Here is 'part'of a newsletter I get from Stock Networking News, I think it has some good stuff on WCLT so I thought I'd post it for you all. It was dated today June 23/99 :
In this edition we would like to follow up on a company that
we first wrote about in February of 1999, WCollect.com.-Symbol
WCLT-OTC BB.
WCollect.com is positioning itself to become the world's
largest and most trusted art and collectibles Gallery and
Auction Company.
It turns out that we were too far "out in front" on this
particular company and due to a number factors the stock
has traded as between $5.25 and $1.06 over the last 41/2
months.
The primary problem the company has been working on is the
upgrade of their site to a "carrier class" site, which has
all the capacity to handle 100's of thousands of items on-line,
at one time.
The launch of this site is scheduled for July 18, 1999; a date
confirmed to us by company management as recently as yesterday
June 22, 1999. This site will put WCollect.com in the same
league as Ebay and the other high profile auction sites,
from a technical perspective.
More important in our mind, has been the work WCollect.com has
carried out in the area of securing content for their site.
Many of the present sites are little more than glorified garage
sales, with items from "beanie babies" to car engines being
offered for sale. This turns these sites into classified
advertising pages, with no real ability to differentiate
themselves from each other.
WCollect.com has signed up over 150 artists and the owners of
over $50 million of sports and entertainment collectibles, to
be exclusive providers of content to
WCollect.com
SNN feels that having a higher quality products to offer will:
1.) Differentiate the WCollect.com site, and
2.) Give the company the opportunity to have much higher margins
on the product that they sell.
WCollect.com has also been very successful in developing joint
venture and strategic relationships with high profile entertainment
companies such as King World and their "Roseanne Show" and with
the Grammy awards.
SNN understands that there may soon be an announcement in
regard to a foreign affiliation for WCollect.com whereby one of the
largest software companies in Asia will initially provide the
company with access to over 15 million Internet subscribers.
This will eventually result in WCollect.com having a fully
functioning, local language, auction site operating on a joint
venture basis. This fully translated site will be adapted to
local culture and tastes, in regard to the product offerings
and will be a first for the any US based company in the on-line
auction business.
In addition, SNN has learned that WCollect.com will be announcing
a deal with the White House 200th Anniversary Celebration on
Thursday, June 24, 1999. According to our sources WCollect.com
will become the exclusive web site and on-line marketer, for a
whole series of products and collectibles that will mark this
event. The new site with its cross-links into WCollect's gallery
and auction sites will be operational on July 2, 1999, at
www.wh200th.org
This pact, with an organization of this integrity, must reflect
positively on WCollect.com and should greatly increase their
credibility in the investment community. Additionally, the
publicity this site will receive over the coming year will
drive a huge number of "eyeballs" to the "White House site"
and they will, in turn, be cross-linked to the www.Wcollect.com
site.
WCollect.com is now starting to become the type of company we
originally envisaged when we saw their business plan 5 months ago.
They have met all of their stated goals and objectives and the
roll out of the carrier class site in July will be like a re-
launch of the company.
They have worked very hard at developing quality product/content
for the site and that alone will differentiate this business
from the many other companies trying to emulate Ebay.
The interesting thing about WCollect's emphasis on content is
we believe this makes them an attractive take-over target.
SNN's understanding of the earlier unconsummated take-over
offer was that the potential acquiring company did not have
its "ducks-in-a-row" and had too many other issues to deal
with to devote the time necessary to complete this deal in
a timely fashion. What we were told though, was that it took
them only a matter of 2 short meetings to decide they wanted
to try and buy WCollect.com
It would not surprise SNN if a high quality e commerce company,
with a desire to get into the "auction" arena, wouldn't find
acquiring WCollect.com a lot better entry point than trying
to start such a company from scratch.
The stock has bounced from $1.25 in the last 2 days to as high
as $2.06 and is presently trading in the $1.80 range. We do see
a lot of opportunity for upside here-from what we can tell most
of the stock was bought between $3.50 and $4.50 earlier this
year, and at present, is probably a safe buy up to the $4.00 to
$5.00 range.
With the launch of the new expanded and more robust carrier class
site in mid-July anything could happen, who knows??? maybe another
Ebay, only time will tell.
Good Luck and Smart Investing for the summer and keep an eye out
for our new format next month.
SNN copyright SNN 1999
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