Conservative Broadcast And Media Journalism is beginning to experience increased investor interest, as the fallout from a number of conservative social media websites continues.
The company has made two acquisitions in the past couple of months which has substantially improved its financial position.
As more conservative voters look for reliable sources of information, CBMJ’s social media properties could see increased interest and traffic.
We recently came across an interesting little company named Conservative Broadcast Media & Journalism (OTCPK:CBMJ).
Source: CBMJ Website
This company, once a marijuana play, has remade itself into a company focused on the conservative movement in politics, through a couple of recent acquisitions, which have also served to improve the company’s overall financial position.
Formerly named Canna Consumer Goods, Inc., company CEO, Mark Schaftlein made a strategic decision, in September of last year, to acquire DeDenato Enterprises, Inc., an organization led by CEO and Founder Brandon Vallorani.
Mr. Vallorani, a Forbes Books published author, who is regarded as a pioneer in the digital media and data driven marketing industry has been distinguished six-times as an Inc. 5000 entrepreneur. He has built and sold two other similar media companies over the past 12 years and has a strong track record in increasing shareholder value.
This immediately accretive deal, creates a company which will now go from near zero revenues to around $2.4 million in projected revenues for fiscal year 2020.
In fact, when the company reported its third-quarter pro-forma results on November 14, 2020, it showed that revenues were up 97%, resulting in a net profit of $157,000 or $0.001 cent per share, excluding a one-time gain of $266,134 gain on debt extinguishment.
Additionally, on December 29, 2020, the company announced the acquisition of Military Grade Coffee, a company that has a marketing presence on various social media websites including Facebook, Twitter and LinkedIn.
CBMJ already owns another coffee company; Thrasher Coffee.
Mr. Vallorani has an impressive resume. He is a graduate of West Virginia University and Thomas More University in Kentucky.
He is an accomplished author who has authored, or co-authored, two books; The Wolves and the Mandolin (Forbes Books, 2017), and Would Jesus Vote for Trump? (Flag and Cross Network, 2019).
He has developed and managed over a dozen startups primarily focused on conservative and religious principles and has appeared six times on the Inc. 5000.
Many of these political news pages will likely find their cachet begin to evaporate after Nov. 8. But one company, the Liberty Alliance, may have found a way to create something sustainable and even potentially transformational, almost entirely within the ecosystem of Facebook. The Georgia-based firm was founded by Brandon Vallorani, formerly of Answers in Genesis, the organization that opened a museum in Kentucky promoting a literal biblical creation narrative. Today the Liberty Alliance has around 100 sites in its network, and about 150 Facebook pages, according to Onan Coca, the company’s 36-year-old editor in chief. He estimates their cumulative follower count to be at least 50 million. Among the company’s partners are the former congressman Allen West, the 2008 election personality Joe the Plumber, the conservative actor Kirk Cameron and the former “Saturday Night Live” cast member Victoria Jackson. Then there are Liberty’s countless news-oriented pages, which together have become an almost ubiquitous presence on right-leaning political Facebook in the last few years. Their names are instructive and evocative: Eagle Rising; Fighting for Trump; Patriot Tribune; Revive America; US Herald; The Last Resistance.
A dozen or so of the sites are published in-house, but posts from the company’s small team of writers are free to be shared among the entire network. The deal for a would-be Liberty Alliance member is this: You bring the name and the audience, and the company will build you a prefab site, furnish it with ads, help you fill it with content and keep a cut of the revenue. Coca told me the company brought in $12 million in revenue last year. (The company declined to share documentation further corroborating his claims about followers and revenue.)
Source: The New York Times
The fallout that has taken place across various conservative social media sites in the past week, has created a fractured market. CBMJ is well positioned to capitalize on this changing landscape for conservative political commentary.
One of CBMJ’s media properties, acquired in the DeDenato Enterprises, LLC transition is Cross & Flag.
In a September 3, 2020 press release, CBMJ CEO Mark Schaftlein stated
“We intend to utilize Flag and Cross as the initial building block of a long-term strategy to be a leading player in conservative media. We intend to build upon the success of the initial acquisition to build the company through organic growth along with prudent acquisitions.”
DeDenato Enterprises, LLC is now a fully-owned subsidiary of Conservative Media & Broadcast Journalism.
As a result, some of the media properties the are now CBMJ-owned include Liberty Hub, an historical archive of documents on a website named Constitution.com, Vallorani Cigars and the aforementioned Thrasher Coffee.
The attraction to CBMJ for us, is the fact that this virtually undiscovered micro-cap is profitable, has a solid base of revenues and an has a unique opportunity to fill the void that will be left from the conservative media fallout that is currently taking place.
At a price below a nickel a share, we believe that there is great potential upside from here, if CEO Mark Schaftlein can find a way to grow CBMJ’s conservative media empire.
Disclosure: I am/we are long CBMJ.
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