pace set ....and benchmark, with EMI and watch the patterns between these two leading Media Stocks........ with PGA being the Big Brother, out the Gate first -- Leader of this duo??? --- jsut food for thought guys !!).

(3) Final thought.

Now is one of relatively few, " windows of opp times"... when directors are allowed to buy and/or sell their own direct share holdings ..... ;) -- errrr....sort of like Valvoline... ya ... all know what I mean .... ;)

Kind Regards,

robbo :)

Disclaimer:

Views expressed above are unwarranted. These views ought not be read as warranted, either expressed or implied, for their accuracy or veracity. Views expressed above, cannot be read as warranted, either expressed or implied, for their accuracy or veracity. Comments expressed here; are on a “Without Prejudice” basis only. Views are only the author’s personal, subjective whimsical thoughts, sometimes experiences, and intuitions. Obviously, as with all opinions, they are open to discussion and refutation, as well as other interpretations and review. In that light, for any investment decision, always do your own research, seek independent financial advice and independent counsel you can trust at all times. Therefore, please take these opinions and sentiments only in this context.

Kindest Regards,

Robbo :)

[David Hardman]

Interesting news tidbit from PaidContent - a must read website for any Emitch holder. I still don't hold......


http://www.paidcontent.org/pc/arch/2005_12_06.shtml#052689

****
Online Ad Spending Will Double In 36 Months: Prediction [by rafat] : So said the head of one of the biggest media buyers in the world, yesterday at the Media Week going on in NYC...David Verklin, CEO of Carat Americas predicted that the percentage of ad budgets placed in online media would nearly double in the next 36 months, and that most of that shift would come at the expense of TV as marketers move more deeply into two areas of online marketing: search and broadband video advertising and sponsorship.
Based on the numbers he is seeing from Carat's clients, Verklin estimated that online now accounts for about 8 percent of their ad budget, and given the current rate of increase, would grow to 15 percent "in about 36 months."
But predictions/estimates go over the specturm: While ZenithOptimedia predicted the rise would send online advertising costs soaring with increased demand from advertisers "tightening the availability of advertising and raising prices," Aegis' Verklin indicated that the online ad inventory problem might be a short-term one. He acknowledged that there is currently "inventory pressure" in the fourth quarter, "but you don't see that pressure in Q1."
In a related story, the online ad market set to hit at least $55 billion globally by 2010, according to a report by Piper Jaffray analysts Safa Rashtchy and Aaron M. Kessler. The figure, based on a 27 percent compound annual growth rate, is described in the report as "conservative." [by rafat] [Dec. 6, 05] | Advertising |Media Week | e-mail this post to a friend | Comments (0) | TrackBack (0)
****

[tommy]

http://www.theage.com.au/news/business/papers-resist-online-push/2006/01/20/1137734151910.html


Papers resist online push

By Christian Catalano
January 21, 2006


ONLINE advertising, despite phenomenal growth over the past three years, is at least a decade away from catching up to newspapers, and a further five years from generating the revenues of commercial television.

While newspaper publishers and TV broadcasters still have time to cement their new media strategies, a report from industry consultant Frost & Sullivan suggests that poorer cousins such as magazines and radio will be swept aside by the internet's second coming.

Spending on internet ads in Australia leapt nearly 50 per cent to $605 million in 2005 and, according to the report's author, Foad Fadaghi, the medium will grow by an extra 25 per cent each year until 2009.

Mr Fadaghi said he believed the upward curve was sustainable.

"What we're seeing here is a generational change with the internet," he said. "Ultimately, what we will treat as normal TV in 15 years' time will be delivered over the internet via technologies like IPTV."

Mr Fadaghi said the industry had "grown up" since the 2000 dotcom crash, and was now led by mature managers who simply weren't there before.

"And the focus of the major companies is changing as well, with normally conservative figures like Rupert Murdoch and others now very much locked into the future of internet."

Media buyers are a little more circumspect about the hype, however, particularly the assertion that online will surpass magazines and radio to become the third-biggest ad medium by the end of 2007.

"That's a pretty big call," said media buyer Harold Mitchell, major shareholder of the listed online advertising consultant emitch. "It is true that the media is cannibalising all media to some extent, but no one individual medium," Mr Mitchell said. "People are dead right to ask why this isn't just the same sort of hype we got before the last crash."

But Mr Mitchell conceded there were a few key differences in 2006 — particularly the rapid penetration of broadband into Australian homes — that suggested the underlying assumptions were more solid.

"I was there in 2000 and this time the difference is that internet usage is for real," he said.

"It no longer is just other dotcomers using the internet. This time it's real companies, the marketers have learnt how to use it, and I think it's for real."

At the same time, advertisers have become more comfortable to invest in the medium. Mr Fadaghi said consumers were increasingly less afraid to do business online.

"People are past the trial stage of internet commerce now and some consumer categories are already dominated by online. More domestic air tickets are sold online than offline."

While the average Australian home now spends only 3 per cent of its consumer goods budget online, Frost & Sullivan predicts this will grow to 7.5 per cent by 2010.

[davidrob]

Emitch (EMI)

Thanks for that Tommy. Excellent bit of Research mate.

Must admit to toping up emitch again at around the 43, 44, and 45 cents mark .... after taking a slab of Profits with at
53, 54 and 55 cents....

Will now Hold Emitch (EMI) until after the results ...

Robbo

[tommy]

G'day robbo!

Good on you for buying EMI on the cheap... I never managed to re-enter as my tech funds were diverted to ENG and FRE, but I do expect EMI to do well again: growth is strong, although I do think a PE of 40 is a bit on the high side. (Even SEN isn't that high!!)

When is EMI's next announcement due? Any ideas?

[davidrob]

Emitch

Hi Tommy,

Third week of Feb does sort of 'ring a bell' for the normal historical "window" on when EMI choose to release their finanical results ...

BTW Tommy, you are absolutely right about the technically too high Emitch PE, --- although of course at 43 cents the PE was a bit lower than the big Four Oh... (40).... it is probably at now....

So therefore, I guess am taking....... a "view on future emitch (EMI) superior earnings", rather than the Classic Value Investor Historic earnings approach .....

so to be vindicated with EMI; will need to see v.good half Year Earnings Report come whistling down the Pipe Line... ....

I do sort of think though; that the sort of consitent themes, which have been indicated and seen; ----- Tommy; in your nicely re printed and researched Internet Media articles (here on Sharetrader (ASX division)--- are a (hopefully-- ;))-- premonition of that actually being evidenced and occuring .... but of course we will have to just AWAIT patinely now and See ....

Kindest Regards Tommy,

robbo

[tommy]

Thanks for your reply robbo, very helpful to know the likely timing of announcements.

Hopefully EMI will get a bit cheaper before Feb so I can pick a few up before the announcement[:I]

I think it is quite natural to assume a forward-looking view on earnings on top of a historical one in the case of EMI, given its strong growth prospects and being a market leader in Australia backed by solid earnings. There is NO doubt that EMI is a growing company, but the only thing I am concerned about is whether it has already been factored into its current share price.

In the mean time I will start building up more spare cash so that I can eventually pick up EMI again on the cheap...
Would love to be in the EMI game again, but shame you "can't kiss all the girls all the time"[:X]

[lacmur]

Thar she blows!!! Up over 9% today.

[davidrob]

Emitch (EMI)

Hi guys and lacmur!!

Emitch in my view will, in the next several years, just continue to out perform and impress....

See my previous post...and therein possibly lieth the reason....

ie: Next Earnings for emitch, imo, WILL be a beauty!!

Emitch (EMI) -- will be just shy of; or over .87cents... by Christmas imo....

Kindest Regards,

Robbo

[tommy]

http://www.smh.com.au/news/business/trumper-shuns-gig-at-yahoo7-to-return-to-acp/2006/02/08/1139379573714.html

Trumper shuns gig at Yahoo!7 to return to ACP

By Paul McIntyre Marketing Editor
February 9, 2006


A FRONTRUNNER for the chief executive's job at the new Yahoo!7 joint venture, Tim Trumper, is out of the race and instead will take a senior role at PBL's magazine arm, ACP, running sales, marketing and circulation.

ACP executives refused to confirm Mr Trumper's appointment but an announcement is expected within days. His move to ACP has been expected for some time but it is understood there were contractual constraints linked to his previous role at Time Inc.

Mr Trumper, who stepped down as Time Inc South Pacific managing director in October, was a leading candidate for the vacancy at Yahoo!7 but has pulled out of discussions. Other names being thrown about for the Yahoo!7 job include News Interactive managing director Nic Jones, who has previously run Yahoo! in Australia and was a consultant to the Seven Network for six months before taking the News role, and Lee Stephens, the chief executive of online media buyer, emitch. Ninemsn boss Martin Hoffman has been suggested as a candidate but is considered unlikely to move.

Yahoo!7 is also believed to be canvassing telecommunications executives with experience in content development, along with the heads of several leading media buyers.

The hunt for Yahoo!7's boss coincided with John Fairfax's search to fill the top job at Fairfax Digital. A Fairfax spokesman said the process was "at an advanced stage".

It is understood current Fairfax Digital chief operating officer Mike Game remains a contender along with several external candidates.

Mr Trumper's pending announcement marks a return to ACP, where he was a publisher. He left ACP to join Murdoch Magazines - now owned by Pacific Publications - and then took the top job at Time Inc.

It is understood his title will be the equivalent of commercial director and is seen as a move to beef up ACP's sales and marketing clout for the arrival of incoming chief executive, Ian Law, derided by some competitors for having little experience in mass-consumer magazine publishing.

Magazine executives who have worked with Mr Trumper say his networking and rapport with advertisers is stronger than his publishing skills although he is widely liked across the industry. Mr Trumper's new position is expected to cover the spot left by the sudden exit of advertising sales director Cameron Hoy last March. The role has been jointly filled by Jenny Hosie and Lynette Phillips although Mr Hoy recently re-entered the magazine sector with a marketing and sales role at EMAP after a short stint with an outdoor advertising group.

The changes at ACP follow a management overhaul at Fairfax General Magazines last week in which chief executive David Kirk promoted Karim Temsamani to director of the magazine division and group editor Lisa Hudson to publisher.

Mr Temsamani would focus on launching new products and reviewing acquisition opportunities, as well as overseeing the existing business, Mr Kirk said.

[tommy]

21 February 2006

RE: APPOINTMENT OF DIRECTOR

The board of emitch Limited (ASX Code: EMI) is pleased to announce the appointment of Mr Stephen Cameron as an independent, non-executive director of the company.

Mr Cameron has over 35 years of experience in the advertising and marketing industry. Since 1970 he has worked primarily in the advertising industry with a variety of global marketers in Australia and Asia, and on world-leading brands such as Coca-Cola, McDonalds, Mars, Nestle, Levis and Goodyear.

Mr Cameron has held a number of senior management positions in advertising agencies and was a partner with advertising agency George Patterson Bates for eight years. For the past seven years Mr Cameron was Director of Corporate Marketing for Optus “Mr Cameron brings a depth of marketing experience to the emitch board at a time of strong growth for the Company”, Chairman Stuart Simson said.

[David Hardman]

Expect another good result EMI in the coming weeks

Online 2005 ad expenditure grows 60% to $620 million: ABVS figures

http://andrewpascoe.typepad.com/pascoe/2006/02/online_2005_ad_.html

[tommy]

You might think I'm crazy at the current price level but I bought back into EMI after reading today's article on SMH:
_____

http://www.smh.com.au/news/business/online-ads-head-toward-1b-mark/2006/02/21/1140284067429.html

Online ads head toward $1b mark

By Julian Lee
February 22, 2006

THE online advertising market surged to $620 million last year as advertisers continued to flock to a medium that some analysts predict will be worth $1 billion by the end of the year.

Advertisers spent 60 per cent more on banner ads, classifieds and sponsored links online in the year to December 31, 2005, than in 2004, according to the latest revenue figures supplied to the Audit Bureau of Verification Services.

If growth continues at this pace, online is set to overtake established media such as radio and even magazines in the $10.3 billion advertising market.

Martin Hoffman, the chief executive of ninemsn, the joint venture between Microsoft and Publishing & Broadcasting Ltd, said: "This is the third year in a row and all the signs are there that we can expect similar levels of growth in calendar 2006."

He said there was "still a big opportunity to close the gap" between the amount of time people devoted to media - online makes up 15 per cent, according to research company Roy Morgan - and the amount advertisers spent online, about 6 per cent of the $10.3 billion total.

Liam Walsh, national sales director of Fairfax Digital, was more conservative, predicting growth in the coming year would still be "buoyant" but more in the order of 50 per cent.

But he said he was confident online would overtake radio's share of the ad market, which media buyer Fusion Strategy says was worth $890 million in 2005 and which it predicts will grow to $940 million by the end of this year.

Fusion Strategy's Steve Allen was confident online would reach $1 billion by the end of the year and eclipse radio.

The increase in the adoption of broadband is cited as a catalyst for growth as people spend more time online and advertisers are able to deliver ads that rival television in quality and entertainment - what the industry calls "rich media".

The audit bureau's Online Advertising Expenditure Report 2005 says spending in the full year on general display advertising, such as banners, rose by 51 per cent to $194 million.

Spending on classifieds grew 56.1 per cent to $206 million, while spending on search and directories - where an ad appears in response to a query - grew 72.5 per cent to $220 million.

[Lee.Stephens]

Hi gents,

I am releasing our results to the market tomorrow. I will provide a commentary on the figures, as provided to the fund managers when I can sit down and take the time. If you need any information prior to my post don't hesitate to send me a note. Thanks again gents - as always I appreciate your support. And Tommy.......I hate to say I told you so...........but.....

[lacmur]

Cheers to Lee and to all the Emitch participants ( Tommy, Robbo, DH) and to those who just like to watch.

Price is holding up well after last fortnight's resistance penetrating spike and ahead of tomorrow's results. Still lamenting my small EMI holding but think it is better to have some than none at all!

[tommy]

Hi Lee,

Thanks very much for taking the time to let us know the release date of emitch's half-year results, all of us EMI watchers/holders on this forum will be anticipating a big, fat healthy return again, including myself, of course!

At least in my opinion, as I have said previously, EMI appears to be on the expensive side of the spectrum in terms of P/E ratio, but after reading that SMH article, I have completely changed my mind: perhaps there is good reason to believe that emitch has the potential to sustain and even accelerate its amazing pace of organic growth, on the back of the ever-growing online ad market... hence the premium attached to its share price.

I was hoping to get back into EMI below 40c, but the share price never fell that much... good for holders but bad for people like me who had locked-in profits and was waiting for another opportunity!

Let's wait and see how long it will take for EMI to reach $1... would like to see that happen before this Xmas, but perhaps I am being too greedy[}:)]

BTW, am I too naive to assume that EMI will report good results? Anyone with contrary views?

[tommy]

SMH article:

http://www.smh.com.au/news/business/internet-market-catches-a-summer-sniffle/2006/02/22/1140563862550.html

Internet market catches a summer sniffle

By Paul McIntyre Marketing Editor
February 23, 2006

PROPERTY developers, banks, technology and telecoms are underpinning the booming online advertising market, according to the latest tracking figures, although last month scared some online publishers when the internet ad market took a dive.

While audited figures released this week for 2005 show internet advertising rocketed 60 per cent to $620 million, some industry players said the drop in ad revenues in January was an early warning that the internet advertising market was maturing and subject to seasonal market fluctuations.

