Friday,
August 20, 2010 – Before Market Open
Green
Baron New “Stock Alert”
Convenience TV Inc.
(OTCBB:
CRPZ – $.101 per share)
www.CStoreNet.com
Common Shares Outstanding / 53.7 million
Market Cap / $5.42 million
High Since PR of Acquisition 7/13/10: $.38
Low
Since PR of Acquisition 7/13/10: $.08
Average Price / $.2063 (50-day)
Average Volume / 119,023 (50-day)
Convenience TV Focuses on Convenience Store Industry to Provide
Advertisers and Retailers with Digital Full-Motion Screens to
Increase Sales
Convenience TV Creates Private TV Networks to Allow Clients to Take
Advantage of $3.7 Billion / year “Out-of-Home” Advertising Market
Phase
One Roll-out Starts Strong; Aims to Quickly Gain 100 Locations in
Los Angeles; Inks Advertising Contract with CW Network for WWE
Smackdown; Recent Private Placement Successfully Completed at
.20/Share
Green Baron Believes Strong Management Team will Quickly Secure
Locations and Aggressively Grow this Explosive Advertising Business;
CRPZ Stock Fundamentally and Technically Positioned For Huge Move
Higher Particularly over Near-Term
Click For:
Free Level II CRPZ Market Maker Quote
Over the past 10
years, marketing and advertising has gone through tremendous
change. It is clear that the Internet, out of home digital
advertising, and mobile media is receiving many of the advertising
dollars that used to go to print media.
The Green Baron Report is in
search of companies that will benefit from this shift, and today we
would like to introduce our members to one that we believe will be
wildly successful and should be actively accumulated now.
The Green Baron Report
is officially initiating coverage of Convenience TV Inc. (OTCBB:
CRPZ) as a new Green Baron “Stock Alert”,
and we strongly
suggest members accumulate CRPZ as close to our profile price as
possible. Results compiled from the most recent trade prior to
dissemination of this report to the subsequent high will be closely
monitored at
www.thegreenbaron.com
and through email updates to members. We have very aggressive price
projections for CRPZ and believe the stock has huge upside potential
based on several positive fundamental factors.
TRADER’S NOTES:
CRPZ is a fully registered
and reporting company traded on OTCBB and OTCQB. The stock is
represented by several active market makers and the spread ranges
from less than a penny to a few pennies. When the merger of
Convenience TV was announced on July 13, CRPZ rallied quickly to hit
a high of .38 per share. Shortly thereafter, a successful private
placement was announced when investors bought stock at .20 per
share. CRPZ traded very actively in mid-July and even traded a
record 1,283,043 shares on July 22.
However, the volume dropped off when
the general market weakened in late July and August, and the price
of CRPZ weakened as well. CRPZ has spent the majority of August
trading between .10 and .20 per share. The stock put in a new low
recently at .08 per share and now appears to us that it has bottomed
and is beginning a new rally. Again, we suggest members who wish to
actively trade CRPZ to utilize
Free Level II CRPZ Market Maker Quote.
Convenience TV
Inc. is now part of a burgeoning sector of the digital signage
industry called Out-of-Home (OOH) advertising. OOH is that which is
seen away from one’s home, and is one of the fastest growing methods
of advertising media sales today.
Convenience TV has
contracted with groups of high-traffic convenience stores to create
and implement in-location flat screen TV display systems, called
Captive Audience Networks. These TV networks are an important
vehicle for Advertisers as they deliver both entertaining content
and targeted advertising to each retail location at the time of
purchase.
The programming
can be up-dated quickly and is tailored to meet the specific
clients’ need for increased sales, customer enjoyment and brand
reinforcement. In return, Convenience TV receives substantial
revenues based on industry standards.
About Convenience
TV Inc.
Convenience TV is focused on the
Convenience Store Industry and provides their clients with an
"in-location" TV network. The Network is designed to deliver both
entertaining content and targeted advertising on a demographic basis
to each retail location. In addition, the Network delivers
promotional advertising tied to products within the retail location.
The programming can be up-dated quickly and is tailored to meet the
specific client's need for increased sales, customer enjoyment and
brand reinforcement.
Advertisers
Convenience TV
provides an advertiser access to millions of consumers where and
when they are shopping. Convenience TV programming allows the
advertiser to pinpoint the exact demographic they wish to expose
their products or services to, with complementary programming
designed to attract the consumers' eyes to the screens.
Convenience TV can
broadcast ads across their entire network, designate specific
regions, cities or even deliver them to an individual location
allowing advertisers the ability to launch very specific
demographically targeted campaigns.
Retail
Convenience TV provides a networked platform connected to flat panel
screens strategically placed within a customer’s store.
Its
philosophy is based on content driven programming designed to create
a new and unique consumer experience.
