May 31 Investor's Newsletter
THE PLAYSTAR INVESTOR MAY 31, 1999
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Greetings Investors!
Welcome to issue two of the investor newsletter. What's new? Plenty.
The PlayStar Casino's May contests have now wrapped up, and we're
offering a new multiple payout draw for June. At the same time, and in an effort to improve CardEngine, we have enhanced various elements of the system to further improve our fraud controls and merchant reporting functions.
Cross your fingers - Stuart has decided that out of all the suggestions put forward, PSTR is a symbol that would be remembered by investors. As a result, an application for this symbol will be made this week. Thank you for exercising your brains and giving us your ideas.
QuickConnect continues to develop into a product that will be
significantly different from competitive offerings. We have more
details on these new developments, as well as a note from PlayStar's
CEO, Stuart Brazier, and answers to your latest questions in this newsletter, so let's go!
The PlayStar Team playstar.com PLAYSTAR (PSCKF) - SMART
INVESTING!
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IN THIS ISSUE:
Delay of PlayStar Investor . . . a quick note
Stuart Speaks . . . a message from PlayStar's CEO
May 24, 1999 Filing . . . link available here
QuickConnect . . . does it get any better than this?
Temporary Shut-Down of Casino . . . brief note
PlayStar Casino Contest Update . . . results are good
Your Questions Answered . . . the newest batch
Your Posts . . . regarding annual gaming profits
Odds & Ends . . . interesting bits of info
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DELAY OF PLAYSTAR INVESTOR
Thanks to a post by Todd/Sentinel on the Raging Bull message board, you may have already read the reason for the delay on the release of this issue of the PlayStar Investor.
It seems most of us agree that sending out any information on a Friday
is poor timing, but more so in this instance because of the holiday
Monday in the U.S. Who can concentrate on business when the mind is
already in weekend mode? In future, the PlayStar Investor will be sent out on the second and last Monday of each month (Tuesday in the event of a Monday holiday).
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MESSAGE FROM THE CEO
We are now in second gear, and still intend to do some SMART INVESTING!
As I have previously stated, and as the CEO of PlayStar, I believe in
open and honest communications with employees, shareholders and
customers. This business philosophy makes for a double-edged sword - it means hearing both good and bad news as well as providing competitors with an insight into how a business operates.
While I am confident that the competition cannot improve their
technology as a result of these communications, it does mean they have
access to marketing and strategic issues, which leads me to the bad
news...
One of the reasons for a very quiet May, is because a competitor and
former business acquaintance of mine has accused me of using their
credit card processing system for my own economic gain. While PlayStar has not been included in this legal action, much of my time was involved in preparing my legal strategy, which for obvious reasons I cannot divulge. In addition, I did not want to compromise PlayStar's results for fear of more wild allegations and misrepresentations.
As you are aware, CyberStation, and its talented development team, were solely responsible for developing NetEngine's credit card processing system. I believe this frivolous legal action was launched to interfere with the competition, and to impugn my reputation.
I find this unacceptable and intend to quickly resolve the matter!
On a positive note, I'm pleased to report that PlayStar continues to
move in a very positive direction. Over the past month, I've spent time examining and refining our vision, and using that vision to develop a new PlayStar Business Plan. In the process, I have decided that some restructuring will better position NetEngine and the PlayStar Casino in the marketplace. Expect some news on this in the near future.
The revised business plan covers both NetEngine and PlayStar so that an Investor Relations Firm can be engaged to increase PlayStar's investor awareness in the market. In addition, a separate Investor Relations Plan has been developed to increase share price to a level that is comparable with our competitors.
Selecting a dynamic Investor Relations firm to generate more publicity
and arrange for analyst cover is my immediate objective. More positive news on our progress will be revealed over the coming month.
After some thorough analysis and some fine-tuning, I feel we now have a strong foundation from which to market our encryption and processing
technologies. My emphasis has been on solidifying the back-end product systems, and assessing and addressing our strengths and weaknesses in preparation of moving into the next phase of launching aggressive marketing campaigns to increase sales.