"I have seen some seasonal behaviour I've never seen before," said News Interactive chief executive Nic Jones. "January was a bit slower for the first time."

According to figures from Nielsen NetRatings for January, the number of internet advertising campaigns fell 10 per cent to 1266 and the number of advertisers active in January dropped 16 per cent to 631.

Other publishers including ninemsn and Sensis also saw the online ad market fall off in December and January although ninemsn chief executive Martin Hoffman denied the market was behaving any differently to previous years.

"I don't know where Nic [Jones] has been for the last few years," he said. "There's always been a decline in the December-January period consistent with general economic and advertising activity. January is typically the smallest month of the year. It's still very much up on prior years but lower than previous months."

However, Fairfax Digital and one of the country's biggest online media buyers, emitch, said they had no evidence of an ad slowdown over the summer break.

"January was spectacular for us," said Fairfax Digital national sales director Liam Walsh. "January is the worst month for online but our January was up 220 per cent. I think all of them [online publishers] had a bad January except us but I believe February has bounced back."

Lee Stephens, chief executive of emitch, which announces its financial results today, said he also had no evidence of an ad downturn in January. "I'm not seeing any seasonality at all. As a matter of fact, January was one of our largest months on record. I was surprised at the level of continued growth."

Mr Stephens said those online publishers suffering over summer might have a "portfolio problem" in that they were too reliant on advertising clients who pulled back spending over the holiday period.

Nielsen NetRatings managing director Andrew Reid said there was "definitely a decline" in the number of banner ads in the market but advertisers were being "more selective" in their media buying. The trend, he said, was for advertisers to launch a lower number of online ad campaigns but to produce more banner ads within those campaigns.

Mr Stephens said the average advertising click-through rate for online campaigns had "stabilised" at between 0.2-0.5 per cent in the past 12 months. Five years ago it was 1-2 per cent.

[davidrob]

Emitch (EMI) Billings up 58% and Profits up 69% -- [:p]

Hi Tommy, DH, and all emitchers....,


Emitch's (EMI) results were put out today on the ASX.

Emitch (EMI) Billings were up 58% and Profits up 69% which imo was a very good result.

Think that perhaps--??-- now the next Emitch (EMI) Share
Price Target could be in the 75-80 cents target range perhaps ?

Kind Regards,

Robbo.:)

[tommy]

Hi robbo,

EMI does it again[:p] But did I buy in too high? Err... I'm afraid I did, shame I couldn't pick up more on the cheap.

Half Yearly Report & Half Year Accounts
http://stocknessmonster.com/news-item?S=EMI&E=ASX&N=250424
_____
http://stocknessmonster.com/news-item?S=EMI&E=ASX&N=250425

EMITCH LIMITED RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2005
EMITCH LIMITED ANNOUNCES 60% INCREASE IN PRE-TAX PROFIT TO $1.621M

Leading online media buying company emitch Limited (ASX: EMI) today announced a net profit before tax of $1.621 million, an increase of 60% over the previous year.

Net profit after tax was $1.135 million for the half-year ended December 31, 2005. This compares with a net profit of $0.673 million for the same period in FY2004 (as adjusted under AIFRS), an increase of 69%.

KEY FINANCIALS FOR THE HALF-YEAR
* Gross Billings of $14.0 million, an increase of 58 percent over the same period last year;
* Revenue from ordinary activities (after agency commissions and interest) up 54 per cent to $13.5 million;
* EBITDA of $1.4 million, an increase of 66 per cent;
* Net profit before tax of $1.6 million, an increase of 60 per cent;
* Net profit after tax of $1.1 million, an increase of 69 per cent;
* EBIT margin of 9.6 per cent, an increase of 9 per cent;
* Net cash inflow from operations of $1.8 million;
* Cash balance at 31 December 2005 of $9.3 million;
* Earnings per Share of 0.64c, up 69 per cent;

CEO Lee Stephens said, “emitch continues to lead the market with gross billings growth in excess of a very buoyant market.”

The general internet advertising market, as measured by the Audit Bureau of Verification Services, grew 54 per cent in the December half-year compared with the same period last year. The Company’s growth over the same period was 58%.

Gross billings in the December half grew 57% over the June 2005 half-year, compared to the overall market growth of 42.5% for that period.

“With 24 staff, emitch is clearly the largest online media agency on any measure” Mr Stephens said. “Our aggressive focus on delivering greater value to existing clients, along with continued success in winning new clients, will see this situation continue.”

“Our growth is accelerating ahead of the market, with December quarter gross billings 74% higher that the same period last year, compared with a 55% increase for the general market. This strong trend has continued into the March quarter.

“The broadening of our client base, along with continued strong market competition in the finance and telecommunication sectors, has seen our traditionally quiet months of December and January set new billings records for those months.

“With various research over the past year predicting annual compound growth rates in online advertising of over 20% until 2009, the ongoing success of the Company in our core offering of online media planning and buying should continue,” Mr Stephens said.

The company continues to look at growth opportunities. As part of this the company commenced operations in New Zealand on 20 February.

“The New Zealand market is less mature than Australia and we see an opportunity to utilise our industry leading methodologies to make major inroads into New Zealand,’ Mr Stephens said.

“We will also increase our service offerings in Search advertising and electronic direct marketing in the second half.

emitch Chairman Stuart Simson said, “The half-year result is a credit to the emitch team and its strong relationships with clients and publishers.”

Mr Simson said “The Company will continue to invest in the best personnel available and now has the team in place to continue strongly growing the Company into the future.”

emitch continues to closely monitor costs, with total costs increasing at a significantly slower rate than billings growth, further highlighting the scalability of the business. Gross margins decreased slightly, while operating costs, excluding headcount costs, increased by 11%.

The recruitment shor

[tommy]

What da, EMI down 3% today????

Is it because holders weren't pleased that the half-year profits weren't up by +100%? Mmm... confused by the market reaction.

[David Hardman]

EMI looks over priced to me Tommy.

Still its a bloody good result (well done Lee)

I like their move into the NZ market.

Despite its small size it is not well represented.

The online ad spend in NZ is well below the growth rates of the aussie/us markets. It has a lot of catching up to do.

I attribute this to the slower takeup of broadband in the country due to Telecoms monopoly. This situtation will change in the near future and i'd expect to see significant growth in the NZ market. Emitch will be well poised to take advantage. Wouldn't expect costs for the NZ operation to be much higher than a couple of performance based salaries. Nice move!

In other online related matters - anyone checked out ANH - AnSearch.

They have just signed a deal with Google to sell their advertising solutions (Adsense) into the aussie and nz markets!.. Quite a coup especially as they seem new to the online adspace.

Their website and search tools/directories seem a little "amatuerish/dodgy" to me however they must have something going for them if Google have partnered.

I'd be interested to hear Lees comments in relation to this.

The whole online space is really heating up again. All the major players (Fairfax, News, Yahoo, Telstra) are hiring. Reminds me of 1999 a little. :)

[Lee.Stephens]

Thanks for the comments David,

I thought I would give you a current perspective on EMI and some of the highlights. Firstly the result in itself s a pleasing one. It is always difficult for the largest player in the market to maintain growth in line with market growth - only because proportionately it is always a tougher ask. To grow faster then the market has been particularly pleasing for all of us here at emitch. Our growth in total terms and relative to the market is accelerating for the year.

As an example, the market grew 55% in the December quarter with emitch growing 74%. Our growth trend has continued strongly into the March quarter with January being a great month.

Our forward planning with clients is showing strong growth also. While we do not give out forecasts, the market is estimated tro grow between 30% and 60% in 2006 and we are comfortable with those figures and plan too leverage our market position to maintain our leadership.

Our growth has come from a number of avenues;

1. Increased client growth.
2. An increase in the number of agencies we "wholesale" to.
3. An agressive drive for new clients that has been highly successsful.

Our search business (i.e the money we place with Google and Yahoo! Search) is growing strongly and this is a key area of growth going forward. I read comments on this forum asking whether search is a threat to EMITCH - and I am happy to advise that search is just another publisher of information (like Fairfax or 9MSN) and we place advertising on their sites at a profit. The difference of course is that the ads look a little different however they are still ads and we still make a margin as a result of our planning and strategy value adding that delivers better results to our clients.

Our relationship with Havas, the world's sixth largest advertising group, is growing and has delivered several key clients and a global perspective that has increased our competitiveness.

All these things have led to some great growth and an increase in our EBIT. We see nothing on the horizon to affect our rapid growth as the digital media market remains the fastest growing media segment in the world.

As always I am more than happy to answer any specific questions by email, or don't hesitate to call.

Again, thank you for you support and advice as I continue to watch my favourite EMI forum here!

Warm Regrads,

Lee.

[tommy]

EMI up a healthy 7% today, glad I got back into the game[:I]

P.S. Mr. Stephens, we highly appreciate your contribution to this forum and hope you continue doing what you have always been doing i.e. run an ever-profitable business and further increase shareholder value for us!

[davidrob]

quote:Originally posted by Lee.Stephens

Thanks for the comments David,

I thought I would give you a current perspective on EMI and some of the highlights. Firstly the result in itself s a pleasing one. It is always difficult for the largest player in the market to maintain growth in line with market growth - only because proportionately it is always a tougher ask. To grow faster then the market has been particularly pleasing for all of us here at emitch. Our growth in total terms and relative to the market is accelerating for the year.

As an example, the market grew 55% in the December quarter with emitch growing 74%. Our growth trend has continued strongly into the March quarter with January being a great month.

Our forward planning with clients is showing strong growth also. While we do not give out forecasts, the market is estimated tro grow between 30% and 60% in 2006 and we are comfortable with those figures and plan too leverage our market position to maintain our leadership.

Our growth has come from a number of avenues;

1. Increased client growth.
2. An increase in the number of agencies we "wholesale" to.
3. An agressive drive for new clients that has been highly successsful.

Our search business (i.e the money we place with Google and Yahoo! Search) is growing strongly and this is a key area of growth going forward. I read comments on this forum asking whether search is a threat to EMITCH - and I am happy to advise that search is just another publisher of information (like Fairfax or 9MSN) and we place advertising on their sites at a profit. The difference of course is that the ads look a little different however they are still ads and we still make a margin as a result of our planning and strategy value adding that delivers better results to our clients.

Our relationship with Havas, the world's sixth largest advertising group, is growing and has delivered several key clients and a global perspective that has increased our competitiveness.

All these things have led to some great growth and an increase in our EBIT. We see nothing on the horizon to affect our rapid growth as the digital media market remains the fastest growing media segment in the world.

As always I am more than happy to answer any specific questions by email, or don't hesitate to call.

Again, thank you for you support and advice as I continue to watch my favourite EMI forum here!

Warm Regards,

Lee.


Many thanks again too Lee.

I noted that your Chairman, in his ASX Half Yearly address and Report, put a lot of the credit also in the general direction of the "intellectual capital" intrinsic value that resdies in your Emitch long serving and talented emitch People ---.

You know how much I applaud this, and I still feel that is ultimately where any Advertising Agency or Media Buying Agencies Value lies ..... whether it be Saatchi's, Oglivie & Mather,Patts, etc etc... or Emitch - is how you attract and even more importantly Retain and develop you Best People..... as emitch partenrs in the bizzz...... whether it be with golden handcuffs.... (although that may not work vis a vis Chris Cuffe!!)--or whatever ELSE it is that makes them feel recognized, special and creates esprit de corp, and long term consistent loyalty (ie: Hawthorne Experiments).

On another note, sad to see that you missed out on The NINE gig, guess Eddy had you pipped at the post there mate !!

(although with their recurring rating problemos in the now family Feud Bert Newton Slot, and the 6.30 slot following the news, it might not have been such a bad thing!! Find it fascinating whether a charismatic showman "personality star type" like Eddy will successfully make the transiiont into CEO which is a different suite of skills ie: {Planner, strategist, allocation of resources, innovation, marketing,leader and inspire

[David Hardman]

Interesting article.

What does this mean..Internet adspend has a long way to go or newspaper advertising is way over priced.

http://media.guardian.co.uk/advertising/story/0,,1719141,00.html

**************

One newspaper reader worth up to 100 online users in ad revenue

Stephen Brook, press & publishing correspondent
Monday February 27, 2006

Newspaper websites need up to 100 extra online users to accompany each reader that migrates from print editions or they will lose revenue, according to an analysis presented to the World Association of Newspapers.

Between 20 and 100 additional online users are needed because the revenue per reader for a newspaper website is far less than the equivalent figure earned by a print edition, even though online advertising is booming.

"As more and more people shift their news reading from print to online, the newspaper industry must dramatically increase its online advertising revenues or die," said Vincent Crosbie, a senior associate at American media strategist Borrell Associates.

"Some experts say the battle is already lost in America because newspapers did not move fast enough," Mr Crosbie told the World Newspaper Advertising Conference & Expo.

Print editions of American newspapers earn between $500 (£287) and $900 (£517) per consumer a year from a combination of direct circulation revenues and indirect revenues from advertising, according to Mr Crosbie's analysis.

"If American newspapers continue to lose 2-16% of their print circulation each year, they will need to gain 40% to 1,600% more website users just to stay even," he said.

"Almost all American newspaper websites are free. Only 35 of the more than 1,500 daily newspapers' websites charge for access. Most have tried, but discovered that readers will not pay. So, newspaper websites must get advertising revenue to profit."

Online advertising revenues have risen dramatically in recent years because of broadband. Internet advertising was worth more than $17bn (£9.8bn) in the US last year, with $4bn (£2.3bn) going to newspapers.

The trend is borne out in Britain, with the Financial Times announcing today that the willingness of its biggest advertisers to book combined newspaper and online advertising had pushed FT.com advertising revenues up 27%.

In the US internet advertising is expected to surpass ad spending on telephone directories this year and will overtake radio ad revenues during the next 12-18 months. It has already overtaken advertising spending on outdoor billboards and magazines.

American newspapers earned nearly $4bn in internet advertising in 2005, including more than $1.9bn (£1.1bn) from national online advertising, $1.7bn (£1bn) from local online advertising and $222m (£128m) in direct referral online advertising.

Yet internet companies such as Google and Yahoo! took more than half of all online ad spend during 2005. Internet companies earned nearly $9bn (£5.2bn), 53% of all online ad spending in the US.

[tommy]

Internet Advertising Intentions & Attitudes Survey
http://stocknessmonster.com/news-item?S=EMI&E=ASX&N=250878

[davidrob]

Emitch (EMI)

Heh tommy,

why crimp :);)-- us emitch (EMI) Punters want to see the
Whole "kit and caboodle"-- Show!!

So The guys at the Pub, thought we'd, between drinks,so to speak,
post it up...[:p]

emitch / Roy Morgan Research
Internet Advertising Intentions and Attitudes Survey

STRONG ONLINE AD SPEND BUILDS BRAND AWARENESS IN 2006

Advertisers, agencies and publishers are optimistic about the role of the Internet as part of the overall media mix, with the majority of advertisers (67%) agreeing that: “the Internet will be a vital component of my company’s marketing strategy over the next three years”.

In 2006, advertisers will use the Internet to focus brand awareness strategies with 71% agreeing that “Advertising on the Internet is an effective way to build brand awareness”.


Prominent advertisers allocated 9% of their advertising spend to online advertising in 2005.

