my ITET projections (EPS and price targets)
Interspace Enterprises, Inc. (OTCBB: ITET)
ITET went from $0.009 to $0.25 (+2700%) from september to december in advance of planetlotto's launch.
Now ITET is trading in the $0.055/$0.09 range and I believe it's time to buy/accumulate ITET again, playing for a growing momentum in advance of Q1 results.
As you know, ITET launched planetlotto.com in January.
Planetlotto was created to erase the geographic boundaries that currently fragment the world lottery market. By visiting the Planetlotto.com Web site (http://www.planetlotto.com) and purchasing a lottery ticket, people from around the globe have the opportunity to participate in an online lottery. Datamoniter estimated that the online lottery market will exceed $4 billion by 2004.
ITET registered lottery players in over 100 different countries in five weeks of operation.
It is assumed that ITET's take from the lottery sales is about equal to the jackpot growth.This would be considered net revenues,I believe.
Aside from the prize pool, money from each $2.00 (every ticket) stake goes towards various other things. Here’s a summary of how much money from each $2.00 stake goes to the various things.
Total stake=$2.00
2% = $.04 of the stake is paid to the Make-A-Wish Charitable Foundation(R)
International
3% = $.06 of the stake is paid to the Planet Lotto Charitable Foundation.
5% = $.10 of the stake is paid to ILLF for charitable purposes.
5% = $.10 of the stake is paid to the referral program
5% = $.10 of the stake goes to the government in which the winner lives
20% = $.40 of the stake goes to the progressive jackpot
20% = $.40 of the stake goes directly to ITET
30% = $.60 of the stake is set aside for other prizes
10% = $.20 ??????????
Note: We don’t know where the remaining 10% goes. We won’t know until the quarterly report comes out.
If you want to find the profits (before expenses) for ITET, simply subtract $45 million from the current jackpot, since the cut for the jackpot and ITET are the same (20%).
To find the total ticket sales, just multiply that number by 5.
To watch the revenues and jackpot rise, go to planetlotto.com.
Weekly Jackpot Summary/Update
Below is a summary of the jackpot on a weekly basis each Friday at 9am Central, 10am Eastern.
--------Day------------------Jackpot-------------Change------Avg. Daily Change---Ticket Sales
Friday, Jan. 18th----------$5,091,256----------$91,256----------$3,147-----------$456,280
Friday, Jan. 25th----------$5,294,289---------$203,033---------$29,005-------$1,015,165
Friday, Feb. 1st-----------$5,501,731----------$207,442--------$29,634--------$1,037,210
Friday, Feb. 8th-----------$5,699,752---------$198,021---------$28,289-----------$990,105
Friday, Feb. 15th----------$5,996,476---------$296,724---------$42,389--------$1,483,620
Friday, Feb. 22nd---------$6,252,077----------$255,601---------$36,514-------$1,278,005
Friday, Mar. 1st-----------$6,474,746----------$222,669---------$31,810--------$1,113,345
Friday, Mar. 8th-----------$6,713,595----------$238,849---------$34,121--------$1,194,245
Friday, Mar. 15th----------$6,934,738----------$221,143---------$31,592--------$1,105,715
Friday, Mar. 22nd---------$7,202,120----------$267,382---------$38,197--------$1,336,910
Friday, Mar. 29th----------$7,580,000----------$377,880---------$53,983--------$1,889,400
---------------------------------------------Total ticket sales for the first quarter = $12,900,000
Note: The first draw on Jan 18th had 4 weeks (29 days) to accumulate. All others are just one week.
The price of each ticket for the weekly lottery is $2.00.
Only 20% (1/5) of each $2.00 ticket is applied to the jackpot.
The ticket sales are calculated by simply multiplying the change in jackpot by 5.
Let's do some numbers:
2001 results: ($1,694,934)
average: ($423,734) per Quarter
Q1 Estimation:
Lottery sales = $12,900,000
Net Revenue = $2,580,000
Operating Expenses = ($423,734)
Net Income = $2,156,266*
*(this is from lottery sales only, not including sales from scratchcards, bingo, etc...)
Full Year 2002 Guidance:
$2,156,266 x 4 = $8,625,064*
*(this is from lottery sales only, not including sales from scratchcards, bingo, etc. It is assumed that sales will keep growing, so these numbers are very conservative. Company has just announced an (1) agressive marketing campaign and a (2) strategic alliance)
(1) quote.bloomberg.com.
(2) quote.bloomberg.com.
Let's give ITET a valuation, based in the P/E (Price Earning Ratio)
Outstanding shares (O/S): 124,012,618
Net income: $8,625,064
EPS (Earnings Per Share): $0.0695
Last: $0.074
P/E = 0.94
For a very conservative P/E=10 ITET should be valued at $0.70
Other examples (still conservative):
P/E = 15........ITET = $1.04
P/E = 20........ITET = $1.39
Casinos & Gaming Sector P/E = 25.91 (average)
biz.yahoo.com
P/E = 25.91......ITET = $1.80
*EBAY has a P/E ratio = 177.32
P/E = 177.32........ITET = $12.32 (for dreamers...)
How much more money coming in from bingo, scratchcards, etc.?
According to the National Center for Social Research of the U.K., they found in a national survey, that people playing chose these games in order...
62% played the Lotto or Powerball types
22% played Scratchcards
9% played Hourly/Instant games
7% played Bingo type games
The U.S. is at the bottom of the list when it comes to the percent of people around the world. New Zealand, Australia, Uk, and most of Europe come in the first 10 spots.
Add 38% now to what we have already ($8,625,064) and tell me if this company is not making any money...
2000 worldwide lottery sales(in US$ millions)
Africa 627.2
Australia 1,814.3
Asia,Middle East 20,972.4
Europe 55,387.6
Central,South America,Caribbean 4,377.3
North America 44,960.7
From www.lafleurs.com
Chart:
bigcharts.marketwatch.com.
Big accumulation process, high volume traded in the last couple of weeks. Stock building a strong range support. Low risk buying between $0.055/$0.08
Summary:
The 10QSB (Q1 report) should be out in mid May.
Smartmoney is big accumulating in advance of that positive PR and full year projections. I believe stock will move higher and higher every closer day to the 10QSB. When news are out, stock will have an explosion to the upside till meet it's real value.
As you know, there are not many profitable companies in the OTCBB world, so it won't be very dificult to win investors attention.
When company gets profitable, it's not irational to dream on a $1 breakout at some point of 2002. Remember it's an emergent company with ambitious projected growing rates.
Hope you can take profit of this buy recommendation.
Good luck.
Frank. |
