New profile is CHAP:
Company Profile for May 14, 1999
Chartwell International, Inc. (OTC:BB) Symbol: CHAP
Price at Recommendation (5/13/99 Closing Asked)
$0.068
52 Week High
$0.10
52 Week Low
$0.03
Shares Outstanding -- As of November 17, 1998
61,042,068
Shares In Available Float (Est.)
21,000,000
Average Daily Volume (Last 3 months)
82,000
Company's Web Presence
Chartwell International, Inc. (CHAP)
Chartwell International, Inc. which has been incorporated since 1988, is a publicly traded diversified holding company
headquartered in suburban Denver, Colorado. The Company is currently focused on completing the development of its
subsidiary, SportsStar Marketing, Inc.,(traded on the OTC:BB with the symbol of SSMK) which is anticipating
considerable growth in 1999. Chartwell is also actively converting its long-term developmental assets to more liquid
investments to further its acquisition program.
Chartwell's Assets:
Chartwell is the majority owner of SportsStar Marketing, Inc. (SSMK), and owns NCRA Sports - recruiting student
athletes, scholarship funds and BlueChip Magazine. SportsStar, through its NCRA and HELP Divisions, assists high school
students find scholarships, merit awards, and other forms of financial aide for college.
The Company holds substantial gypsum deposits, which were acquired several years ago. These gypsum deposits have
tested at 99% purity, and have substantial value when mined. Chartwell is pursuing the redevelopment of these gypsum
holdings. Chartwell is actively seeking a buyer for its high-grade gypsum. The Company holds the right to mine a total of
5,000,000 tons of gypsum from the Riverview Placer Claims, located in Washington County near St. George, Utah. In
addition, in September 1993 the Company filed 12 un-patented claims in the same general area. Laboratory tests of the
gypsum samples and geological studies established that the Riverview Placer Claims contain ample gypsum reserves
suitable for use in food, pharmaceutical, cosmetic, dental, and other high grade applications. An in-depth report is available
to serious buyers. Food/pharmaceutical-grade gypsum commands a substantial premium in price over the conventional
lower grade gypsum that is commonly used in the construction and agricultural industry. Chartwell's intention is to sell its
claims and its right to mine this gypsum.
The Company has listed its 200 acres of prime residential (undeveloped) land in Ramona, California in San Diego County
for sale. This property is located just south of the San Diego County Estates Golf Course and an equestrian center, and
north of the Barona Indian Reservation with its newly constructed casino. Situated within one of the fastest growing
counties in the U.S., this real estate package is expected to generate top dollar in its sale. Colliers International, Inc. of San
Diego is facilitating the sale through a sealed bid auction in January 1999. The bid was unsuccessful and was
subsequently relisted.
Chartwell's Primary Asset
As stated above the main focus of CHAP is the development of SportsStar Marketing, Inc. SSMK officially began business in
July 1997. The Company acquired the rights to NCRA and BlueChipIllustrated. Although these programs have had a successful
history, they have not achieved their optimal potential. SSMK began to capitalize on the reputation of NCRA and the BlueChip
Illustrated once it became a public company on January 2, 1998.
SSMK made a strategic acquisition in the past month when they bought out their biggest competitor. An excerpt from the press
release:
SportsStar Completes Acquisition of College Bound Student-Athletes, Inc.
Denver, CO -- SportsStar Marketing, Inc. announced that it successfully completed the purchase of College Bound
Student-Athletes, Inc. (CBSA), headquartered in Wisconsin, for a purchase price of $2.2 million.
Terms of the agreement consisted of the following: $1.1 million in notes and SSMK common stock, and up to an additional $1.1
million in incentives for reaching specified performance goals over the next two years. In addition, further incentive agreements
provide for the issuance of a 3-year option for 500,000 shares at $0.50 per share, and another 500,000 shares dependent upon the
Company acheiving $5 million in net income or the stock reaching $10 per share over the next 5 years.
This strategic acquisition now positions the combined companies as the dominant player in the $58 billion a year student financial
aid industry.
CBSA, formerly a direct competitor to SSMK's NCRA division, has been in the business for 10 years and is recognized as a
leader in the student-athlete profile industry. Founded by Kevin Gemas, the President of CBSA, the company has approximately
200 sales personnel and a top management team. CBSA's revenues over the past 3 years have been $1.8 to $2.2 annually and the
Company has been profitable from normal operations. The joint resources of SSMK and CBSA will greatly enhance SSMK's
ability to expand aggressively in this market.
Past Press Releases about SSMK.
SportsStar Marketing Goals and Projections
Key Investor Points:
Strategic Alliance: SportsStar has retained a Fortune 100 financial institution to assist in the areas of acquisitions, corporate
finance, and licensing.
Expansion Plans: SportsStar is negotiating to acquire businesses with related markets which are profitable in their own right.
