EYSM: 5-day Chart

According to the American Chiropractic Association (ACA), the median annual salary for U.S. Chiropractors was about $67,000 at the beginning of the decade. Due to this fact, the growing number of Chiropractors (>50,000) in the country are constantly striving to add new clients and acquire ancilliary products that complement their service offering to help them generate the most possible income. Alternative health products typically account for a significant percentage of annual sales for Chiropractors and professionals in this space are constantly on the lookout for new items to pitch to clients.  These include, but are not limited to: vitamins, organic pain reducers, and books as well as rehabilitatioon equipment such as treatment tables and support braces.

With an expanding target market of more than 30 million consumers currently seeking to treat their aches and pains through alternative methods, Chiropractors are faced with a major growth opportunity if they can devise an effective growth strategy. That’s where Elysium Internet comes in. By acquiring a domain name with high intrinsic value that consumers will very likely type directly into their navigation bar when searching for a Chiropractor, EYSM positions itself to become a middleman between medical professionals, consumers, and health product suppliers in a very lucrative market.

Believe it or not, good domain names – sometimes compared to valuable Park Avenue real estate – attract such high quality web traffic that company’s like Elysium can make a ton of money by charging Chiropractors on a per appointment or per call basis for connections made through their website directory. This creates a win-win for both EYSM and medical professionals: Chiropractors only pay for performance and benefit from a new stream of business. In addition, Elysium makes money every time a consumer enters one of its domains into their nav-bar and pursues the services their affiliates.

Now that EYSM has refined its offering while continuing to acquire new “category killer” domain names, the next few quarters should be a prime indicator of the company’s future ability to establish a position as a leading local search company. Typically after 4 monsters days, we’d be looking for a pullback tomorrow. However, given the fact that shares continue to close at their intra-day high and volume shows no sign of abating, there’s a great chance for another +10% day on Friday.

The stock appears ready for a move north towards its 52-week high of $.14 and could easily gain another 25% today. Any news from the company over the next few days could provide a major boost in PPS although EYSM appears to be trading quite well without any press.

Contrary to the business models of many of its competitors, which rely heavily on paid search advertising, Elysium is able to capitalize on the intrinsic value of its domain names and their ability to attract natural or direct navigation web traffic. Direct navigation has been dubbed is the largest untapped paid search market while the local online ad space is expected to grow from $15.7 billion in 2005 to $31.1 billion in 2010.

EYSM is carving out a niche in the local online ad market with its unique domain name portfolio and professional directory business which connects professionals with customers. Continued growth is forecasted for the U.S. local ad market in 2010 as it garners a larger share of online advertising revenues. By 2013, this market is expected to capture 16% of online ad dollars in the U.S. marketplace and EYSM is strengthening its offering to capitalize on this growth.

While many analysts agree that search Savvy internet users are becoming increasingly averse to advertising tactics including “trick and click” and parked pages. Despite search being predicted to account for 50% of overall online advertising share before its shrinks in size, online consumers are increasingly forgoing search engines to find the information they need.

By leveraging the intuitive nature of their web site domain names and developing content-rich sites that promote a value-added user experience, much to the contrary of many parked pages that house largely irrelevant data, Elysium should benefit from Internet users getting smarter about how they search.

All in all, EYSM has caught our attention due to its ongoing market rally as well as its timely and compelling business model. PPS continues to advance here and we strongly suggest looking into the company today while entry levels are still relatively low in comparison to the 52-week high.

Update: EYSM is up more than 23% this morning on volume of nearly 1.4 million shares traded.

Peers such as local.com have seen PPS quadruple in recent weeks and the market seems primed for local online search firms like Elysium. The company has recently achieved a number of significant operational milestones and also announced a set of rather aggressive strategic initiatives for the next 12 months. EYSM generated record top-line sales during 2009 and logged its 1,000^th directory network listing while boasting its unique online offering at 16 industry trade shows. Going forward, management expects to become cash-flow positive during the first quarter of 2010 and resume fully-reporting status during the new year when it changes its name to “TheDirectory.com Inc.”.

About the Business Model….

EYSM has acquired a domain name portfolio of more than 2,000 highly intuitive, “category killer” domain names with a current estimated market value of approximately $3 Million. The portfolio holds a much higher intrinsic value given the fact high quality Internet real estate is extremely limited. As evidenced by both the recent $10 Million acquisition of FUND.com by fund.com Inc. and Elysium’s own $1 Million purchase of the Pediatricians.com, Psychiatrists.com and Podiatrists.com domains attractive “type in” web addresses are a very limited and unique opportunity. The company is currently monetizing its online assets through the deployment of proprietary automated direct navigation and local search platforms that connect local advertisers with high quality Internet traffic at minimal relative cost.

We’ve been intrigued by EYSM’s business model for quite some time now and it appears that things are finally beginning to fall into place for the company, from both a market and operational standpoint. In upcoming editions we’ll be analyzing the company’s near-term potential. But for now, we suggest contemplating taking an ownership position in EYSM before the stock doubles again.

Elysium Internet (OTCPK: EYSM) is an emerging leader in the direct navigation/Internet advertising space. The Company is building a direct navigation based Internet advertising network. Elysium builds targeted professional directories over category killer Dot Com and Dot Net domain names such as www.Podiatrists.com, www.Psychiatrists.com, www.Dietitians.net, www.Auditors.com and others. More than 70 million Internet savvy Baby Boomers are heading into retirement over the coming years. Elysium Internet has built one of the highest quality direct navigation networks of one word generic dot com and dot net Internet domains targeting the baby boomer health sector.

Why is Microsoft spending $100 Million dollars in marketing funds to launch a new search engine?? Simple, Search is a mint. It’s where Google makes most of its money. According to a recent research report search engine users pin point the exact results there seeking around 25% of the time. Wouldn’t it make more sense to go to Podiatrists.com to find a Podiatrist or Psychiatrists.com to find a Psychiatrist?? The overwhelming answer is yes, and natural or type-in traffic where a users enters “Podiatrists.com” into the search box bypassed the search engine all together and produces, in our case, the exact search result the users was looking for. For more information visit the Company web site www.ElysiumInternet.com. Review the Company’s quarterly, annual and other filings with the Securities and Exchange Commission at http://www.SEC.gov.

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]]> http://www.outcasttrader.com/trend-analysis-for-eysm/feed/ 0 http://www.outcasttrader.com/eysm-pausing-for-a-pop/ http://www.outcasttrader.com/eysm-pausing-for-a-pop/#comments Wed, 28 Jan 2009 21:53:19 +0000 admin http://www.outcasttrader.com/?p=1345 Look for increasing volume and a break above today’s high of 13 cents. A clear break above 0.13 could take EYSM all the way to $0.25.

Recent news:

January 26 -Elysium Internet Expects Record Revenue for 2009 First Quarter