VLCO - 25 Year Old Company Looking To Make It Big

I came across VLCO several weeks ago, as the stock was slowly selling off on light volume. The more research I did on the stock the more I liked it. Currently the stock is trading close to it's all time lows, and I think it is ready to turn the corner and post big gains in the future.

I see VLCO as an up and coming company, and recent developments show that they are indeed starting to grow revenue. The share structure is attractive for a $.012 stock and seeing how this was trading over $.10 only a few months back, there is a lot of room to go as far as upside gains are concerned.



Who is VLCO - Valcom?

I suggest you watch this video. It should give you a good idea about the company and its potential.

This is a summary right off the company web site:

http://www.valcom.tv/index.html

ValCom, Inc. manages and operates a new Tele-Production Center in Clearwater, Florida, known as “the new haven” for many productions, having more Television Networks than any other city in the United States. This multi-million dollar state of the art facility in Clearwater, Florida, is a 33,000 square foot facility that sits on 5 ½ acres and is a favorite of all major film studios and television networks. It houses three sound stages, a Broadcast Center and is continuously booked.

ValCom offers several flexible studio configuration options. Our digital control rooms and studios are perfectly suited for music video productions, commercials, television programs, industrial and training productions, direct response, media and satellite tours, webcasting events and videoconferencing. Our digital multi-track recording studio is perfect for music productions and our animation division works in tandem with the post production facility to create the perfect ending to your project. From Pre to Post Production the ValCom digital production hub is complete with all the amenities and personnel to make any production successful.

This Tele-Production Center will allow the company to nurture and develop many additional valuable projects in a truly efficient in house environment. ValCom’s success is fueled by an elite executive team of experts in each of their fields that have the ability to skillfully serve third party needs as well as their own. ValCom controls its destiny and profitability from start to finish by overseeing its entire Production pipeline through its film, music studios, motion pictures, Television distribution, and live theater.

VLCO also owns and operates their own television station myfamily.tv It reaches over 25 million households so far and growing.

Here is a brief synopsis of myfamilytv

Following the 100% acquisition of the Christian Television Network, Faith TV LLC on December 15 2008, ValCom began an immediate rebranding to “My Family TV”. The network which had been operating through 65 broadcast, IPTV and cable affiliates at the time of acquisition has now grown to over 88 affiliates. With a primary focus on family friendly programming, management has engaged a strategic plan of growth through quality programming, distribution through organic growth and acquisition leading to a strong foundation for sales. My Family TV is a strong family friendly network with a core established audience and broadcasts to over 50m households through its extensive affiliate network of full and part time affiliates. My Family TV is an emerging network created for American families.

With the acquisition of My Family TV, Valcom now has a library of over 1,000 films, over 200 episodic TV series and more than 500 individual TV one-off specials and documentary programs.

A major revenue stream for ValCom is network television. The vision of the company is to follow the path of ABC Family; a network that was purchased for $1.6 Billion and was later sold for $5.1 Billion. The first network being built by ValCom is My Family TV, which was acquired by the company in 2008.

ValCom has made significant changes to My Family TV that has increased the overall value of the network. Some of these changes include: New programming blocks of health and lifestyle, classic television, comedies, children’s and primetime entertainment and over 80 movies per month; Increasing carriage to include major growth markets such as: Charlotte, Dallas, Denver, Phoenix, San Francisco and Tampa. The implementation of an aggressive effort to secure cable and broadcast coverage in additional major markets will lead to improved ratings and increased revenues.

In less than one year ValCom has eliminated all debt from the acquisition and is operating My Family TV with almost no debt load. Short term plans include the acquisition and launching of new channels that will grow in value based on 4 factors: Programming, Distribution, Ad Sales and Low Operational Expenses. The company has positioned itself to be a U.S. market leader in live interactive televised auctions, traditional and innovative family programming, and sports, and will launch this successful formula to major international markets in 2010.

ValCom’s business includes television production for network and syndication programming, motion pictures, and real estate holdings. Revenue is primarily generated through the lease of the sound stages and production. Our past and present clients include Paramount Pictures, Don Belisarious Productions, Warner Brothers, Universal Studios, MGM, HBO, NBC, 20th Century Fox, Disney, CBS, Sony, Showtime, the USA Network, the Game Show Network, Endemol, BET Home Shopping Network and Sullivan Studios.

ValCom has a long history of TV and film production and continuously develops projects for productions and considers proposals for co-production. ValCom has developed and produced a number of live action series pilots and full length feature film projects such as PCH (Pacific Coast Highway) and the 40 episode TV series AJ’s Time Travelers. Valcom has been commissioned to produce pilots such as Truster for Fox, It also produces development pilots itself for pitching to networks such as the New York based sitcom Fuhgedabowit and Let’s Do It Again featuring Frankie Avalon. With its integrated studio operation, studio equipment and post production facility, ValCom has the opportunity to co- produce by way of the provision of services with the opportunity to defer costs and also to provide executive producer services to assist with development, planning, financing and distribution.

VLCO's revenue growth is on the rise and the stock should react accordingly. Volume is starting to pick up and it is only a matter of time before the price starts to follow. This will be a stock to watch going forward.