This will allow the Company's market and revenue stream to surge in size.
Media Focus: SportsStar entered into an agreement with Media Fund, Inc. and Media Capital Fund I, LLC to invest $5
million in media. This alliance will launch a major revenue expansion program in 1999.
Success Rate: 95% of all academic profiles were placed. 100% of all sports profiles were placed.
A Decade of Growth: Baby boomers' kids comprise the largest student population in U.S. history. College enrollment is
projected to surge through 2007. Last year, new college enrollment reached 1.8 million.
Market Share: Of the $58 billion/year emerging market, less than 3% of the potential market is currently being served.
There is no dominant industry player. Management is positioning to capture the majority of market share.
Title IX requires women's college sports to receive the same number of scholarships as men's sports. This is a huge
untapped market. It is estimated that 1 in 3 high school girls play varsity sports.
Industry Statistics:
$58 billion financial aid industry; $2 billion for athletic scholarships.
$6 billion in financial aid goes untapped each year.
3.5 million new students enter high school each year.
6 million high school students participate in sports.
22,000 high schools nationwide.
70% of high school students plan to attend college.
20% of students cannot attend or remain in college due to lack of funding.
Revenue Sources:
Sale of NCRA franchises - $20,000 to $50,000 each.
Profile Sales - student's family purchases program for $995. Financing available.
Corporate Sponsors - provide programs to students with financial need.
Businesses - provide services to employees as a benefit.
Colleges - outsource recruiting for quality students.
Corporate Mission:
To assist high school students and student-athletes prepare for, and connect with the college or university that will provide them a
scholarship or other financial aid to win their attendance. The successful pursuit of this commitment will make SSMK the industry
leader in all aspects of assistance to college-bound students.
Strategic Plan:
Our mission defines three strategic elements to meet our national expansion goals:
Focus on developing our core business of representing quality student-athletes in their search for a sports scholarship.
Develop a full service student-support company by expanding an education division that provides assistance to any student
seeking funds to attend college -- this division will cover financial aid, merit awards, and scholarship searches for
students in the fine arts.
Acquiring companies or make strategic alliances that will support and enhance our development in the sports &/or
education divisions, allowing us to accelerate our growth by providing alternative markets.
The SSMK Vision for 1999
Part of the long-term strategy for SSMK has been the acquisition of profitable, related companies. The potential market and
opportunity has drawn the attention of a Fortune 100 financial institution. SportsStar entered into an exclusive contract with this
prestigious company to assist SSMK in the areas of acquisitions, corporate finance, and licensing. The Company is currently
negotiating to acquire sports-related companies which can add substantial economies of scale for SSMK.
Recently, this Fortune 100 company introduced SSMK to Media Fund, Inc., and Media Capital Fund I, LLC. The Media Group
has invested $5,000,000 in national media coverage for commercials, infomercials, public relations, etc.
SSMK Profit Potential:
There are estimated 2,000,000 high school students every year searching for financial aid and scholarships for college. The
government estimates this to increase by 6% over the next five years. Approximately 80% of this group qualify for scholarships,
Merit Awards, and/or financial aid-and most do not know where to get it. If we were to service just 10% of this market, it would
generate $180,000,000/year in gross revenue for SportsStar.
Investor Links for CHAP and SSMK
Silicon Investor Message Board for SSMK Silicon Investor Message Board for CHAP
Raging Bull Message Board for SSMK Raging Bull Message Board for CHAP
Management Profiles for SSMK Management Profiles for CHAP
TBBB Recommendation on CHAP
The investment community is starting to realize the vast potential of SportsStar Marketing (SSMK). With the recent buyout of
CBSA, SSMK has cornered the market on an extremely useful and untapped field. TBBB likes the direction of SSMK and feels
it's undervalued based on future prospects. That said, however, TBBB believes that the value of Chartwell International, Inc.
(CHAP) presents the investor with even a better opportunity.
Currently, SSMK has a market cap of approximately $11.5 million, whereas CHAP has a market cap of a little over $4 million.
With CHAP owning over 50% of SSMK, CHAP is trading at least a 30% relative discount to SSMK. In addition, CHAP does
own other assets that have value to the company in the forms of gypsum and real estate.
The company is not a reporting company at this time and no sales figures have been released in the past. SSMK has reported that
they will be a reporting company before the end of the year, and hopefully CHAP will not be far behind (I don't know the schedule
by the OTC:BB when these companies have to be reporting by or risk being delisted). CHAP has filed to sell a little over a million
shares of SSMK, which would be about 4% of the SSMK outstanding. Disclosure of Purchase on the open market: The TBBB
accumulated 36,000 shares on Thursday, May 13, 1999 with an average cost of $0.0664. TBBB has not received any financial
compensation from CHAP, nor does TBBB have any affiliation with the company.
Date of Report: 05/14/99
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