Convenience TV’s unique programming strategy provides
demographically targeted content while at the same time interfacing
the retailer’s marketing calendar to increase same store sales and
allowing the retailer to communicate directly with the customer.
Why is the
Industry so explosive?
Advertisers have
begun searching for newer, better and more measurable ways to get
their message across to consumers. As the internet competes with
television for the attention of consumers in their homes, there is
increasing opportunity for Out-Of-Home advertising. It has become an
important battleground for advertisers. Not only can the results be
accurately tracked, but this approach also gives the retailer
control over the content that is displayed in their store.
Growth Strategy
Convenience TV’s
growth strategy is to build its network throughout the major
marketing areas across the country. The Company has geared a phased
expansion program of 500 locations through 2011, growing to 1000 by
mid 2012, and culminating in 7500 stores by the end of 2015.
Digital Signage is
the future for Advertising and its industry is destined for growth
... Convenience TV provides an investment opportunity in which one
can take an active part in that development.
If you shop, dine,
or have your car washed, you will become witness to this segment of
the Out-of-Home advertising industry.
Executive Summary
- Overview
The American
Association of Advertising Agencies states that “Out-of-Home‟
(OOH) advertising, that which is seen away from one’s home, is one
of the fastest growing methods of advertising media sales - behind
only online and brand placement, within entertainment programming.
Shop, dine, or have your car washed and you will become witness to
Out-of-Home advertising by way of in-store media networks.
C- Store Network (CSN)
will pursue exclusive agreements with a variety of Convenience Store
Operators to provide them with an in-location TV network. CSN has a
relationship with Universal Distributing Co. Ltd., to organize
location acquisitions. Universal currently has Reps that focus
mainly on the Convenience Store Industry with a variety of products.
Universal covers approx. 40 States which include the top 50 DMA‟s.
The Network is designed to deliver both entertaining content and
targeted advertising on a demographic basis to each retail location.
In addition the Network delivers promotional advertising tied to
products within the retail location. The programming can be up-dated
quickly and is tailored to meet the specific clients‟
need for increased sales, customer enjoyment and brand
reinforcement.
The Industry -
Background
Frost & Sullivan,
the respected global growth consulting firm, estimates that by the
year 2010, advertising on U.S. and Canadian networked displays will
be a $3.7 billion-a-year business. The Wall Street Journal, on July
21st 2005, noted that new technologies are transforming
out-of-home advertising. As advertisers find it harder to reach
consumers through television and radio, the increasing array of
out-of-home ads is looking more attractive.
Business Model
C-Store Network
LLC customizes the installation at each store depending on the
particular stores configuration and size. In general CSN installs
one 42 inch LCD screen in the highest traffic area of the store
(generally in the cooler section) and one 32 inch LCD screen in the
cash area. Currently CSN purchases the screens from LG. CSN is
constantly reviewing the products of all screen manufacturers to
ensure that it receives the best price possible. Currently the
playback computers are purchased from Dell. CSN also reviews all
playback device manufacturers to ensure that it receives the best
priced equipment.
CSN supplies all
the equipment and programming and Ad sales on a revenue sharing
basis. Revenue from advertising sales is split with the location on
a net basis (after all costs of the network are deducted). Revenue
splits may vary from customer to customer.
CSN signs a 5 year
agreement with the location owner that contains a 3 to 5 year
renewal option. The renewal is at the sole discretion of CSN.
Target Market
The C-Store
Network has targeted the Convenience Store market for these reasons:
·
Overwhelming number of locations overall (167,000+)
·
Large
In-Store traffic – national average 1500 people per day
·
Easy to
establish a large “captive audience “
·
Minimal
deployment costs as targeted stores are on average 2000 sq. ft.
·
Large “Male
Audience” in the hard to reach 18-44 age group
·
Multiple
Vendors as Advertising Prospects
Network Deployment
The company plans
a phased roll-out of 7500 locations
·
Phase One -
Install 100 stores in Los Angeles creating a network in the # 1 “Out
of Home” ad purchasing market in the US
·
Phase Two -
Contract and Install 100 stores in San Francisco and 45 stores in
San Diego, making CSN a Regional Network
·
Phase Three
- Contract and install stores in New York and Chicago – the # 2 & 3
“Out of Home” advertising markets
·
Phase Four
– Complete the top 10 Demographic Marketing Areas (DMA‟s)
thereby becoming a National Network
·
Phase Five
– Complete installations in the top 50 DMA‟s.
Network
Installation
CSN contracts the
In-Store installations to several independent installation
companies, the largest is USSI. Average cost for a two screen
placement is $800.00 – this amount is included in the $3,900 overall
installation cost. This includes: 2 LCD Screens; 1 Player; assorted
wiring; assorted brackets; and, the physical installation of the
equipment. CSN is responsible for any and all damage to its
equipment while installed at the store.