This level of online advertising spend is exactly in keeping with predictions made in December 2004, according to the latest emitch/Roy Morgan Internet Advertising Intentions and Attitudes Survey conducted in January.


The strong trend is forecast to continue, with prominent advertisers reporting that they will invest over 10% of their advertising dollars online in 2006.

A majority of advertisers have now embraced the Internet with 59% of advertisers having invested in online advertising in the past 12 months, up 5% from the 54% reported in July 2005. The survey found that general Internet advertising continues to be the dominant online advertising form.

Eighty-three percent of advertising agencies surveyed had placed advertising online in the past 12 months, up 12% from the 71% reported in July 2005.

Online Advertising Behaviour

General Internet advertising, which incorporates banners, tiles and the like, continues to attract the lion’s share (59%) of online advertising spend.

Base: Advertisers who had invested in online advertising in previous 12 months

The proportion of budget spent on general Internet advertising remains high.

In 2005, advertisers spent 59% of their Internet advertising budget on general Internet advertising, down 5% from the 64% reported in July 2005.


For the year to January 2006, advertisers reported having allocated 31% of their annual online advertising budgets towards search and directories advertising, up 5 percentage points from the 26% reported in July 2005.

The proportion of Internet advertising budget invested in Internet classifieds has remained unchanged, attracting 10% of the advertising budget in January 2006.

Forecast Internet Spending for 2006

When asked to consider how their Internet advertising spend would be allocated in 2006, advertisers indicated little change from their 2005 forecasts.

It is expected 55% of online advertising dollars will be spent on general Internet advertising (up 2 percentage points from 53% forecast in December 2004) with advertising on search engines and directories expected to attract 32% (down 6 percentage points) and spending on classifieds expected to increase to 13% (up 4 percentage points).

Base: Advertisers planning to invest in online advertising in 2006 (n=76)

Perceived Strengths and Weaknesses of Internet Advertising
The Internet’s “customer reach” is seen as the greatest strength for the advertising medium, mentioned by 30% of advertisers (up 10 percentage points from 20% in July 2005).

The Internet’s “targeting capabilities” are still seen as one of the greatest strengths for the advertising medium, mentioned by 25% of advertisers (up 2 percentage points from 23% in July 2005). 17% of Advertisers (down 2 percentage points) see the Internet’s “cost effectiveness” as one of the greatest strengths, and 16% (down 3 percentage points) cited the “immediacy” of the medium.

The “high accountability” and the “interactive nature” of the medium were also seen as major strengths.

Base: Advertisers (n=107)

Agencies cited “targeting capabilities” as the greatest strength of the

[tommy]

Hehehehe great news, EMI up 8% [:p]

http://sa.iguana2.com/cache/bd6a0bca8b8497d400513f2f2c8684fc/ASX-EMI-252820.pdf

Wednesday, April 05, 2006 EMITCH OFFERS TO PURCHASE ELECTRONIC DIRECT MARKETING BUSINESS



emitch Limited (ASX Code: EMI) has signed a Letter of Intent to purchase the business of Onemail Pty Ltd.

The Agreement is conditional upon completion of due diligence. OneMail is a best of breed suite of electronic direct marketing (EDM) tools.

With the OneMail system, emitch clients will be able to deliver high-impact promotional messages and information to their customers through email and viral marketing campaigns.

OneMail�fs unique format and approach substantially increases open and interaction rates with messages over standard email formats and other email distribution systems.

The Chief Executive Officer of emitch, Lee Stephens, said the purchase gives emitch an opportunity to build on its�f leadership position as Australia�fs largest and most sophisticated digital advertising agency. �gEDM continues to grow rapidly and has become a key component of the majority of digital advertising strategies,�h he said. �gWe expect the OneMail suite of tools to make a significant contribution to emitch revenues and margins in the future.�h

The proposed consideration consists of $0.5 million in cash and the issue of $0.5 million in shares in the company, calculated at the weighted average price for the five days prior to the completion date.

Mr Stephens said: �gThe proposed transaction is an outstanding opportunity that will further consolidate our position as Australia�fs most effective agency in helping our clients locate, acquire and retain customers using digital technology.�h

Further information: Lee Stephens 02 9266 1773 or 0417-454160

[David Hardman]

quote:Originally posted by tommy

Hehehehe great news, EMI up 8% [:p]

http://sa.iguana2.com/cache/bd6a0bca8b8497d400513f2f2c8684fc/ASX-EMI-252820.pdf

Wednesday, April 05, 2006 EMITCH OFFERS TO PURCHASE ELECTRONIC DIRECT MARKETING BUSINESS



emitch Limited (ASX Code: EMI) has signed a Letter of Intent to purchase the business of Onemail Pty Ltd.




Yay.. Emith has bought into a Spam House!

Just what the world needs more god damn spam.

That said. If spam/email marketing was not so horribly objectionable to me I would jump into the business as there is big bucks to be made in sending those emails. Advertisers are paying a premium over web based ads to have their ads sent in "mail outs"

[tommy]

Hi Dave,

Check OneMail's website if you are interested... doesn't tell you much about the nature of the "solutions" though:

http://www.onemail.com.au/

I wonder how legit this is in light of antispam laws? Would have to wait for CEO Mr. Stephens's comments I suppose.

[tommy]

Wow up 10% now[:0]

[davidrob]

Hi gals and guys,

Emitch (EMI)

Emitch(EMI) again attracts me at the 60-62 mark, and am a buyer personally at these sort of share price numbers....

Has Exponential Intrinsic Value qualities going into the future imo.... and this will probabaly in my view continue....

Regards,

Robbo

[tommy]

SMH article:

http://www.smh.com.au/news/business/buyers-barely-blink-at-price-rise/2006/05/03/1146335805403.html

Buyers barely blink at price rise

By Paul McIntyre
May 4, 2006

THE PITCH


INTERNET advertising is on such a roll that talk of additional rate increases over the next 12 months is causing hardly a flutter among media buyers and advertisers.

Fairfax Digital this week, for instance, unleashed a tricky yield-raising exercise by introducing "day part" charges for the home page of smh.com.au.

It has resulted in an overnight price hike of close to 20 per cent, yet there's not a protest to be heard from media buyers.

It's almost reminiscent of the good old days in TV when broadcasters could make ambit rate claims and the market pretty much sucked the lemon.

Until Monday, advertising on the home page of smh.com.au was charged on a 24-hour basis at a set rate. This week buyers were told of a new ad package known as "day parting" - instead of a 24-hour buy, smh.com.au's home page is now broken into 12-hour modules and sold effectively at a price 15-25 per cent higher than a few days ago.

Fairfax Digital is not alone in introducing these tactics - PBL-Microsoft joint venture ninemsn has been aggressive with day parting and they're both getting away with it for two reasons: their online audience continues to grow while the cost of reaching them compared to traditional media remains very cheap - advertisers launching "mass reach" campaigns online can do it for as little as $8 for every thousand people, versus $30-$50 on TV or in print.

So it should come as no surprise that this week's online ad growth figures for the March quarter from the Audit Bureau of Verification showed a 65.3 per cent rise to $195 million over the same period in 2005. And corresponding online display advertising figures from Nielsen NetRatings for the quarter shows banks and finance companies are lapping up the online environment - they were responsible for 45 per cent of all display internet ads for the first three months of this year.

Frost & Sullivan research director Foad Fadaghi predicts online display ad rates will rise this year while the paid search ad category will see a slight slowing in growth. Paid search has shown the biggest revenue increases in the past 18 months and much of that is because of the bidding system which underpins the category. It has forced huge rises - in some categories such as travel and leisure and finance, prices for key search phrases are up more than 100 per cent.

But now, Fadaghi says it's display advertising's turn - most of the upward movement in ad revenues here have been due to volume increases rather than rate rises. Online publishers might get both in the next 12 months.

"There is a fixed amount of inventory with the main online publishers so we do anticipate prices will go up," he says. "Part of their acquisition strategy at the moment is about boosting inventory levels to meet the growth."

However, Lee Stephens, the chief executive of online media buyer emitch is not convinced about waning online ad inventory levels but acknowledges rates are rising in high demand areas such as business and travel sections and the emerging hot area of entertainment and leisure.

"We're not seeing a shortage of inventory at this point," he says. "We are seeing it in finance, travel and business. They are generally sold out two months in advance but there's still plenty of inventory if you know what you're doing. Yes, there is an increase in yield across the board but online is still trading at a significant discount to other media."

That's part of the attraction of the net for advertisers at present but there's plenty of online publishers trying to close that gap. Market demand is helping out enormously.

[davidrob]

Emitch

Great Post Tommy.

Regards,

Robbo :)

[zac]

In a trading halt until monday (or sooner if the Ann comes thru). Looks interesting.

[tommy]

Have they bought another spam firm[?][:o)]

[tommy]

Interesting development in online ad market here, SMH articles:

http://www.smh.com.au/news/technology/google-to-rewrite-rules-for-media-buyers-no-more-commissions/2006/05/10/1146940617345.html

Google to rewrite rules for media buyers: no more commissions

By Paul McIntyre Marketing Editor
May 11, 2006


GOOGLE has broken ranks with a decades-old media industry practice of paying 10 per cent commissions to media buyers, with a planned wholesale dumping of the system by August 1.

The paid search advertising powerhouse, which will control an estimated 70-80 per cent of this year's $120 million paid search advertising market, started briefing agencies on its plans this week to mixed reactions.

"It's Google being Google. You've really got to play by their rules," said the chairman of online media buyer NetX, Craig Wilson.

"Don't underestimate the power they have in search. This is not a zero sum game. In the end it's about Google making more money. It will probably advantage larger companies like us and will lead to consolidation in the paid search channel because smaller players will not be as price competitive."

OneDigital chief executive David Holmes said Google had turned on assurances it gave last year that it would keep agency commissions. "They've sent mixed message to the market," he said. "It's a bit disappointing but I like what they're doing. We're not upset about that."

Australia's biggest buyer of paid search advertising, 24/7 Real Media, welcomed the move because it would force agencies to stop "margin broking" in paid search, a practice where huge loadings are applied to keyword search phrases by agencies before charging advertisers.

"Overall it's a good thing," said Ian Leuchars, 24/7's managing director, whose client list includes Citibank, AAMI and lastminute.com.au.

"What will happen is smaller players and larger agencies who are only working for rebates will struggle. That's a good thing. A lot of agencies �c are just middle men and pass all the work on search to the search engine and it's that search engine which gets all the benefit."

According to researcher Frost & Sullivan, 24/7 controls about 44 per cent of agency spending in the paid search advertising sector.

There is still some confusion in the market about buyers receiving volume discounts from Google.

Google's head of sales and operations, Kate Vale, said there would be no discounts for any players in the local market. "That's number one. There's no volume discounts at all," she said.

However, OneDigital's Mr Holmes said his British parent company Carat was in discussions about global volume discounts.

"Those conversations are going on in London at the moment," he said. Carat is Google's single biggest buyer globally of paid search advertising.

But Ms Vale downplayed any global buying deals.

"The system won't allow for arbitrage whatsoever," she said.

"If we're working with [media buyer] MindShare here, MindShare in London �c will get a zero discount on it here. We're trying to level the playing field."

Mr Wilson said the market would look to see how Yahoo! and ninemsn responded to Google's move. "The issue will be what Yahoo! and ninemsn do as a competitive response and what impact that will have on retail press advertising," he said.

_______


http://www.smh.com.au/news/breaking/google-unveils-new-services/2006/05/11/1146940647144.html

Google unveils new services

May 11, 2006 - 10:00AM

Google fired another salvo aimed at maintaining the lead in internet search while making its software more accessible outside web browsers in its ongoing duel with rivals Microsoft and Yahoo.

The company is adding a new tool to make it easier to share information through its online search engine and enabling users to download mini-applications, or "widgets," designed to become fixtures on a computer screen.

Google also said it's planning to introduce an online notebook for its users to paste and save search engine results.

The notebook, to be displayed as a small win

[tommy]

EMI up 14%[:0] Good job Mr Stevens!

http://sa.iguana2.com/cache/0fc82e91708b7adb0eb5118425a8d6b2/ASX-EMI-254762.pdf

EMITCH BUYS NEW ZEALAND�fS LARGEST ON-LINE MEDIA AGENCY


emitch Limited has purchased The Internet Bureau, New Zealand�fs largest on-line media buying business for the sum of $NZ8.9m ($A7.2m).

The consideration will consist of $NZ6.8m ($A5.5m) in cash and 3m shares.

The purchase of The Internet Bureau is expected to add an estimated $NZ20m ($A16.3m) to gross billings of emitch in FY07, and approximately $NZ1.5m ($A1.2m) to profit after tax and be strongly EPS accretive. The NZ on-line display market is expected to exceed NZ$40m in 2006 (source ACNielsen) of which The Internet Bureau has a market share of over 40 per cent.

emitch CEO Mr Lee Stephens said that �gAs is the case with Australia, Internet advertising in New Zealand has been experiencing strong compound growth of about 50 per cent.

While NZ had lagged somewhat behind some developed countries in on-line advertising share, this was now changing rapidly, partly due to accelerating broadband adoption.

�gThe Internet Bureau had established a major competitive advantage and strong market position in its market, having placed on-line advertising for over 300 companies on behalf of over 25 of New Zealand�fs leading advertising agencies, a number of which have signed exclusive supplier agreements with The Internet Bureau. Following the acquisition, emitch will be the largest online agency in Australia and New Zealand�h.

He said that �gemitch intends to build on this leadership position by leveraging emitch�fs competencies in search advertising, ROI management and electronic direct marketing to further strengthen relationships with agencies, clients and on-line publishers�h.

He paid tribute to Mr John Stewart, who had founded The Internet Bureau business in 2000, and said emitch intended to retain the services of The Internet Bureau�fs 12 staff.

Mr John Schofield, the current Sales Director, will continue in the business and has been appointed General Manager.

emitch Chairman Stuart Simson said The Internet Bureau represents an exciting and first class acquisition for emitch in terms of a very close fit with its core business, its geographical proximity, and the high potential value it offered shareholders.

Mr Simson said that following the purchase emitch will have sufficient cash reserves to fund all known requirements including on-going dividend payments.

Further information: CEO Lee Stephens Sydney 61-2-92661773 Mobile 0417 454 160 email: lee.stephens@emitch.com.au 12 May 2006

[davidrob]

Emitch (EMI)

And did you get my predito... ;) on 20/4/06 re EMI here exclusively onsharetrader.com.nz (ASX Division) Tommy!!)......[8D][:p]

-.....Ahhhhhhhhh.... Yes luv, (to the Gal here at the Pub,do indeed..... make that another ....... nice frothy..... crisp cold Crownie ...... errrr.....given that is Friday, that is for sure !!!

Life is Never a ....Bi%$#@ ....with Emitch.... eh what !!

Kindest Regards,

robbo :)

[David Hardman]

Heads up - 5 page article about Howard Mitchell in the SMH Good Weekend supplement.

[zac]

David, do you have a link for this?

[David Hardman]

quote:Originally posted by zac

David, do you have a link for this?


Nope. The Good Weekend is in print only. (as far as i know)

[tommy]

EMI up 3% on a sluggish day, officially buys spam house!

http://sa.iguana2.com/cache/37c14b00e94236a116ebbf7ad47fd091/ASX-EMI-255091.pdf


Friday May 18, 2006 EMITCH COMPLETES PURCHASE OF ONEMAIL ASSETS


emitch Limited (ASX Code: EMI) has completed the purchase of the assets of Onemail Pty Ltd after satisfactory completion of due diligence. Please refer to our announcement of 5 April 2006.

