"As Seen On TV" Isn't Just a Catch Phrase Anymore: VVTV, ASTV, AMZN in Focus

Jan 8, 2013 7:15:00 AM PST | 236 View(s) | No Comment(s) - Post a Comment Rating

Look out Amazon.com, Inc. (NASDAQ:AMZN), and ValueVision Media, Inc. (NASDAQ:VVTV), you might want to take some notes. There's a fast-growing mail order player in town, and it's causing waves that should worry both of you. What's it called? As Seen On TV Inc. (OTC:ASTV) - an appropriately (and powerfully) named direct-marketing play that gathering some serious momentum.

The company is exactly what you would think it is based on its moniker... As Seen On TV Inc. sells the goods that are promoted via commercials and infomercials, but not available in stores. While the "As Seen on TV" tag line and red TV-shaped logo were once just a simple part of an advertising regimen, now the company has become synonymous with its proverbial hook, joining the ranks of Xerox, Coke and Google ("Make me a Xerox of this", "Let's go get a Coke", and "I Googled your name") by turning a proper noun into a verb or regular noun.

So what? Don't dismiss the power of your business name being synonymous with your line of business. Nobody says "Let's Amazon this" or "I'm going to shop with ValueVision Media", though there's little doubt both AMZN as well as VVTV would love to have that kind of free advertising and endorsement.

Yet, to suggest that As Seen On TV Inc. is just a retailer of some of the coolest gadgets and gizmos out there doesn't do the company justice. The organization is a growing monster, and may be bigger than most consumers realize.

If the name Kevin Harrington rings a bell, it might be because you've seen him as one of the four hosts/venture capitalists on ABC Television. Or, maybe you've seen him as a guest on a television show like The View, the Today Show, The Big Idea with Donny Deutsch, Bloomberg TV, or more. You may have even seen him in an infomercial, though he's behind the scenes more than on camera when it comes to production. He's everywhere. He's also the brains and leadership behind the As Seen On TV company.

As for what investors would be getting by taking on a stake of ASTV, the corporation doesn't invent or develop all those products (there have been more than 500 in all) it sells, nor does it manage the shops that make those products. As Seen On TV does the hardest job of all - markets and promotes those products. Of course, after doing it for 500 products and after about as many television appearances, it's safe to say Kevin Harrington knows how to do that job about as well as anyone on the planet. That's how he and the company have sold over four billion dollars' worth of merchandise since going into business.

But why now? Why ASTV over, say an Amazon.com or ValueVision Media? Both of those other companies are fine in their own right, but neither has the growth potential As Seen On TV has right now. Harrington's presence on Shark Tank - a surprisingly popular program - has taken his clout from good to great. Now, inventors seek him out, meaning he gets the pick of the litter when it comes to selecting new products to promote.

Throw in the fact that the www.asseenontv.com website has only been under the company's wing for about a year now but has already demonstrated major revenue growth, and it becomes pretty clear that Shark Tank, the infomercial-based direct marketing, and the website are all fueling one another's growth. And, it's all falling into place right now. 2013 should be a breakout year for the company. Would-be investors would do well to stake a claim in some shares now, since - as isĀ  the case with its products - supplies are limited.


Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.

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Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed. You can also view SmallCap Network's complete disclaimer and disclosure.

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