** WHY ABET FITS MY INVESTMENT CRITERIA **
I have been very active and quite successful on Silicon Investor over the last two years. My method is to do thorough DD. Usually it works well for me. Not many ever
call the CEO and ask the hard questions but I find it is crucial. Ditto with the I/R firms. If I like a Company's gameplan and feel it is sound and unique with a competitive advantage over the competition, and if there is a high REWARD to RISK RATIO then I generally invest. And I
invest in stages and usually average down when an inevitable dip occurs because I am confident in my DD. There is always risk in any BB stock, so I do a Ben Franklin and make sure the PRO's outweigh the CON's and the reward can be at least a 5-bagger over a 12 month period. I put out a major report on TLTG, WLGS, and WINR in the Spring of this year and
described them as "Core" stocks. To my surprise quite frankly, TLTG went from $1.25 to about $15 in a few weeks and WLGS went from .20 to $4.00 at one point. WINR, which I thought would do really well and still do, has lost ground, so the jury is still out but I remain confident. I also stuck my neck out recommending PNLK in the spring of 1998 at $1.10 before it went to $8.00 at one point. Ditto with SHAL which went from $2.25 to $20 at one point.
Ditto others. Not all pan out but most have. (One note: if a stock goes up 500 - 1000% or more, they of course won't usually hold that level so don't get greedy).
ABET's real move has not occurred yet, imo.
THE KEY TO SUCCESS? What I have found is that stocks with have a unique technology or game plan and good management area are often worth buying and holding through pumps or bashes, especially if they are in a terrific niche (like online gaming) which is expected to explode according to all kinds of respected publications like the "Financial
Times".
ABET is not a "me-too" stock. It is different than any online gaming stock. That is a big plus. They are also first with a radical new technology in one of the biggest revenue producing and widely accepted games in the world. Over $125 Billion. Being first is really important.Whether the patent is approved is in fact immaterial. In fact "patent pending" is the preferred status since no one has access to your
technology while it is in that status (as opposed to patented where everyone has access).
Again the point is that they are first to file and first to show the technology on the Internet. The key...it must be appealing and work well in the next 30-60 days after the comment period. If it does we could have something.
Also, management is the other big plus. There is often
little to find on many BB stocks, so management's background is key. Mr. Burbidge controlled a multi-billion dollar portfolio as a Executive VP with 250 people working under him for several years. That tells me he is fiscally sound and capable of bringing a BB stock to market and also
that he left a pretty "cush" job, so he must feel this venture has a solid future.
Lastly I love that this is a "World Stock", something that has already started to attract investors outside the U.S.
I also love that their target market is in areas not tinged by uncertainly as many gambling stocks in the U.S. are. While ABET is going after the U.S. and Canadian market with the free play lotto, their primarily market is the world outside of North America where over $86 BILLION in lottery revenues were generated in 1997. They only need get a
tiny tiny fraction of that market to have a very successful company.
Do the math...even getting one of 1000 people who buy lottery tickets to come on line and play could be really significant for them and us.
That is smart folks and a solid game plan.
Please do your own DD.- |
