From: Keros Investor [mailto:KerosInvestor@keroscapital.com]
Sent: 1. februar 2010 13:26
To: kerosinvestor@keroscapital.com
Subject: Bark Group Inc.: BKPG
February 1, 2010
Company Update: BARK GROUP INC. (OTCBB: BKPG)
SMART ACQUISITIONS; NEW CLIENTS; GAINING GLOBAL MOMENTUM
Last Price..............................$0.55 Market Cap..................$193.1M
52-Week Range........$0.13 - $0.74 Shares Outstanding.......351.2M
Avg. Volume (10 Day)......430,979 Beta......................................0.7
REPLICATING EARLY SUCCESSES; NOW ENTERING THE BIGGEST MARKETS ON EARTH
Bark Group Inc. (OTCBB: BKPG) is adamantly pursuing its ambitious goal to be ranked among the 10 best and most profitable communication companies within 4 years, delivering cutting-edge advertising and marketing campaigns to leading businesses around the globe. They have united the traditional agency with the media agency and the digital agency for a total integrated solutions approach. Bark's innovative model has reaped early success: in a period of only two years the company became the leading innovative agency in its market. In the same period, it succeeded in becoming the 2nd best performing company in the industry. Now it's on a mission to replicate that success throughout the U.S. and Europe. Bark is achieving aggressive growth through acquisition and the development of satellite companies around the globe, primarily in the US and the rest of Europe.
10 KEY INVESTMENT CONSIDERATIONS
1. Trading at just $.55 on the Bulletin Board, the investment firm of Westbrook Strategic Partners recently valued BKPG at $4.33 a share.
2. Award winning company - Bark has been nominated and won prestigious awards for its campaigns and has achieved worldwide recognition for its business model. Finally, Bark has been nominated at the Cannes Lions Festival.
3. Bark's unique, cutting edge approach to communications integrates three communications fields in one, giving clients a turn-key solution for marketing and giving the company a leg up on the competition.
4. Scientific edge - Bark has partnered with Mindmetic to leverage innovative research that gives insight into conscious and subconscious effects of messages on the human mind; Bark intends to use this insight to improve the efficacy of its campaigns in the near future.
5. Incredible revenue - In the first 9 months of 2008, Bark recorded an impressive 81% growth in revenues, reaching $8.7 million. Bark's mission is to reach a $227.8 million target by 2012!
6. Strong and highly experienced management team with many years of international experience. Managers are shareholders: Therefore, their interest is aligned with those of other shareholders as management holds a vested interest in the company themselves.
7. Ambitious, yet achievable vision: Bark intends to be ranked among the top 10 best and most profitable communications companies within four years.
8. Aggressive growth strategy - Bark plans on having 14 offices throughout the US and Europe by 2012.
9. Current economic environment is favorable for Bark's aggressive acquisitions strategy, reducing acquisition costs while markets are near the bottom of the economic cycle.
10. International Client List - Bark's clients include large and small companies representing a wide range of brands and industries, such as financial services, consumer products, and luxury goods.
INTERNATIONAL CLIENT BASE - Moving Into the BIG APPLE
The company is highly recognized for its creative talent and it has had great success throughout Scandinavia and Europe. Bark is now turning its sights to expansion in the U.S. What's most impressive is the wide range of brands and industries, and multi-national client base that Bark has already garnered, from financial services, consumer products and luxury goods. Current clients include:
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***NEW!*** Actavis Denmark - first class generic pharmaceuticals
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**NEW!*** Dana Insurance - a Danish unemployment insurance company
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***NEW!*** Godt Syn A/S - a Scandinavian chain of eye surgery clinics
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***NEW!*** Linie Aquavit - owned by Norwegian Arcus, a multinational spirits company
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Jagermeister - alcohol beverage manufacturer
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Grand Marnier - alcohol beverage manufacturer
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Campari - alcohol beverage manufacturer
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Actavis - international pharmaceutical company
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Statoil - a Norwegian petroleum producer
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SimCorp A/S - leading international investment software company
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COOP - large supermarket chain in Denmark
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Waterfront Shopping Mall - shopping mall owned by one of Denmark's largest real estate firms
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Tulip - fast moving consumer goods company
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Gyldendal - book publisher
Bark's campaigns seamlessly integrate classic and digital media as well as viral and other forms of communication. Its integrated approach is revolutionizing the communications field while offering clients a higher return on their advertising investments. Bark has had great success in the past years in doing exactly that in Europe, and is now determined to continue its success in the US.
