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TRADESHOW MARKETING COMPANY (OTC Pink Sheets: TSHO)
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Dear Reader,
With focus on the Economy - retail numbers and Shopping season close at hand, please take note of a company that is making headlines in the Retail Sector and is already a household name. Although the parent company may not be immediately recognizable, Tradeshow Marketing Company (OTC: TSHO), owns and operates a number of prominent subsidiary's making it one of the fastest growing company's in the American Retail landscape today.
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About Tradeshow Marketing Company |
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Trade Show Marketing Company ("Tradeshow" "TSHO" "TSMC") is primarily a product development and direct sales company. In the past 25 years its management team has been marketing and branding some of the most recognized household names via trade shows, infomercials and specialty retail. The company distributes a range of products, all of which are innovative, have universal appeal and have most likely already made it into your living room via television infomercials. TSHO focuses on creating the demand via direct response television, (infomercials) and fulfilling distribution through its established multiple direct sales channels.
With the development of its Sandström OnTV retail stores, the company has become the first of its kind to effectively incorporate the “As Seen On TV” brand with European quality, offering high-end, proprietary retail products developed by the company. Many of TSHO's products are exclusive to Sandström retail stores, which feature a fun, upbeat and interactive environment with a pop-impresario design concept that captures the pop culture associated with “As Seen On TV”. Its products are positioned comparable to the that of Brookstone or Sharper Image stores with the addition of popular “As seen on TV” branded products, appealing to a broader consumer base.
Sandström’s model store, (owned and operated by one of it board members Hashem Sharifi) is based in Honolulu Hawaii. The company owns and operates two additional stores in Phoenix, Arizona, and is slated to open 150 more stores across the U.S. by 2009.
Tradeshow product categories include specialty household products, beauty & fitness, home & garden products, and electronics & kids items. Most or all of these products are, or have been, advertised on TV.
Tradeshow Marketing Company is rapidly building sales and branding its products via five complimentary sales channels (tradeshow demonstration, direct response television or infomercials, wholesale, eCommerce, and store sales). Tradeshow's team has introduced a wide range of products direct to consumers through select fairs, trade shows and direct response television, (infomercials) throughout North America resulting in billions of dollars in sales. Product designs are typically innovative, solve a problem, and are universally appealing. Over the past 20 years TSHO's management has demonstrated many successful products and introduced many new items to the retail market. TSHO has a number of proprietary products in various stages of development and intends to re-introduce several hits from the past under their own brand.
For many successful infomercial products, life begins at the Tradeshow level. Tradeshows provide the ideal environment to develop the demonstration of a product, prove its salability, and provide a gauge to determine its marketability via other sales channels (i.e.direct response television and home shopping networks).
In early 2006, Tradeshow's subsidiary, OnTV Company, launched its eCommerce website, (www.ontvco.com) which has proved to be a great addition, steadily increasing in sales and promising to be a robust sales channel for future products. Heading up Tradeshow Marketing’s technology department and e-commerce business is Mr. Luniel de Beer. Specializing in project development and management, Mr. Luniel previously worked with Microsoft and on projects with American Express' online shopping portals, including www.ShopAmex.com. The company plans to invest considerably in eCommerce and expects to be one of the largest online retailers of specialty retail and “As Seen On TV” products.
