How Cross Media Moves Merchandise
Cross Media Marketing (XMM ) Chairman and CEO Ron Altbach isn't bashful when it comes to talking about company prospects. The ex-singer/songwriter, producer, and keyboard player for the Beach Boys in the 1970s says Cross Media will double its revenues, to $200 million, in 2002. He also forecasts a jump of 20% a year in each of the following years. Cross Media sells magazine subscriptions, club memberships, exercise gear, and collectibles to 32 million subscribers. It uses various marketing channels, including e-mail, direct mail, and Web campaigns. Analyst Luis Martins of Taglich Brothers, a research boutique, thinks it'll be a cinch to hit Altbach's goals. He sees sales of $205 million in 2002 and earnings of $1.25 a share, up from 86 cents in 2001. For 2003, Martins forecasts sales of $236.5 million and earnings of $1.70 a share. Little wonder that Cross Media's stock is on a roll, flying from 4.65 on Apr. 16, 2001, to 12.49 on Mar. 27. Martins' 12-month stock price target: 25 a share.
By Gene G. Marcial