RMD Entertainment may slowly become a nice profit maker. I was able to check on a few things with this company and found something that I missed on my initial look prior to investing into it. RMD pay's their artist and staff virtually nonothing. Shocked? Instead they give them stock in the company. With this goes to that old saying, "If the company doesn't make money, you don't either". That is one sure fire way to keep cost down but at the same time reward employees and artist alike. Good thinking from upper management on that one. I have listened to their top performer, Roc Monee, first single and it's not bad at all. I am not a Hip-Hop genius but I played it for my kids and they thought that it was hot. That's good enough for me, hopefully his debut album will explode and the other artist albums will follow. I am looking for bigger and better thing in the near future for RMD Entertainment. Oh yeah, and a nice little profit of course.

The potential of RMD to move significantly higher is founded in the application of solid business practices that generate growth and revenue streams.

1) They recognized early on that Strategic Planning is essential for direction and governance
2) Their Strategic Plan also includes a Marketing Plan
3) The Marketing Plan is solid.  It addresses distribution channels, margins for distributors (this creates the incentive to sell RMD's products), additional incentives for distributors, price strategy, bundling of products, market strategy, segment selection, demographic niche, product branding, company branding, advertising,  etc.
4) The strategic plan also addresses capitalization and the appropriate mix of debt and equity.

So from the stand point that RMD is a development stage company they are conducting themselves using the necessary operating principles to build, grow, and sustain the business by profitably entering into agreements that provide positive Net Present Value (NPV) earnings streams.

The agreements, in place now, will pay handsome dividends in the near term as well as the future as more and more product moves through them.  I'm very pleased with their progress to date.  

Bill.

I agree with you. It seems like a product stream will yield some real revenues that could drive this stock up nicely and suprisingly. Since this is a pink sheet stock sometimes this is the only and best kind of info we have to see real results from our investments. You put it well enough, I bought back in with .5M shares!

RMD's market potential is a huge competitive advantage.

Research has demonstrated that people who facilitate the connection of disconnected business units and have leadership qualities of extraversion and agreeableness are often promoted upward more frequently than their peers who concentrate within their own business unit.

RMD's competitive advantage will be their ability to take any disconnected product, even their own, and connect them to the markets through their distribution channels.  

They are building an economic moat around their business such that it will create a barrier to competitive entry against them.  Certainly there are big players in the market that also have moats but the market is large enough to support competition without driving the price of artist talent downward.

While marketing strategies have changed somewhat they have also remained largely the same - the tactical approaches are evolving.  This includes selling single songs (.99cent) vs entire albums, etc.  Artists no longer have to produce entire albums to profit.

I think RMD is on the right track and they've progressed extremely well in changing their business model and moving forward aggresively.

Pinksheets.com

      Outstanding Shares: 112,000,000 as of 2006-01-01

  Is this accurate?

The last time I checked, the number of shares authorized was near 1.5B. The number of shares outstanding is unknown and probably speculated near 112M.  I believe Harmony Capital is their transfer agent.  

In a recent post, RMD noted that they were fully funded for operations with $990,000.  Regulation D, Rule 504 exempts companies, in development stages from SEC reporting requirements so long as they stay under the $1M limit.  To stay in compliance they noted their funding level in accordance with SEC requirements.


Bill

With those being authorized shares instead of outstanding then we may stave off a RS. That would make me considering another entry point more easier. Otherwise I never seen good luck with RS's in the short run. As for the latest news I really like their new distribution channel with Google Video. So here we go rolling the die again. Over the last 16 years at this I know I have added to my increasing graying hair with this investing stuff so what the hell, a few more will just make me look that more distinquished!

I didn't get the gray in my beard without taking on a little risk for a better than average reward!

