SAN FRANCISCO, Point Roberts, WA - November 15th, 2010 (Investorideas.com newswire) - Investorideas.com, a leader in sector investor research, presents a Q&A interview with direct to consumer marketing company, YesDTC Holdings, Inc. (OTCBB: YESD.PK). Mr. Joseph A. Noel, Chief Executive Officer, YesDTC Holdings, Inc. discusses how the timing has never been better to be in direct to consumer marketing and how his company is expanding its global reach.
Q&A Interview:
Q: Investorideas.com
The Company recently announced it entered into a license agreement with WordSmart Corporation, with Alex Trebek to act as an endorser of the WordSmart product line as part of the agreement. Can you tell us what this represents in terms of revenue for the company and the possible effect on your stock valuation?
A: Joseph A. Noel, Chief Executive Officer, YesDTC Holdings, Inc.
We could not be happier with the WordSmart acquisition and we think Alex Trebek is the perfect spokesperson for this vocabulary and language building program. WordSmart is a proven revenue generator having produced almost $15 million last year. While we are forecasting a minimum of $12 million from WordSmart over the next 12 months, we believe we could exceed this level due to the changes we plan to make to the show and the additional endorsements we plan to receive via social media through Alex Trebek. This $12 million, of course, is only revenue from WordSmart and does not include the revenues we plan to produce from our other programs.
There are currently approximately 138,000,00 outstanding shares, with the vast majority of these held by management and a limited number of investors, almost all of which are locked up and cannot be sold well into next year.
We believe our common shares remain well undervalued relative to our expected revenues for next year. With 138 million outstanding, shares are trading at less than 25% of next year's sales levels from the WordSmart acquisition alone. We currently have two additional programs underway, with a fourth and fifth planned for later this quarter and for the first quarter of next year and, of course, we are just now entering the potentially very lucrative Chinese market. So, we clearly see this acquisition booting our share valuation.
Q: Investorideas.com
Your company is the business of identifying, marketing, selling and distributing consumer goods and household items directly to consumers via DRTV and internet media outlets, including high-quality television infomercials. Can you tell us how you research and determine what products have the "it factor" for this kind of advertising?
A: Joseph A. Noel, Chief Executive Officer, YesDTC Holdings, Inc.
We are in the fortunate situation to have aligned ourselves with two of the leading firms in the direct response television arena. The first is Schulberg Media Works, which has a track record of nearly $1 billion of sales in direct response television. The second, is The 440G Group, which is one of the leading efficiency experts in the direct response marketplace. We rely heavily on the advice of these two highly experienced firms during our product selection process.
We have attempted to have an overall portfolio of different types of programs. We want to have a few solid performers and a few that have " home run" potential. One of these potential " home runs" is the MediPendant, which is a personal medical alarm system. This marketplace is dominated by a company called LifeAlert and while you probably will not recognize the name of the company you will probably remember their television commercials with the tagline, "I've fallen and I can't get up." The MediPendant is a significant technological improvement over this old antiquated technology in that MediPendant allows for true two-way communications directly through the pendant. Considering the size of the space and the fact that we are marketing a more technologically advanced product at nearly the same price, we think this product has star potential. Later this year, we plan to introduce a fuel additive that we believe also has "Home Run" potential. These two programs will join our current product portfolio, which includes the PureSleep no snoring device, SimplyMusic a playing based music teaching program, and the already strong performer WordSmart vocabulary and knowledge building program hosted by Alex Trebek of the popular television game show "Jeopardy!".
Q: Investorideas.com
In a recent article entitled " The return of the informercial , it reports "The Snuggie, a fleece blanket with sleeves, sold four million units in just five months, more than 50 million ShamWow cloths have sold since 2007, and TeleBrands, makers of the PedEgg callus remover, saw their profits increase by 30% during the recession." Can you tell us what you see behind the scenes in terms sales potential in this venue?
A: Joseph A. Noel, Chief Executive Officer, YesDTC Holdings, Inc.
Overall, sales within the direct response television market have suffered right along with many other businesses in this current economic downturn, but there is still a lot of money to be made with the right set of products. The trick is to find the products that are doing well because of the recent economic problems. We think WordSmart is one of these products, and as I mentioned above, is already generating significant revenue. With more people out of work and returning to college, admissions are more competitive than ever. WordSmart provides students and adults that added edge when taking placement exams such as the SAT, GRE or GMAT. We guarantee a minimum of a 200-point SAT test score improvement, but in many cases users of WordSmart are able to significantly surpass the 200-point gain. We selected the SimplyMusic program because many families are doing fewer things outside the home in order to cut costs. SimplyMusic is a simple and inexpensive way for family members to learn to play the piano at home, so we think it will work well in the current economic climate. With the "Graying" of America and the many millions of baby boomers now well past retirement age, the demographic shift in the United States is certainly conducive to a product such as MediPendant.
