Thursday, May 22, 2008

Ok, Here's the Real Stock Pick of Today!

Company: UOMO MEDIA INC (UOMO.OB)
Yahoo Finance: http://finance.yahoo.com/q?s=UOMO.OB
Company Websites: http://uomomedia.com/

Last night I emailed you about a company whom have found a
way of capitalizing on the slump in the music industry.

I can now reveal, this company is "Uomo Media" and as part of
the business model I explained... they have started acquiring
various writers and producers.

Most recently, they've signed "Tricky Stewart" and "Redzone
Entertainment", two producers responsible for 25 million
CD's sold.

Tricky Stewart produced and co-wrote, Mariah Carey's
single "Touch My Body" her eighteenth single to go to
number one.

(By the way, Mariah broke the previous record set by Elvis
Presley who got 17 records to number 1).

And the reason they're signing deals with as many producers
as possible is simple...

Let me explain...

The music industry is split into 4 key segments...

First the "Recorded Music Producer", this is the person who
actually gets in a studio and produces songs with the artist.
They're usually also the firm who found the artist in the
first place.

They'll be paid a one off fee, and most often a percentage
of overall future profits the artist generates.

Secondly the owner of "Publishing Rights"... Anyone can buy
or acquire the rights to an artists song. And this means
every time the song is used in a film, advert, or put on
CD... The owner of these rights is paid a percentage.

Thirdly there is "Talent Management" this company manage
what the artist actually does... If they go on tour, produce
branded merchandise or CD's, this company will manage it
and take a cut.

Finally there is a relatively new addition to the process,
"Digital Distribution"... These companies liaise with digital
music portals like Itunes, Napster and Music Match.

(For this service they usually take a large cut of online digital sales.)

You get the point, the industry is fragmented into a bunch of
different firms whom all take their cut from what an artist
or band produces.

Though profits in the industry have recently been declining, and
it is in fact the use of "Digital Distribution" which is the cause.

To put this problem in perspective, US households are now
buying twice as many "digital singles" as real CD singles.

Profits of industry giants, like Sony BMG have dived, especially
as these online portals sell songs for as cheap as $0.99 or
less.

This has surged the industry into a state of depression, the
uncertainty has lead to music properties (producers, rights)
being sold far under their true market value.

You' see the main problem facing those in the music industry
is decreasing revenues due to music now being sold online.

However UOMO Media have put themselves in a position
where it is them who profit from every part of the process.

UOMO Media consists of:

UOMO Recorded Music
UOMO Publishing
UOMO Talent Management
UOMO Digital Distribution

Which collectively cover pretty much every service an artist
requires:

UOMO Recorded Music is the arm of UOMO Media whom will
produce the songs by actually working with artists in their
recording studio.

UOMO Publishing will then own the rights to the artists work,
this segment of the business will collect profits every time
the track is played, and they'll take a percentage of CD sales.

UOMO Talent Management will then manage the artist as
they go on tour, produce merchandise and create and sell
CD's.

Finally UOMO Digital Distribution will liaise with services
such as Itunes and Napster to ensure the artist has a foothold
in the online marketplace.

... For the artists this offers, what has been dubbed a "360 deal",
they will only need to deal with one company (UOMO) throughout
the entire process of creating, licensing and selling their work.

But the effect on the business (UOMO) is far greater...

Because UOMO have managed to streamline the entire industry
into one business this has afforded them a number of advantages.

First, as explained artists are more inclined to work with UOMO
whom are able to control every aspect of the process and will
have a large financial interest in making the artist a success.

Secondly because UOMO control all 4 key segments of the
market, they're able to pay more than any other firm for
signing top artists or acquiring producers.

This has allowed them to enact rapid growth, even at this
early stage in their development....

UOMO already own just over 100 copyrighted assets, including
4 winners singles from Canadian Idol, and most recently
"Colorblind" for TV Show "One Million Star" which is currently
climbing the charts.

Thirdly because UOMO profit from the entire process, they're
able to use UOMO Recorded Music as a loss leader.

While other producers must make money from the production
segment of the market, UOMO can forgo that profit in favor
of nurturing the artist.

Even to the extent that UOMO can make a loss from UOMO
Recorded Music... Knowing that they'll be able to profit from
UOMO Publishing, UOMO Talent Management and UOMO
Digital Distribution.

But...

I also told you in last nights email, that UOMO had an exciting
plan for growth.

You' see by controlling each segment of the music industry
UOMO have been able to develop a replicable formula which
can be applied to many artists.

So that when an artist is signed, UOMO can instantly... Record
new tracks with UOMO Recorded Music, start licensing these
new tracks and the back catalogue with UOMO Publishing...

... Start producing and selling branded merchandise, and
organize a tour with UOMO Talent Management, and finally
they can instantly get the artists songs for sale on the likes of
itunes and Napster.

This has not only allowed them to sign the hottest new artists,
UOMO are also buying up music properties such as producers
and applying this formula to the back catalogue of songs.

And the slump in the music industry, could not have came at
a better time for UOMO.

Music Properties, such as publishers who own the rights to
songs are uncertain about future profits.

... This has allowed UOMO to buy them up for a fraction of
their true value, and these rights are earning UOMO a stable
ongoing revenue as we speak.

(And by applying the UOMO 360 deal, they've been able in
most cases to massively boost the profits of these media
properties).

And this has almost became free money for UOMO, by
acquiring cheap rights then applying their formula they're
able to make huge abnormal returns with minimal risk.

Now I told you in last nights email, that today I'd reveal the
"real reason" I believe UOMO will rocket in price.

You' see...

UOMO have hit a problem, now may be the golden age in
the music industry for acquiring cheap rights etc...

But UOMO are only able to expand as fast as their capital
will allow...

Which is why UOMO have floated on the OTC stock exchange,
in order to raise $2 mil in capital.

To raise such a substantial amount of capital, UOMO are
planning a huge investor relations drive to raise their profile
and attract shareholders.

Which is why I believe, very soon everything I've told you about
UOMO will be taken into account in the market price.

(i.e. This company have a clear route to success, with a formula
they've already used and proven to work.)

And in fact, UOMO promoting themselves as a public company
will only serve to speed up how fast the market re-evaluates
UOMO... Allowing for what I believe will be a quick profit.

In summary...

I think now is an excellent time to start researching UOMO
Media. Everything I've told you is public information, largely
ignored by the market...

To do your own research, I'd recommend reading through the
past press releases to see the companies development and
reading their corporate website listed at the top of this email.

P.S. UOMO's long term growth will come from using their formula
to quickly acquire and make above average returns from the
record producers and artists...

However in raising the finance for this UOMO are planning to
raise their profile as a public company. This will I believe lead
to the market re-evaluating the stock price of UOMO... And
taking into account everything I've just explained.

It is this which I believe could see the stock price rocket in
the coming week or so.

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