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Microcap & Penny Stocks : MSEL

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To: Arthur Tang who wrote (1152)11/23/2000 8:21:02 AM
From: Arthur Tang  Read Replies (1) of 1200
 
Financial planning for MSEL VA subsidiary?

Its time to consolidate the assets of Value America purchase. A financial statement must be prepared, accounts set up to reflect good will(customers' names which VA paid $500 each to get). Customers were the wealthy 1% of this country.

The hidden assets can be interesting, since the software copyright is only $10 to file. A program to strip off the Value America logo and content then replace it with future customer names would be the new investment to generate revenue. The new program then would be tested by using MSEL as the new customer. This approach to write a program to filter and generate another program is the way to shorten the 6 month schedule. Some large sum of money can be saved there. The program itself is a revenue grabber for other users.

The hardware and installation must be capitalized. Any new improvement would be amortized as well. Sublease of any part of the building would be income to offset the rent.

Broadband capability can be leased to others for overload redundancy to download html pages. Server farm can also be leased to time share. Such financial planning has to be done on the net itself, by email to potential buyers or for lease. Income generation is the immediate goal.

A copy of the software purchased must be taken into possession in the IT department at El Segundo. Any new development must also be stored for keepsake. A copy of the customer list has to be at El Segiundo. It has collateral values. Anything else of value in the Virginia building has to be tagged and entered into fixed asset accounts. Anything not needed should be turn to cash. Some companies made more money when they liquidate assets.

Last but not least is the capitalization of the subsidiary, the stock must be marketable or for future IPO. Stock value always exceeds asset value because it is based on income or future anticipation.

Financial planning then is ready for venture capital infusion. The big money is in brick and click for old economy business which has warehouses(manufacturers too). Next year, the venture capital money is anticipated to reach $214 billion. MSEL could have an asset that is worth investing.
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