OSCR/SHPS, VERY BULLISH: CONFERENCE CALL + Additional INFO.
1) The participants...
Some 15 brokers, financial advisers and large investors in SHPS/OSCR, including Bill Velmer and yours truly were invited to a Conference Call chaired by Michael Markow (MM) that lasted from 1:00 pm till 3:10 pm... The main purpose was for MM to recount his 7 Days Due Diligence Trip to Israel...
2) Michael Markow...
is the CEO of Worldwide Corporate Finance, a Company whose Services are much in demand lately... I have done prior Business with Michael and he has struck me as a straight shooter and a very Honest and Capable Operator with some 20 years of experience in the field... If he says: "I have done thorough Due Diligence on this Company and I believe it has a great Business Plan, Management and Future...", we SHOULD ALL TAKE NOTICE...
3) His general impressions of the trip...
MM was BUBBLING with excitement about SHPS, in spite of the jet lag... He's been at the Comdex Show, he's talked to most of the employees, who all speak excellent English and work 15 hours a day, he had numerous meetings with Executives, he met with BDO, the Accountants, he shook hands with the Bankers... AND HE IS THRILLED!!! He even saw the deposit slip for the $25 MILLIONS paid into SHPS coffers.....
He said he truly BELIEVES that SHPS and OSCR have such a TREMENDOUS FUTURE, that he has NEVER SEEN ANYTHING like it in all his Professional life...
4) ITDI in Berlin and Credibility was my first Question...
IDTI is the Consortium of Wealthy investors from the Middle East who has supplied the $25 Millions to SHPS... They have agreed to buy from CCM, a subsidiary of SHPS,
1 Million Computers at "true cost + 7%", over a period of time of 6 to 12 months, depending on how fast the computers retail in the Middle East, Europe and the USA... In exchange for supplying these computers FREE of CHARGE back to SHPS, they receive Marketing Rights to the Middle East and a one page Advertising e-mail per day, depicting 7 different Products...
Two of those will be related to SHPS... As the "Gold Card Members" fill their applications, a consumer profile is established that will ALLOW PRECISE & TAILORED TARGETING of the Advertising to EXACTLY MATCH the END USER... As a result, a very useful and worthy E-Mail list is produced for Rental to other Entities targeting similar consumers... This alone has been estimated to generate some $60 Millions Revenue per Year with probably Earnings of some $50 Millions after running expenses...
5) COMDEX SHOW and early results...
According to MM, the COMDEX SHOW is a resounding success for SHPS that will be repeated at additional COMDEX SHOWS in other Countries... In the first two weeks of Promotion of the new DEAL, SHPS signed up about $1 Million worth of Business in TINY Israel only... Since there is not cost basis, just the advertising some 80% of it will go to the bottom line as NET EARNINGS...
MM confirmed that out of the $300 Millions in sales, they expected $250 Millions in net Earnings, after all marketing expenses... Now, just imagine the rest of the Middle East and Europe, starved for inexpensive, TOP of the LINE COMPUTERS!!... Sales in the USA will probably only be one third or less of the total!...
6) Financials and NASDAQ...
SHPS, which is fully reporting currently meets all requirements to apply for NASDAQ Listing and so does OSCR, as soon as its 10SB is filed and accepted... MM will be perusing the Draft Audit by BDO tomorrow and full financials and 10SB are scheduled for Release in about one week...
BDO has been able to confirm that OSCR had $500 Millions worth of Contracts on hand, as per recent Press Release... In addition, the $20 Millions Revenue/$6 Millions Earnings for SHPS will be Substantially confirmed... The $60 Millions Revenue and $14 Millions Earnings for OSCR will also be confirmed with a "footmark" pertaining to earnings connected to an event subsequent to the end of the Quarter by about two weeks... All in All, VERY GOOD NEWS INDEED....
7) Shares Structure, Analyst Coverage, Forward Split...
ANALYST COVERAGE is expected to begin shortly and we heard that Management is getting ready for a forward stock split early next Year to provide additional liquidity in the stock... Latest figures on the share structure:
OSCR: 19 Millions outstanding and 2.65 Millions in DTC (Float)...
SHPS: 22 Millions Outstanding and 2 Millions in Float...
8) Conclusion...
MM STRONGLY believes that OSCR will be a Major Telecom Company by the end of Year 2000 and so do I... SHPS, due to its HUGE REVENUE Base and HIGH PE will also do very well... There were interesting Hints of more Spin-offs, Acquisitions and large Financing Deals in the very near term... I have TROUBLE thinking of TWO STOCKS any HOTTER than these....
9) 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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