Company officials announced that they just created their first U.S. presence - right in the heart of Madison Avenue, playground to the advertising world. Anyone who's anyone in the ad game has a presence in the Big Apple. And the really big agencies - the monster moneymakers on Madison Ave - they're global - just like Bark. There's a certain cache that goes with the Madmen of Madison Avenue. Corporations and businesses like to say they have a New York City ad agency. Perception is everything.
CUTTING EDGE METHODS
Bark has reinvented the structure of the communication agency. Its innovative model has reaped early success: in a period of only two years Bark reached status as the leading innovative agency in its market. In the same period, it succeeded in becoming the 2nd best performing company in the industry with regards to financial performance.
To this end, Bark collaborates with Mindmetic, a cutting-edge mind research company that is developing neuro-marketing research methods. Mindmetic studies and develops methods for interpreting and decoding conscious and subconscious human emotions that arise when people are subjected to different messages. Bark will soon leverage this research and use it in its marketing campaigns, giving it a scientific edge on the competition, and further ensuring the efficacy and success of its campaigns.
INTERNATIONAL EXPANSION
Bark started 2009 off with a bang winning three prestigious accounts, one of which covers 18 different countries. The company has decided to do an international rollout of its concept and it expects to be operational in more than 10 countries within four years.
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Expanding internationally is much easier through acquisition and it gives you greater reach with an international profile. When all is said and done, that helps attract even larger contracts from multi-national clients (as we're already seeing with Bark.
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Acquisitions allow an agency to grow its client base and its market share far quicker and more easily than with organic growth.
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Worldwide recession has depressed valuations and that makes it less costly to conduct acquisitions. NOW is the time to move for the best returns.
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There will no doubt be increased consolidation coming in the next 12-18 months in this industry and that will play upon valuations-likely causing an increase, as competition for acquisitions tightens.
Bark's major strategic tool for growth is the acquisition of established profitable companies, and the subsequent implementation of its business model. Bark plans on building a global network by acquiring between five and seven companies this year. This will significantly expand the company's revenue base, client list, local expertise and network, thus bolstering its ability to win larger international clients. Bark is continually locating and evaluating new acquisition targets throughout the US and the rest of the world and is planning to add up to 7 companies to the Bark palette within the next year.
BUY WHEN THERE'S BLOOD IN THE STREETS
Clearly, the global economic slowdown has affected ad spending and consequently, ad revenues as expected. Moving forward, however, the outlook is brighter. While ad spending dropped worldwide this year, industry expert ZenithOptimedia is projecting spending will grow by 1.5% in 2010 and by 4.5% in 2011 with the online sector expecting even higher expenditures.
In Europe, online advertising is expected to grow more than 7% in 2010 and by 15% in 2011, reports Marketer's Internet Ad Barometer. In the U.S., Market Research firm IDC projects U.S. online ad spending will rise 5.6% and 6.6% in 2010 and 2011 respectively.
As we push through challenging times, the outlook is clearly brighter and better moving forward. Successful investors know there is no better time to start acquiring shares in a future winner than when the industry has reached a trough, and renewed growth is just ahead. This spells good news for Bark (BKPG.OB) as the company expands and opens its doors on Madison Avenue.
Profit from one of the Fastest Expanding Media Companies in the World!