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With a successful model in Honolulu, Hawaii and two profitable stores in Phoenix, Arizona, Sandström OnTV is a new retail franchise that takes a fresh, stylish and innovative approach to "As Seen On TV" merchandise, putting the most celebrated TV-marketed products at customers' fingertips. Sandström's contemporary pop-impresario designed stores carry practical, everyday-use products as well as proprietary and private-label merchandise. Receiving its Uniform Franchise Offering Circular (UFOC) compliance for 35 states on August 29, Sandström is currently launching its nationwide expansion plan, set to open 150 stores across the U.S. The company is also in the approval process for the rights to sell in numerous other states. |
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Direct Sales Industry |
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The direct response TV sales (DRTV) industry in North America is big business. According to DRTV Quarterly, while most consumer spending trends are declining, however DRTV continues to surge forward as the medium of choice as consumers respond to DRTV to the tune of $2 Trillion US worldwide, outperforming the global motion picture industry by wide margins. (Source: Center for Media Research)
Tradeshow Marketing Company management has identified a tremendous opportunity that exists in the marketplace. They are confident that they possess the experience required to dynamically expand the scope of their business to include the full sales channel range. Tradeshow offers products appealing to men and women with healthy lifestyles and healthier homes with price points starting in the $20 to as much as $6,000 price range. The target demographic is in the $50,000 - $100,000 annual income range but they will also target a broader customer base particularly with lower priced items at their online store.
OEM Manufacturing
TradeShow Marketing is a fully integrated sales company, delivering its own OEM products to market through five proven sales channels united by an “On TV” style related branding and marketing. Here there is the cross branding advantage and no risk , considering the company has its own distribution – so if products are not an immediate hit as an infomercial, they will sell through the companies other distribution channels, (eventually, via their, Wholesale, Tradeshow, Web or Retails Stores. – they will recognize the profit ).
Tradeshow Marketing’s business model includes two substantial areas – design & manufacturing of proprietary products and exposure & distribution of those products through the American retail marketplace. By utilizing Asian manufacturing, profit margins can be significantly increased due to the economics of efficient production methods. Even after factoring in shipping costs and import duties, the lower wages and material expenses allow for considerable reductions in product cost.
Tradeshow believes that controlling the manufacturing of its product is the simplest and most direct way to lower product cost and increase bottom line revenues. Other players in the sector who did initially strive to be fully integrated have taken their eyes off this key part of the integration process and focused their efforts more exclusively on managing day to day sales. The result in the case of several companies in this sector has been that margins were not high enough to produce healthy net revenues.
Multiple Sales Channels
TradeShow Marketing is a fully integrated sales company, delivering its own OEM products to market through five proven sales channels united by an “On TV" related marketing & branding methodology. Here there is the cross branding advantage and no risk, considering the company has its own distribution – so if products are not an immediate hit as an infomercial, they will sell through the companies other distribution channels, (eventually via their Wholesale, Tradeshow, Web or Retails Stores – they will recognize the profit).
Direct Sales at Trade Shows
Every year there are hundreds of home & garden consumer trade shows as well as state and county fairs, exhibitions and demonstration events at shopping centers. Consumers who see TSHO products at these shows are likely to make further purchases by going online, through TSHO's magazine, or by purchasing from a retail outlet as a result of the exposure and branding.
The concept of pitching items directly is carried on through television infomercials, retail outlets as well as with demonstration areas and/or looping videos of product demos. Demonstrators will be involved in the infomercials and the direct sales at shows and through guest appearances and training sessions at select TSHO retail stores.
Retail Stores Franchises
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The company's SandströmOnTV stores feature a unique and diverse mix of innovative consumer products including the same merchandise that the Company demonstrates and sells at tradeshow venues and on TV. Typically located in high-traffic regional shopping malls, the franchise stores will feature a unique mix of innovative consumer products and popular ONTV-type items. |
The company's flagship store is in Honolulu, Hawaii. Established over six years ago the store's sales revenue and incredible traffic make it the ideal model for the company's franchise expansion strategy. On August 31, 2005, Tradeshow acquired the assets and sub-leases of two retail stores in the Arrowhead and Paradise Valley Malls in Phoenix, Arizona. Following the acquisition, the Company changed the name of the two stores to "Sandström OnTV".
Targeted locations include regional centers, outdoor centers, high-visibility street locations, and downtown spots. TradeShow Marketing has engaged a franchising expert, Norm Friend of www.franchise101.net, to create an area franchising development strategy. The geographical focus initially for new stores will be Arizona, Texas, Florida, and Michigan. TSHO management believes there is a potential for 300 TradeShow Marketing stores in the United States alone. In December 2006, the Company hired Timothy J. McCarthy as Vice President of Franchise Development. Formerly with Natures Wonders, Nordic Track, UPS Stores and Coldstone Creamery achieving record numbers with each company for corporate and franchise sales.
