When the global growth story is really ramped up, the usual blare from the pulpits of commerce such as CNBC or Bloomberg will generally be about the strength of the US or Asia, especially China. Sometimes you’ll hear sound bites about India, or maybe even something concerning recently emerging Latin America. Yet rarely does the investing public hear much about Eastern Europe. This is tragic in a sense, because Eastern Europe is offering up a plethora of interesting opportunities.
When Eastern Europe was solidly under the control of the entire of the Soviet “Bloc,” the images that come to mind are stereotypical, although quite correct. Shoddy and poor housing, lack of sufficient foodstuffs at grocery stores, complete lack of any form of luxury retail, etc etc. But, when the wall came down on those so many years ago, so did decades of impoverishment. People were tired of the crushing mediocrity of the standard fare, they had seen in the west and they wanted it.
Now, things are drastically different. Eastern Europe is an investor’s mecca, as all that pent up, but suppressed demand is blossoming forth. Out is the old Soviet hardline communistic way of life. In is the Western style nightclubs, the luxury hotel, and the fine merchant marketplace. As Industry finds a good home in the border states, levels of income are rising at a surprising pace, affording the population an amount of discretionary spending funds that were once thought unimaginable.
Along with the rush from American and Asian Industrialists to converge on this area and tap into its new manufacturing vibrancy, the opportunities to serve the employee/consumer have taken on a decidedly Western appeal. It’s with that thinking that a development stage company, Emerging Media Holdings Inc needs introducing. Operating primarily in the radio and TV broadcasting arena, recent acquisitions have broadened their approach to include advertising and TV programming.
Their recent moves have seen them sign an exclusive Letter of Intent to acquire Videoservice Ltd., one of the leading Marketing Agencies in Moldova, Eastern Europe. The extensive Videoservice client list includes major TV and Radio companies as well as such clients as Daac Hermes Inc., Chateau Vartely, Continental Inc., Moldinconbank SA, Agroindbank (MAIB), which is Moldova’s largest commercial bank and lender. Revenues from another timely acquisition Media Alianta, whom was also already instrumental in Radio and Television in the Moldovia/Eastern Europe region, rose 113% year over year.
When people finally create enough income to support themselves, it’s usually just a short period of time before they start exploring the “finer” things in life. In emerging markets, once some amount of discretionary income becomes available for pleasure purchases, it’s not uncommon to find that the desire outstrips the supply. This is where the TV and advertising revenues become so vitally important. People need to see and hear what’s available, so they can indeed go buy the product.
Emerging Media Holdings is making headway in a booming region, and with the proper acquisition and product mix is showing tremendous revenue and net gains. Investors with an eye for emerging market opportunity owe themselves a look at EMDH. A company wise enough to find the glaring opportunity in Eastern Europe is obviously well ahead of the crowd, and deserves a look.
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