OneMail#8482; is a best of breed suite of electronic direct marketing (EDM) tools which will enable emitch clients to deliver unique, high-impact promotional messages with substantially improved open rates over currently existing email formats and distribution systems.

The Chief Executive Officer of emitch, Mr Lee Stephens, said the completion of the purchase further consolidates emitch�fs position as Australia and New Zealand�fs largest and most sophisticated digital advertising agency. �gWith the OneMail#8482; suite of tools, our clients in Australia and New Zealand will have the highest quality EDM campaigns available, significantly increasing their overall return on investment.�h

The consideration consists of $0.5 million in cash and the issue of $0.5 million in shares (848,896 shares) in the company, calculated at the average price for the five days prior to 11 May 2006.

Further information: Lee Stephens 0417 454 160

____
And look at this:

http://www.theaustralian.news.com.au/story/0,20867,19182994-23634,00.html

Lion Nathan in high spirits
CRITERION
Tim Boreham
May 19, 2006
Lion Nathan (LNN) $8.41

LIKE a drunk expelled at closing time, Lion Nathan is finding its feet - shakily - after intoxicating the market with unfulfilled promises over the years. Our view is the trans-Tasman brewer is on the mend, but it still one or two Beroccas away from a full recovery.

Lion Nathan's core dilemma is that it still derives most of its revenues from beer, a frothy substance of ancient origin which instils a profound (but temporary) sense of merriment in those who partake.

Perplexingly, beer consumption has been steadily falling on both sides of the ditch. The obvious culprit - tough drink-driving rules - cannot be blamed because light beer sales have been in freefall as well.

The winner has not been so much temperance, but the ready-to-drink (RTD) potions favoured by beer's traditional market of 18 to 35-year-old males.

But, as Lion notes in its interim reporting guff yesterday, the decline is at least slowing. In Australia, overall volumes fell 0.4percent in the year to March, compared with 1.2 per cent previously.

Lion chief Rob Murray can't pinpoint the reason for the improvement, but notes: "The main players have been more innovative than we have been for a while. We would like to think it's no coincidence."

Lion actually grew Aussie beer volumes by 0.8 per cent, so theoretically must be winning market share from old sparring partner Foster's.

Unlike the old days, Foster's and Lion these days don't crow about winning a fraction of one per cent of market share.

The real game is about translating volume gains into revenue and profitability. In this sense Lion has done OK, led by so-called national brands Toohey's Extra Dry (full strength) and XXXX Gold (mid-strength) brands.

In the case of both Australia and NZ, real margin expansion has been driven by consumers' preference for premium brands - especially the overseas drops.

So, while Lion's 'regional' brands went backwards, Heineken and Becks sales grew 13 per cent. The variance was more noticeable in NZ, where premium volumes grew 17 per cent while sales of mainstay brews retreated.

It's great selling more of the premium stuff, but Criterion wonders whether this just makes Lion (and, indeed Foster's) more vulnerable to a downturn.

Murray, though, is unfazed, noting the nonexistent correlation between economic vicissitudes and beer consumption.

Indeed, in NZ, drinkers sip Steinlagers and Stellas oblivious of the bucolic nation's gloomy economic indicators.

While it's a relief there's a future for bee

[tommy]

Interesting development in online ads here:

http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2006-05-23T053453Z_01_N22305470_RTRIDST_0_BUSINESSPRO-MEDIA-GOOGLE-ADS-DC.XML


Google reinvents TV ads with pay-per-click video
Tue May 23, 2006 1:34 AM ET


By Eric Auchard

SAN FRANCISCO (Reuters) - Google Inc. (GOOG.O: Quote, Profile, Research) said on Monday the company is ready to help Web sites run video advertisements, putting the Web search leader into competition with television for the biggest chunk of ad spending.

Google is seeking to take the pay-per-click model it refined for text ads and apply the approach to video, cleaning up a nascent market where irritating splash ads distract users and limit advertisers' desire to spend money on the medium.

Google video ads first appear on Web pages as static screenshots in small television-screen like boxes. Only when a consumer clicks on the screen does the ad begin running inside the box -- instead of jumping off the page as many video ads do -- giving users control over how much or how little they view.

"We are offering a very, very non-intrusive ad product," said Gokul Rajaram, product manager for Google AdSense, which runs advertising campaigns across affiliated Web sites. "Only users who click on the ad see the video."

Google's AdSense network generates nearly half of Google's revenue, with most of the rest coming from Google's own sites.

The new "click to play" video ads complement Google's existing line-up of text, static image, banner and flash animation ads that run on the edges of Web pages of sites that use Google to deliver advertising for them. Google aims to make video advertising as simple to buy as these existing formats.

Video ads will be introduced this week, Rajaram said.

To make it easy for advertisers to use the format, Google will host video advertisements on its own computer servers instead of forcing customers to contract out with a third-party supplier as many video advertisers must now do.

Click to play video ads differ from the scattershot approach of broadcast TV advertising in that Google promises to measure the duration of how long customers, on average, watch any particular ad on a site before moving on to another page.

"It is very good for advertisers because they now know the user is engaged," Rajaram said in a phone interview.

"The targeting is more powerful than traditional broadcast TV," said Greg Sterling, an industry analyst with Sterling Market Intelligence in Berkeley, California.

For example, Sterling said one way Google plans to promote the service as a way for advertisers to test-market TV ads on the Web to determine the best ad for broadcast TV campaigns.

The Internet ad market grew 30 percent in 2005 to $12.5 billion. But that represents only 5 percent of the budget that U.S. marketers spend on all media, including newspapers, radio and TV, according to Internet Advertising Bureau data. U.S. ad spending on cable TV alone totaled $18.9 billion last year.

But analyst Safa Rashtchy of broker Piper Jaffray estimates that major advertisers in categories such as autos, finance, entertainment and consumer goods are shifting a growing amount of their spending -- 10 to 20 percent so far -- online.

Such brand name advertisers favor using richer graphical or video based elements in their advertising. This part of the market is where rival Yahoo Inc. (YHOO.O: Quote, Profile, Research) has long dominated.

"Brand marketers will take notice. This is going to cause others like Yahoo, Microsoft and AOL to develop some of the same targeting," Sterling said.

"We will see an acceleration of video advertising from here," he predicted.

[tommy]

I bought back into Emitch again, I think EMI's recent acquisition was an excellent move. Share price hasn't increased, which is unbelievable considering the impact of this deal!!! They MUST do an investor presentation on this latest acquisition to explain how great this merger is... (they should also explain what on earth Onemail is, because there's hardly any information on it!)

Web ad bureau fetches $8.9m
22 May 2006
By REUBEN SCHWARZ


Auckland web advertiser The Internet Bureau has been sold to its Australian counterpart for $8.9 million.

ASX-listed emitch will pay $6.8 million in cash and three million shares for The Internet Bureau, which creates online ad strategies for large advertising agencies. It books ads on sites such as stuff.co.nz, Trade Me, Google and Hotmail.

Internet Bureau general manager John Schofield says the business needs to pay for the next generation of high-priced marketing tools being used overseas. Both Australia and New Zealand have relatively small customer bases, which means it's hard to justify spending the money.

"Some of the international tools require quite a bit of up-front investment," he says.

Emitch says the purchase makes it the largest online ad agency in Australasia. It expects The Internet Bureau to add $20 million in revenues and $1.5 million in profit to its accounts in the next financial year.

Emitch has similar profits and revenues, but the merger will let the companies pool their resources to pay for new technology, Mr Schofield says.

The Internet Bureau claims to have a 40 per cent share of the New Zealand online advertising market, which is expected to be worth more than $40 million this year.

The company was founded during the dot-bust of 2000, when "the whole online advertising landscape was pretty much undeveloped", Mr Schofield says. It has grown steadily over the past six years to become the biggest supplier of online ads in New Zealand.

The Parnell company has 12 staff, and Mr Schofield says there won't be any job cuts following the merger.

Founder John Stewart will step down later this year to concentrate on his other business, web development company Interaction.

[tommy]

http://www.emitch.com.au/investor/EMI%20Stock%20Update%2009%20Internet%20Bureau%20Ac quisition%20150506.pdf


Small Cap Research & Dealing
www.selectequities.com.au

Short Term: Outperform
Long Term: Outperform

emitch Limited
emitch makes strongly EPS accretive acquisition
Risk Level: Medium
Market Cap:$122.9M
Stock Code: EMI
Last Sale $0.65


15 May 2006
Mark Southwell-Keely
Danny Goldberg
61 2 9388 9875

EVENT
- On 12 May 2006 emitch Limited (EMI) announced the purchase of The
Internet Bureau, New Zealand�fs (NZ�fs) largest online media buying business for the sum of $7.2m, comprising of $5.5m in cash and 3m shares.

IMPACT
- EMI�fs management estimate that the acquisition is expected to add an
additional $16.3m to EMI�fs Gross Billings and $1.2m to NPAT during FY07e.
- The acquisition establishes EMI as the largest online media buying agency in both Australia and NZ.
- We view the timing of the acquisition as opportune. NZ broadband retail access rates have been declining recently. As NZ broadband access becomes cheaper the NZ broadband household penetration rate, which has lagged Australia, is likely to accelerate. EMI�fs experience in Australia has shown that broadband penetration is a key driver for online advertising growth.
- The acquisition has been made on an FY07e PER multiple of 6x. This makes the deal strongly EPS accretive based on EMI�fs pre-acquisition FY07e PER multiple of 29.8x.
- The founding owner of The Internet Bureau Mr John Stewart will not have any continuing involvement with the operations of the business, but the 12 existing staff have agreed to continue with the business.
- We understand that Mr John Schofield, The Internet Bureau Sales Director, was instrumental in building the NZ business. We view his appointment as the NZ General Manager as important for maintaining continuity and reducing integration risks.


SELECT EQUITIES FORECASTS
- The acquisition is effective 1 May 2006. There is likely to be 2 months of earnings contribution in FY06. However, we have not materially adjusted our FY06e forecasts as we anticipate that there may also be short term costs associated with the integration of the business.

- Following the announcement of this acquisition Select Equities upgraded its FY07e Gross Billings forecast to $59.8m (+52.7%); NPAT to $5.1m (+49.4%) and DPS estimate to 2.3c (+53.3%). This equates to a FY07 PER of 23.5 times and a yield of 3.5%.

[tommy]

EMI up 5%, has the market finally woken up to the massive impact of the latest acquisition? I'm heavily exposed to EMI (28% of my portfolio) but quite happy with it because the extra earnings expected in 2007 have not yet been factored into the share price... PE ratio might look rediculous at this point but this will look cheap when the 2006 results are out[:I]

Good management, no debt, exponentially expanding earnings as the leader in a growing OZ and NZ market mean $$$.

[tommy]

EMI up almost 9% today, is it gonna reach 70c before 2006 results are out[?]

Small volume but don't know what sparked the buying suddenly... sell side thin so it might be interesting to see whether it can increase its PE ratio to dotcom-boom-like levels[}:)]

[davidrob]

Emitch (EMI)

Try the Intersuisse Report, out today, for a reason ... Tommy !!

....Will promsie to try and post it tommmorow--:)

Although quite frank and balanced ... imo --- It is a clear and Strong Buys recco.from Intersuisse.

Kind Regards,

Robbo :)

[tommy]

Hi Robbo,

Is the following report what you're talking about? It's out of date (dated March 2006) so you must have a newer report than this... please post the latest one mate!

BTW, I have talked to management recently and they sounded VERY CONFIDENT of further future growth, so I think the acquisition will have a significant positive effect next year (fingers crossed!)

____
http://www.intersuisse.com.au/upload/Companies/EMI060306.pdf

emitch 06 March 2006
Participate in Rapid Internet Advertising Growth
Recommendation: Buy

Event


For 1H06 EMI reported NPAT growth of 68.6% to $1.135m on gross billings up 57% to $14.0m compared with $8.9m in the pcp.

EBITDA rose 66% to $1.4m with the EBIT margin up 9% to 9.6%. Net operating cash inflow was $1.8m and cash at 31 December was $9.3m. EPS rose 69% to 0.64 cents.

The 57% gross billings growth compares with 42.5% for the market as a whole and is accelerating ahead of the market with the December quarter 74% above the pcp compared with 55% for the general market. This trend continued in a record January.

Billings were particularly strong in the major sectors of online advertising where the Company has a strong market share namely, financial services, travel and accommodation, telecommunications and motor vehicles. The Company?s top 10 existing clients all increased their spends, whilst significant new clients were won in the finance, motor vehicle, and entertainment sectors.

Whilst revenue has increased by 54%, operating costs, excluding media
delivery costs, rose 31% reflecting the scalability of the business. The major increases in operating costs have been headcount related, whilst margins have decreased slightly.

emitch is Australia?s largest online media strategy, planning and buying agency, with offices in Sydney and Melbourne.

In what is globally the fastest growing advertising category, emitch billing revenues expanded in FY05 by 31% and profits and earnings by 136%.

Founded in 1999 and listed in March 2000, emitch manages the internet
advertising interests of many significant and top 100 Australian companies. It is focused on remaining the Australian leader in assisting its clients locate, attract and keep customers using digital media.

emitch buys advertising inventory on the web sites of internet publishers such as ninemsn, Fairfax, Yahoo and Google, and sells it to major long-term clients such as ANZ, Optus, Nissan, Virgin Blue and Citibank. emitch assists its clients with strategy, creative and planning inputs and monitoring and optimising campaign results.

The business is highly scaleable, with high margins and minimal capital
expenditure. emitch claims a 15% market share (and over 20% if direct
advertising arrangements of the publishers is excluded), run by 24 staff, the largest group devoted to online media buying in Australia.

EMI continues to look at growth opportunities beyond its strong organic
increases in Australia. It commenced operations in New Zealand in February and will build its service offerings in Search advertising and electronic direct marketing in this half. Its recruitment shortlisting joint venture FINAL5 (www.final5.com.au) had a profitable first half, licensing 'state of the art' predictive screening software to help employers shortlist candidates for inverview.