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The “As Seen On TV” concept has been around, but with scattered ownership. It’s unbelievable no one has capitalized on the model to bring all of them together under one brand.”
- Tim McCarthy, VP of Franchise Development |
Infomercials
(Direct-Response Television)
After proving success at the tradeshow level, Tradeshow Marketing plans to launch its most successful products into a direct-response television (DRTV) campaign, debuting first on television shopping networks then graduating to a nationwide infomercial initiative.
The company has identified what it believes to be the ideal partners for its production, media purchasing, fulfillment and telemarketing. The introduction of new products on infomercials will extend brand awareness and reinforce Tradeshow Marketing’s other sales channels. The infomercial will direct shoppers towards online ordering, as well as ordering through the infomercial portal. The infomercials will be promoted throughout the other sales channels as well.
Print Catalogue
TradeShow Marketing catalogues will be promoted throughout the other sales channels
eCommerce Web Site
| Launched in early 2006, Tradeshow's subsidiary OnTV Company launched its eCommerce website, (www.ontvco.com) which has proved to be a great addition, steadily increasing in sales and promising to be a robust sales channel for future products. The company intends to invest considerable resources to this channel as it is valued as an integral component to future growth. |
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Products from various suppliers that TSHO has sold in the past included:
a) Ontel Products: "As Seen On TV" products that include the Swivel Sweeper, Glass Wizard and AB Master
b) American Direct (TriStar): product supplied includes the Lateral Thigh Trainer and Jack La lanne's Power Juicer
c) Cava Industries: supplies the Cold Heat Soldering Tool and Smart Spin containers
d) ITW Space Bags: supplies Space Bags for storage
e) Orange Glow International: suppliers of cleaning products OxiClean, Orange Glo, and Kaboom, among others
f) Overbreak: supplies toys that include Hover Disc, Hover Copter and Rainbow Art
Sales volumes for products fluctuate increasing significantly during the holiday season. Typically, Tradeshow experiences the highest sales volume for products that are demonstrated via infomercials, during those periods when the infomercials are advertised on television. No one particular product represents a material portion of our revenues for an entire fiscal year. Rather, annual gross sales are derived from numerous products, with eight to ten feature products, on average, being the biggest sellers.
Tradeshow Management Projected DRTV Revenue
3 Hits: $45MM - 7 Non-Hits: $5MM = Total Revenue $50MM
Projected Revenue Per Share - Revenue Projection: $50MM
(Outstanding Shares: 20,342,533) Revenue Per Share : $2.56
Competition
Two companies in this market have similar business models – Brookstone and The Sharper Image. The revenue figures of these two companies (approx. $400,000,000+) demonstrate what can be done utilizing only three channels: retail stores, catalogue sales and the Internet. Clearly, there is significant potential in the sector and room for more players. Tradeshow Marketing believes that such a model can be enhanced greatly by incorporating our company, television, a franchise expansion model and all its self-reinforcing sales channels.
To Understand how the market is accepting unique specialty retail franchise concepts we need to take a look at Lululemon Athletica (Nasdaq: LULU). Lululemon Athletica started trading on Nasdaq at $25.00 per share not more than 2 months ago. Today the stock trades near $40 per share.
The primary difference between Lululemon Athletica and Tradeshow Marketing's Sandström ONTV is that Lululemon Athletica has 60 stores in operation. However, with TSHO's aggressive franchise strategy, it expects to compete with those numbers in a fairly short period of time. Furthermore, Lululemon Athletica doesn't have the Direct Response TV distribution channel, which gives Sandström ONTV a distinct advantage.
... other companies involved in direct sales ...