Operational Costs
CSN provides the
Network Operations for all installed locations. CSN combines all
corporate and Network costs into a combined “cost per location” as
follows:
·
0 - 100
stores = $415.00 per month per store;
·
101 - 200
stores = $365.00;
·
201 - 300
stores = $320.00;
·
301 - 400
stores = $305.00;
·
401+ stores
= $290.00.
CSN Revenue
CSN will receive
its revenue from two main and two ancillary sources:
Main:
· Ad
Sales - Nationally contracted to Outcast Media Inc. and SeeSaw
Networks;
· Physical
Product Sales – CSN when either selling the locations or organizing
the locations to take on products that they currently do not sell,
will receive a commission on products sold to the stores from those
companies wishing to promote their new products on a direct basis.
Ancillary:
· Digital
Downloads of ringtones, songs and games - CSN receives a
special code that signifies a CSN location when initiated and from
that sale, CSN will receive a commission;
· Outbound
Text Messaging campaigns - CSN is paid a percentage for each text
message when using a promotion or service provider introduced to its
stores.
Growth
In all, there are
over 167,000 convenience stores in the United States. C-Store
Network plans to contract 7800 of those using the services of
Universal Distributing Co. Ltd. and Outcast. CSN is the preferred
network for the “Inside of the Store” where Outcast supplies their
fuel pump network. CSN‟s
goal is to have the 7500 stores installed and running within the
next 5 years.
Advantages of the
C-Store Network
The results are
increased sales and profitability:
·
Greater
message impact by using full-motion, full-color video
·
The ability
to change the message faster, more easily and less expensively than
replacing printed signage and POS material
·
The ability
to change the message based on time of day, day of week--even due to
weather
·
The ability
to efficiently and inexpensively provide regional, local and even
site-specific programming
·
Reduces the
length of time required to deploy new promotional programs
·
Offer
product partners a more relevant/cost-effective merchandising
platform
·
Ability to
reduce merchandising clutter by promoting multiple products and
perishables in the store and at the right time
·
Drives
purchasing decisions increases product sales for brands
Recent Key Press Releases
Thursday, July 22,
2010 - Convenience TV's Advertising Deal With the CW Network for WWE
Smackdown -
LOS ANGELES, CA -
(MARKET WIRE) - Convenience TV Inc. (OTCBB: CRPZ) announces that
their initial advertising contract promoted the very popular TV show
WWE 'Friday Night Smackdown' on national television's The CW
Network.
Mr. Norman
Knowles, President and CEO, said: "It was gratifying to complete our
first advertising contract with such a high-profile network show
like 'Smackdown’. Additionally, it shows how important our network
can be as an advertising vehicle, not only for retail products found
in the locations carrying our network, but also for non-related
companies that wish to generate awareness for their products whether
those are automobiles or entertainment."
The ads were
placed during ratings sweeps to help increase The CW's viewership
for the program. The ad campaign aired on Convenience TV's C-Store
Network. Thirty second commercials promoting viewership ran during a
40 day period. The commercials detailed the premiere and launch of 'WWE
Friday Night Smackdown.' The CW Commercials ran in Los Angeles and
Chicago highlighting the local CW affiliate carrying the show.
Tuesday, July 20,
2010 - Convenience TV Chooses Los Angeles for Their Phase 1
Expansion -
Convenience TV
Inc. (OTCBB: CRPZ) wishes to announce that it has begun operations
in Los Angeles, California, by completing the installation of its
first 5 locations. In addition, 10 new location agreements have been
completed with installation dates slated for later this month. These
10 installations will increase the company's LA network to 15
locations providing the basis for their planned expansion throughout
the area.
Mr. Norman
Knowles, President and CEO, states: "Given the timing of our network
installations, Los Angeles posed the best launching pad. The
Digital Signage Industry has created remarkable opportunities for
product advertising, and that, coupled with the high in-store
traffic counts throughout the Los Angeles area, should provide
Convenience TV with a great marketing platform," he said.
Thursday, July 15,
2010 – Convenience TV Inc. Closes Private Placement -
Convenience TV
Inc. advises that its initial, non-brokered Private Placement of
$250,000 has been successfully subscribed. A total of 1,250,000
shares were issued at $0.20 USD.
Norman Knowles,
President and CEO of Convenience TV, said today, "We are extremely
pleased with the support we have received from investors for this
initial funding. These funds will be used on operations intended to
expand our network footprint in the Los Angeles area."
Tuesday, July 13,
2010 – Convenience TV Inc. Completes Acquisition -
Convenience TV Inc. (OTCBB: CRPZD) (formerly Costa Rica Paradise
Inc.) wishes to announce that on April 1, 2010 it entered into an
acquisition agreement (the "Acquisition Agreement") with Global
Fusion Media Inc., a company incorporated under the laws of British
Columbia ("Global Fusion"). According to the terms of the
Acquisition Agreement, it agreed to acquire all of the interest
in C-Store Network, LLC ("C-Store") from Global Fusion in exchange
for 36,000,000 shares of its common stock.
