*** PLAYCO Toys, backdoor IPO play this week with extreme leverage.
I am sure you will agree this is very intriguing. Fully reporting US stock debuting their subsidiary on the German stock market this next week. Very few no about this. RB and SI threads fairly quiet.
The kicker -> Stock in parent co. is at $1.00+ and their IPO-ing subsudiary will open at $10-$13 USD, it appears this Friday. Being called the "eBay of Europe".
****NEW INVESTOR INFORMATION**** PLCOP (from RB thread)
Start with my quick summary and then go read Stockfinder's info (below) which is much more in depth. This is not without risk but it is also very unusual and potentially very rewarding and it should do one of the other next week:
ragingbull.com
CONTACT THE COMPANY---------------------
Playco Toy & Entertainment
550 Rancheros Dr
San Marcos, CA 92069
(760) 471-4505
Ext#108 (CFO) Jim Frakes
Ext#114 (Investor Relations) Kathy Kovacs
------------------------WEBSITES---------------------
PLCO Corporate Website
playco.com
Toys International.com European Website
webjumbo.de
PLCOP Stock Price Chart
clearstation.com
-----------STARTER DUE DILIGENCE INFORMATION-------------
(1) UNDERSTANDING THE RELATIONSHIPS ON THESE THREE SECURITIES:
PLCO - Common Stock (RB PLCO Message Board)
PLCOP - Convertible Preferred Stock
PLCOW - Warrants (for Preferred Stock)
---------------------------------------------------------
(2) CONVERSIONS
---------------------------------------------------------
1 Share PLCOP - Can be converted after 12/29/99 into 6 shares of PLCO Common Stock. Conversion period
@ 6:1 through 12/29/01.
---------------------------------------------------------
1 PLCOP Warrant - And $5.00 can be converted into 1 share of PLCOP (which then can be converted into 6
shares of PLCO. Warrant Expiration 12/29/02.
---------------------------------------------------------
(3) STRONG REASON TO BUY: The market is not valuing PLCOP at 6 times the price of PLCO. After 12/29,
the price relationship will be 6:1. So by any amount that PLCOP sells less than 6xPLCO represents
undervaluation.
(4) STRONG REASON TO BUY: The company is lauching ToysInternational.com IPO in Germany/Europe on
11/19. The prevaluation of the IPO is $100 Million dollars according to CEO Richard Brady. $100 Million is
approx. 16 times the current market value of PLCO. $100 Million divided by the 5.5 Million PLCO shares =
$14.00/Share of PLCO. This will create a strong price base for PLCO and should lead to a significant gain in
shareholder value on the Common Shares.
PLCO share price has been in the $1.00/Share price range during the Fall. As Market recognition of the IPO
increases PLCO will sell at a higher price.
An aggressive pricing model based on PLCO $14/Share would equate to $84.00/Share for PLCOP. (This is
theoretical but gives a potential investor some idea of the potential of PLCOP.)
(5) ABOUT THE COMPANY: Is a retailer of educational, specialty, collectible and traditional toys and hobby
products. Operator of 32 toy stores located in six states. For the fiscal year ended 3/31/99, net sales rose
52% to
$34.4 million. Net loss applicable to Common fell 56% to $1.6 million in 1997 and PLCO made a $140
thousand profit in 1998.
(6) MARKET CAP FOR PLCO: 5.51M Shares Outstanding; 2.20M FLOAT although can only find 1.6M FLOAT
in the most recent SEC Filing;
(7) STRONGEST QUARTER FOR TOY SALES: The 4th Quarter is the best quarter for retail sales in general
and PLCO Toy sales in the 4th quarter follow that trend.
(8) NEW TOY WEBSITE: ToysInternational.com (German Language) is being billed as the "eToys of Europe."
PLCO, PLCOP, and PLCOW benefit by PLCO's 58% Ownership of this $100,000,000 IPO.
(9) SOLID ?BRICK & MORTAR? TOY STORES: Soon 32 Stores Nationally.
(10) TOY.COM IPO: Great Capitol Generator. ETYS Market Cap exploded to over $7B on its IPO and gave
ETYS a great capitol base. The ToysInternational.com IPO is prevalued at $100 Million and PLCO will 58% of
the IPO Shares. PLCO will sell the other 42% of the offering. Total sheres issued is 12 Million with a float of
2.4 Million shares. The CASH from the sale of 42% of the issue hasn't been announced but should fall within
the range of $25,000-$50,000 or $4.54-$9.09/Share of PLCO. This should create e significant shareholder
value for PLCO and should have an impact on the share prices for PLCO, PLCOP, and PLCOW Warrants.
(11) SEC FULL REPORTING COMPANY: PLCO is a fully reporting OTC:BB and has been SEC Compliant for
several years.
(12) PLCO FINANCIAL TURNAROUND: Not only includes the IPO but an aggressive store expansion
program with 32 stores from coast-to-coast. The company broke even in 1998 after losing close to $2 Million
in 1997. Existing store sales in 1998 grew +21.8%. New stores provided an increase of $8 Million increase
while existing units provided a $4 Million increase. +66% increase in Profits including 3.7 Point Gross Margin
Improvement.
-------------------PLCO/PLCOP/PLCOW LINKS----------------- |