[davidrob]

Emitch (EMI)

Hi Tommy,

As discussed from Intersuisse re Emitch (EMI)

Industrial Intersuisse Stock Brokers Latest (5/6/06)
Recommendation/Analysis is-- Company Analyzed
emitch (EMI) Buy for strong growth

emitch (EMI)

Australia's largest online media buying agency

Buy for strong growth $0.62

Event

EMI has substantially improved its attractions with its recent
acquisitions and is continuing to enjoy the outstanding
growth of internet business.
The New Zealand acquisition of The Internet Bureau
catapults EMI to 40% of the NZ market and the acquisitions
should add some $20m to FY07 revenues.
We have increased our estimate for FY07 NPAT by over
30%. We add in the table an estimate for FY08 showing
further growth of over 50%.
While growth will eventually slow - the US and the UK are
only growing online advertising by 38-40% pa - the upside
remains very large indeed.
Yet the price remains just 61.5¢ - BUY!
Impact
We visited emitch to update our perception of the impact of
its recent acquisitions, particularly The Internet Bureau. We
reviewed the company as a Buy at $0.635 in Morning Notes
on 6 March after the successful 1H06 and again at $0.675 on
4 April after its agreement to buy Onemail, subject to due
diligence.
The Onemail suite of electronic direct marketing tools is
considered 'best of breed'. It has now been acquired for
$0.5m cash and $0.5m in EMI shares at 59.3¢. The key
developer has joined EMI. Onemail provides EMI with a
unique email delivery system allowing clients to deliver
web-like rich-text emails, relatively small and without
attachments, for marketing campaigns. Its creative options
can provide high impact messages. It is expected to
strengthen EMI's armoury of client services and be EPS
positive.
The key and surprise recent deal was the acquisition of The
Internet Bureau, New Zealand's largest online media agency
Intersuisse Morning Notes 5 June 2006 Page 2
with more than 40% of the NZ market. This market grew 40%
in 2005 and is expected to accelerate as broadband
subscription rates fall under competitive pressure, as
happened here and elsewhere. The 12 existing staff will be
retained under a manager, John Schofield, with seven years
online media experience and recognised as a leader in the
industry. The Internet Bureau acts for around 70% of the
advertising agencies in NZ. The purchase price was A$5.5m
cash and 3m EMI shares valued around A$1.7m. Forecast
earnings for FY07 are about A$1.2m on billings of some
A$17m+, making a strong addition to EPS.
Another growth field identified by EMI is search, which has
been generating up to 15% of its revenues. In April EMI
commenced Columbus Search, with dedicated resources
allowing it to target large search advertisers for the first time.
It can dynamically manage search campaigns on Google and
others. Growth of the search market was 80% in the march
quarter.
EMI is Australia's leading online media buying company.
Harold Mitchell, doyen of media buying, holds 30% in EMI
which sources around 50% of its business through providing
the online component to clients of the Mitchell agency which
leads revenues in the media buying industry. Total internet
advertising now represents some 6% of advertising in
Australia, with general advertising at 2% compared with 4%
in the US. The on-line advertising category will expand as
broadband use expands. First movers to online advertising
have been in the finance, travel and communications fields.
Early movers are now spreading their focus across products
and brands and some expect to build their online
expenditures towards 10% to 20% of campaign spends,
while other sectors are showing increasing interest in online
advertising.
EMI gross billing revenues were $14m in 1H06 compared
with $17.8m in the full year FY05. The last months of 2005
and the first months of this year were record months. From
15/16 staff a year ago, there are now 31 in Australia and 12
in new Zealand. The general advertising market grew 69% in
the March quarter

[tommy]

Thanks a lot robbo, you are a legend[8D]

EMI up 10% already perhaps due to this report... I knew the market had to realize the magnitude of this deal sooner or later! What's your next price target robbo? Sell side is thin!

I personally would like to see 80c by the announcement of the financial results.

[tommy]

Here is the link to the latest Intersuisse report which robbo kindly pasted above:

http://www.intersuisse.com.au/notes/mnmonday.html

I hope people managed to get on the bandwagon and buy EMI in the low 60s last week... I'm sitting on a 20% paper-profit in less than a week, gotta love internet-related tech stocks[:p][:p][:p][:p][:p]

I will continue to hold for the medium-term because I see very little downside to this stock, as long as king of media Mr. Mitchell is behind emitch[:I]

[davidrob]

Emitch (EMI)

Well Tommy..... with an average buy in price of 11 cents for Emitch, what interested me vis a vis, Emitch was Intersuisses forward projections on the fully franked Dividends as muhc as the other aspects !! :

Well let me be fair and say that I did also like the following points....:

(1) That emitch is quickly becoming …. or really, imo, already is a Cash Cow.

(2) Fact that Emitch does have significant Competitive Advantage of Market Dominance, and Market Leader Status, in a Fast Growing –click click, click -- repeatable Sales cash cow Nice market

(3) It is fed by Mitchell’s Media Buying (Australia’s largest Media Buyer by a very long stretch) and Packers ninemsn among other global major Media Buying groups…..

(4) Lee Stephens and Harold Mitchell are Leaders of first order. Proven successful First Rate and well regarded by the overall Market as results producing and over achieving Senior Executives & Senior Managers

(5) It is in a Exponentially growing Globally Networked and Influenced unique Market niche with High Profit Margins and unique Scalability and with very High Barriers to Entry.
(6) The “rude Health” -- of the Emitch Balance Sheet.
(7) Emitch is fortunate to have secured exclusively for themselves, the
Competitive Advantage which resides in the ownership of what is a Proprietary, Exclusive and Trade Marked Search Technology which hooks & Benefits, their Clients into the very best targeted marketing that Search Engines such as Google can provide…. for emitch’s Customers. Ie: The trademarked …OneMail business….. they (Emitch) acquired last month!!

As for Emitch, this in my view are four (4) of the Real keys for Emitch's Success as Critical Key Success Factors. ....

In my assessment Tommy, Emitch(EMI) are addicted to Three (3) Main …… enterprise and business Drivers.

These four Key Drivers are, imo, :

(1) For Emitch, Customer is truly King, Customer is King, Customer is King, ------and for emitch, Customer total satisfaction and fulfillment (eg: they have now had the Dominoes Pizza account for 6 months)--and it is this obsession with superior Customer Service and Satisfaction, that in my opinion is so often at the Real heart of so many of the Truly Super Dynamic and Successful sustainable and long term Business enterprises, imo, Tommy.

(2) Emitch appear to have a healthy Obsession to Be the king of the Heap, and “Alpha Pup pack leader”—ie: to consolidate their already much discussed & impressive -“ First Mover Advantage”.
Emitch are relentlessly competitive in respect to maintaining and consolidating this Critical Number One (1) Spot. ie: -- emitch’s clear Market Place Dominance in their Vertical and Horizontal online marketing leader of niche “market space”.

(3) Emitch thirdly have a Dedication to Global and national Media alliances and as such become a key part of the node….Gobal Supply Chain ---- when it comes to On Line Media and On Line Advertising and direct Marketing Online etc.

(4) Truly, dedicated to Best Practice Human Resources practices and with great pay and financial incentives for all staff in many respects, with monetary rewards which are above Industry standard rewards, and clear Promotion paths from within ….. which is to attract & Retain, imo, Australia’s best Multi Media digical media advertising and Media Buying Talent.

So in summary Tommy, I never look at share price, instead I look at Market Cap. I also hope to own great companies forever. Could see Emitch at >> than $2.00 …. in the next approx….. 18 months or so ….without too much of a real problem.

And with that above prediction, (re the (EMI) Market Cap comparison e) you might be interested to do a comparo of Real Estate.com, (REA),Seek (SEK),and Wotif WTF -- to envisage what may be Emitch medium term potential.

As an investor I like to be in superior companies Forever and ever….. basically and get the long term non taxable capital gains and dividends!

Other

[tommy]

Thanks for your long post robbo, great analysis on emitch[:I]

I totally agree with you that market cap of EMI is still very small compared to the likes of seek.com.au and realestate.com.au despite the high PE ratio, and that it is in a very strong position to attain further growth led by a good management team.

You have an aggresive $2 target for EMI over the next 18 months[:0]
It sounds a bit ambitious but then again who would believe that EMI was less than 20c a year ago:)

I expect a re-rating of EMI share price after the release of its full-year financial results and an investor presentation (mid-August) but will not complain if there are any additional upswings before that[:p]

EMI deserves much more insto attention! Why are there no institutions on the shareholder list? Due to lack of franked dividends?

P.S. Wow you have a long list of holdings, truly well diversified or what! I shall look into a few of them too...

[tommy]

EMI up 4% despite the bleeding market, it's a great feeling making money while eluding the bears' grip[:p]

I was expecting traders to do some profit-taking today (not me though), but hasn't happened yet. Looks like EMI is detached from market sentiment;)

http://asx.netquote.com.au/charts.asp?code=emi&x=0&y=0

[KW]

All my net stocks seem to have resisted the slide - MLB, EMI, SEK, WTF - although my overall portfolio is down 3% over the last 2 months (although thats after going up 20% in the 3 months before that).
However, my NZ portfolio is up 5% so maybe the entire NZ market is detached :-)

[tommy]

quote:Originally posted by KW

All my net stocks seem to have resisted the slide - MLB, EMI, SEK, WTF - although my overall portfolio is down 3% over the last 2 months (although thats after going up 20% in the 3 months before that).
However, my NZ portfolio is up 5% so maybe the entire NZ market is detached :-)


Hi KW,

Good choice of companies you have there, well done!

I've restructured my portfolio to increase my exposure to techs a few weeks ago and am actually sitting on pretty good paper-profits so far(GBT, EMI and ENG)... I expect tech and biotechs which have long been ignored will become the darlings of the stock market from next year onwards.

Even if market sentiment is terrible, growing companies in growing sectors that are generating healthy profits led by good management will continue to enjoy an increasing share price, that's just the way it is... and surely EMI will be one of them;)

[tommy]

EMI up approx 7% today, 77c[:p]

Still small volume but nevertheless good to see it go up!

[tommy]

Interesting article here on ad market trends:

http://www.smh.com.au/news/technology/costcutting-toyota-sees-online-as-the-way-to-go/2006/06/07/1149359817792.html

Cost-cutting Toyota sees online as the way to go

Paul McIntyre Marketing Editor
June 8, 2006


ONE of Australia's biggest advertisers, Toyota, fired a warning shot to TV and radio broadcasters and magazine publishers this week as part of a sweeping review of its internet and digital marketing activities.

The car maker confirmed to the Herald that it was midway through the biggest overhaul in its marketing communications strategy for years, part of longer term plans to simultaneously reduce its estimated $70 million advertising budget and increase its marketing clout.

Toyota's head of marketing communications, Peter Evans, said free-to-air TV networks, radio stations and magazines were lower on Toyota's agenda as it shifted to digital media although, in a surprise move, he flagged continuing support for newspaper classified expenditures.

"We're still a big believer in press, particularly for those close to a purchasing decision," he said. "We have a large classifieds presence and that will stay."

However, Mr Evans said other mainstream media options were already in decline for Toyota. "One issue we have with radio is the [on-air disclosure of] terms and conditions," he said. "You lose almost a third of your advertising time so radio has suffered and magazines have a little too. Free-to-air TV has a proposition that's hard to ignore. At the moment I don't think we've reached a tipping point but, as TV's audiences continue to shrink and costs continue to rise, the attractiveness of online media is growing."

Mr Evans said Toyota had increased its search engine marketing by a factor of five this year, its website budget had doubled and electronic direct marketing budgets had moved into "seven figures" for the first time in 2006. Traditional direct marketing, he said, had never been very attractive to Toyota.

"The technology is just too imprecise and the returns are low with snail mail," he said.

The launch of the new Camry and Orion models in coming months would involve greater use of online and electronic direct marketing strategies.

Mr Evans said Toyota's Australian operation was now looking to apply the carmaker's global production mantra - kaizen, or a million tiny steps forward - to its local marketing budgets by shaving 1 per cent off the cost of marketing every year.

"In production it gives Toyota a great competitive advantage," Mr Evans said. "It means prices fall rather than rise and they're applying that to marketing now so we've got less and less money and more and more needs to be done."

At least eight communications agencies were initially asked to pitch for the expanded digital marketing activities, including Toyota's existing suppliers such as Boomerang Integrated Marketing, Saatchi & Saatchi, Publicis Mojo and Hothouse.

[davidrob]

Hi Tommy,

And guess who..... is the Media BUYER for these Advertsing Agencies....;);) ... errrrr ..... Boomerang Integrated Marketing, Saatchi & Saatchi, Publicis Mojo and Hothouse...... ??? :);)

Also,..... btw..... the up coming introduction of up dated technology new Fibre Network (at a cost of $3.5 billlions to Telstra) Fast Internet in Australia ... might somehow benefit a certain unnamed firm as well.... ;):)

Kindest Regards,

Robbo :)


quote:Originally posted by tommy

Interesting article here on ad market trends:

http://www.smh.com.au/news/technology/costcutting-toyota-sees-online-as-the-way-to-go/2006/06/07/1149359817792.html

Cost-cutting Toyota sees online as the way to go

Paul McIntyre Marketing Editor
June 8, 2006


ONE of Australia's biggest advertisers, Toyota, fired a warning shot to TV and radio broadcasters and magazine publishers this week as part of a sweeping review of its internet and digital marketing activities.

The car maker confirmed to the Herald that it was midway through the biggest overhaul in its marketing communications strategy for years, part of longer term plans to simultaneously reduce its estimated $70 million advertising budget and increase its marketing clout.

Toyota's head of marketing communications, Peter Evans, said free-to-air TV networks, radio stations and magazines were lower on Toyota's agenda as it shifted to digital media although, in a surprise move, he flagged continuing support for newspaper classified expenditures.

"We're still a big believer in press, particularly for those close to a purchasing decision," he said. "We have a large classifieds presence and that will stay."

However, Mr Evans said other mainstream media options were already in decline for Toyota. "One issue we have with radio is the [on-air disclosure of] terms and conditions," he said. "You lose almost a third of your advertising time so radio has suffered and magazines have a little too. Free-to-air TV has a proposition that's hard to ignore. At the moment I don't think we've reached a tipping point but, as TV's audiences continue to shrink and costs continue to rise, the attractiveness of online media is growing."

Mr Evans said Toyota had increased its search engine marketing by a factor of five this year, its website budget had doubled and electronic direct marketing budgets had moved into "seven figures" for the first time in 2006. Traditional direct marketing, he said, had never been very attractive to Toyota.

"The technology is just too imprecise and the returns are low with snail mail," he said.

The launch of the new Camry and Orion models in coming months would involve greater use of online and electronic direct marketing strategies.

Mr Evans said Toyota's Australian operation was now looking to apply the carmaker's global production mantra - kaizen, or a million tiny steps forward - to its local marketing budgets by shaving 1 per cent off the cost of marketing every year.

"In production it gives Toyota a great competitive advantage," Mr Evans said. "It means prices fall rather than rise and they're applying that to marketing now so we've got less and less money and more and more needs to be done."

At least eight communications agencies were initially asked to pitch for the expanded digital marketing activities, including Toyota's existing suppliers such as Boomerang Integrated Marketing, Saatchi & Saatchi, Publicis Mojo and Hothouse.

[tommy]

Hi Robbo,

Yup, the only way is UP for emitch, doesn't matter which way the market is going ;)

Still can't believe how long it took for the market to realize the impact of the NZ acquisition... perhaps things would have been different if the market was not so volatile!

[tommy]

EMI up 14%[:p][:p][:p][:p][:p][:p][:p][:p]

Sitting on 40% profits in just two weeks... gonna collect some profits, this is too good to be true[8D]

[tommy]

Speeding ticket[|)]

[tommy]

What da?!

EMITCH ANNOUNCEMENT


emitch Limited (ASX code: EMI) today announced that Chairman, Mr Stuart Simson has informed the Board of his intention to resign as a Director to pursue other media interests. Mr Simson’s resignation is effective 1 September 2006.

The Board have requested that Mr Garry Hounsell assume the role of director and non-executive Chairman upon Mr Stuart Simson’s departure and are delighted to advise that he has agreed to accept the appointment.

The company thanks Mr Simson for his important contribution in helping to build shareholder value over the last four and a half years. The company today has a shareholder value of approximately $150M and is the largest on-line advertising agency in Australia and New Zealand.
Mr Simson thanked Directors and Management for their support and stated, “The Company’s outlook has never been brighter. It has a fine management and staff and now is an appropriate time for me to pass the baton on to Mr Hounsell”.

