This was pasted on the RB Thread. If it takes a "news letter" to jump start CAOL......I'll take it.
SPECIAL REPORT
CATHAYONLINE INC.
(OTC BB: CAOL)
Symbol: CAOL Recent Price: $0.47
Share Outstanding: 9,165,000 52 Week Range: $0.343 to $1.5625
Active Float: 1,500,000 Capitalization: $4.28 Million
Business Summary
CathayOnline Inc. (CAOL) is a provider and manager of online Lottery Kiosks in the Peoples
Republic of China. The company recently announced it is proceeding with this project and is
focusing on becoming one of the leading Lottery vendors in the province of Guangdong.
Guangdong is one of leading provinces in Southern China. The project will begin in the city of
Guangzhou with the projected acquisition of approximately fifty (50) existing kiosks in the next six
months.
Lotteries In China
Two types of lotteries exist in China today, Sports and Charity. In the sports lottery, one has to
choose 6 out of 45 numbers. Each number corresponds to a sport, such as swimming or
basketball. A percentage of the monies wagered on each number is allocated to the corresponding
sport. The ticket costs approximately US $0.25 and there is a maximum jackpot of US $600,000
per winner. Each Lottery Kiosk Vendor retains 6% of the gross ticket sales.
While lotteries continue to grow at a fast rate, they have not been marketed as well as those
lotteries that we are as familiar with, such as SuperLotto in the U.S.A. and Lotto 649 in Canada.
Lotteries A Growing Market
Lotteries are a relatively recent phenomenon in China and the public demand for lotteries is only in
its infancy. To date only 6% of the Chinese have indulged in this activity compared to 85% of the
American population.
China, with its huge population (1.3 billion) speaks for itself in terms of potential revenue that would
be generated once more significant market penetration has been achieved.
A Significant Step
CATHAYONLINE INC. has projected to acquire approximately 50 operational Lottery Kiosks in the
next six months, which, when fully operational, are expected to generate in excess of US $450,000
net annualized income (Earning Before Interest Taxes & Depreciation - EBITDA).
The second phase of the Company's plan calls for the acquisition of 150 additional operating
Lottery Kiosks in the second half of the Company's fiscal year. When this phase is completed, the
total annualized net income (EBITDA) is projected between US $1.75 million and US $2.25 million.
This translates into $0.192 to $0.247 per share EBITDA.
This foundation alone allows the company to gain a significant foothold in the distribution of
Lotteries in the Province of Guangdong. It is the company's intent to expand this nationwide.
RECOMMENDATION: STRONG BUY
CAOL IS EXTREMELY UNDERVALUED! WE BELIEVE THIS STOCK WILL APPRECIATE
SUBSTANTIALLY FROM ITS CURRENT VALUATION. OUR NEAR TERM TARGET IS $3.50 TO
$5.00 BY 1999 CALENDER YEAR END. THIS IS BASED ON THE LOTTERY EARNINGS ALONE.
THIS IS A PUBLICATION OF STERLING CONSULTANTS INC., AN INVESTOR RELATIONS
COMPANY. STERLING CONSULTANTS INC. SERVES AS SPECIAL ADVISOR TO THE
FEATURED COMPANY FOR WRITING AND DISTRIBUTING THIS REPORT..STERLING
CONSULTING HAS NOT BEEN PAID A FEE FOR THIS REPORT. THIS IS NOT AN OFFER TO
BUY OR SELL SECURITIES. INFORMATION OR OPINIONS IN THIS REPORT ARE
PRESENTED SOLELY FOR INFORMATIVE PURPOSES, AND ARE NOT INTENDED NOR
SHOULD THEY BE CONSTRUED AS INVESTMENT ADVICE. COMPANIES MENTIONED
HEREIN MAY CARRY A HIGH INVESTMENT RISK; READERS SHOULD CAREFULLY REVIEW
THE COMPANIES THOROUGHLY WITH THEIR REGISTERED INVESTMENT ADVISOR OR
REGISTERED STOCKBROKER. THE ANALYSIS CONTAINED HEREIN DOES NOT PURPORT
TO BE A COMPLETE STUDY OF THE FEATURED COMPANY OR OTHER COMPANIES
MENTIONED. INFORMATION USED AND STATEMENTS OF FACT HAVE BEEN OBTAINED
FROM THE FEATURED COMPANY AND OTHER SOURCES, BUT NOT VERIFIED NOR
GUARANTEED BY STERLING CONSULTANTS INC. AS TO COMPLETENESS OR ACCURACY.
SUCH INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. OPINIONS STATED
HEREIN MAY BE SOLELY STERLING CONSULTANTS INC.'S OR THE INDICATED SOURCES,
AND NOT NECESSARILY THOSE OF THE FEATURED COMPANY. YOU SHOULD ASSUME
THAT OFFICERS, DIRECTORS, AND EMPLOYEES OF STERLING CONSULTANTS INC. OR
OTC COMMUNICATIONS AND FINANCIAL ANALYSTS MENTIONED, AND MEMBERS OF THEIR
FAMILIES HOLD A POSITION AND MAY FROM TIME TO TIME TRADE IN THESE SECURITIES
FOR THEIR OWN ACCOUNTS. SPECIFIC INFORMATION IN THIS REGARD WILL BE
FURNISHED UPON REQUEST. TRADEMARKS ARE THE PROPERTY OF THEIR RESPECTIVE
OWNERS. DUPLICATION OF THIS REPORT WITHOUT THE EXPRESSED WRITTEN
PERMISSION OF STERLING CONSULTANTS INC. IS STRICTLY PROHIBITED. FOR FREE
REPRINTS OR TO BE PLACED ON STERLING CONSULTANTS INC. MAILING LIST, CONTACT:
STERLING CONSULTING INC. 238 WILSHIRE BLVD., SUITE 149, CASSELBERRY, FL 32707. |
