TSCI Street Pulse - December 1, 2009

The following is an excerpt from a research report on Money4Gold Holdings, Inc. - published by Emerging Growth Equities. 

The full report is available here: Money4Gold Holdings, Inc. (OTCBB: MFGD)

Money4Gold Holdings, Inc.

Shares Significantly Undervalued - Expecting Blowout Q4 as Gold Prices Reach Record Levels and Consumers Scramble for Cash - Establishing a Six Month Target Price of $0.51

• We are expecting Money4Gold to turn in a blowout Q4:09 with results that reflect the Company’s best quarter to date. Increasing customer awareness of Money4Gold’s immediate cash-for-gold service offering, the rising price of gold and other precisions metals and general consumer desire and need for discretionary funds to spend during the holiday season should drive strong growth for MFGD in Q4 and beyond.
• The Company is likely to see favorable margin expansion, as increasing customer awareness of the Money4Gold cash-for-precious metals/jewelry offering gains traction. We believe as customers become familiar with the ability to gain quick access to cash by liquidating their unwanted items, the Company is likely to take in more items per consumer return-envelope submitted than that for which management has officially budgeted, resulting in margin enhancement at the Company.
  
• We are excited about the Company’s promising business prospects in Q4:09 and into 2010 as Money4Gold recently continued its international expansion initiative by entering into the German marketplace in Q3:09. Germany is the 14th most populous country in the world with a sizable and affluent population.
  
• As Money4Gold continues to gain “critical mass” in its advertising campaign, we believe the Company will see more efficient gains and a better return on its investment in media spending. Specifically, we believe as consumers become increasingly aware of MFGD and its ability to provide cash-for-gold, and confident in their ability to personally benefit from this service, they become more willing to “pull the trigger” and personally take advantage of the Company’s offering. Additionally, following a favorable personal experience, customers often tell their friends about a successful, exciting new product or service, with the results that news about the Company spreads rapidly via word of mouth.
  
•  We believe the growth trajectory currently seen at the Company is sustainable for the foreseeable future. While Q4:09 is expected to be the Company’s strongest revenue and profit quarter reported to date, we see this trend continuing in 2010 as consumer awareness continues to gain momentum.
  
• According to management’s guidance, as well as our own projections, the Company is poised to hit a significant milestone in Q4:09 and announce first-time profitability in Q4:09, with ongoing growth in 2010.
  
• Our favorite time to enter into the stock of what we see as an up-and-coming company is during its debut into profitability followed by a strong growth trajectory going forward. We believe MFGD is presently entering into this phase and therefore represents an excellent buying opportunity for investors.

The complete report is available here: Money4Gold Holdings (OTCBB: MFGD)

TSCI Editorial Note:  Additional research material is available from Emerging Growth Research

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Joseph Noel is an analyst with Emerging Growth Research.  Joe is a 29-year veteran in the investment and technology industries.  Prior to founding Emerging Growth Research, Joe was a senior analyst at Pacific Growth Equities, LLC, where he tracked the communications equipment/services and advanced industrial sectors. Prior to Pacific Growth, he covered both the telecommunications equipment and services industries at Hambrecht & Quist and was employed by Gartner/Dataquest as a communications industry analyst.

Mr. Noel received his MBA in Finance from Wake Forest University, and holds a BS in business and economics.  A four-time Wall Street Journal All-Star Analyst, Joe specializes in emerging growth companies in the communications, Internet and advanced industrial equipment sectors.