Global Games Corporation is on the move (GLOW) Message Board

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Non-Tech : Global Games Corporation is on the move (GLOW)

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To: Michael Graham who wrote (528)	4/2/1998 12:36:00 AM
From: Brad	Read Replies (1) of 720

Hi Mike! Yes, they do have other significant sources of revenue. They have the Internet Gaming (this is ONLY OUTSIDE of the USA) and Management Services. In addition to those sources, I understand they still think they might be able to "cherry pick" certain parts of these previous deals, OR... They said there are other entities available to them that are comparable in profitability. This whole process has required a considerable number of legal steps through which they have had to carefully move. That's why there have been so many frustrating delays to this point. But I think if the deals were not working out as planned, they are smart to NOT do them. They completed their "internal" audit and as today's release indicated, they have selected an outside auditing firm to help them prepare to become a fully reporting company by the end of June. The auditors must now give GLOW a "letter of engagement" which is the official notice that they are accepting the auditing assignment which will lead to the Reports that are to be filed with the SEC. The company has indicated that they are quite confident of becoming profitable in 1998. Their overhead is now very low and they are now starting to see the high profit margin ranges in the business they do. Personally, I presume they will re-adjust the revenue estimates if they "unwind" any or all the deals mentioned in today's news release, but they have indicated that they will only do deals that show strong profit potential. That's the situation as I understand it. Hope it helps. I figure if they get the 50› EPS for FY98, it would be great! But if they only do HALF that, then a year from now, we could be looking at share prices 10-20 times higher than what the share price is today. If they DO hit 50› EPS for FY98, well... let's just say it would certainly bring a HUGE SMILE to my face!! :-) I am continuing to acquire at these levels because I think it's a good deal. But I am comfortable with the situation as I see it. Each person has to determine their own level of risk tolerance. I also urge everyone to do their own research as always. Best wishes, Brad

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