GrooveVC Community Update – Sept. 9, 2009

September 10, 2009 at 3:21 pm 2 comments

The following GrooveVC  Update was sent to all “GrooveVC Community Updates” email subscribers at midnight on Sept. 8.   We will share these community statistics, news and research updates through our blog 24 – 48 hours after we release it to email subscribers.  To gain real time access to these updates, please click through to our home page and see the box entitled “Get into the Groove” just below the GrooveVC logo.  Enter your email address there, answer a few questions and you will receive these updates in real time.  Here is the Sept. 9 update –

Dear Groove VC Community Members,

A quick note to update you on our progress and a few things community participants might find to be of interest.

As of August 31, 2009 GrooveVC  Community participants have now increased to a level (130) that our research suggests should be adding in excess of $1,400 per day on average to Vertro’s bottom line if the averages are in line with what we experienced with control group #2 in the experiment we undertook during the due diligence process.  Of course, by early Q4 we are hoping to have participation that will push the daily revenue figure up to 7x or 8x that level so that we can have a seven figure impact on Q4.

Another thing community members might find to be of interest is the reported share holdings.  We hope that each GrooveVC community participant will invest a few thousand dollars in Vertro stock so that they will search and shop like an “owner” and also so that they may participate in the upside we expect to result from our participation.  As of month’s end, community members have reported purchases of just under 700,000 shares, which would amount to approximately 2% of the outstanding shares.

As many of you probably noticed, there was a small run up in the price of Vertro stock in the first couple of days after our report came out. We feel like this was probably due in large part to the buying of members of our community.  Do not be discouraged with the volatility – we fully expect the shares to trade in a fairly wide range until the company reports its first profitable quarter, which we expect to be Q4.

Also, do not grow weary of searching for/shopping all your purchases through Alot and remember that there are many others out there who are now doing the same thing.  Please continue to encourage your contacts to join us and keep spreading the word to friends and business associates – the sooner we get more involved, the sooner our aggregate “searching/shopping” power will have a material impact on Vertro’s financials.  We need to be “fully engaged” beginning October 1 and throughout Vertro’s fourth quarter so as to have the biggest impact.  Do not forget, when Vertro reports those fourth quarter numbers that ARE going to be impacted in a big way by our participation – the attention that will be thrust upon Vertro by the investment community will make expanding our ranks much easier.  There will be ALOT of people who will begin to understand that they should buy the stock, download the toolbar and make money from their searching/shopping.  Those people who join us when the stock is trading 200 or 300% higher than it is today will still be able to enjoy exponential gains as more and more investor/consumers pile in to the stock and start to use the service.  Obviously, one of the great things for current community members is we will already be sitting on large gains when the stock really begins to move.

When you look at the numbers from our two control groups and consider the size of Vertro (current market cap around $8.5 million), its easy to see that we really only need a few hundred people involved to have a material impact on Vertro’s fourth quarter. When you consider the impact we could have if  we could get enough momentum to add a few thousand “engaged” users, its easy to see how this stock could move up exponentially in a very short time frame.  It is very doable, but only if the “early adopters” make it happen in Q4.  Keep up the good work!


Entry filed under: Uncategorized.

The Significance of Control Group #1 GrooveVC Update Re: Vertro Management Interim Update

2 Comments Add your own

  • 1. Steve  |  September 11, 2009 at 9:10 pm

    Thanks for this, When can we expect GrooveVC to recommend other stocks?

    • 2. jwbuffett  |  September 14, 2009 at 1:13 pm

      You are very welcome. While we do expect to introduce other stocks in due time, we feel that Vertro remains an outstanding opportunity at today’s price and we do not feel that the GrooveVC communities’ involvement has been or will be reflected in the stock price until well into the fourth quarter and possibly not until the fourth quarter is reported. For this reason, we do not want to dilute the impact we expect to have by shifting the group’s focus to another situation. The potential impact on the Vertro situation is enormous and we believe the stock could still be a “ten bagger” from these levels if everyone uses the ALOT services and recommends them to other investors who can appreciate the potential and use ALOT for their searching/shopping.


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