Mr Hounsell is currently a non-executive Director of Qantas Limited, Orica Limited, Nufarm Limited, Methodist Ladies College Limited, the MacFarlane Burnet Institute and an executive of Investec Bank (Australia) Limited. He is a former senior partner of Ernst & Young and is a Fellow of the Institute of Australian Company Directors and Institute of Chartered Accountants in Australia. He has a Bachelor of Business in accounting.

Mr Hounsell brings an ability to work and communicate at the highest levels in business, a demonstrated strong management expertise and experience motivating individuals in a team environment. Mr Hounsell said “he is looking forward to continuing the good work performed by Mr Simson as Chairman of emitch.”

Friday 21 July 2006

[ohmyme]

Dont worry about it Tommy,

He recently sunk $100k at around 80c into EMI, so he at least has faith in the short term future of this company. So long as Mitchell doesnt leave, and Lee stays on as head, I could not give a rats about the chairman.

ciao.

[tommy]

quote:Originally posted by ohmyme

Dont worry about it Tommy,

He recently sunk $100k at around 80c into EMI, so he at least has faith in the short term future of this company. So long as Mitchell doesnt leave, and Lee stays on as head, I could not give a rats about the chairman.

ciao.


Thanks for your opinion mate! If either Mr. Stevens or Mr. Mitchell left I would dump this stock like a hot potato... the management team in this company has been exceptional with a strong focus so I am just sensitive to any out-of-the-blue changes.

EMI wobbling around 80c lately, having a hard time picking up a few more stocks in mid-70s. Already have a bucket load and I am breaking my own rules of balanced exposure but cannot help it when it comes to emitch:)

[Lee.Stephens]

Hello ladies and gents,

I thought I would drop you a note regarding Stuart Simson's announcement and let you know when our results are announced.

Firstly, Stuart's departure is in line with his growing personal media interests his own media businesses. There are articles in the online versions of the SHM and Age today at the following link:

http://www.smh.com.au/news/business/emitch-chairman-heads-off-to-radio/2006/07/23/1153593210327.html

The move has been planned and is amicable.

The new Chairman intends to continue the work done by Stuart and I look forward to working with Garry. I hope his calibre gives you confidence and an idea of where we intend to take emitch in the future.

Our results are coming out on the 24/8/06. I trust you have been reading the analyst reports on our site and our responses to the ASX in regard to our rapid share price appreciation in the meantime.

Thanks again for all your support.

As always if you would like more information please don't hesitate to send me an email that is contained in my profile.

Warm Regards,
Lee.

[tommy]

Many thanks to Mr. Lee Stephens for the reassurance;)

Good to know that emitch won't be derailed by the recent reappointment.

Now looking at the charts, is emitch ready to break out? Or is it too early to rock and roll?

Need some tech advice from chart readers!

http://bigcharts.marketwatch.com/javachart/javachart.asp?symb=AU%3Aemi&draw.x=0&draw.y=0

[tommy]

Have been accumulated more EMI, closed up 8% today[8D]

Sold out of AED and TRS to collect profits, it was a good ride[:p]

Is EMI gonna hit the $1 mark soon? My next target is market cap of $200 million after the announcement of annual results, I am very confident that the management will not let us down considering their past stellar performance.

Another acquisition before the announcement will be nice but I suppose I am being too greedy [|)]

[davidrob]

quote:Originally posted by tommy

Have been accumulated more EMI, closed up 8% today[8D]

Sold out of AED and TRS to collect profits, it was a good ride[:p]

Is EMI gonna hit the $1 mark soon? My next target is market cap of $200 million after the announcement of annual results, I am very confident that the management will not let us down considering their past stellar performance.

Another acquisition before the announcement will be nice but I suppose I am being too greedy [|)]



Hi Tommy,

Think about $1.15 - $1.18 sounds about right for emitch (EMI) --based on their Broker Reports and historical earnins history etc, .... and for this sort of number to perhaps occur over the next six weeks to about two months imo .....

Kind Regards,

Robbo :)

[tommy]

Hi Robbo!

Where have you been? Too busy sipping those crownies in malibu?[8D]
Nice to hear from you again mate!

Price target of "$1.15 - $1.18" sounds okay to me too, although I actually expect it to go higher when the synergies of the latest acquisition is fully appreciated by the market. Once it hits market cap $200 million, the dynamics should again change in favor of emitch... and the only way is up:D

This is one of the very few stocks that I have been accumulating at every opportunity since market volatility became more acute, simply because of its monopolistic position in the exponentially growing internet ad market which is basically detached from any downturn in the real economy i.e. regardless of what's happening to interest rates, oil, unemployment, inflation, US economy, Middle east, etc., the fact is that big businesses are going to be shifting their advertising budget increasingly into the online environment. And emitch is in the front seat to grab the biggest piece of that pie in OZ and NZ!

If you like emitch robbo, have you checked out JMB? They are very good at targeting generation X and are in the process of establishing a global mobile network based on communities. Appreciate your comments as always[:I]

Oh, and here is the chart... breakout time?!
http://bigcharts.marketwatch.com/javachart/javachart.asp?symb=AU%3Aemi&draw.x=0&draw.y=0

[tommy]

Oh, I forgot to state that despite the stellar increase in revenue so far, emitch's NPAT is likely to be flat (as stated in the analyst report) due to having to pay tax from this year. I don't know whether the share price increase has factored that in or whether the market assumes continued NPAT growth.

The good thing is that it will eventually translate into franked dividends, which surely should help insto buying in the future... fingers crossed;)

[OneUp]

Hi Tommy & Robbo, I'm a bit concerned about EMI's PE of around 70, on a 2007 forward basis let's call it 30-35. The market appears to have anticipated several years of strong future growth, so it's difficult from where I sit to see where the upside is coming from. Then again, you shouldn't listen to me, I'm the mug who wasn't prepared to pay 30c per share (although, to be fair, I had no foreknowledge of a couple of excellent acquisitions EMI have made over the past year).

[ohmyme]

ACtually OneUp I have EMI netting $5.4million NPAT for 06/07. I think that the market would be prepared to pay 40 times 06/07 earnings which means a share price of $1.20. This is based on 50%PA profit growth from this year, plus the latest acquisition forecasts provided by EMI for 06/07.

The sector they operate in is growing at 50% PA consistently year on year for more mature markets like England and the US. EMI have this sector stiched up as far as I can tell in the US and now NZ. This is why the market will rate EMI on these high multiples.

Unlike other companies I just cant see EMI not growing their profits at at least 50% PA indefinately. :) Big call I know, but EMI has been trading on these kind of multiples since about 11c!!!!!

[tommy]

Hi oneup and ohmyme,

Yes PE of 70 is extremely HIGH (tech bubble standards!) but then again, the premium can also be attributed to the MITCHELL factor i.e. his name alone speaks volumes in the industry. Without Mr. Mitchell, emitch probably won't be so highly valued.

Plus, Mr. Lee Stephens has done an excellent job so far in maximizing profits while keeping the costs down, not to mention his vision in making strategic acquisitions across the Tasman.

Market also seems to like the appointment of New Exec Chairman Mr. Garry Hounsell.

With major ad spenders continuously increasing their online budget, nothing is going to slow down the growth of the online ad market.

In short/medium run, there are very few solid growth companies in the tech space like emitch, looking at the way it has performed to date.
I assume they will pursue more acquisitions in the years ahead, so their current high PE does not concern me at all because in one year's time sub-$1 pricing will probably look like a joke [:I]

Can you believe emitch was 25c last august? Damn, I should have never sold out midway[|)]

[tommy]

Just to clarify the Mitchell factor, last year's major shareholders according to 2005 annual report was as follows:


Harold Mitchell 54,500,000 30.56%
Stuart Mitchell 9,500,000 5.33%
Amanda Mitchell 9,500,000 5.33%
J.T. Campbell & Co Equity P/L 7,997,193 4.48%
News Interactive Pty Ltd 7,000,000 3.92%
I7 Pty Ltd 6,000,000 3.36%
National Nominees Pty Ltd 5,731,085 3.21%
Artsim Pty Ltd 5,616,200 3.15%
Beverly Mitchell 4,598,015 2.58%
Fortis Clearing Nominees Pty Ltd 3,787,383 2.12%
Gemline Pty Ltd 2,925,000 1.64%
Mitchell & Partners Executive Share Plan Trust 2,550,000 1.43%
Cancer Ascendant Capital Pty Ltd 1,700,000 0.95%
RBC Global Services Australia Nominees Pty Ltd 1,450,000 0.81%
Citadel Pooled Development Limited 1,000,000 0.56%
Great D Pty Ltd 1,000,000 0.56%
Rodney Lamplugh 1,000,000 0.56%
Neil Jackson 1,000,000 0.56%
Mormarl Pty Ltd 1,000,000 0.56%
Covertag Pty Ltd

Approx. 45% shareholding by the Mitchells[:0] Recent acquisitions have diluted their percentage for sure but they still hold a big chunk and investors have to chase the remaining shares[:o)]

[OneUp]

Guys, I don't think anyone doubts that the online advertising market will continue to grow, though not indefinately (it can only make up 100% of the total advertising market overall). I'm curious as to the view that Emitch has the online advertising market all stitched up. What are the barriers to entry here? What's to stop Saatchi & Saatchi from moving into the space in a big way? (Maybe they have? It's not a market I'm familiar with so these questions are not rhetorical). Won't EMI end up just being one of many online agencies? As the market becomes bigger, surely more players with established names in the conventional advertising space will enter and make headway?

Overall, I don't doubt EMI's excellence, but wonder whether its excellence has already been fully recognised by the market.

PS: ohmyme, no company in history has grown at 50% per annum indefinately, after a while, they'd literally take over the world economy :)

[ohmyme]

Yeh indefinately was a bit much wasnt it? However dont under estimate the power and size of the internet. The amount of money that is being thrown around to get a piece of the action (ie internet traffic) is pretty staggering.

The key to EMI is Mitchell of course. If you can understand the relationship then you can understand why EMI acts as a toll bridge. Anyways this is very well documented in Davidrob's previous posts, I would suggest just reading through this thread.

[tommy]

Hi oneup,

I understand your concerns, very valid points you have raised there and I appreciate you sharing your thoughts with us. Let me clarify my analysis of emitch:

Advantages of emitch:

- Emitch is an media buying agency, not a publisher. Increasing competition in the publisher space will naturally benefit them as opportunities with teaming up with publishers increase.

- Emitch has first mover advantage and having biggest market share in online ad marketing space in Australia.

- I assume Emitch gets a lot of clients from Mitchell connections which should not be overlooked. Mitchell's agency is the biggest independent agency in Australia, so Emitch should have enough room to grow their clientele on the back of Mitchell's existing customer database. I actually see convergence of emitch and Mitchell's agency in the long run, because Mitchell's traditional clients may be shifting their ad budgets towards online. Remember, emitch is Mitchell's online media buying arm. It won't become "one of many" that easily because big businesses (especially multinationals) prefer established agencies with a solid track record in the local market so that their ad localization needs can be met.

- When the online ad market is growing at 50% per annum, a few new entrants won't lead to a smaller piece of the pie for each existing player unless there are NO barriers to entry. Consolidation will naturally occur (in fact, already happening) so I believe Mr. Stephen's strategy is to grow organically steadily AND expand aggressively/defensively through acquisitions to maintain its No.1 position.

Disadvantages of emitch:

- As with all tech-reliant companies, emitch needs to adapt to and exploit new technologies to stay in touch with the target market simply because its existence relies on the ad's online presence. Developments like full-fledged mobile internet and mobile TV ("one segment broadcast", already happening in Japan) attract new players into the field, so the balance of power can easily be overturned if they hang on to their existing turf and do not venture into new growth fields. Ad money is always looking for the cheapest, most-effective media!

- Barrier to entry against the likes of Saatchi & Saatchi: Need to check this out, very interesting point made.

- Generational change: When tech savvy school kids grow up and become the major target market for advertisers, advertising in the current form may no longer be effective as it is today. Media is still very fragmented but this will probably change.
I believe we are heading towards the convergence of TV/mobiles/internet/ubiquitous computing/networked game consoles & entertainment systems in terms of media platform. However, by then, the entire media industry would have been restructured/consolidated.

[davidrob]

Hi Tommy,

Ought to probably have attached : "Time Frame" and new PE range on the emitch (EMI) thoughts...(expressed in last post) for $1.15- $1.18 approx ...

Obviously emitch is THE Place to be, for instos toahave exposure in Media sector, and it IS a market darling, and barring "left field negative events" ought to feasibly remain so...

But earnings are earnings are earnings.....

and So a lot will depend, imo, on the "forward forecast" (or hints therof)-- that emitch provides with the earnings....and the evidnece, facts and Busines Strategy whereby they can convince the Market they can hit those 2007 figures.....

The >>.... reason <<<.... that I say what I have said above, Tommy, is that Emitch(EMI) is IN the enviable --??-- AND interesting place; of being priced.... on forward earnings rather than the most recent historical earnings .... due to its Unique Darling of ze bourse/// market status .... which we all know the reasons for ....

Secondly; emitch(EMI) would strangely enough .....be seen in some respects, as a Defensive Stock ....and certainly would be a case for a good argument ....that it is relatively immune to interest rate rises or economic down turns...

What is my justification for that above argument/statement?

Well, for a lot of Majors -- Coles Myer, Motor Car Companies like Toyota, Music Co's, Entertainment like I-Pod, "Generation Net" Demographic, Travel Related Co's like Qantas, Singapore Airlines, Telcos like Telstra, 3 and Orange, and Optus, and now of course the burgeoning interest by FMCGs -- Sharp, LG,Fisher & Paykel,Apple I-Pod, Panasonic, Samsung, etc), Cosmetics like Estee Lauda, Revlon, Palmolive, Clothing like Just Jeans, Levis,Timberland, Supre, Country Road ...etc etc .... and Food & Beverage like Fosters, ( Coca Cola, Mc Donalds, Pizza Hut, Donut King, Dominoes,Cadbury etc).... and of course --- Banking and Finance like AMEX, Diners, NAB, Mortage Choicie, CitiBank, Aussie Home Loans etc.... and all The Major and secondary Banks .....

As Large Companies and Mult Nationals; They all do know .... that Adveritsing in .... and on .... the Net; is a Primary Core , rather than secondary peripheral .... Advertising Medium .... (see recent Comments by the one person who would know this more than Anyone,.... namely ..... Citizen Rupert Murdoch.....) -- that indeed according to Murdoch, Advertising Online .... is NOT a luxury or an Option.

It is about survivabality, and keeping all important Market Share.

That simple.

So emitch(EMI).... it could be argued, have got a Classic High Barrier To Entry ..... and very enviable Toll Way.

And these sort of major companies HAVE to pay the Ferry-Man ......(emitch).

**** And Tommy, Re Jumbuck Entertainment (JMB).

The recent but relatively short historical earnings for JMB,
are obviously really first Class.

However,.... imo, the last two (2)--four (4) quarterlies for JMB as far as a TREND goes, are a bit of a Worry and taken as a spreadsheeet over the last four quarters--- side by side--- with previous four quarters.... BEFORE that .... we can possibly detect a downturn in Sales and Cash Flows .... which is disappointing....

