Broadcasted "In-Store or Stadium Advertising" is experiencing explosive growth. InfoTrends, a market research firm, reports that the digital signage industry revenues exceeded $1 billion in 2005 and are projected to reach $3.4 billion by 2009. CBS just announced that they're buying SignStorey for $71.5 million, a broadcasting in-store advertising company, and they renamed the company "CBS Outernet". As the largest digital signage deal in recent history, this acquisition shows that CBS is pretty serious about the digital signage market, and believes that it can profitably run a network of screens in grocery stores. According to Bill Gerba, "CBS is making a land grab, just as SignStorey was acquired, Data Call Technologies, Inc. (OTCBB: DCLT) (http://innovativeinvestornetwork.com), as the largest media and content provider in the Digital Signage Industry, is poised for exploding growth over the next 12 months, in an sure-fire industry, is also in a prime position for an acquisition. With an undervalued stock, investors are definitely looking into this company.
(PRWEB) September 27, 2007 -- Broadcasted "In-Store or Stadium Advertising" is experiencing explosive growth. InfoTrends, a market research firm, reports that the digital signage industry revenues exceeded $1 billion in 2005 and are projected to reach $3.4 billion by 2009.
CBS just announced that they're buying SignStorey for $71.5 million, (http://www.wirespring.com/dynamic_digital_signage_and_interactive_kiosks_journal/articles/CBS_makes_a_land_grab__buys_SignStorey_for__71_5M-337.html), a broadcasting in-store advertising company, and they renamed the company "CBS Outernet". As the largest digital signage deal in recent history (and may be second only to PRN's sale to Thomson, if we consider a longer time horizon), this acquisition shows that CBS is pretty serious about the digital signage market, and believes that it can profitably run a network of screens in grocery stores.
According to Bill Gerba, "CBS is making a land grab, and actually got SignStorey for a very good deal. Think of it this way, as IBN's John Morgan suggested in his comment on the CBS-SignStorey coverage at Digital Signage News (http://digitalsignagenews.blogspot.com/2007/09/cbs-to-buy-signstorey-for-715m.html): $71.5M divided by 1,400 stores means that CBS effectively paid a little over $51,000 for access to each store in SignStorey's network, including hardware. If we depreciate the hardware over the next three years and assume that CBS will be at least as efficient at selling ad space as SignStorey was, they'll see a positive ROI on their acquisition in about four years. That's pretty darn good in M&A terms. In fact, the whole thing makes me think that SignStorey was either (a) having trouble selling ads and was thus valued at a relatively low multiple of EBITDA or something, or (b) looking for some big growth capital, and CBS decided it would just be cheaper and easier to buy them outright."
Speaking of land grad, just as SignStorey was acquired, Data Call Technologies, Inc. (OTCBB: DCLT) (http://innovativeinvestornetwork.com), as the largest media and content provider in the Digital Signage Industry, is poised for exploding growth over the next 12 months, in an sure-fire industry, is also in a prime position for an acquisition. With an undervalued stock, investors are definitely looking into this company.
- Internet driven software specializing in information feeds which include live sports, financial news and data, live traffic live traffic, as well as Amber Alerts
- 95% of the contracts in the industry
- Tremendous customer base in the U.S., with installs in Canada and Mexico.
- Diverse applications; Digital Signage, VOIP Phones, SMS Cellular Delivery, Touch Screen Concierge, and Elevators, to name a few
- Short term & long term gains
- Data Call has partnerships/relationships with Blue Chip players in the industry (i.e., 3M, NEC, Scala, Helius, ChyTV, Keywest & Planar)
- Expected profitability in 90 to 120 days
- Over 35 live information feeds that can be selected in a "pick & choose'' web based environment
- Nearly 75 Million viewers through their Arena Media Networks Venues
- Current viewings in a multitude of Hotels, Banks, Airports, Sports Arenas and Convention Centers across the US
Comments at Wallst.net about Data Call (http://www.wallst.net/audio/audio.asp?ticker=DCLT&id=3859) give this company a Bullish Position and states: "This company is growing and moving upward. I like the fact that they are adding new contracts all the time and they are well diversified and all their eggs are not in one basket. It seems like it is only a matter of time until the investment community starts buying into this company in a strong way and then the share price should catch up to the fundamentals of the company. It wouldn't even surprise me if a big company doesn't try to buy this company."
Disclosure: Launch Funding Network, Inc is not a registered investment adviser or broker/dealer and makes no recommendations.
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