Recent Study - Hiphop genre  

Asian American Youth: America's New Trendsetters
Wednesday July 26, 6:00 am ET  

- Research Shows Youth Generation's Increasing Influence on U.S. Pop Culture -


  * Hip Hop and Alternative music are the dominant musical genres favored
      among U.S.-born Asian American youth.  A diverse array of musical genres
      forms the listening habits of Asian youth -- but with distinct
      differences according to their acculturation levels and generation.
      While first-generation (born outside the U.S.) respondents preferred
      "Pop/Top 40" music, second-generation Asian Americans (U.S. born)
      exhibited a strong preference for Hip Hop and Alternative music.  Among
      the latter, sixty-two percent of respondents identify "Hip Hop/Rap" as
      their favorite music genre, followed by 51 percent who favor
      "Alternative / Indie" music.

Source: http://biz.yahoo.com/prnews/060726/law058.html?.v=68

Bill

Stanford University Study - Music Industry Forecast through 2008

Ala Carte downloads grew 198% from $2M in 2002 to $398.7M in 2006

Revenue forecasted to grow by three times the 2006 revenue to $1,087.9B by 2008

Source: http://surj.stanford.edu/2005/pdfs/Albert.pdf#search=%22Music%20Market%20forecast%20PDF%22

Been very interested in all the discussion over RMDG.
I have invested as well as an extreme long shot.  This market seems to be very lucrative, or at least could be.  1.5B shares outstanding which in part is probably mostly owned by employees of the company.  5 years down the road with this type of business model and hands in several cookie jars, I think we should be seeing this stock in the 50cent range.  Who says this company won't land the next P-Diddy, or LL Cool J???

Give me some speculation or should I say dreams you have for a target price.
How much business does this company need to do to move this stock 1 cent??

Monty

RMD has performed their market research well.  They have created a Strategic Plan to capture an underserved market segment specializing in the niche known as hiphop.  

Ask the majority teens what kind of music do they listen to and they won't tell you country or classic rock - it's hiphop!

Ask yourself, "What would happen if hiphop went away?"  Would it be noticeable?  Absolutely, it's part of the US Culture and in fact a global culture.  The Far East wants to be like their US counterparts regarding culture.

I lived in Japan six years and near every train station the 15 to 24 year old somethings were decked out like Elvis.  Culture is such an influential force that its difficult to measure that is unless you measure it through music.

Now imagine you have a teen living at home - most of today's generation do not want to work let alone go to school....they sit at home, veg out, get fat, have low self esteem, low self confidence, and they look to prop up their self esteem and confidence by feeling good.  What's cheap and makes them feel good - Music!  

It may sound insensitive but the reality is music has the ability to move feelings.

When you have a huge distribution network you can make significant revenue if your speed of execution is timed just right.  Does RMD have the production capability in-house or through outsourced means?  I would wager to say they do in one form or another.  They didn't get this far with their planning to overlook the means to get their product to market quickly.

So when you ask what will it take to move the stock price .01 cent the answer is not much at all.

I've been a buyer of the stock since January just after they reorganized to focus on Multimedia.  They've made significant progress to date and they are well positioned to take advantage of any opportunity.

- Bill

Judging by the .90 to 1.35 range that Sciax, RMD's previous name, I would suspect that RMD will go to that range in the next 3 to 4 Quarters especially as they roll out their products.

They have done a great job putting the infrastructure in place now they're poised to use it.

I'm a holder and will wait, wait, wait - because guys have a tendency to lose out on major gains by selling to often and to frequently versus women.

Bill

The only way for RMD to get to that price that quickj would be stock buy back or reverse split.  That is a heavy jump.  I am more in the .10 to .25 range as a wish list.

Just looked at their two year graph and in Feb 05 they were sitting at 1.66/share.  

They began their turn around in Nov 05 just eight months later.  I would agree with you that a RS or buyback would increase the share price and bring it to that level.  I would also agree with you that an increase of .10 is doable as well.

That seems to be a prudent projection.  Sometimes I have to temper my enthusiasm with a little conservatism   Doh!

Bill