Here's a classic buzzword compliant hype post: "1999
Stockreporter releases updated investment opinion regarding The Hartcourt Companies (HRCT) and confirms its
conservative Year 2000 price target to $9 per share
UPDATE
In a recent press release, the Hartcourt Companies Inc. (OTC:HRCT) announced that its joint venture with UAC
Online Stock Trading Inc. has signed a contract with Beijing Telecom, the wholly owned subsidiary of giant China
Telecom.
According to the contract, Beijing Telecom will grant UAC five months free of charge for all the leased lines to be
installed at brokerage offices. In addition, Beijing Telecom will also grant UAC 1,000 NUI numbers free of fixed
monthly charges till the end of the year 2000. With these favorable conditions, Beijing Telecom wishes to work with
UAC to quickly market 162 network in the Beijing data market. The contract will help UAC to rapidly expand its
service in the Beijing area.
Hartcourt also announced that UAC has received the second government funding from the Beijing Science &
Technology Committee. "UAC 162 network" has been listed as a torch project (No. 99337), which entitles it to
receive free grants, reduced taxes and research and development support by China Science and Technology
Commission.
UAC operates the first and only nationwide online trading network in China, connecting investors with their stock
brokerage offices via Chinapac, the nationwide packet switched data network owned by China Telecom. UAC is the
first and only operating agent of China Telecom's Chinapac system.
In a former press release, the Hartcourt Companies, Inc. announced that the Joint Venture formed with UAC Online
Stock Trading Inc. of China has been approved by the government. An official Business License and Certificate of
Foreign Investment were issued to the JV. It is a significant development in affirming the legality of the JV company,
especially in view of recent confusion on foreign investment; and reflecting the desire of the government for a
speedyimplementation of the project. UAC operates the first and the only nationwide online trading network in China,
connecting investors with their stock brokerage offices.
UAC system has been in operation at two offices of China Securities in Beijing and 12 additional offices should be
wired up during the next few weeks. China Securities, the second-largest brokerage firm in China, has signed an
agreement to install the UAC system in all of its 98 offices nationwide. As the first and only CHINAPAC operating
agent designated by China Telecom, UAC is in a unique position to market the services to all brokerage firms in
China. At present, there are 4,000 brokerage offices in China serving 40 million investors. UAC's mission is to
quickly capture as much market share as possible. Total revenues, excluding the TV set-top box users segment, are
projected to exceed $40 million by 2004.
UAC is also working with Financial Telecoms Ltd (FTL) of Hongkong to create the most comprehensive financial
portal in Chinese language for the Internet users of China and Hongkong. The merged entity, with the participation of
additional well-known American and Chinese strategic partners, will proceed with an IPO planned for the 2nd
quarter of 2000.
Dr. Alan Phan, Chairman and CEO of Hartcourt, stated, "We were surprised to receive the licenses this early. Our
Chinese partners have delivered more than expected. It is a good omen for the future. We are proud of these unique
achievements."
Mr. Shi Zhang, Chairman and President of UAC, said, "Even though the profit potential of the Joint Venture is
tremendous, it is just a first step of our cooperation. Next on line is the best Chinese financial portal with the same
standards and features like Bloomberg or MarketWatch. We are creating something unique and spectacular for the
Chinese Internet users. Our market position and our leading-edge technology will ensure our long-term success."
Additional to this great news Hartcourt announced that it has signed a Joint Venture Agreement with Innostar HiTech
Enterprises of China to establish a nationwide Internet Service Provider (ISP) and IP Phone Service in China.
Innostar has been operating an IP Phone Service in Beijing for the last 14 months, in cooperation with Ji Tong, the
national wireless phone company. With the participation of Hartcourt, Innostar could expand this IP Phone Service to
other cities and provinces in China. Projected revenue from the IP Phone Service alone would be $2.8 Million in
2000. Net profit is estimated at $1.6 Million. Innostar also owns the license for a national ISP. The Joint Venture
company will provide high-speed Internet connections to hotels, office buildings and apartment complexes, using a
Chinese sattelite with bi-directional KU bands to transmit data to these commercial users. It will be a first for China.
