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RTGV News RTG Ventures Announces 3-month Morato

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Post# of 145255
Posted On: 08/31/2012 9:34:59 AM
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Posted By: lucyinthesky

RTGV News



RTG Ventures Announces 3-month Moratorium On Issuance Of Common Shares




2012-08-31 09:00 ET - News Release






NEW YORK , Aug. 31, 2012 /PRNewswire/ -- On August 21, 2012 RTG Ventures, Inc. (OTCQB: RTGV) Board of Directors issued a moratorium on the issuance of any common shares for three months in order to attract value based investors and identify partnerships with like-minded entities. The Board believes this action will address the undervalued share price and is a key component in an overall plan to limit short term market tactics which do not serve the objectives of building a sustainable business and increasing shareholder value.



Reggie James , SVP Marketing Communications said, "As cited in the recent Letter To Shareholders ( http://bit.ly/LwhMTH ) and subsequent PRs, the public market continues to struggle with the valuation of digital media technology businesses. Recent valuations of Facebook, Groupon, Zynga and others illustrate that while private company investors understand the dynamics of building Company fundamentals, the public market remains short-term oriented and can't make up its mind what to measure. So the dialogue continues. As a result, the valuations range from a multiple of earnings, such as: Groupon x12, Google x14, Facebook x31, Linked-In x79 and Amazon x100. Using price: earnings ratio, Facebook x69, while Linked-In x852. By comparison, the market average for companies in the Standard & Poor's 500-stock index is about 16. In the manufacturing model, one valuation number was the criteria, not a range."


James added, "RTG is applying core values to building a 21st century digital media technology business. That strategy was reinforced in a recent article in the WSJ, in which new Yahoo CEO, Marissa Mayer has ordered that the daily stock quote be removed from the Company's internal website and 'to focus on users'. Another recent article in the NY Times entitled, 'When the Network Effect Goes Into Reverse ' on August 17, 2012 , stated: 'Growth, not profit is what matters at the early stage in the life of Internet business."




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