The PlayStar Casino has performed extremely well this month, reaching
revenues which have placed May second only to December. Bear in mind,
that May had even fewer days logged due to the shut-down for casino
maintenance. Unlike the December results, which were driven by a
significant marketing budget, Jana and her astute relationship building campaigns drove May's results for no external costs whatsoever.
I call this SMART MARKETING!
Once my legal issue is resolved, expect some exciting news. If you have any questions, please feel free to contact me. On the other hand, if you have any suggestions, I would really like to hear them! On that note, I would like to thank Todd Pagel for keeping me on my toes by submitting regular and extensive lists of questions.
Regards,
Stuart stuart@playstar.com
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MAY 24, 1999 FILING
Read it here: biz.yahoo.com
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QUICKCONNECT - LICENSING PROGRAMS
If you haven't already heard about PlayStar's QuickConnect Associate
and Master Associate Programs, here's your chance to find out about
PlayStar's single biggest strategy to increase revenues and to increase investor awareness.
The QuickConnect Associate and Master Associate programs are different
to your run of the mill click-through deals that prevail in the market
place. Both programs offer tremendous commission rates on PlayStar
Casino's Net Win. Initial thoughts were to have a QuickConnect
Associate receive 30% and for Master Associates to receive a twenty
percent commission override. Master Associates could earn up to fifty
percent on one web site. In addition, both offer Net Engine's
unparalleled level of secure 2,048 bit encryption technology for
processing.
The twist is the 2-tiered concept. In order to become a Master
Associate, a webmaster is responsible for signing on, supporting, and
controlling at least two QuickConnect Associates. This takes a lot of
the work off the hands of PlayStar and also benefits the Master
Associate with a 20% overriding commission of the net drop of players
directed via his Associates, on top of his regular 30%. A terrific
incentive.
One of the reasons for the delay in launching QuickConnect, is because
we want to give Master Associates the flexibility of determining how
much commission their Associates should earn. With more flexibility, our Master Associates will have more power to recruit Associates. After all, why should we have any say in this matter? What makes us more qualified to determine the energy and effort a Master Associate should allocate to recruiting Associates?
PlayStar has decided that it is prepared to spend up to fifty percent on marketing. This marketing budget will be paid to Master Associates that recruit a minimum of three websites. In altering the process of
decision making, and empowering the Master Associate, the QuickConnect
program becomes a unique tool to create as many different business
models as there are Master Associates.
Imagine trying to compete against hundreds of Master Associates with
different business models. You can see why we are so pumped about
QuickConnect!)
The demand for both QuickConnect Associate and Master Associate is
tremendous, and interest has been expressed by webmasters from around
the globe. With no marketing activities, we tally well over 50
interested prospects to date.
Besides the potential to increase profits, the appeal is in the ease of set-up and lack of data processing and reporting hassles. And since QCA and MA are essentially gateways to the main casino games at PlayStar Casino, the issues of obtaining a casino license and providing overhead for support staff and daily operations, are non-existent.
If the QuickConnect and Master Associate programs generate the kind of
revenue and promotion they promise to, then get ready for a nice rise in the price of PSCKF stock.
If you have any questions about QC and MA, please go to
playstar.com or contact PlayStar's CEO, Stuart Brazier via email at stuart@playstar.com.
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TEMPORARY SHUT-DOWN OF CASINO
The PlayStar Casino is undergoing some back-office system improvements, and was offline this past weekend. Though inconvenient, the upgrades and maintenance are necessary for a smoother operation of the Casino, and will be advantageous in the coming months, as we increase our player base.
An email announcing the temporary shut-down was sent to all players and a notice was posted on the site. The new issue of Players' Edge informs players that we are back online and announces a multiple payout draw for June.
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PLAYSTAR CASINO CONTEST UPDATE
They reading, they're coming, they're playing . . .
We've just paid out over $2,400 in total prize money for our May
contests. May was an exceptionally good month for the casino, reaching revenues just shy of those generated in December (our best month to date). In addition, the casino has received some great customer feedback, which is a really positive step in achieving our goal of more player participation and communication. Check out our June issue of the Players Edge - we're running a competitive contest, and tripling our prize payout total.
