More Big Gains for CPNE

For our newer subscribers, and in case you longer term followers have forgotten, our last round of coverage on Commerce Planet Inc. (OTCBB: CPNE) initiated at a price of just 21 cents per share and wrapped up at almost $3.50. So what has changed since then? Besides the obvious drift in the stock price, the fundamentals of the company have only improved.

CPNE, currently profitable approaching $4 million as of its last SEC filing - has steadily grown revenues and profits over the past 5 quarters. As management continues to lead the industry with the introduction of a wide array of cutting edge products and ensuring that rapid growth continues. We see the tremendous potential in Commerce and they are stronger than ever - despite what the stock market has had to say about it.

The Best of Both Worlds

Today's news is a perfect example. CPNE went live this morning with http://www.myflick.com/myflick.com/ - a next generation social networking/video sharing website that aspires to replicate and improve upon the ongoing success of industry peers including YouTube and MySpace. The new site, as well as others recently launched by CPNE such as INeedAGood Diet.com & VirtualMoneyCenter.com are all tapped into some of today's largest media markets verticals, thus creating immediate revenue potential and tremendous value for the Company's lead generation and data acquisitions business.

Of course, CPNE's reach for these explosive industries is no stab in the dark. Think about it - what better way is there to increase revenue in the web media space than to establish popular websites in verticals where the highest concentration of web traffic resides? With a one-week average traffic rating on Alexa.com of 25,018 - even before the site's official launch, myflick.com should be bringing in some serious cash - soon! Besides, what most websites lack when they start is media marketing. Hmmm, I wonder where they can find that costly service at a deal. . .

By the way, for those of you unfamiliar with Alexa, it has established itself as the global authority for statistics and information on website traffic. This ranking, although early on, is a very positive indicator of what the future may hold for the new site.

All The Right Moves For Commerce Planet

Created in February of '05, YouTube has rapidly emerged as a leading online video sharing hub. In less than one year, the Company was swallowed up by Google for $1.65 billion. MySpace, on the other hand, was created back in 2003 and then sold in '05 to Rupert Murdoch's News Corporation for $580 million.

The decision to combine and enhance two of the most lucrative pieces of the online media puzzle will allow CPNE to add significant value to its business and stay on task with recently outlined goals to transition into a true media company.

By fortifying its offering, CPNE not only boosts revenue potential, but also opens the door wide to collaboration with industry peers. As the market consolidates, it is likely that media players will increasingly collaborate and fortify their offerings rather than being passed over in favor of industry giants. This is just another way Commerce is staying ahead of the game.

Ready For The Ride?

Commerce Planet is back on our radar and more attractive than ever. Especially since share prices have pulled back for a very sweet buy entry of $1.16 (compared to where we pulled off coverage at $3.50)!

Last time we had our eyes on CPNE, subscribers were in for quite a profitable run out of CPNE. With great financial announcements and its new diversification, we are in for another wild ride!

So there you have it - a company coming off a record '06 (revs = $27.4 mil & net income = $8.7 mil), logging Q1 '07 revenues of $13.2 million (nearly 50% of '06 revs) and continuing to expand aggressively into the most popular segments of online media industry. Take a look around the industry and see what other profitable powerhouse you find priced around a buck. Chances are, it will pale in comparison to CPNE. As always, do your due diligence and happy trading!