Specialty Retailers
Sharper Image Corporation (Nasdaq: SHRP), RadioShack Corp. (NYSE: RSH), Best Buy (NYSE: BBY)
Circuit City Stores Inc. (NYSE: CC)
Direct, Online and Catalog Retailers
Acorn International, (NYSE: ATV), Avon Products, Inc. (NYSE: AVP), Ebay Inc. (Nasdaq: EBAY), Amazon.com, Inc.(Nasdaq: AMZN)
Dell Inc. (Nasdaq: DELL)
Integrated Sales Promotion & Marketing Services
CoActive Marketing Group, Inc. (Nasdaq: CMKG), Source Interlink Companies, Inc. (Nasdaq: SORC),
Ace Marketing & Promotions, Inc. (OTCBB: AMKT), Think Partnership, Inc. (AMEX: THK), InfoSpace Inc. (Nasdaq: INSP)
ValueClick, Inc. (Nasdaq: VCLK), Digital River, Inc. (NASDAQ: DRIV), SendTec Inc. (OTCBB: SNDN), Traffix, Inc. (Nasdaq: TRFX)
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Franchise Opportunities and Expansion |
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The Sandström Direct™
Retail Store
Expansion Strategy
The Company will be expanding through a strategy of rapid but controlled growth using a two tier franchise model in North America - Area Representative Franchises and Unit Franchises.
Area Representative Franchise Opportunity
Area Representative Agreements with suitably qualified individuals or companies to develop all or part of a State or Province. As a 'rule of thumb', a territory will have the potential for around 20 Unit Franchisees with each franchisee being within two hours driving time of the Area Representative's store to ensure strong and consistent franchisee support.
The Area Representative will:
(a) Act as the authorized representative for the Company in actively promoting the sale of Unit Franchises within their designated territory and in providing support services to the franchisees as determined by the Company
(b) Own and operate at least one franchised store. This store will be located at the centre of the hub and be used to provide validation to parties interested in acquiring Unit Franchises, and deliver the initial training program to Franchisees within the territory
(c) Provide a warehouse facility adjacent to the store for warehousing products and distribution to Unit Franchisees in the territory
The Unit Franchise Opportunity
What you can Expect as a Unit Franchisee
As a Franchisee, you will receive:
- The use of the Sandström Direct™ name and trademark
- Site location/ lease negotiation and assistance
- Design and layout of your store
- An initial training program to acquaint new franchisees with our product lines and concept
- Before your opening, we will help you train your staff, stock and display your original inventory
- Periodic on-site, telephone and electronic mail assistance on daily operations
- Proprietary products and group purchasing power
What we look for in a Unit Franchisee:
Sandström Direct™ carefully selects its partners in profit. We consider that one of the most important attributes is your desire to succeed. Success requires your commitment to listen and learn and make constant improvements in the way you operate your franchised business. We believe that a key element in our future success will be our willingness to reject applicants who do not meet our selection criteria. In choosing franchisees, preference will be given to applicants who:
- Appreciate the benefits of working on a team and within a proven system of operation
- Demonstrate good interpersonal and communication skills
- Will actively work in and manage the store
- Have the funds to invest in the store
The Investment
Sandström Direct™ is a franchised operation that requires an initial investment of $300,000 to $350,000 depending on a number of factors, including the size of the store and the amount of any tenant improvement allowances provided by the landlord. This amount includes the $25,000 initial franchisee fee, leasehold improvements, design fee, equipment, inventory, point of sale program, grand opening promotion, legal, accounting, insurance, working capital, and miscellaneous start-up items.
We do not provide financial assistance to franchisees. The franchisee is required to have sufficient capital to purchase the franchise, pay for the development of the premises, and have sufficient working capital available to cover the start-up phase of the business. To realistically pursue the acquisition of a franchise you must have a minimum of $150,000 in unencumbered cash. The additional funds needed may be able to be obtained from a financial institution provided that you have a good credit rating and a good financial history.