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YOUR QUESTIONS ANSWERED
QUESTION: Is CyberStation 40% owned by PlayStar?
ANSWER: Yes, this is true.
QUESTION: Is CyberStation the only company offering transaction
products that have 2048 bit encryption capabilities?
ANSWER: As far as I know, we are the only entity using 2,048
bit encryption technology for transaction products. Other companies
generally use 128 bit encryption technology. Bear in mind, that
anything up to 56 bit encryption, which has been cracked, can be
exported from the US and Canada. Anything over 56 bit encryption
cannot be exported. Since our technology is owned by a St. Kitts
company, we are not faced with export restrictions.
QUESTION: Is it true that all the banks in Canada currently use this
product from CyberStation?
ANSWER: No, this is not true. Although the product supports a majority of the large Canadian banks, only a few banks are currently using the technology on non-exclusive basis.
QUESTION: Where can I go to find out more about these products?
ANSWER: We will be developing a NetEngine web site to provide overviews of our products and services. This should be completed within the next two months
QUESTION: Is there an option of bringing CyberStation public in order to get an infusion of capital?
ANSWER: Yes, this is an option.
QUESTIONS: Another quarter's financials. How are we doing? Can you
give me any information or general impression about improvement?
Earnings projections for subsequent quarters?
ANSWERS: At this stage we are focused on building the administrative and support infrastructure to properly manage a growth in sales. This
includes working on the back office software tracking and reporting
functions, signing up banks and training customer service staff. An
investor relations package, which will be created by the Investor
Relations firm, will include projections.
QUESTION: Announcement of a contract with a PR firm. (PLEASE pick a
reputable one!) The Holt Group also does FANTASTIC independent industry
Analysis. Maybe we could get something like that done for the
encryption field and PlayStar's potential? (They just did one for WLGS- worldwide-wireless.com ) Can you tell me status of this situation?
ANSWERS: Still looking and having discussions. Stuart wanted to
complete the business and restructuring plans prior to signing up the
select Investor Relations firm.
QUESTION: News of more strategic alliances. How are you doing in
generating interest for more deals like the MasterPay one?
ANSWER: We are very active in this area and based on Stuart's
litigation, are reluctant to disclose information unnecessarily. Once the litigation is resolved in the next few weeks, expect the information floodgates to open.
QUESTION: QuickConnect information, background, and status. Has beta
testing been completed? Are there any licensees yet? Projections?
ANSWER: I hope the above section addresses these questions. Projections will be included in the proposed Investor Relations package.
QUESTION: Miscellaneous. Can we learn more about industries and
interested parties that have not been disclosed yet? Any hints are
appreciated.
ANSWER: Please bear with us while Stuart resolves his dispute.
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YOUR POSTS
We felt that this message, posted by "Miseza" on the Raging Bull was so encouraging, we've added it here. For all of you new investors and
subscribers, there's a wealth of information to be found on these
message boards: ragingbull.com and
siliconinvestor.com; check under our symbol "PSCKF".
BUSINESSWEEK ONLINE: Business Week ebiz
DATA MINE May 20, 1999
Gambling, Web Style
There are approximately 300 gambling sites on the Internet today. The
amount of money being raked in is expected to double this year, but the
market could slow in 2000 because of pending federal legislation to
regulate online gambling. But international site growth will pick up the
pace in 2001 and 2002.
1997 .....$300 million
1998 .....$651 million
1999 .....est. $1.4 billion
2000 .....est. $1.7 billion
2001 .....est. $2.4 billion
2002 .....est. $3.2 billion
DATA: Christiansen/Cummings Associates
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ODDS & ENDS
( Our news distributor, CCN, has been assisting us in putting together a
dynamic U. S. package designed to target those interested specifically
in the technology sector, greatly increasing our exposure. We will
continue to use CCN, and Canada-Stockwatch for future press releases.
( Within a week or so, PlayStar Casino will be sending out approximately
10,000 promotional offers to new account prospects via direct email.
The campaign promises to generate a minimum of at least 100 new account
registrations this month. An update to follow in the June 15th issue of
this newsletter.
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PLAYSTAR (PSCKF) - SMART INVESTING!
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