My own fear based on above stats, is that they(JMB) have "dropped the ball"-- on their R & D spend and are not successfully .... Still getting the best mouse - traps to market ....

-- btw, Do sincerely hope I am wrong ....

----(although the above quarterly report statement is simply how I read what appears to be a statistical fact....)--

You see the problemo with JMB and Computer Games generally; -- is that there is NO rest for the widked as it wre.....

ie: With JMB....is you are not: -- " The Platform" -- like what Stevie "Wonderkind" Jobs has done with Apple i Pod--- you are INSTEAD; the "content maker and provider"-- Big Difference, imo, here --

-- say an analogy would be like related company to Apple-- PIXAR Studios.... .....

Now why

[davidrob]

Hi One Up,

Just a small point.

Saatchis are typically not the opposition but rather a client of Emitchs.:)

Emitch are a "Media Buyer/Planner " -- not a Pure Advertsing Agency like Saatchis.

And so; when an agency like Saactchis or Oglivie and Mather etc etc, decides to go online as part of media mix for their client --say Kelloggs ....or whoever.... , Emitch wins ... as Emitch (as Part of the overall largest Media Buying outfit in Australia, namely Mitchell Media)--- aggregrates, Plans, Schedules, Buys and Controls.... the online Media component(as distinnt from say Print Media component which Mitchels do)--

So emitch do not(in the Saatchis sort of instance/example) do the creative which Saatchis does. And for reasons of Buying Power and other -- "conflict of interest"-- reasons .... Saatchis, O & M etc etc... is always happy with this arrangement as well.

Kind Regards,
Robbo :)

------------------------------------------------------------
----------------------------------------------------------------



quote:Originally posted by OneUp

Guys, I don't think anyone doubts that the online advertising market will continue to grow, though not indefinately (it can only make up 100% of the total advertising market overall). I'm curious as to the view that Emitch has the online advertising market all stitched up. What are the barriers to entry here? What's to stop Saatchi & Saatchi from moving into the space in a big way? (Maybe they have? It's not a market I'm familiar with so these questions are not rhetorical). Won't EMI end up just being one of many online agencies? As the market becomes bigger, surely more players with established names in the conventional advertising space will enter and make headway?

Overall, I don't doubt EMI's excellence, but wonder whether its excellence has already been fully recognised by the market.

PS: ohmyme, no company in history has grown at 50% per annum indefinately, after a while, they'd literally take over the world economy :)

[OneUp]

Appreciate the feedback.

Agree that EMI is a market darling. But I don't see this status as helping earn shareholders superior future returns. When a company is being priced on forward earnings (and it seems several years ahead forward earnings for EMI), it gets harder for those who buy in today to make decent returns. If EMI is being priced on:
(1) Forward earnings
(2) Toll road status
(3) Mitchell factor & superior management

Then the question arises where the capital growth can come from i.e. what has the market undervalued here? IMHO it would be no surprise if EMI treads water for a year or two or at worst three while its earnings catch up to its lofty valuation, then continue its northwards migration. Ofcourse, that's a big [?]. By way of comparison, Google has a forward PE of 28 versus EMI 30-35.

By the by, if EMI can meet or slightly exceed last year's NPAT then underlying earnings (i.e. not interest income) will have more than doubled.

[davidrob]

Hi One Up,

Fair 'nuff !!

Good point as usual.....

BTW,One Up, Google also has a current historical PE of 77 !! [8D];)

But then again,.... I do admit, we are talking about Google !-- :)

Kind Regards,

Robbo :)

[OneUp]

G'dday Robbo, the 2007 forward PE figure for Google I quoted was from Yahoo Finance.

[tommy]

Hi robbo and oneup and ohmyme,

Good to see some healthy discussion going on here about EMI, always helps to see a stock from multiple angles.

Oneup, I don't think EMI has ever been "cheap" based on historic PE, simply because of the nature of the industry in which it operates i.e. i see emitch as a tech stock with aggressive growth characteristics thanks to the online ad market expansion as well as a media stock with defensive qualities underpinned by the Mitchell connections (as robbo said).

That said, it doesn't mean it is too late to get into the game. It's just that for those who have been holding EMI, of course, the power of compounding will be a lot greater. I reentered at 60c and accumulated more at 75c-80c range. I'm not gonna sell a single stock until it at least reaches $1.20.

I believe the key to investing in techs is to constantly reevaluate the short-term fundamental competitive advantage (don't care about the long term because technological trends mutate quickly over time) and to EXPLOIT the market sentiment (hype!) so that by the time the entire stock market realizes how hot the company is, you've already made some returns. In the case of emitch, the magnitude of the NZ acquisition was ignored by the market for several days, that's why I reentered so by the time the analysts released a report, I've already made my chunk of dough[}:)]

Is emitch already hyped up? Definitely.

Will the hype continue?
Most certainly if emitch announces good performance for the full year.

Will emitch crash like a lead balloon?
If Mr. Stephens or Mr. Mitchell pulls the plug.

Is emitch too expensive?
Depends on your risk profile.

I love low pe stocks (like MTU) but when the entire market is experiencing explosive growth, you can make money by getting on the bandwagon (e.g. FRE, ENG were perfect examples), but of course, the assumption is that you have to be quick to dump the stock if any future assumptions start to look more like future challenges.

Anyway, can't wait until the reporting season starts[8D]

PS Robbo, thanks for your analysis on JMB: I will add my thoughts later on JMB thread.

[tommy]

SMH article:

http://www.smh.com.au/news/technology/online-will-just-keep-getting-bigger/2006/08/02/1154198205233.html

Online will just keep getting bigger


Paul McIntyre Marketing Editor
August 3, 2006

ONLINE advertising will continue its romp until at least 2010. By then it is expected to be the third biggest generator of advertising revenue in the Australian media sector - behind TV and newspapers - with $1.78 billion.

The bullish internet growth, forecast by PricewaterhouseCoopers this week, will come at the expense of free-to-air TV, radio and newspapers. Collectively they will have 8.8 percentage points shaved from their market shares over the next five years in what will be a $13.5 billion media advertising sector returning an overall annual growth rate of 6 per cent, according to PWC.

Commercial TV broadcasters will lose three market-share points by 2010 and newspapers face a fall of five points with the internet stealing most of the revenue, according to PwC's annual Entertainment and Media Outlook.

PwC director Matthew Liebmann said that as part of the TV sector's effort to address the internet as a booming distribution pipe for video, Australian broadcasters would adopt a "windowing" strategy similar to Hollywood film studios.

TV networks here, he said, might offer TV programs online for a premium before broadcast and after airing could offer them to sites such as iTunes for a cheaper price with no ads or from the broadcaster's own website for free, but with ads.

Mr Liebmann also predicted that internet service providers were likely to step up their "content fodder" strategies in which they offered "deeply discounted" material to customers and prospects but charged full rates for internet access.

PwC predicted internet access revenues would jump from $1.57 billion last year to $3.5 billion in 2010. PwC also claimed 2006 was a "turning point" in recorded music sales for digital and mobile devices, forecasting revenues from these formats would rise from $90 million in 2005 to $462 million by 2010. Sales of "physical" music product, however, would fall from $866 million in 2005 to $669 million.

Mr Liebmann was less sure about quantifying the revenues and types of content which would prove successful on mobile devices. Material which could be viewed or used across multiple devices was critical, he said.

Despite the challenges facing the big media players, PwC predicted some increases. It expects newspapers to return annual average advertising growth of 3.4 per cent and TV 4.1 per cent until 2010.

"Advertising growth will be relatively modest for newspapers," Mr Liebmann said. "But it's alarmist to say newspapers will disappear overnight. It's also important to distinguish between publishers and newspapers themselves. We are seeing local publishers developing initiatives online."

The biggest advertising gains over the next five years will come from the internet, with an annual average growth rate of 23.5 per cent, and pay TV, at 23.4 per cent. By 2010 the pay TV sector will generate advertising revenues of $455 million, according to PWC.

Mr Liebmann said media entities which allowed some form of interaction were those which would show the highest advertising growth rates.

Traditional media, he said, had "yet to figure it out. The convergence of entertainment, media and communications technology is shifting the balance of power from those that own entertainment and media to those that consume it."

Mr Liebmann said media companies would choose "high-growth convergent opportunities" rather than merge traditional media assets.

[tommy]

Was worried a bit about T+3 profit collectors but seems like buyers are happy to wait, down only 1% today. When will it hit $1? Three weeks to go until announcement:D

[davidrob]

emitch (EMI)

HI gang,

Can see the market giving the $1 mark a nice good think about....

Amazing.

Regards,

Robbo :)

[tommy]

Hi robbo,

I was hoping to accumulate more below 80c but it looks like I will never see that price level again:(

My biggest concern with Emitch's much awaited announcement is that the market seems to have already factored in the EBITDA growth for the year projected in the analyst reports, but I'm not sure whether they take into account that NPAT will be flat this year due to taxation. Will the stock price fall due to the typical "buy on rumour, sell on fact" scenario?

It will be nice it if dipped below 80c again, but what are the odds? Of course, if emitch outperforms the analyst projections, that will be an entirely different story, but then again, I won't be complaining if it skyrockets again:D Dividend increase will be appreciated also[8D]

Question:
When will instos start buying EMI? When market cap exceeds 200 million? When they start paying franked dividends?

[davidrob]

emitch. (EMI)

Did you see the latest On Line audited Spend figures, and survey Offical Numbers; that were out today Tommy ?[:p]

Any... before I forget, btw,Tommy, where is your response to my response to your Jumbuck Entertainment JMB querry ?? :););)

My own thoughts are that emitch (EMI) is now getting very fully priced, .....

Except for Two rare; but imo, relevant in this instance.... Major---- "this could arguably .....be the exception.... that disproves the General Rule" --- disparate factors...

These two (2) factors, are as follows :

(1) Globalization ..... and the efect of Large Advertisers who are also multi nationals:-- (....like say Toyota, Coca Cola Apple etc....) ..... wanting to advertise more targetted and efficiently with their Global Brand Offerings ..... by effectively, using ....a Global Platform (the internet).

TV and Print Media (newpapers of Magazines) -- cannot ever achieve this global reach as efectively or any where near as cost effectively.

It is that plain and simple. .

(2) The impending .....inevitable & coming to a PC (or other portable WIFI device)---- near you---(whenever ???!!) Of....

"belated drum roll please...." --- :)

Fibre Optics to the Node .... and its inevitable roll out ....in Australia.

OF course, as you know Tommy, True genuine speedy Broadband --already exists in Japan, first world Europe and Northern America and the USA etc .....

It is, this above change (fiobre Optic to the Node and sppedy straeaming Broadband)-- as a Platform and new Internet Media landscape which will render a seismic shift imo Tommy.

It will sort of make .....some Media Mediums.... as relevant --- as like the horse and buggy as a standard form of transport, .... post the onslaught of the Motor Car hitting the mass market sort of scenario...... imo.....

imo Tommy, it is almost scary ......how much highly and expedentially More,.... Effective & Attractive----

the Internet as a Media and Advertising Medium, this (fibre Optic Broadband)-- will make the transition of advertisers from traditional Media to the Internet .....

My own suspicion Tommy; is that reason number (2) -- stated above; is why the Instos are still keen to currently position themselves to be on the Emitch(EMI)-- share register; even though the current EMI .... valuation and PE ratio; is from a normal perspective ..... of course, right out of wack for any other "normal share" .....

Emitch (EMI) is ... possibly, imo, coz of the Strong Links with PBL Media,(and channel 9_ --- almost a MUST have--- imo, for many Large Insto funds, and I suspect that They know it.... (who ever got the sack for ordering an IBM philosophy )--- and consequently; they are afraid of being caught out, and having to pay even north of $1.50 to $1.80--- to have their slice of emitch share Media allotment.... At least; is my thesis .....

You see; imo, Also, another little idea is this:

When you think about it; is Emitch a good takeover Target for a Large Media Property... ;)

....-- oooops; should not have let that silly idea slip out .... .. errrr... don't tell anyone I said that....Tommy....

Actually Tommy; I really meant to say that idea; kill the idea straight away....

.... ahem.... No Large conglomerate.... like News Limited, ....would ever want the Media clout and influence of being the Number One Australasian Intrnet Advertising Player--- in On Line Media Convergence as a monopoly style Toll Way to the multi national advertising sector..... perish the very idea...

Yep, even PBL Media or Seven etc would never ever cover or want that sort of dominant unfair advantage or positioning .....

Anyway Tommy, do Hope that is at least some food for thought...

Kindest Regards,

Robbo :)

[tommy]

Hi robbo,

Good analysis of emitch there, thanks for your extensive reply mate!
Takeover is indeed a great possibility (highly speculative at this stage though) but will Mr. Mitchell be happy to sell off emitch and his independent media agency? I suppose it depends on the price offered.

As for FTTH, here is an article... that will keep Australia behind its broadband first-world countries.

http://www.smh.com.au/news/biztech/telstra-scraps-plans-for-broadband-network-upgrade/2006/08/07/1154802795067.html

Telstra scraps plans for broadband network upgrade

August 7, 2006 - 11:59AM

Telstra has scrapped plans to build a new $4 billion fibre optic network after negotiations with the competition watchdog over regulatory issues broke down.

Telstra said the talks with the Australian Competition and Consumer Commission (ACCC) about the so-called fibre to the node network (FTTN) had reached an impasse over costs.

"Until Telstra's actual costs are recognised and the ACCC's regulatory practices change, Telstra will not invest in a fibre-to-the-node broadband network," the company said.

Telstra said it had sought an outcome that would assure shareholders the company's massive investment would not be used to subsidise network access by its competitors.

"The negotiations have not produced this outcome," it said.

"The major stumbling block was the ACCC's unwillingness to recognise the actual costs that Telstra incurs in providing its services and, especially, the costs it incurs in providing services to rural, regional, and remote Australia."

In a hastily called media teleconference, Telstra group managing director public policy and communications Phil Burgess said the failure of the talks was regrettable because most of the FTTN issues had been sorted out.

He said the talks were a "casualty" of confused and inconsistent policies governing the regulation of the Australian telecommunications sector.
Mr Burgess put the cost of the network at $4 billion.

Telstra said it would not invest in the network until the ACCC recognised the actual cost of providing its services, particularly in rural areas.

"Until Telstra's costs are recognised and the ACCC's regulatory practices change, Telstra will not invest in a fibre-to-the-node broadband network."

ACCC 'bewildered' by decision

Australian Competition and Consumer Commission chairman Graeme Samuel said Telstra senior executive Phil Burgess had rung this morning to end discussions over the regulatory framework for the system.

Mr Samuel said as late as Sunday morning, Telstra had supplied the commission with information regarding the project.

But Mr Burgess had killed it off today.

"It's fair to say I'm bewildered by the decision, and just a little bit disappointed," Mr Samuel told AAP.

"I received a phone call from Phil Burgess this morning to tell me that the fibre-to-the-node discussions were dead.

"I have to say that I'm still not sure why they've killed the negotiations."
Mr Samuel said negotiations with other potential suppliers of a high speed network were already under way.

He said there would be a system in place, even if it wasn't one provided by Telstra.

"As surely as night follows day, there will be a high speed broadband network built," he said.

"I don't think we need to be held hostage by Telstra to achieve that."

