|STOCK EXCHANGE||OTC BB|
|CURRENT PRICE||@ $ 0.12|
|AVG. DAILY VOLUME (3mo.)||@ 100,000|
|SHARES OUTSTANDING EST.||50,332,321|
|FLOAT (% of shares out.) EST.||8,560,755|
(over 24 months)
Dear fellow investor,
A powerful new megatrend is sweeping the globe.
It has already created billion dollar industries in Europe and South America. And here in the United States, its growth is even more explosive, with staggering year over year growth-proving itself virtually immune to the ongoing recession.
However this megatrend is still in its early stages. And that means now is the perfect time to get in on the action, and potentially make a windfall as the only public player (so far) in this industry continues working on its acquisition Strategy.
But what is this megatrend and what multi-billion dollar industry did it create?
Frankly most investors had never heard of this industry, but it has been getting lots of press in Forbes, USATODAY, and a recently profiled Concert Mogul Billionaire who had news in the New York Times. In this article Robert Sillerman discusses going on an acquisition tear and spending a Billion Dollars on this industry to build his new company. Also featured on Billboard Magazine cover.
The industry I am referring to is in the Live concert and promotion business.
“Echoing his strategy in the concert business, Sillerman is pursuing independent companies that put on dance festivals, D.J. parties and other events where the crowds might range from a few hundred people to tens of thousands.”
I’ve discovered a company that is cashing in on the Festival and Live Event craze, which sparked a surprising new Entertainment Megatrend and has already erupted into a Billion Dollar Industry. I believe that NightCulture (OTCBB: NGHT) is incredibly positioned for explosive growth over the next 24 months.
Everyone knows the saying, “the trend is your friend”, but NightCulture is also “the beat that will move the street.” NGHT’s CEO saw this trend forming and went public with the strategy of rolling up a bunch of markets in the U.S. to develop a strong regional brand for live dance shows, festivals, and venues.
They’re already executing their plan, recently adding Dallas to a mix that includes Austin, Houston, Oklahoma City and San Antonio. Next up is their strategy to engulf even more markets in 2013, adding additional Festivals and Venues, and NightCulture could literally explode into a profit driven money machine.
So far NGHT has gone unnoticed by Wall Street and mainstream investors, but don't expect it to remain under the radar for long...
NGHT's cheap shares allow you to participate like a Mogul! Investors today will get to benefit from this exploding industry’s news and events.
Sillerman’s recent acquisition pace is even surpassing industry rumors, which have been heating up exponentially. He already acquired Disco Productions, Life in Color, the Voodoo experience, Miami’s Opium Group and the Miami Marketing Group, which includes the Mansion and Set clubs.
You may remember the last time Sillerman heard the sound of money calling him was when he consolidated live music in the 90’s and sold it to Clear Channel Communications for $4.4 billion and they spun it out as LiveNation (NYSE: LYV).
This time he’s more aggressive with the checkbook, but going forward even he has to turn that up a notch to compete for the industry’s remaining properties; driving the valuations up faster than the premium price is rising at the gas pump.
Live Nation isn’t backing down either; they’ve recently scratched huge checks for Cream Holdings and HARD Events, and they’re still on the prowl.
Sillerman has even reportedly offered $60 million to Insomniac, the Electric Daisy Carnival (EDC) producers, which pumped an estimated $207 million into the Clark County economy last year and, as the community recognizes the importance of this production, rolling out the red carpet is only going to make more green for all of the parties involved.
Remember , Technically NightCulture, OTCBB:NGHT is what we call an emerging stock. These are the so called penny stocks, that have the ability to double...Triple...even quadruple your money! Often in a matter of weeks and months.
But NightCulture has a distinct advantage over all of the other acquisition targets, NGHT was 1st to market. In fact, they’re still the only public player in this space.
Even if no one acquires NGHT, they should be the biggest beneficiary from the increased music industry exposure, which could experience its first IPO in decades (since Live Nation). Plus, NGHT already does most of its shows and Festivals with Disco Productions (a key SFX acquisition), as well as a few with Live Nation.
You see, if NGHT executes its business plan it can rocket to the $20-30 million revenue range, which will make it a sweet acquisition target in a space that the major players are paying a lot of money to acquire a property like NGHT, and shareholders who are able to get in cheap should have the biggest profits windfall.
NGHT is looking to roll-up strategic acquisitions that add revenues and value, basically cleaning up some secondary and tertiary markets. NightCulture is eager to scoop up these small markets and bring those revenues in the mix, probably adding $13million in revenues to the company over the next 2 years. NGHT plans to increase its 2013-14 revenues by 118% adding Festivals, Venues, and new Partnerships. Management’s solid roadmap makes this is a very attainable goal, but hitting 100+% growth multiple years is very exciting and almost every money manager around would beg for a piece of this action.
Even if it only hits the low end projections, about $20 million in revenues, with an EBITA of 15 to 20%, as expenses from growth are reigned in, the company would be a very attractive and obvious target for a Mid-Tier Investment Bank to do a Secondary Stock Offering or an Alternative Public Offering.
NGHT’s acquisition strategy will cause some dilution but... even factoring this in it figures to trade at a high multiple based on private acquisition prices alone (rumored 5x earnings for some) this would give a multiple of 25x on earnings of 3-5 million in EBITA, with an estimated 60 million shares outstanding the company would be 60m/3milx25= $1.25 to $2.00 per share valuation.
NGHT is accelerating its growth phase after acquiring the Dallas market last year, and is expecting to hit $3.5- $4 million in revenue for 2012. Which is over 100% growth from the year before, and this is where we see the trend forming.
So... you can see the megatrend line forming for NGHT, as the stars align for a Red Hot industry that could make early spectators RICH who play this megatrend.
Investors who research this trend and act now, could see their investment in this industry multiply by 4-7 times as news from the merger mayhem continues to shock and awe the markets.
Thanks to the low entry point value of emerging companies like NGHT, the profits can be significantly larger and faster than traditional big cap companies.
And if NightCulture, gets acquired in all of the madness, then investors who got in early will reap the rewards of the megatrend.
The market continues to hit new highs every day, but you can get in NGHT for under a dollar today, and watch as managements proven track record turns early investors cash into trading profits!
We urge you to read the company press, articles on Forbes, Usatoday, New York Times, and the company filings.
Act soon, because NGHT is already working with the two biggest dogs in the yard (Sillerman’s SFX & Live Nation), and both of those dogs are in hunting mode, not to mention the boost NightCulture should get from the skyrocketing valuations this industry is generating as the segment’s capitalization craze continues.