DAG Media Affirms Smart Stock 'Buy' Recommendation By Leading Wall Street Research Firm
KEW GARDENS, N.Y., Dec. 1 /PRNewswire/ -- DAG Media (Nasdaq: DAGM - news), the leading independent print and online publisher of yellow pages directories, is confident that it will meet the favorable financial expectations, just issued in a new report by Wallstreet Research. The leading financial institution recommended DAG Media as a stock to buy, establishing a target price of $7-8 per share in the next eighteen months. The report indicates an extremely positive outlook for DAG Media's market position and stock price which is currently trading at $3-5/16.
The Los Angeles-based Wallstreet Research stated that some of the most impressive indications of DAG Media's continuing growth and success are the company's gross margins which have consistently been over 90%, and are among the best in the industry, a compelling sign of effective cost-control management. For its part, DAG Media reached its 1999 earnings forecast in the first three quarters while compiling approximately $7 million in cash without debt.
``We are extremely pleased with Wallstreet Research's buy recommendation and positive outlook for DAG Media,'' commented CEO and president Assaf Ran. ``The recommendation comes at a time when our company is experiencing tremendous growth. We are enthusiastic about our year end results and are especially excited about meeting earning projections for 2000.''
``The analysts at Wallstreet Research have correctly identified the quantitative and qualitative criteria supporting their buy recommendation for DAG Media,'' commented Joseph Ratti, Director of DAG Media's in-house investor relations department. ``DAG's outstanding performance is the result of a combination of factors including expanded e-commerce efforts, skilled and aggressive sales forces, and strategic marketing. We look forward to continuing growth in the New York Metropolitan market, as well as other major markets throughout the U.S.''
Trading on the Nasdaq since May 1999, DAG Media has firmly established itself as one of the most innovative and fastest-growing independent publishers of niche-oriented and general-interest yellow pages directories. DAG is set to publish New Yellow, a print and online general-interest yellow pages directory that is challenging the monopoly of the Bell Atlantic Yellow Pages in the New York City market in March 2000.
In its report, Wallstreet Research underscored DAG Media's efforts to usher in a new era of value-added services for yellow pages directory customers through New Yellow. One of the many pioneering innovations by DAG Media include a cutting-edge Business Referral System that actually brings business to advertisers' doorsteps. Other areas that are noteworthy involve DAG's commitment to special promotional programs, discount services, and efforts to provide its customers and Web portal users with computer-to-phone voice services.
Wallstreet Research believes that DAG's stock is undervalued based on both its strong financials and bright prospects. DAG agrees with the report, and believes that as more people realize how successfully DAG Media is competing for a percentage of the multi-billion dollar yellow pages market, the stock price will quickly respond.