Royalties
In return for our ongoing support and services, you pay us a monthly royalty based on 5% of your gross sales. The advertising and promotion fund is also paid on a monthly basis at the rate of up to 3% of gross sales. This fund is primarily used for the production and distribution of the Company's catalogue but may also be used for brand-based advertising and promotions.
Site Selection
The preferred site selection criterion is:
1,200 to 1,500 square feet
High traffic regional malls
Good visibility and signage potential
Demographics
Please take a moment to check out the Sandström OnTV video: Click Here.
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Recent News for Tradeshow |
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Press Release Source: Tradeshow Marketing Company, Inc.
Thursday September 13, 11:56 am ET
Sandstrom OnTV Company(TM) Launches Franchise Sales In 35 States
Scottsdale, Ariz.-based Retail Franchise Outlet Announces UFOC Compliance
SCOTTSDALE, AZ, Sept. 13 /PRNewswire-FirstCall/ - Sandstrom OnTV Company, the all new "As Seen On TV" product retail brand, announced today that the company's franchises are now for sale in 35 states.
A new retail outlet franchise that takes a fresh, stylish and innovative approach to "As Seen On TV" merchandise, Sandstrom puts the most celebrated TV-marketed products at customers' fingertips in contemporary, pop-impresario designed stores. Offering practical everyday-use products, Sandstrom stores will carry both proprietary and private-label merchandise. Receiving its Uniform Franchise Offering Circular (UFOC) compliance for 35 states on August 29, Sandstrom is currently launching its nationwide expansion plan, set to open 150 stores across the U.S. The company is also in the approval process for the rights to sell in numerous other states.
"This has been a long process and we are thrilled to be able to officially offer this opportunity now," said Tim McCarthy, vice president of franchise development for Sandstrom. "We have created a compliant business model that is unparalleled in the industry and we are excited to bring this depth of service to our franchise opportunity."
Currently, the company owns and operates two existing "As Seen On TV" stores in the greater Phoenix area that are slated to be converted to the new Sandstrom brand by mid-October.
Launching its worldwide headquarters in Scottsdale, Ariz. in May, in June the company announced infomercial pitchman Billy Mays, the face to several TV-marketed products including the Hercules Hook and OxiClean, as the company's vice president of brand production. Currently the company is launching its nationwide expansion plan set to open 150 stores across the U.S. For more information on Sandstrom On TV Company and franchise opportunities, please call 877-716-4629 or visit www.sandstromontv.com. MORE
Press Release Source: Tradeshow Marketing Co. Ltd.
Monday July 16, 5:10 pm ET
Sandstrom On TV Company Signs Infomercial-guru Billy Mays
Mays to Assist in Franchise Promotion,
Product Development and Marketing for New Retail Outlet Franchise
SCOTTSDALE, Ariz., July 16, 2007 (PRIME NEWSWIRE) -- Sandstrom On TV Company(tm), a subsidiary of TradeShow Marketing Company, Inc. (Other OTC:TSHO.PK - News), a new specialty retail outlet franchise, announced today that it has signed national infomercial pitchman Billy Mays to assist in franchise promotion and product development and marketing for the company.
Most recognized as the infomercial salesman for TV-marketed products including Oxi Clean, Orange Glo, Hercules Hook and Kaboom!, Mays will operate as Vice President of Brand Production for Sandstrom On TV Company. In his position with the company, Mays will be featured on a promotional DVD designed to market the Sandstrom franchise, assist the company in designing its proprietary product line, as well as assist in marketing Sandstrom-branded products. A new retail outlet franchise that takes a fresh, stylish and innovative approach to ``As Seen On TV'' merchandise, Sandstrom opened its worldwide headquarters in Scottsdale, Ariz. last month.
``I have seen a lot of products and businesses come and go over the years, but when I was introduced to Sandstrom, I thought this is a business model that is going to take off,'' said Billy Mays. ``Not only is this one of the most seamless franchise opportunities, but it capitalizes on the No. 1 advertised brand, 'As Seen On TV.'''
