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Celebrities Endorse Beamz Interactive Ahead of Key Holiday Season

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By TDM Financial

Beamz Interactive, Inc. (OTCBB: BZIC) began making waves in the music world after signing an endorsement deal with Billboard Top 100 artist Flo Rida back in June. Since then, the company has signed two other celebrity endorsement deals with the legendary DJ/MC Grandmaster Jay and former Jefferson Starship guitarist Craig Chaquico. And these celebrities have been instrumental in raising awareness of its product line ahead of the key holiday season.

Capitalizing on Celebrity Star Power 

Celebrity endorsements tend to be hit or miss in many cases, depending on the celebrity’s true commitment to the product or brand. In the case of Beamz Interactive, Flo Rida’s endorsement proved to go above and beyond anyone’s expectations. The best selling digital hip-hop artist in the world not only collaborated on the Beamz by Flo and filmed a series of videos to promote it – he used the product in concerts and music videos, as well as mentioned it in interviews. 

Interested investors can watch the entire video interview on YouTube here:
http://www.youtube.com/watch?v=0c5UlVFklro 

Former Jefferson Starship guitarist Craig Chaquico has also been an avid supporter of the Beamz product line. In addition to using the technology in his own concerts, he has actively endorsed the product in a number of media outlets. For example, he appeared on Southern California’s NPR station on October 19th and 20th in an interview entitled, “Jefferson Starship Guitar God, Craig Chaquico ‘Beamz’ onto Catalina with a New Instrument for the Masses.”

Interested investors can watch the entire video interview on YouTube here:
http://www.youtube.com/watch?v=rjCoLVmpLcw

More recently, the company signed an endorsement deal with the legendary DJ/MC Grandmaster Jay to promote a special version of the Beamz. With a 35 year career as an award-winning hip-hop pioneer, Grandmaster Jay will develop and enhance the Beamz DJ product line and promote it through public appearances, online videos, and social media channels to the aspiring and professional DJ market, potentially opening new doors for the company.

Amateur DJs to Mass Market Consumers 

With over 45 million Americans playing a musical instrument and 80% saying they wish they could play, the music industry represents a substantial multi-billion dollar market opportunity for companies with the right product and awareness initiatives. Beamz Interactive’s celebrity endorsement deals address two key segments – mass-market consumers and the amateur to professional DJs – with two different products catered to the needs of the market in terms of sophistication. 

The potential among mass-market consumers can perhaps be best quantified by looking at a similar product from Activision Blizzard Inc. (NASDAQ: ATVI) – Guitar Hero. Working in a similar fashion, users can play the Beamz by Flo to various popular songs by Flo Rida and other artists, although it can be played on everything from smartphones to television sets. Guitar Hero ultimately became a billion dollar franchise targeting just the video game niche. 

Amateur and professional DJs represent a quickly growing audience that’s interested in a more sophisticated version of the same product. With tens of millions of potential aspiring DJs around the world, the company estimates this market to be a multi-billion dollar opportunity. Management has already collaborated with Virtual DJ – a leading DJ software company – to create a combined product to more quickly capture market share. 

Potential Investment Opportunity 

Beamz Interactive is in a unique position right now, with three celebrity endorsers actively promoting its product ahead of a key holiday shopping season. After appearing on the HSN, Inc.’s (NASDAQ: HSNI) Home Shopping Network in September, the company recently began a nationwide television ad campaign featuring Flo Rida, with an initial rollout on popular music and entertainment channels like MTV, VH1, Bounce and Comedy Central. 

Investors will not be able to see the results of this campaign until this quarter’s financial results are reported in first quarter of next year. But with a modest $6 million market capitalization, the market hasn’t priced any of this potential upside into the stock, which is actually trading below the levels seen before the Flo Rida endorsement deal. Investors have the opportunity to acquire the stock at a ground floor opportunity, ahead of what could become a breakthrough quarter. 

Finally, investors can also benefit from the company’s intrinsic value stemming from its attractive patent portfolio. While U.S. Patent 8431811 covers its “multimedia device enabling a user to play audience content in association with displayed video,” the company also has broader patents covering things like “multimedia spatial controllers having proximity controls and sensors” that could open up entirely new markets in the future. 

In the end, Beamz Interactive represents an attractive investment opportunity given its mere $6 million market capitalization. While the stock certainly entails some risks, investors may want to capitalize on the valuation gap before holiday season sales driven by celebrity endorsements. At the same time, downside may be limited to an extent by the company’s valuable patent portfolio, which has both product development and licensing potential. 

More Information 

Beamz Interactive Investor Portal http://www.trilogy-capital.com/autoir/bzic_autoir.html

About Emerging Growth LLC

EGC is a marketing and consulting firm that specializes in creating ongoing communications strategies for public and private companies. 

Disclosure 

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