JNNE "GENERAL OVERVIEW INFORMATION"from Brad
(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.)
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Ticker Symbol: JNNE
(JNNE is a incorporated in Colorado.)
COMPANY:
JONES NAUGHTON ENTERTAINMENT
6255 Sunset Blvd, Ste 2000
Los Angeles, CA 90028
Phone Contact: 706-634-7624
Fax: 760-634-7625
CEO & PRES: Joseph Naughton
WEB SITE: www.jnne.com
AUTOMATED SHAREHOLDER COMMUNICATION SYSTEM:
888-209-7223
PR CONTACT: Patrick Rost 888-847-5663 or 706-634-7624
E-MAIL: pmrandco@aol.com
RECENT PRESS RELEASES:
quote.yahoo.com
AUDITING FIRM: Schumacher and Associates, Denver CO
TRANSFER AGENT: American Securities Transfer, Lakewood, CO
303-234-5300
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SEC STATUS:
JNNE indicates they expect to be fully reporting with the SEC by the end of August. Information on OTC:BB reporting requirements can be found at the following site:
otcbb.com
EXPECTED DATE FOR NEXT SEC REPORT: August
FISCAL YEAR: Calendar Year - Dec 31
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- SHARE INFORMATION -
TOTAL SHARES AUTHORIZED: 100 Million
TOTAL SHARES OUTSTANDING: 38,417,773 * (as of 5-18-98)
* The Total Shares Outstanding are to be reduced by 2.1 million (down to apx 36.3 million) upon the return of these shares from Royal Pacific as directed by a court order.
RESTRICTED SHARES: 5,646,059
INSIDER HOLDINGS: Apx 8 Million
SHARES IN THE FLOAT: Apx 28 Million
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MAJOR ASSET:
JNNE owns 607,000 shares of ANFS stock. Current Value: $2,124,500
DEBT:
$25,000 Note to the principals of Community Marquee
$100,000 Note to a Non-Insider Individual
$500,000 Note to Joseph Naughton (CEO)
REVENUES:
1997: Developmental Stage
1998 (Projected): $2.88 Million
1999 (Projected): $15.6 Million
2000 (Projected): $19.6 Million
PROFIT MARGIN:
Advertising operations are about 12% EBIT from normal operations.
Additional income is expected in proceeds from the agreement with Royal West Sales. This income is a lifetime royalty on proceeds generated in mortgage loan fees from theCostco Wholesale affiliation.
EARNINGS: (These are MY estimates based on what I have learned so far.)
1997 EPS: -0- (Has Apx $3.7 Million Loss Carry Forward)
1998 (Projected): $1.23 Million = .034 EPS
1999 (Projected): $7.78 Million = .214 EPS
2000 (Projected): $13.44 Million = .370 EPS
INDUSTRY AVG P/E: Range 20-40
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CURRENT QUOTE:
cbs.marketwatch.com
52 WEEK RANGE: .025 - .10
CHART:
tscn.com
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- GENERAL BUSINESS INFO -
In 1998, JNNE expects to be one only 2.5% of all OTC:BB companies that report positive earnings.
JNNE derives recurring income from 2 interactive information technology sources:
1) ADVERTISING REVENUES- This core business is an interactive information technology system. The recent acquisition of COMMUNITY MARQUEE represents the cornerstone around which other acquisitions will be developed. Negotiations are presently underway to acquire another existing advertising/marketing business located in Southern California.
This interactive information technology system operates in public locations. Advertisers pay a yearly fee. In return, they get an illuminated interactive advertising/communication center located in high traffic areas that target particular machete segments. Consumers see the ads and can inquire or respond instantly for reservations, appointments, new accounts, deliveries, requested catalogs, job-banks, or any of the other products and services advertised. Current advertisers include many nationally known companies.
Gross margins are projected in the 60%-70% range with a majority of the annual ad fee paid up front, which acts to self-finance each system.
JNNE currently markets to community colleges and universities in Southern California with intentions to expand into other states as rapidly as possible. JNNE is already in negotiations with fifteen new universities. JNNE has also entered into marketing alliances with five regional advertising agencies across the U.S. Additional locations
currently under consideration include shopping centers, amusement parks, hotels, and airports.
The direct response aspect of this interactive system can also generate computerized databases for lead generation to provide advertisers with cost effective follow up and additional sales opportunities. Mailing list databases, consumer surveys, and other automated features can also be used.
Current advertisers on the system include the U.S. Army Recruitment Offices, Enterprise Rental Car, Great Western Savings, National University, Manpower Inc. [NYSE:MAN - news], Temporary Employment Agency, Round Table Pizza and a host of independent businesses.
Revenues in 1998 from this core business are expected to be about $1.3 Million with Net Earnings of about $156,600.
Revenues for 1999 for this segment are expected to be about $3 Million with Net Earnings of about $360,000.
Revenues for 2000 for this segment are expected to be about $7 Million with Net Earnings of about $840,000.
2) ROYALTY REVENUES from Royal West Sales -
JNNE worked with Royal West Sales to develop a financial services agreement between COSTCO Wholesale and a leading residential real estate computer loan originator under the direction of Gary Stines, Executive Vice President of Royal West.
Royal West Sales, Inc. is a sales representative and consultant to worldwide consumer electronics enterprises which include Orion Electronics, TEAC Consumer Products, Kiwi Computers and Sansui Electronics among others.
As part of that agreement, JNNE receives a percentage of ongoing revenues (royalties) that are generated from mortgage loan fees charged to borrowers. COSTCO offers mortgage loans to their members. Customary mortgage fees of about 1% of the total mortgage loan are charged to the borrower.
However, COSTCO offers their members an incentive in which the member can get part of the mortgage loan fee rebated to them when they go through COSTCO for their home loan. This is a substantial savings to the member.
Royal West Sales and JNNE share part of the remaining fee. On a typical loan of $180,000 the average amount JNNE receives is about $65.
In the first 6 months that COSTCO has offered this program (during which the program was offered to a limited part of COSTCO membership), they have processed $1 Billion in loans.
COSTCO is pleased with program and expect to open it up to all of their members, which now number over 15 million people.
During the year of 1998, it appears that COSTCO will process $3 - $4 Billion in loans.
That means that in 1998, JNNE could receive about $1.08 Million to $1.44 Million in royalty income from the COSTCO marketing program.
In 1999, COSTCO expects to process about $35 Billion in loans. Accordingly, JNNE royalty income would amount to about $12.63 Million.
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OTHER QUESTIONS:
Q. Do you have any Reg S or Reg D out?
A. NO
Q. Any other Convertibles or Warrants out?
A. Options for about 1.5 million shares are out, but these options have an exercise price that averages about 12.5› and they are held by insiders. They are considered a long term hold.
Q. Any plans or even considerations for ANY Reverse Split of any kind?
A. NO
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TALK FORUMS:
Subject 7717
HISTORICAL PRICING: (Type the TICKER SYMBOL in the Symbol box)
tradepbs.com
INSIDER BUYING / SELLING REPORTS:
insidertrader.com
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OTC:BB Exchange Info:
otcbb.com
NASDAQ & AMEX LISTING INFO:
This site lists the requirements for NASDAQ Small Cap Listing:
nasdaq.com
This site lists the requirements for AMEX Listing:
amex.com
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WHY I LIKE THIS COMPANY:
1) Liquid Assets of over $2 Million with very little debt.
2) Costco agreement looks very profitable with outstanding potential.
3) Should be profitable THIS year.
4) Companies expectations seem reasonable and achievable.
5) Positive EPS this year with a large increase expected in 1999.
PLEASE NOTE:
I am NOT associated with this company 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 |
