6 MONTHS FROM NOW, WE'LL KICK OURSELVES NOT TO...
HAVE BOUGHT FAR MORE OSCR and SHPS SHARES WHEN THEY WERE SO CHEAP.... We'll
bemoan not having taken a third mortgage on our second Residence or scuttled
our Yacht for the insurance money... Sorry, my back doesn't let me collect
aluminum cans, as someone had suggested before...
HOW COULD SHPS & OSCR FAIL TO DELIVER MUCH HIGHER SHARE PRICES, Save for an
Asteroid colliding with EARTH??...
THIS MEANS SHPS IS GOING TO SELL 1 MILLION TOP OF THE LINE COMPUTERS, THAT
COST IT NOTHING, FOR $300.00 A PIECE THEREBY CREATING EARNINGS OF $300
MILLIONS!!!!!!!
NOW, LET'S VALUE SHPS ON THIS BASIS: $300 MILLIONS/22 MILLIONS SHARES =
$13.60/sh... TIMES A REASONABLE PE OF SAY 25, GIVES US THIS AMAZING: $13.6 X
25 = $340.00/sh. ABSOLUTELY INCREDIBLE POTENTIAL HERE, IMO!!!
CONCLUSION: It looks increasingly likely that SHPS, with only 22 Millions
shares Outstanding (OSCR holds over 50% of SHPS shares) is headed for Year
2000 NET EARNINGS of anywhere from $300 Millions to $400 Millions, as
INCREDIBLE as it MAY SEEM... With a VERY CONSERVATIVE PE of 25, these
EARNINGS SHOULD TRANSLATE into a SHARE PRICE of between $340.00 and
$450.00!!! Of course, I would expect several STOCK SPLITS that would
increase the number of Outstanding shares to provide liquidity and avoid
Huge Spikes due to the potential Scarcity of shares...
JMHO, F. Goelo + + +
By: Francois+Goelo $$$$$
03 Dec 1999, 10:07 AM ESTMsg. 2222 of 3389
VERY BULLISH: CONFERENCE CALL + Additional INFO....
1) The participants...
Some 15 brokers, financial advisers and large investors in SHPS/OSCR,
including Bill Velmer and yours truly were invited to a Conference Call
chaired by Michael Markow (MM) that lasted from 1:00 pm till 3:10 pm... The
main purpose was for MM to recount his 7 Days Due Diligence Trip to
Israel...
2) Michael Markow...
is the CEO of Worldwide Corporate Finance, a Company whose Services are much
in demand lately... I have done prior Business with Michael and he has
struck me as a straight shooter and a very Honest and Capable Operator with
some 20 years of experience in the field... If he says: "I have done
thorough Due Diligence on this Company and I believe it has a great Business
Plan, Management and Future...", we SHOULD ALL TAKE NOTICE...
3) His general impressions of the trip...
MM was BUBBLING with excitement about SHPS, in spite of the jet lag... He's
been at the Comdex Show, he's talked to most of the employees, who all speak
excellent English and work 15 hours a day, he had numerous meetings with
Executives, he met with BDO, the Accountants, he shook hands with the
Bankers... AND HE IS THRILLED!!! He even saw the deposit slip for the $25
MILLIONS paid into SHPS coffers.....
He said he truly BELIEVES that SHPS and OSCR have such a TREMENDOUS FUTURE,
that he has NEVER SEEN ANYTHING like it in all his Professional life...
4) ITDI in Berlin and Credibility was my first Question...
IDTI is the Consortium of Wealthy investors from the Middle East who has
supplied the $25 Millions to SHPS... They have agreed to buy from CCM, a
subsidiary of SHPS,
1 Million Computers at "true cost + 7%", over a period of time of 6 to 12
months, depending on how fast the computers retail in the Middle East,
Europe and the USA... In exchange for supplying these computers FREE of
CHARGE back to SHPS, they receive Marketing Rights to the Middle East and a
one page Advertising e-mail per day, depicting 7 different Products...
Two of those will be related to SHPS... As the "Gold Card Members" fill
their applications, a consumer profile is established that will ALLOW
PRECISE & TAILORED TARGETING of the Advertising to EXACTLY MATCH the END
USER... As a result, a very useful and worthy E-Mail list is produced for
Rental to other Entities targeting similar consumers... This alone has been
estimated to generate some $60 Millions Revenue per Year with probably
Earnings of some $50 Millions after running expenses...
5) COMDEX SHOW and early results...
According to MM, the COMDEX SHOW is a resounding success for SHPS that will
be repeated at additional COMDEX SHOWS in other Countries... In the first
two weeks of Promotion of the new DEAL, SHPS signed up about $1 Million
worth of Business in TINY Israel only... Since there is not cost basis, just
the advertising some 80% of it will go to the bottom line as NET EARNINGS...
MM confirmed that out of the $300 Millions in sales, they expected $250
Millions in net Earnings, after all marketing expenses... Now, just imagine
the rest of the Middle East and Europe, starved for inexpensive, TOP of the
LINE COMPUTERS!!... Sales in the USA will probably only be one third or less
of the total!...
6) Financials and NASDAQ...
SHPS, which is fully reporting currently meets all requirements to apply for
NASDAQ Listing and so does OSCR, as soon as its 10SB is filed and
accepted... MM will be perusing the Draft Audit by BDO tomorrow and full
financials and 10SB are scheduled for Release in about one week...
BDO has been able to confirm that OSCR had $500 Millions worth of Contracts
on hand, as per recent Press Release... In addition, the $20 Millions
Revenue/$6 Millions Earnings for SHPS will be Substantially confirmed... The
$60 Millions Revenue and $14 Millions Earnings for OSCR will also be
confirmed with a "footmark" pertaining to earnings connected to an event
subsequent to the end of the Quarter by about two weeks... All in All, VERY
GOOD NEWS INDEED....
7) Shares Structure, Analyst Coverage, Forward Split...
ANALYST COVERAGE is expected to begin shortly and we heard that Management
is getting ready for a forward stock split early next Year to provide
additional liquidity in the stock... Latest figures on the share structure:
OSCR: 19 Millions outstanding and 2.65 Millions in DTC (Float)...
SHPS: 22 Millions Outstanding and 2 Millions in Float...
8) Conclusion...
MM STRONGLY believes that OSCR will be a Major Telecom Company by the end of
Year 2000 and so do I... SHPS, due to its HUGE REVENUE Base and HIGH PE will
also do very well... There were interesting Hints of more Spin-offs,
Acquisitions and large Financing Deals in the very near term... I have
TROUBLE thinking of TWO STOCKS any HOTTER than these....
9) Disclaimer: This is only my opinion, not a recommendation and no
responsibility is accepted for errors or omissions... Potential investors
should carry out extensive Due Diligence and only invest what they can
afford to lose...
JMHO, F. Goelo + + + |