On May 5, 2010 it
closed the transactions contemplated by the Acquisition Agreement
and acquired C-Store as its wholly owned subsidiary. Going forward,
the company has abandoned its former real estate business, and will
focus on the business operations of C-Store. C-Store is a media and
advertising company which, through a network of in-location
televisions installed at various convenience store locations,
focuses on direct advertising to store customers throughout North
America.
"We are thrilled
to have successfully completed this reverse merger," said company
President and CEO Norman Knowles, "as we are now able to present an
exciting and quickly expanding company to North American investors.
We are excited to now be a part of the Digital Signage industry,
which is taking the advertising business to new heights. In the near
term, we will focus our expansion in the Los Angeles area, then move
on to the other top marketing areas," he said.
Management
Norman Knowles, President, Chief Executive Officer and Director
-
Mr.
Knowles has spent the last 20 years developing location-based
networks within the retail and hospitality industries. Mr. Knowles
extended this expertise through a company he co-founded, Your Choice
Networks, which delivered an entertainment and advertising platform
to the Quick Serve Restaurant (QSR) industry. For the past several
years he has consulted and developed content and advertising
strategies for emerging location-based networks. Mr. Knowles has
owned and operated and continues to be employed by Universal
Distributing Co. Ltd. a private distribution and consulting company
since 1976. From December 2004 through April 2005, Mr. Knowles was
engaged as a consultant for and partner in Your Choice Network LLC.,
and from April 2005 through September 2007 Mr. Knowles was a
shareholder and consultant to Fusion Media Inc., a privately held
advertising company. After leaving Fusion Media Inc., Mr. Knowles
helped with the founding of Global Fusion Media Inc., a privately
held media company.
Rick
Thomas, Vice President Advertising –
Mr.
Thomas owns and operates MediaRich Marketing, a product placement
and sponsorship marketing company specializing in partnering brands
with television, radio and online media outlets. The company has
placed products on shown in prime time to local television
programming, and has developed sponsorship opportunities for brands
interested in deepening their exposure on selected media. The
company has worked with TV programs on ABC and NASCAR Angels; and
The Today Show; as well as cable networks including Fox News
Channel, MSNBC and CNN. In addition, MediaRich Marketing has worked
with radio stations across the country to create product integration
and promotion strategies that give away various products to radio
station listeners in exchange for mentions on-air. The end result
of each campaign is to drive sales, build brand recognition,
generate leads or increase web-site activity through the use of
product placement and sponsorship marketing.
Greg
Trevor, Secretary, Treasurer, Chief Financial Officer and
Director
- Mr. Trevor is a graduate from the University of Victoria in
British Columbia, Canada. His background includes: 15 years of
financial services experience with Canadian institutions, and 12
years as an agent and marketer for clients in the toy and game
industry. His role encompassed all aspects of the production,
distribution, marketing and sales processes. Since his retirement in
1999, he has taken on various consulting roles. From 2001 to 2003,
a Canadian company in Lagos, Nigeria hired him to administer an 80
member multi-national staff where he acted as Corporate Liaison to
senior business, financial and government leaders during the
implementation of a property tax program for the State Government.
In 2004, he consulted on a building project in Dubai, UAE. In 2005
he returned to Canada where he consulted to a private leasing firm.
Since July 2006, has consulted to Global Fusion Media Inc., a
privately held media company.
Green Baron Conclusion
Convenience TV has
clearly identified a huge new advertising market it can effectively
penetrate and service through a management team that is strongly
connected to the industry. Management will initially prove and
deliver numbers in Los Angeles, and therefore has positioned its
headquarters in that city to actively initiate and maintain its
network.
We expect the
Company to publicize developments as it successfully meets each
goal. We anticipate that Convenience TV will quickly add many more
retailers, new advertisers, and expand its programming.
The Green Baron Report has
confidence that Convenience TV will exceed its goals and grow its
network faster than most think.
Success should
bolster confidence that will translate into a higher stock price.
Recently, private investors paid .20 per share for stock that is
usually priced at a significant discount to market for these types
of investors. Now, CRPZ stock can be purchased at a price that is a
fair clip lower than those investors bought in. Recent weakness in
the general stock market and a lack of news over the past three
weeks has provided what we believe is an ideal buying opportunity.
We think CRPZ is another candidate to at least double or triple from
the current share price over the near-term.
Investor
Relations:
Contact phone:
1-877-331-8777
Email:
info@cstorenet.com
Corporate Address:
Convenience TV Inc.
248
Main Street
Venice, CA 90291
Go to
http://www.cstorenet.com/investors.html and enter your contact
information should you wish to receive more information on
Convenience TV Inc.
