GLOW "GENERAL OVERVIEW INFORMATON" (Updated 4-6-98)
(This information has been compiled by me, an independent investor, and is presented to be as accurate as possible according to what information I have been able to obtain from public and private sources. This should NOT be assumed exact, but is presented as a starting point for research purposes.)
TICKER SYMBOL: GLOW (OTC:Bulletin Board)
COMPANY:
Global Games Corporation
400 S. 4th Street, Ste 720 Main
Minneapolis, MN 55415
Telephone: (612) 672-0834
CEO & PRES: Gary Borglund
CFO: Barry W. Phillips
E-MAIL: (CEO) borglund@redoakmgmt.com
WEB SITE: globalgames.com (Please Note! This particular web site is currently controlled by another entity. The New Management of GLOW is negotiating a release of this web site. When that is accomplished, the web site will be updated.)
DATE OF ANNUAL SHAREHOLDER'S MEETING: April
TRANSFER AGENT:
Liberty Transfer
191 New York Avenue Drive
Huntington, New York 11743
SEC STATUS:
Currently filing to be a fully reporting company with the SEC by the end of June,1998.
SHARE INFORMATION:
TOTAL SHARES AUTHORIZED: 100 million
TOTAL SHARES OUTSTANDING: 57,458,813
RESTRICTED SHARES: Apx 11 million
INSIDER HOLDINGS: Apx 7 million
SHARES IN THE FLOAT: Apx 46 million
NOTE! This float is expected to be reduced by about 16 million shares that the company is currently retrieving.
13 million of these shares were issued as part of previous deals that have not materialized as expected so the company anticipates getting those shares returned as those deals are "undone."
The other 3 million shares were issued but not paid for. The company is also seeking to retrieve those. When all the shares involved are retrieved, the float is expected to drop to about 30 million.
OTHER QUESTIONS:
Q. Do you have any Reg S out?
Answer: No
Q. Are there any 504s out?
Answer: No
Q. Do you expect ANY reverse split to reach 50› EPS for FY98?
Answer: No.
Q. How much total debt?
Answer: $2 million
REVENUES:
1997 (To be released with filing of 10-K)
1998 (Projected) $100 million
NOTE! Original projection was $100 million. Recent events could change this revenue projection. GLOW will issue press releases to keep shareholders aware of developments.
PROFIT MARGIN: 50-70%
GLOW can benefit from an accumulated loss carry-forward of about $6 million.
EARNINGS:
1997 Loss (Developmental Stage & Ramp-up)
1998 Projected EPS 50›
NOTE! Recent events could change this EPS projection. GLOW is currently firming up the contracts upon which the original estimates were based. The profit margins are excellent and they feel very confident of achieving substantial profitability for FY98. GLOW will issue press releases to keep shareholders aware of developments.
LIST OF RECENT PRESS RELEASES: (scroll down past the quote)
quote.yahoo.com
GENERAL BUSINESS INFO:
GLOW's core marketing strategy is to develop "recurring electronic revenue streams" based on targeted niche markets where the company's expertise can be leveraged.
GLOW provides commercial internet services including credit card processing and on-line check transactions. They also sell electronic cash cards and pre-paid phone cards. They license software for internet gaming and provide management services.
GLOW recently acquired 100% of ECS (Electronic Card Services, Inc.).
ECS sells electronic cash cards accepted by major retailers and prepaid phone cards. Electronic cash cards will soon include access for prepaid cellular usage, chat lines, internet access for travelers, and include applications that will function much the same way as a bank debit card. Initially, the ECS market was Toronto, Canada. But ECS is now expanding throughout Canada and will enter US markets later in 1998.
ECS sales for 3Q 1997 were $450,000 and for the 4Q, sales were $750,000. ECS estimates 1998 revenues of $14 million and a pre-tax profit of $7 Million.
GLOW also recently acquired 100% of Wolf Key, however, GLOW has not yet received adequate documentation on this acquisition. GLOW is diligently working to get Wolf Key to resolve this problem. It is possible this acquisition could be "undone." Wolf Key is a company with commercial Internet and credit card processing capabilities. This acquisition would add revenue, but it does not bring any additional functionality to GLOW's processes.
GLOW licenses software for internet gaming. GLOW can expand this market with the ability they now have to offer "on-line credit card processing direct account-to-account" and by being able to do "on-line check transactions." GLOW will NOT have to go through a third party for the credit card processing which improves security and increases
profit margin. This part of their business is expected to generate about $12 Million in pre-tax profits.
GLOW also provides Management Services. They are contracting with a regular casino in Canada which is expected to generate about $4 Million in pre-tax profits for FY98.
For FY98, my understanding is that the company expects to do about $40 Million in revenue JUST from licenses for internet gaming software, ECS, and management services ALONE.
These revenue sources could generate pre-tax profits of about $23 Million. With the loss carry-forward from previous years of around $6 million and allowing 40% for tax, I believe the NET PROFITS from these sources would be around $16.2 Million.
Anticipating about 46 million total shares outstanding (after retrieving shares, "unwinding" whatever needs to be "unwound," etc), I figure GLOW would have an EPS of about 35› for FY98 just from the sources with which they are currently working.
SUMMARY:
$40 Million in Revenue
$23 Million in Pre-Tax Profits
$6 Million Loss Carry-Forward from previous years
$6.8 Million in Income Tax
$16.2 Million in NET PROFIT
Approximately 46 million total shares outstanding
$16.2 Million divided by 46 million shares = .35 EPS
GENERAL INDUSTRY INFORMATION:
Electronic cash card sales in 1997 were just over $2 billion in prepaid phone card usage alone, and annual volume of over $4.3 billion is expected by the year 2001. An independent U.S. research firm estimates that the total internet electronic commerce market will surpass $150 billion by the year 2000.
CURRENT QUOTE:
cbs.marketwatch.com
CHART:
tscn.com
PLEASE NOTE:
I am NOT associated with GLOW in any way. I am an individual investor with my own opinions. I don't give advice. Questions should be directed to the appropriate source, many of which are listed above. Everyone is urged to do their own research before investing in anything.
Best wishes,
Brad |