While effective product selection will remain an important component to our potential success, we also have an additional advantage relative to most other companies within the direct response television space. Most of the firms in the direct response television business are private entities. We have an advantage in this market because of our public status, which enables us a lot of flexibility in negotiating terms with vendors and product manufacturers. We plan to capitalize on this advantage and are seeking to acquire additional ongoing direct response television programs that are proven winners. WordSmart for example was acquired with zero shareholder dilution and we believe there are many similar properties within the direct response television space that can be acquired in a similar manner. This strategy can allow us to grow our revenues very quickly.
A: Joseph A. Noel, Chief Executive Officer, YesDTC Holdings, Inc.
Q: Investorideas.com
Your company just announced its termination of a Japanese distribution Contract with plans to concentrate on United States, Europe and China. With all eyes on China � and your news today can elaborate on your growth strategy for China?
A: Joseph A. Noel, Chief Executive Officer, YesDTC Holdings, Inc.
We terminated our Japanese distribution contract because we felt we had better revenue production opportunities in other areas, particularly in China. The regulatory environment in China is such that we can immediately begin marketing the PureSleep product, which we plan to do over the short-term via a Hong Kong and South China-based television test marketing. The Japanese regulatory environment on the other hand is very difficult.
There are several anti-snoring mouthpiece products currently available in Hong Kong and China, but these are made out of Chinese produced plastics. We, and our Chinese partners, believe that Chinese consumers would much rather utilize a device made of American plastics, due to health concerns with Chinese produce products. After all, the device is placed in the mouth and I certainly would not want to utilize a device made of Chinese plastics. The fact that the PureSleep product also has U.S. FDA clearance is also a significant selling point in the Asian markets.
We also think that our business arrangement with our Chinese partner is advantageous to YesDTC. The joint venture will be 70% owned by YesDTC and 30% owned by the Chinese partner. With a 6X product markup, we believe PureSleep can be very lucrative product for our Company.
We are currently modifying the English version of the PureSleep television advertising spots into Chinese, a process that will take us only a few weeks. We already have our scripts in front of Chinese regulators for approval and believe because of strong product attributes and the FDA clearance for the product, regulatory approval is virtually a foregone conclusion. This should allow us to begin our test marketing within Hong Kong and several selected cities in southern China by the end of this year. Just as WordSmart is a proven revenue producer, PureSleep is also a proven product having generated millions of dollars of revenue over the past few years here in North America. We believe this strong success can be duplicated in the Chinese markets. We could not be more excited about our opportunities in China relative to this product.
Q: Investorideas.com
Where can our readers view the company's current infomercials?
A: Joseph A. Noel, Chief Executive Officer, YesDTC Holdings, Inc.
Several of the infomercials are currently running on various network and cable properties around North America. The easiest way for investors to view the infomercials is on the Internet. Infomercials for SimplyMusic, MediPendant, PureSleep and WordSmart can be seen at the following links, respectively www.trysimplymusic.com, www.medipendant.com www.puresleep.com and http://www.vimeo.com/16363930
About YesDTC Holdings, Inc.
YesDTC Holdings, Inc. is a direct-to-consumer marketing company specializing in direct response television (DRTV), internet and retail marketing programs. The Company brings a unique set of skills to this market space. YesDTC combines both the creative talents and financial acumen needed to create a total package for direct-to-consumer marketing programs. Importantly, the Company also maintains a strategic partnership with Schulberg Media Works (SMW), a pioneering media production firm in the direct-to-consumer space with a highly acclaimed list of successful client campaigns and product infomercials. SMW's track record is impressive, with nearly $1.0 billion in revenues generated and a high profile list of industry awards and recognitions. Specifically, SMW campaigns include Tempur-Pedic, Guthy-Renker, Sony, 24-Hour Fitness, Rhino Records, HarperCollins and PureSleep, among many others. More information on YesDTC Holding can be found at www.yesdtc.com and additional information on Schulberg Media Works can be found at www.smw.tv.
Recent news:
Consumer/ Retail Stocks; YesDTC (OTCBB: YESD.PK) Announces Termination of Japanese Distribution Contract - Company to Concentrate on United States, Europe and China http://www.investorideas.com/CO/YESD/news/11031.asp
Contact:
YesDTC Holdings, Inc
Christian Kirsebom
(925) 247-6666
Visit the YESD showcase profile at Investorideas.comhttp://www.investorideas.com/CO/YESD/
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