PNEC profile out on email:
From: DenizkurtE@aol.com
Sat, 11 Dec 1999 16:42:29 EST
Subject: Newsletter from Erol Denizkurt
Dear Investors: 12/10/99
A couple of quick things before I get to the profile of what I think is a
very undervalued company. I apologize to those that received multiple copies
of the last newsletter, there was a problem with my mail. I have been asked
how often the newsletter goes out. The answer is whenever I find something
that I think is worth looking at. That means you might get two or three
newsletters in a week or maybe just one in two weeks, it just depends on what
I find out there.
There have been many stocks suggested by the readers, some of which I was
working on but have since gone on a run, we can't get them all. Here are some
that people suggested that have already appreciated ACCR, LGOV, LOCH and
TVCP. I don't chase stocks so for now we will move on. My goal is to
obviously have my readers in position before a stock like these moves up so
that we are all in a profit position. Congratulations to those that suggested
these stocks.
Below is my profile with CEO John Arnone of PNEC
Profile
Ticker: PNEC
Name: Planet Entertainment 222 Highway 35, P. O. Box 4085
Middletown, NJ 07748 Phone: (732) 530-8819 Employees: 130,
Wallace M. Giakas, Chmn./Secy.
John S. Arnone, Pres./CEO
Joseph Venneri, Exec. VP
Richard Bluestine, Exec. VP/CFO.
Contact: Ivy Ball Planet Entertainment Corp.732-530-8819 www.pnec@aol.com
Bid: $1.46
Ask: $1.53
Outstanding: 12 Million
Float: 3 Million
Avg. Vol. (3 mos.): 31,100K
High: $ 7.31
Low: $.81
Profile: Planet Entertainment is a diversified entertainment company
specializing in music production, wholesale distribution and marketing of
front line music, video and DVD titles as well as its proprietary CD
compilation albums. Planet Entertainment Corporation is involved in the
wholesale distribution of pre-recorded music in the form of compact
diskettes, cassette tapes, digital video diskettes, videotapes, and related
apparel. The Company also acquires, licenses, produces, markets, and
distributes recorded music. Planet markets its products to record stores,
college bookstores, and mass merchants.
Fundamentals: Please read the excerpt from this recent PR very carefully.
Also follow the links to the companies they are doing business with. For
example the company designing the NEOS B2B website when you follow the link
also designed 3COM's site (follow the link and look at the client list).
PNEC means business with this new B2B site. "MIDDLETOWN, N.J.--(BUSINESS
WIRE)--Oct. 13, 1999--Planet Entertainment Corp. (OTCBB: PNEC - news)
announced today that its wholly owned subsidiary Northeast One Stop (NEOS)
will open its business to business website by year end at www.neoneb2b.com.
The site will offer customers of NEOS over 250,000 entertainment titles of
pre-recorded music on CD or cassette, as well as a full line of video and DVD
titles. Customers of Northeast One Stop will need an account number to log on
for access to the database.
The website is being completed by the Boston based firm IGI (www.igic.com),
who have created Internet solutions for Fidelity Investments, 3Com
(NASDAQ:COMS - news) and Muzicdepot.com, among others. "
Also from the PR "NEOS for the Fiscal Year ended August 31, 1998 produced
revenues of approximately $34 million an increase of approximately 48% from
the previous fiscal year ended Aug. 31, 1997 when the Company recorded
revenues of approximately $23 million. The company reported that its revenues
for it's first three quarters of Fiscal Year 1999 was $33.8 million with 4th
quarter ending August 31, 1999 soon to be reported."
Discussion: Ok so what does this all mean? This means that PNEC is going to
have a business to business (B2B) wholly owned subsidiary (NEOS) with a
website for its customers (not the general public) that will allow them to do
business better, more efficiently and from what I can see grow the company
even more in the years to follow. Just look at the numbers in the paragraph
above $23 Million in revenue in 1997, $34 Million in 1998, and $33.8 Million
for the first three-quarters with one quarter still left! Yikes, they already
matched the previous year's numbers and they have one quarter left to go and
the B2B website isn't up yet! That to me sounds pretty impressive going
forward.
Ok so why did the stock price slide from the $5 to $7 range you ask and come
down to $1? Good question. Here is what my interview on Friday, December 10th
with CEO John Arnone uncovered and confirmed. I had sent him an email on
Thursday and he called me Friday morning around 10AM. John said the company
has been in business for 16 years, they are solid and for real. They have a
market cap of 27 Million in assets, 11 Million net assets, the outstanding
number of shares is12 Million and the float is 3 Million. The company had
applied for a NASDAQ listing and did not have one of the forms filed. That
form is coming out next week! The shorters got a hold of the info last summer
and posted negative messages on the boards driving the stock down under $1.
The company recently informed the bashers that they would prosecute and the
bashing on the boards stopped. Now the shorters need to cover and you will
see that the volume has been increasing recently.
Mr. Arnone (who was an investment banker on Wall St.) also said that he
intends for this company to be listed on the NASDAQ. They have the market cap
and he said with a price of $4 a share for over 30 days they should qualify
(remember this stock spent a long time at prices higher than that just check
the charts) before the bashers came out. The SEC filing comes out next week
which was done by the new higher profile New York CPA firm of (and here is
where I can't read my notes) Laazar, Lerner, and Phoenix. The new B2B website
comes out next week and it is my opinion that these low prices will be over.
If the new SEC filing looks as positive as I think it will this stock should
appreciate in the coming months.
Charts: <A
HREF="http://www.bigcharts.com/intchart/frames/frames.asp?symb=pnec">http://ww
w.bigcharts.com/intchart/frames/frames.asp?symb=pnec</A>
The stock recently closed above its 13 day EMA. This stock is getting close
to breaking its 50-day SMA. The MACD lines are starting to snake near the 0
line. As more volume comes into this stock (which has already started) we
shall see the stock start to rise and eventually close above the 50-day SMA.
This will be a key signal for investors and with the SEC filing coming out
with what appear to be positive results this stock will want to head back to
higher levels.
News: <A HREF="http://biz.yahoo.com/bw/991014/nj_planet__1.html">http://biz.ya
hoo.com/bw/991014/nj_planet__1.html</A>
This press release is important. Please read it carefully and follow the
links.
Thanks again everyone and I have one interview lined up for next week already.
Erol Denizkurt
PO Box 215
E. Taunton, MA 02718
508-823-7331 phone
240-331-5618 fax
Disclaimer: I am not paid by anyone. I am not a licensed professional. I may
have a position in any stock that I mention or I may not. I don't hype or
bash. I just give my personal opinion. Please verify all DD and information I
present to you. I try to remain objective at all times. I will try and use
this newsletter to help those on the list get answers to questions that you
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