EYSM Continues to Soar! Up +100% Since Our Monday Alert.
It looks like we hit the nail on the head with our breakout call for Elysium Internet Inc. (OTCPK: EYSM) earlier in the week. After rising roughly 85% during the first two days of the week, EYSM gained 12.1% or $.0043 Wednesday on more than 8.5 million shares traded. Volume this week has been explosive and today’s news drove the stock higher as we stated it might in yesterday’s commentary.
EYSM appears to be one of the most misunderstood companies trading on the pink sheets today, which is understandable to a certain extent since management is not required to file quarterly reports and Elysium operates in a new Internet-related market.
Here’s a little background info on the company and its current operations: When EYSM first started its Internet directory model the company charged a monthly or annual fee to list. They ran the business that way until last summer. At that point, EYSM did a beta test with a new pay per call or pay per appointment model where instead of charging a doctor $495 per year they would list them for free in their directory and only charge for actual appointments that are generated from the directory, in this case Podiatrists.com.
Since that beta test that took place in August and September of this year EYSM has decided to rework all of its directories current and future using the new model. During this time their closest competitor www. Yext.com has raised $25 Million from a key silicon valley private equity fund (http://www.techcrunch.com/2009/10/01/the-25-million-demo-yext-scores-a-big-round-from-ivp-after-techcrunch50-debut/). They had already raised around $4,000,000. What’s really exciting is that management honestly believes that its offering is substantially better then theirs. Yext has a massive churn because they bill for all calls. Conversely, Elysium reportedly has every single call reviewed by an account executive and only bill the doctors for actual appointments made.
Elysium’s “search-ability” is also quite impressive. If you go to to Google and type in “Find a foot doctor” or “find a Podiatrist” you’ll see that they organically rank high on page one all day, everyday. The competing podiatry site is www.LocalPodiatry.com and it does not rank at all. All of their traffic is purchased from Google. Management firmly believes that they are playing ball in a legitimate $20 Billion market and with some of the most prime domain name real estate available. They are only beginning to launch their directory offering and appear to be positioning the company for a future acquisition.
As we’ve stated previously, if the recent run-up in PPS isn’t enough to grab your attention here, the company’s unique position in an “up and coming” online niche market should. We hope that today’s blog provides some clarification about who the company is and what it’s all about. Feel free to post any questions that you might have about Elysium and be sure to check back soon for updated commentary about the company and its near-term value-proposition and potential for further gains.