[davidrob]

Emitch, (emi)

That article in The OZ; could also possibly interpreted as Telstra V ACCC V Fed Governemnt ..."political power plays" and postioning and non too subtle, even arrogant arguably... expedient posturing ..... perhaps [?]

Regards,

Robbo :)

[KW]

No brainer really. Why would you spend $4 billion on a new network that you have to give away to competitors, when you could spend much less than that on upgrading a cable network that already services most of the customers you want to service anyway, and which isnt available to competitors, and isnt regulated?

[tommy]

http://www.theaustralian.news.com.au/story/0,20867,20052475-643,00.html

Net advertising rockets up 59.4pc
Lara Sinclair
August 08, 2006

INTERNET advertising grew by an astonishing 59.4 per cent to $778 million in the year to June, as advertisers reported "disillusionment" with traditional media.

At current growth rates, internet advertising will overtake the $978 million magazine advertising industry by December, according to internet research firm Frost & Sullivan.

General display advertising on the internet, including banner and video advertising, was the fastest-growing sector online in the June quarter, with ad sales rising 32.2 per cent to $76 million.

That still trails the search and directories sector dominated by Sensis and Google, which was up 9.9 per cent to $83 million.

Classified advertising increased by 8.1 per cent to $67 million.

Search and directories was the strongest sector over the 12-month period, up 74.2 per cent to $287.5 million, while display, which grew 60.7 per cent to $247.5 million, overtook classifieds (up 43.8 per cent to $243 million).

Lee Stephens, chief executive of agency Emitch, said online publishers such as Ninemsn, Yahoo7, Fairfax Digital and News Interactive were increasingly focused on video advertising.

Online display advertising would continue to grow strongly as more homes took up broadband internet access, he said.

"There's still strong growth to come, particularly in broad-based advertising such as top-and-tailing video downloads with television-style commercials," Mr Stephens said.

Most publishers, including Ninemsn, Yahoo7, Google - and even the ABC - have foreshadowed online video advertising initiatives in the past month.

Mr Stephens said those initiatives allowed advertisers to book-end downloadable video content with commercials in a similar way to traditional television media buys.

However, he said the jury was "still out" on search engine Google's global click-to-play video advertising offer, announced last month, which allows advertising to be targeted to specific sites or placed on Google's content network.

Finance, communications and computers, automotive and travel continue to dominate online advertising, but Mr Stephens said entertainment and leisure was also showing strong growth.

Meanwhile, the internet is benefitting from "disillusionment" among advertisers with other media this year, according to Paul Fisher, national advertising sales director of News Interactive.

"Clients are not generating significantly additional budgets (to spend online) so the money's got to come from somewhere," Mr Fisher said.

The free-to-air television market shrank by 0.08 per cent in the six months to June, according to figures from industry body Free TV.

[tommy]

Hi all,

Would Mr. Mitchell ever consider taking 100% stake in emitch for merger? I know this is a crazy speculative idea but considering that ad money in traditional media is getting chewed away by the online sector, emitch's importance as a revenue source surely would surely increase in the future.

Anyone interested in taking over emitch would have to negotiate with Mr. Mitchell (largest shareholder) anyway, but I was wondering if he would prefer to take emitch back under his wing completely before it happens. My imagination must be going wild, but it's not completely impossible, is it?

Your opinions will be appreciated
:)

[davidrob]

Emitch (EMI)

For at least four reasons, not likely Tommy.

(1) Tax. (2) Access to free or cheap capital (3) Legal Liability (4) Publicity and mojo

(1) Listed vehicles and dividends are a great way for founders to have non tax- able income...

(2) Capital Raisings and a myriad of other financial engineering instruments)ie: derivatives/options) provide almost cost nothing money, and finance is at highly commercial rates

(3) Listed vehicles mean your own private assetts are twice removed if anything goes pear shaped...

(4) emitch would never get the free publicity in the financial press if it was a private vehicle.

*** The other point is Harold Mitchell's age. Me -- thinks the main point that may occupy his mind -- [?] --would be succession plans and related issues; and himself(Harold) wanting to scale back his involvement .... a bit at some not too distant point ....

Kindest Regards,

Robbo :)

[tommy]

quote:Originally posted by davidrob

Emitch (EMI)

For at least four reasons, not likely Tommy.

(1) Tax. (2) Access to free or cheap capital (3) Legal Liability (4) Publicity and mojo

(1) Listed vehicles and dividends are a great way for founders to have non tax- able income...

(2) Capital Raisings and a myriad of other financial engineering instruments)ie: derivatives/options) provide almost cost nothing money, and finance is at highly commercial rates

(3) Listed vehicles mean your own private assetts are twice removed if anything goes pear shaped...

(4) emitch would never get the free publicity in the financial press if it was a private vehicle.

*** The other point is Harold Mitchell's age. Me -- thinks the main point that may occupy his mind -- [?] --would be succession plans and related issues; and himself(Harold) wanting to scale back his involvement .... a bit at some not too distant point ....

Kindest Regards,

Robbo :)



Thanks for your insight robbo mate, appreciate your opinion as always
:)

Err... so no hope of emitch being snapped up then at least in the foreseeable future[|)]

[tommy]

Wow, emitch doesn't know when to stop rising, 50% gain in two months!

http://bigcharts.marketwatch.com/javachart/javachart.asp?symb=AU%3Aemi&draw.x=0&draw.y=0

When the psychological $1 barrier is broken, will the dynamics change once again?

This is too good to be true before the full year announcement[:p]

[KW]

I'm hoping this isnt going to be a "buy on rumour, sell on fact" situation.

[KW]

Woah, just checked - $1.045 up 7% today.

[tommy]

quote:Originally posted by KW

Woah, just checked - $1.045 up 7% today.



Hi KW,

Yeah, I am absolutely wetting my pants, what am I gonna do with this money[:p] The rise is just abnormal, is there gonna be a takeover or something? Who is buying at such a high price? This stock was 25c a year ago, that's a four bagger!!!!

[tommy]

Wow, this has got to be the biggest media alliance ever:

News and Google leap into bed - for $1.2b

Mark Coultan
August 9, 2006


IT'S a marriage made in cyber heaven: the web's favourite search engine and its most popular social networking site.

Google is the dominant search engine on the web and Rupert Murdoch owns the most popular social networking site: MySpace, which within days is set to sign up its 100 millionth user. The overwhelming majority are the young people whom advertisers covet.

Under the deal Google will pay News Corp's Fox Interactive Media a minimum of $US900 million ($1.18 billion) over the three-year, nine-month contract for the right to sell ads on Fox's sites, subject to Fox meeting traffic targets.

Google will also provide its search engine to MySpace and Fox Interactive Media's other sites, such as games site IGN, sport site Scout.com and movie site Rottentomatoes.com.

News's main sports site, Fox Sports, has been excluded because it has an existing deal with Google's rival, Microsoft. The News Corp-Google deal also doesn't apply in two countries, though News Corp wouldn't reveal which ones.

In one stroke - or, to be more precise, in billions of key strokes - Rupert Murdoch has paid off the $US585 million he spent acquiring MySpace last year and has gone a long way towards paying off the $US1.2 billion he has forked out in his attempt to convert his newspaper, movie and television empire into a major presence on the web.

The deal also allows News Corp to make more money out of those 100 million users. It can still sell display advertising directly, video ads (the deal only covers text-based search and keyword advertising), and what is called remnant advertising, which is the display spaces Google or Fox can't fill.

As a bonus, it removes one incentive for users to leave MySpace.

Users already spend an average of two hours on the site and the main reason they leave is to go to Google, research by News Corp found.

It also answers the main criticism of News Corp's purchase of MySpace, which was that attempting to commercialise the site, whose main attraction was its homely, sometimes anarchic, user-generated feel, would be self-defeating. That risk is now largely being borne by Google.

Certainly News Corp ownership has done nothing to dent the appeal of MySpace. When Murdoch bought it, it had less than 45 million registered users. Now it has more than that number of visitors per month, second only to Yahoo. It is still growing by almost 250,000 per day.

"What we really struck upon is the power of friendship," Michael Barrett, chief revenue officer of Fox Interactive Media, told The Wall Street Journal.

MySpace's size and demographics make it a very attractive proposition for search engines.

Google's chief executive, Eric Schmidt, said he was amazed at the growth of MySpace. "We think it's important to move Google to where the users are and users are moving to user-generated content."

Yahoo, which provides search functions for MySpace and runs rival social networking sites, issued a statement casting doubt on Google's big payment, saying it was a great deal for Fox but would not have been "financially prudent" for Yahoo to match it.

The president and chief operating officer of News Corp, Peter Chernin, called it "truly a landmark deal" and made it very clear that he would like to do more deals with Google.

The deal came together very rapidly. Although News Corp and Google had been talking for a year, negotiations only started after News Corp's corporate retreat at Pebble Beach in California, near Google's headquarters, a week ago.

[tommy]

EMI stabilizing above $1 now, surprisingly no speed ticket yet!

http://bigcharts.marketwatch.com/javachart/javachart.asp?symb=AU%3Aemi&draw.x=0&draw.y=0

How long will it be able to continue rising? Damn, it's soooo tempting to sell my holdings since I entered in 60s a few months ago... but then again, where else should I invest in? mmmmmm

[WASL]

Hi Tommy,

Hold your nerve. Its all in anticipation of a good report. Remember its a good product in a rapidly developing market, has front-runner position, and has the Mitchells backing. I think it was Robbo who said that the time to get out is when Lee and Harold get out (or preferably, just before) There will be some fall outs in the web-based businesses but this is as good a bet as you get.

I also have an average buy price in the high 60s and am hanging in there at the momemt.

good luck



WASL

[WASL]

Sorry Tommo,

Just checked & it was you (not Robbo) that said "get out when Lee & Harold get out".

Cheers


WASL

[tommy]

Interactive TV getting hot

August 17, 2006


THE race to dominate the burgeoning area of user-generated content and social networking led by websites such as YouTube and MySpace is expected to heat up as a stack of new entrants, including the former US vice-president Al Gore's Current TV, hit the screens.

The year-old cable and satellite company Current, which claims viewers create a third of its content, including the ads, plans to launch a version in Australia.

A local version of Rupert Murdoch's social networking site, MySpace, officially launched this week, claiming more than 1 million users - mainly aged 14 to 30 - since its soft launch in May.

Chloe Sladden, Current's vice-president, strategic partnerships, was in Australia last week to talk at the XMediaLab think tank and to meet potential Australian partners.

She refused to give more details other than to say Current already carried content made by Australians and that the company wanted a "local product in the market".

Pay TV platforms Foxtel and Austar have been ruled out, leaving a broadband internet-based model as the most likely route.

Advertisers such as Toyota, L'Oreal, Sony, Sony Ericsson and Johnson & Johnson sponsor individual program segments, known as Pods, rather than buy eyeballs.

Brand logos are integrated into the graphics and an ad, which can be anything from 30 seconds to several minutes, runs directly after the program segment.

Viewers can make their own ads and receive up to $US50,000 ($65,000) if it is taken up by the advertiser and run on another network. Ms Sladden said the first such ad would be announced soon.

Some advertisers are wary of relinquishing the control associated with conventional advertising, while the media companies behind this new generation of websites are cautious of leadfooted marketers alienating their marketing-savvy young audience.

"For this audience, as long as you are transparent about what you are doing and you allow them to make the ad then there's no better way to get a stake in that brand," Ms Sladden said.

Every major media company will have a competitor in this space, making it harder for any new entrant such as Current, which refuses to reveal user figures or advertising revenue.

In the coming weeks Yahoo!7, which already has the citizen photo site Flickr, will launch a service that allows users to publish and share user-generated video content.

Ninemsn has linked with Revver, a company that distributes user-generated content and which also pays people for the content they create, much like Current.

So far, MySpace has attracted ANZ, Coca-Cola and Foxtel's show Rockstar: Supernova as advertisers. Some, such as ANZ, take banner ads, while Coke and Fox have been more adventurous and created "profiles", in effect microsites complete with forums, clips and blogs.

Lee Stephens, chief executive of online media buyer emitch, said some advertisers were still concerned about their advertising running in content they had little control over.

He said he would like to see more evidence of MySpace working for categories other than music, movies and other entertainment.

Rebekah Horne, MySpace's marketing and content director, would not reveal revenue or user figures. But she said it was MySpace rather than the advertising community that was showing reticence.

"We have to be very careful about whom we integrate with advertising and whom we work with," she said. "They have to fit in with the fabric of the site."

Julian Lee

[tommy]

Hi all,

Is Emitch running out of steam before the full-year announcement?!

Hovering around $1 now, wondering whether the announcement lead to:
(1) Another surge?
(2) Buy on rumor, sell on fact?

I will be quite happy as long as share price stays at current levels immediately after announcement, but I think everyone is anticipating a good result judging from the recent price rise, so what matters is how good it is...

Intersuisse report predicts $2m NPAT, while SelectEquities report projects $2.4m NPAT (Flat NPAT due to being first year of taxation)

[tommy]

What da... odd timing of an announcement of survey results before full year results are released?


emitch / Roy Morgan Research

Internet Advertising Intentions and Attitudes Survey
STRONG ONLINE AD SPEND CONTINUING IN 2006-07


Major advertisers report that they will invest over 21% of their advertising dollars online in 2006-2007, according to the latest emitch/Roy Morgan Internet Advertising Intentions and Attitudes survey.
This is up 11 percentage points from the 10% reported in January 2006.
Major advertisers allocated 13% of their advertising spend to online advertising in the 2005-2006 financial year, up 4 percentage points from 9% reported in January 2006.

A majority of advertisers have now embraced the Internet with 71% of advertisers having invested in online advertising in the past 12 months, up 12 percentage points from the 59% reported in January 2006.

The survey found that general Internet advertising continues to be the dominant online advertising form.

Ninety-four percent of advertising agencies surveyed had placed advertising online in the past 12 months, up 11 percentage points from the 83% reported in January 2006.

Advertisers, agencies and publishers are optimistic about the role of the Internet as part of the overall media mix, with the majority of advertisers (80%) agreeing that �gthe Internet will be a vital component of my company�fs marketing strategy over the next three years�h. During 2006, advertisers will use the Internet to focus brand awareness strategies with 68% agreeing that �gAdvertising on the Internet is an effective way to build brand awareness�h.

... read the rest of the presentation here:
http://sa.iguana2.com/cache/4ab175129ec740dcff86aa09a37d7492/ASX-EMI-259359.pdf

[edit: fogrot to add link!]

[Lee.Stephens]

Hi Tommy,

We released the report today in order to avoid a release on the same day as our full year results. Unfortunately this was the first day Roy Morgan was able to provide the information. We felt the latest research was important in light of the ABVS figures last week, hence why we released it today.

Lee.

[davidrob]

Emitch (EMI)

Many Thanks Lee.

PS. Take it you guys over there are takiing ....SOME of the credit .... for the great Dominoes Pizza (DMP) result!! ;)

and btw Lee, See that Donut King, is now conttrolled here in Oz/NZ by the ASX listed; Retail Food Group ... :)

Regards,

Robbo:)

[Bobbyvee]

Has anyone read the ABVS report or seen it written up in the press. It costs just over $500 so I didn't rush to purchase a copy!

[tommy]

Thanks a lot for explaining Mr. Lee

Does it mean we can expect the full-year results to be out tomorrow?

PS Robbo, I didn't know you were a pizza person, I had always assumed the nothing could substitute your crownies[}:)]