Both parties are committed to provide the most sophisticated technology for the system infrastructure in addition to
strong strategic alliances for its marketing program. The Joint Venture will bring in additional JV partners, well-known
American and Chinese firms to strengthen its unique market position. The national license will also allow the Joint
Venture to engage in E-Commerce activities and other Internet services.
The Joint Venture will be called INNOSTAR, and should start the operation within 4 months . Innostar will hold 65
percent and Hartcourt will hold 35 percent of ownership in the Joint Venture.
At present, China has about 4.5 Million Internet users. As the phone charge keeps getting lower and the basic PC
prices are at the $200. level, China Internet Data Research expect the number of Chinese users to grow to more than
100 Million by 2005, second only to the US.
Dr. Alan Phan, Chairman & CEO of Hartcourt, said," As we said previously, we will proceed wholeheartedly with
the national ISP project. Innostar is such a powerful enterprise that we will be ensured of strong support in the
telecom industry. The IP Phone operation is currently profitable, so the cash flow projection is much better than a
new start-up. We could not ask for a better partner. The synergy created by this ISP project will enhance the likely
success of our financial portal , being created by UAC Online Trading and Financial Telecoms Ltd. I firmly believe
that our focus on Asian Internet is producing the desired results. "
Dr. Jinsong Zeng, President of Innostar Hi-Tech Enterprises Ltd, said," Hartcourt has been diligent in pusuing
Chinese Internet projects. The imported American technolgy will help us growing our IP Phone sytems much faster.
The high-speed connection via sattelite will be the wave of the future, as we have witnessed the success of wireless
phone in China. We are happy working with Hartcourt management and believe that our Joint Venture will be
successful."
EVALUATION
The following projections estimated by independent market experts according to Hartcourt's revenue projections are
based on conservative assumptions. So we consider these figures to be both very realistic and achievable: With
approximately 17.6 Million shares issued and outstanding Hartcourt is supposed to be profitable in the year 2000 and
to achieve substantial earnings of $0.30 per share in the year 2000. Therefore we confirm our share price target to a
least $9 at a conservatively estimated PER of only 30 which in case of this tremendous growth potential seems to be
even too conservative.
On the whole it may be said that The Hartcourt (HRCT) possibly will be able to make even more profit in the year
2000 than we expect. Consequently we would like to mention in advance that Stockreporter.de might have to
increase the profit expectations upon availability of the improved earnings projections. According to these facts we
are strongly convinced that the share of The Hartcourt Companies (HRCT) currently is drastically undervalued.
Therefore we believe that the Company is one of the most exciting companies to come to our attention in recent
years. Its enormous growth potential is both dynamic and unlimited.
Based on the foregoing, Stockreporter analysts comment that there is no question the Hartcourt stock is drastically
undervalued at its current price of less than $1.50 per share. Stockreporter confirms its share price targets of $9 for
the year 2000 and is convinced that this represents an extraordinary opportunity for investors.
Furthermore The Hartcourt Companies (HRCT) is already listed at the Berlin Stock Exchange, the major European
OTC stock exchange, to increase the international exposure and to establish new investor relations in Europe (the
securities code is 900 009). All these listings open the door for new major institutional investments by e.g. national
funds and investment bankers and will reduce the negative influence day traders currently have. For that reason
potential investors have got only now the extremely unique and promising opportunity to invest in the shares of The
Hartcourt Companies (HRCT) on a more than advantageous share price level.
According to these great news we are strongly convinced that the shares of The Hartcourt Companies (HRCT) is
drastically undervalued at a current price of less than $1.50 offering a short and mid term potential of more than
600%. For this reason we believe that the HRCT share still is one of the most exciting and most promising investment
opportunities for both retail and institutional investors and that the HRCT share is going to be one of the best
performing micro cap shares in the next weeks and months.
This news release contains forward-looking statements with respect to the results of operations and business of the
Company that involves risks and uncertainties. The Company's 'actual future results could materially differ from those
discussed. Risks and uncertainties of the Company will be detailed from time to time in the Company's periodic
reports to be filed with the Securities and Exchange Commission." |