Bringing the most celebrated products sold on TV to customers' fingertips, Sandstrom will offer practical everyday-use products within contemporary, pop impresario-designed stores. Designed to be one of the most user-friendly franchise opportunities, Sandstrom stores will provide a truly unique shopping experience with a store concept that encourages live product demonstrations. Capturing the fun and pop culture associated with TV-marketed merchandise, each store will feature a pop impresario theme with retro artistic influences from Andy Warhol and other pop culture art icons to create an upbeat and interactive environment.
Sandstrom is slated to open 150 stores in the domestic U.S. market over the next three years and will launch its nationwide franchise rollout plan in the coming weeks. MORE
Billy Mays - infomercial guru
Press Release Source: Tradeshow Marketing Company, Ltd.
Thursday May 3, 9:31 am ET
Sandström On TV Company Announces Double Digit Revenue Gains
for Phoenix Stores
SCOTTSDALE, AZ--(MARKET WIRE)--May 3, 2007 -- Sandström On TV company, a wholly owned subsidiary of TradeShow Marketing Company, Ltd. (Other OTC:TSHO.PK - News), a specialty retail and product development company, is pleased to announce double digit increases for its Phoenix stores for the month of April.
There was a combined comparable store increase over April 2006 of 19.9%. Purchased less than two years ago by Sandstrom, the stores have been in existence for approximately ten years. Sales increased over April 2006 by 11 percent for its Paradise Valley location and 28 percent for its Arrowhead store.
This news follows on similar double digit increases in March of this year. Sandstrom sales increased over March 2006 by 19 percent from its Paradise Valley location and 13 percent from its Arrowhead store. Sandstrom's comparable-store sales gain -- a key retail barometer -- was 16% for the same period.
Sandstrom OnTV Company's year over year revenues have benefited from strong store sales, driven by the implementation of new marketing and merchandising strategies created by its new franchise sales team.
VP of Franchise Sales, Tim McCarthy, whose franchise and specialty retail experience has included successful runs with Natural Wonders, Nordic Track, UPS Stores, Coldstone Creamery and Dermacare USA, stated, "Our primary focus has been to develop new standards of operations for our franchise model. We have spent a great deal of time and resources implementing and testing these strategies at company-owned locations in the Phoenix market. Moving forward, given the significance of these increases, we are confident that our business model will continue to produce positive sales increases and ultimately provide our future franchisees the opportunity to own a break-through brand."MORE
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Leadership For TSHO |
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Mr. Bruce Kirk is the president of TSMC Company Ltd. The company was formed through 20 years of direct marketing experience in home shows, trade shows, and exhibitions. Mr. Kirk has been in private business and direct sales for more than 35 years. His experience includes owning his own real estate sales firm, a direct sales and distribution company, and for the last twenty years demonstration sales at home shows and trade shows. Mr. Kirk studied and received his undergraduate in Psychology from the University of British Columbia. |
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Financial Highlights For Tradeshow Marketing Company |
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Symbol: TSHO
52wk Range: 0.37 - 0.70
Avg Vol (3m): 11,569
Recent price $0.59 (9-28-07)
Fiscal Year End: 5/30
Public Float: 3,500,000
Outstanding Shares: 20,342,533
Estimated Market Cap: 11,872,400.46 as of Sep 14, 2007
Authorized Shares: 500,000,000 as of Apr 15, 2007
Transfer Agent Holladay Stock Transfer, Scottsdale, AZ 85251
Primary SIC — Industry Classification - 7389 - Business services, misc.
State Of Incorporation: NV - Country Of Incorporation: USA - Year Of Incorporation: 2003
SEC Reporting Company - CIK - 0001337340
for TSHO SEC filings, click here

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TO CONTACT TRADESHOW MARKETING |
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Tradeshow Marketing Company, Inc.
Investor Relations: John Kirk (800) 585-8762
or john.kirk@ontvco.com
please visit
http://www.sandstromontv.com.
http://www.ontvco.com.
http://www.tsmc.ca
Investors are encouraged to call (800) 585-8762
for more information
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