Excellent Post copied from the RB thread. The Chief
By: PHANTOMMESS
Reply To: 40231 by jimmyting Wednesday, 10 Nov 1999 at 7:27 PM EST
Post # of 40246
I only posted this to inform others on this board and potential investors of the sometimes logical, discouraging or totally distorted remarks some bashers post. Some of their logical arguments and postings did have me questioning my investment in GONT, is evidenced by a few of the responses from other longs, their discouraging remarks of frustration and also evidenced by GONT's stock trades in the last couple of weeks.
Some things to think about and consider:
1.) If the Canadian market is closed 11-11 and 11-12 how are short positions going to cover with potential news announcements? Is it possible management has been waiting (timing) these announcements? On 11-02-99, I spoke with Pat Rost and he did convey that many positive things were happening, business was growing and news announcements were forthcoming. Due to Joe's unfortunate loss, a quiet period before PAR, other developments and management's proper planning, I anticipate we will have some major news prior to the PAR report! Don't think that PAR does not know about what is going on behind the closed doors. What will come first PAR or news or news then PAR?
2.) Ingram has well over 2000 plus products. It takes a lot of time and work to get these products to the forefront for Christmas shopping. I am sure that a lot of OT is being put in and they are utilizing personnel from Auctionomics. Auctionomics development would be secondary compared to SGOL'S especially considering potential Christmas revenue.
3.) Ingram a possible potential strategic alliance? Ingram has a lot of cash $90M, can secure debt financing, and what better way to receive a 30% ownership(30M shares of the 100M shares) in an Internet company selling your products.
4.) After checking Ingram's financials, they need to increase their profit margin percentages. Internet Christmas shopping will be unprecedented. Ingram can increase their profit margins with proper marketing (streaming audio and video) and competitive pricing.
5.) Ingram's annual revenues of $22B+ would increase and should SGOL capture 10% of existing revenue @. 005 commission on sales we would receive revenue of $10M. If advertising revenue covered SGOL operating expenses, $10M/100M shares = $.10/per share revenue just for SGOL. With a conservative PE ratio of 30X(not the 100+ of other Internet companies) GONT STOCK TRADING PRICE?
6.) GONT can sign all the Kiosk agreements they want, but you need $'s to buy, install and maintain. Per Pat conversation, Kiosk station production cannot keep up with the contracts that are being signed or could be signed.
7.) We do have a cash flow problem. Funds are needed for personnel, Kiosk purchases, advertising, and future development. By issuing additional shares of private placement stock (restricted?) funding can be achieved.
8.) IPO's are coming to the market daily at initial prices of $12 to $15 and trading during that same day @ 100% to 200% of their offering price, with current negative earnings and looking forward negative earnings for 1-2 or 3 years. Where would GONT be if it was an IPO?
9.) We have the qualified, experienced and dedicated, management committed to the business plan/model that will work with patience.
10.) IMO Auctionomics was formed to primarly capture the very lucrative and potentially unrealized Governmental auction business. Look at Auctionomics management's prior work credentials, contacts, experience and backgrounds. This also applies to all other subsidiary key management.
11.) Of the 71m+ shares authorized and issued, it is my understanding that only 50m(per Pat Rost 07-05-99) are available for the float. Joe, key management, employees and others(family) are the shareholders of record of these other shares that do have restrictive covenants Also, do not forget that some shares of stock are reserved for contractually granted employee stock option purchase plans.
12.) First, in defense of Pat Rost, he has expenses! A family to feed, bills to pay, and employees to pay, etc. so if his sells shares of stock that carried zero restrictions, he can sell anytime he desires! Second, Pat has been very thorough not missing and seizing any/all opportunities posting news keeping shareholders informed. Look at back at all prior news posted, the content and think of the planning. Don't think that this quiet period hasn't been well thought out to achieve major results and achieve a strategic impact.
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