SITUATION OF THE MONTH
By Lawrence C. Oakley
November 1999



[ Editorials - Editorial Commentary - Tony Velocci - Sneak Preview - Update Briefs - Important Strategies - Dow 30 Market Timing - Ken Coleman ]


Newagecities.com, Inc.

  • New Age & Alternative Health Site
  • U.S. market alone includes 38 million people
  • They spend $44 million/year on New Age products
  • New Age population an under-served market
  • European & other foreign markets equally large
  • www.newagecities.com to offer many company stores
  • Acquired the "Mind, Body & Soul NetworkTM" (MBSN)
  • Launched www.newagesound.com Internet radio station o Generates revenue through product & advertising sales

Key Facts

Business: E-commerce Portal
Listed: OTC Bulletin Board
Symbol: NACT
Price (10/27/99 Last): 1-5/8
Dow (10/27/99 Close): 10,394.89
NASDAQ (10/27/99 Close): 2802.49
S&P 500 (10/27/99 Close): 1296.71
Range since 4/99: 1-1/2 - 8
Shares Out: 6.1 million*
Approx. Float: 4.1 million shares
Market Cap: $9.9 million*

* Fully diluted

Overview

NACT is creating a demographically targeted Internet portal to offer e-commerce services to the New Age & alternative health markets. We are acquainted with the alternative health market & recognize the trend toward greater utilization of alternative health care. The surprise was the size of the New Age market. It consists of over 38 million people in the U.S. alone, plus lots more in other countries reached by the Internet. In the U.S. alone,

people spend about $44 billion a year on New Age products. New Age product areas include natural health, aromatherapy (mood changing aromas), astrology, crystal energy, eastern philosophy, UFOs, psychic consultations, books, Cds, video tapes, & an astonishing large assortment of other related products & services.

The term "New Age" has come in & out of vogue over the years, but many things associated with it have demonstrated steady growth. One example: The book titled "The Celestine Prophecy" by James Redfield. Clearly a "New Age" title, it sold over 7 million copies.

As I mentioned in my Sneak Preview on NACT, a study titled "New Editions New Age Consumer Survey" by Sophia Tarila, Ph.D., to be issued by New Editions Marketing, gives some very interesting & somewhat unexpected statistics on the people constituting the New Age market: Average age 44; 66% have college degrees; 41% completed post-graduate work; they spend an average $1,000/year/person on New Age items.

The New Age population, while large in size, is still an under-served market. Its members want a sense of community. They want an environment that caters to their needs. We've seen lots of New Age related stores in large shopping malls. This is the first Internet e-commerce site that specializes in New Age that I know of -- I believe it will prosper.

...continued on next page, click here

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October 1999
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August 1999
July 1999
June 1999
May 1999
April 1999
March 1999



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