WESTON, Fla., May 19, 2004 (PRIMEZONE) -- Wall Street News Alert's "stocks to watch" this morning are: ROO Group, Inc. (OTCBB:ROOG), CTI Industries Corp. (Nasdaq:CTIB), Digital Lightwave Inc. (Nasdaq:DIGL) and TXU Corporation (NYSE:TXU).
Aggressive investors and traders will want to keep a close eye on ROO Group, Inc. (OTCBB:ROOG) again this morning! Yesterday after the markets closed, the company issued a press release announcing that it has entered into a letter of intent to purchase the business and business assets of Undercover Media Pty Ltd. (Undercover)!
Undercover is a provider of music content, including photos, articles and interviews, to websites worldwide. Its clients include Telstra Corporation, AAP and Coca Cola, and its distribution partners include Google, VH1, Nova, Artist Direct and News Now. In addition, Undercover has a strategic online partnership with HMV for online sales.
This could be great news for investors! The growth in digital downloaded music has created demand for online music content. According to emarketer reporting, $1.2 billion dollars of music will be downloaded legally, with 11 million households subscribing to a paid music service by 2006. The technologies and services appear to have arrived, and music fans are eager to take advantage of them, particularly the youth market. According to comScore Media Metrix, 52% of 18 to 24-year-olds and 69% of US college students have already downloaded music.
ROO Group Chairman and CEO Robert Petty stated, "The strategic acquisition of the business assets of Undercover and the addition of the Undercover management team, provides a database of music-related content generated over the past 10 years which can be syndicated to customers to support the sale of downloaded music. This complements our existing music video database of content and is expected to provide positive revenue growth for the category over the following 12 months."
Keep your eyes on this company! Included in the purchase is the www.undercover.com.au web site, which currently serves approximately 500,000 visitors per month with 55% from the USA, 18% from Europe, 7% from Asia and 20% from other countries throughout the world. The Undercover website, through its relationship with HMV, clearly displays the link between music content and the sale of music; the user reads the article or interview and can then click through to purchase the artist's CD from HMV's web site.
The stock closed yesterday at twenty-nine cents a share.
In case you are not familiar with the company: ROO Group Inc. ("RGI") (www.roogroupinc.com) is a global provider of digital media solutions and technology that enables the activation, marketing and distribution of digital media video content over the Internet and emerging broadcasting platforms such as set top boxes and wireless. RGI's products sold by subsidiary ROO Media Corporation (www.roomedia.com) include syndication, technology, integration and management of topical video content such as news, entertainment and fashion to its clients' web sites. The distribution, programming and integration of interactive advertising solutions includes 15 to 30 second television-style video commercials which can be played before and after selected topical video content over the Internet. In addition to the expansion and development of ROO TV's (www.rootv.com) network of country-based video-only web sites, RGI's strategy for 2004 is to expand its distribution of products and services and make strategic acquisitions similar to the Reality Group acquisition, which was announced on March 15, 2004 to the Asia Pacific, Europe and the United States markets, to accelerate RGI's growth. More information can be obtained from RGI's web site located at www.roogroupinc.com.
Undercover Media Pty Ltd., established in February 1995, Undercover believes it is a pioneer brand for global online music. Featuring original music content ranging from raw interview footage to propriety editorial content combined with industry released footage, Undercover has served both the music industry and music community with daily music news, reviews and editorial bulletins. The loyal audience combined with direct music industry relationships has made Undercover media content a credible and reliable daily account of the music entertainment arena.
Stocks showing interesting activity yesterday were: CTI Industries Corp. (Nasdaq:CTIB) up 83.9% on 903,600 shares traded, Digital Lightwave Inc. (Nasdaq:DIGL) up 16% on 1.2 million shares traded and TXU Corporation (NYSE:TXU) up 9.8% on 13.5 million shares traded.
Commentary:
"The national average for gasoline, now at over slightly $2.00 per gallon, continues to edge upward. SUV sales are slowing, the wallet is much thinner, and motorists are irate; the summer vacation driving season has not yet started. Experts in vacation travel are predicting much shorter summer drives. Summer vacation has over 50% of the travelers driving to destinations, so it is a significant number," stated Sonja Rudd in Wall Street News Alert's daily commentary continued at: http://www.WallStreetNewsAlert.com.
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