*#*#*#* SHPS/OSCR UP-DATE 11/29/99 *#*#*#*
I had some very enlightening phone conversations this morning with Jerry Conca and Israel Rosenfeld, both in Israel with the view of clearing up a few questions...
1) I requested that SHPS in the USA use a live receptionist rather than a complex and off-putting automated answering system.... The idea is to add to the Company's Credibility by having an open and friendly communication system, since not everyone is convinced it's for REAL, yet... Jerry liked the suggestion and plans to act on it...
2) ITDI International is essentially a Business representing substantial investment funds from Europe and the Middle East that acts as Intermediary, Broker and Advisor.... It will also be involved with distributing portion of the 1 Million computers to Central European countries... These are being manufactured mainly by SHPS subsidiary CCM, which will become, as a result, a major player in the computer manufacturing Field and will also profit from the arrangement...
3) Clearing up the "free long distance calls in the USA for all Gold card members" question: It's a misunderstanding, as this is an offer extended only to Israeli Gold Card Members visiting the US for calls within the US... Everybody else is paying $19.95, which is still very cheap...
4) What happens after the first Million Computers are sold? Then SHPS will start selling the SECOND MILLION! In fact I have already ordered mine before the demand outstrips the supply and plan to let the thread know how the whole deal went...
5) Another "quick way" to value SHPS is to base it on its membership, as these people should all be Bona Fide "Golden Card carrying fans" of the Company... $1000.00 per Member or Subscriber is an often used minimum figure, which time 1 Million Members, would translate into a Market Cap of $1 Billion, as soon as all the computers are sold in the Middle East, Europe and the USA, likely within 4 to 6 months, at the latest....
6) Upon completion of the sale of the 1 Million computers, SHPS will have received $300,000,000 in Revenue... While there is no cost basis for the computers, as they are supplied by ITDI in exchange for Marketing Territory and e-mail advertising, the cost of sales, advertising and overheads has been estimated at around $50 Millions, leaving some $250 Millions in net Earnings, or an EPS of $11.36 that should be attained before the end of the second Quarter in 2000... Assuming a very conservative PE of say 25, we get a MIND BOGGLING $280.00/share, excluding earnings from other lucrative sources, such as rental of e-mail lists...
7) Disclaimer: This is only my opinion, not a recommendation and no responsibility is accepted for errors or omissions... Potential investors should carry out extensive Due Diligence and only invest what they can afford to lose...
JMHO, F. Goelo + + +
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