BE WARNED - THIS IS A LNG RESPONSE.
this is an e-mail I received that i thought i would share with you all
From: wallss@wallstreetsecrets.com
To: user@the.internet
Date: Tue, 21 Jul 98 01:45:34 EST
Subject: July Newsletter and Profile
Reply-To: wallss@wallstreetsecrets.com
Notice: This is a free-access, opt-in e-mail newsletter. If you no longer wish to receive this mailing, please reply to wallss@wallstreetsecrets.com with a subject of Unsubscribe. Thank you.
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Wall Street Secrets Inc - wallstreetsecrets.com - wallss@wallstreetsecrets.com
July 17, 1998
The contents of this publication intended solely for Wall Street Secrets Inc. subscribers.
Copyright (c) 1998 Wall Street Secrets Inc. All Rights Reserved.
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Our profiled company for July is involved in the film and entertainment industry. The company boasts an international celebrity as president, a very strong management team, a vertically integrated organization, and low overhead. In addition, the vice president of finance has already proven his talents with involvement in a number of other companies. (see "Management"). This company meets all the financial and potential for growth requirements for companies profiled by Wall Street Secrets Inc.
The name of the company is Eclipse Entertainment Inc. Eclipse trades on the OTC bulletin board under the symbol ECLE. The best place to get fast ECLE quotes and news is at QuoteServer.com at quoteserver.com . Read our detailed company profile to see why we believe the company will experience substantial growth.
The Company
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Eclipse Entertainment Group, Inc. (OTC-BB: ECLE) is a fully faceted entertainment company, which produces and distributes its films through its wholly owned division, Westar Entertainment, Inc. Westar is an independent film production and distribution company specializing in action/adventure films, television series and documentaries for all ages. The action/adventure segment of the film industry is experiencing rapid growth both domestically and abroad.
Initial Activities
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Eclipse, through its wholly owned subsidiary Westar Entertainment, owns the international distribution rights for "The Process". This is an action film starring a number of well recognized martial arts champions including Ernie Reyes Jr. (Ninja Turtles I & II, Red Sonya, Surf Ninjas), Corin Nemec (Fox TV's Parker Lewis), Kimo (Pay-per-view's Ultimate Fighting Championship) and Shishir Inocalla (Ninja Turtles III, Ninja Turtles TV series).
The Company also owns the rights to a number of action films and is currently completing a 13 episode documentary series entitled "The Wonders and Mysteries of Sardinia". Eclipse president Franco Columbu hails from the island of Sardinia off the coast of Italy, and he mentioned that The Discovery Channel has expressed interest in purchasing the completed documentary.
Management
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Franco Columbu - President
Dr. Columbu has gone from international bodybuilding superstar to entrepreneur. Dr. Columbu's extensive career in bodybuilding and powerlifting has earned him every major title including the prestigious Mr. Olympia, Mr. World and Mr. Universe titles. This Doctor of Chiropractic has written a dozen books on bodybuilding and health and has earned a Ph.D. in Nutrition. He has been a celebrity coach and most recently an actor and film producer. . His connections in the film industry are extensive. Dr. Columbu's film appearances include "Pumping Iron", "Stay Hungry", "Conan the Barbarian", "Running Man", and "Terminator". He has been featured in several national commercials and has been the guest of numerous talk shows. He has produced two feature films, "Beretta's Island" and "Double Cross", through his production company Franco Columbu Productions, Inc. Dr. Columbu will coordinate all distribution activities in addition to producing films for Eclipse.
Art Birzneck - CEO
Mr. Birzneck was President of Bask Entertainment Inc. a Vancouver, Canada based film production company. He is an executive producer of Eclipse Entertainment's current feature film, "The Process" and has been instrumental in the formation of Westar Entertainment, Inc., Eclipse's film production and distribution subsidiary. Mr. Birzneck has participated in past film projects both as a financier and as an actor. Mr. Birzneck holds a second-degree black belt in Karate and brings thirteen years of experience to each action production. Mr. Birzneck has been involved in marketing various consumer goods throughout Asia, North America and South America. He has also been involved in promoting music groups as a principal of MB Productions. In addition to overseeing all activities of Eclipse, Mr. Birzneck focuses his efforts on the marketing and development of Eclipse and its products.
During our interviews with Art, he came across as a very personable guy, very thoughtful and conscientious. He is extremely driven and has high-energy. After watching him handle several projects at once (including the renovation of the new Eclipse offices in Los Angeles-a task directed from Canada) we dubbed him the multitasking Windows 98 of the human race.
Brent Nelson - Secretary and Vice-President of Finance
As vice president of finance, Mr. Nelson oversees the financial activities and growth of Eclipse on an ongoing basis. An executive producer of Eclipse Entertainment's current feature film "The Process", Mr. Nelson has participated financially in several film and music industry projects. Mr. Nelson was a director of Bask Entertainment Inc. and has a ten-year background in international trade, import/export, and finance. Mr. Nelson is a principal in several international companies and has been involved in the development and marketing of a number of successful international projects. As a director of Interactive Objects Inc., (OTC-BB: OBJX) the company's stock rocketed from two dollars to over ten. Mr. Nelson has an ongoing relationship with a group of financiers in Europe, some of whom are of the group that invested in OBJX. Based on past performance, we believe that these same financiers will back Eclipse Entertainment through stock investments and individual production fundin!
g (see "Film Financing" further on.)
Keith McNamara - Vice-President of Production
Mr. McNamara was a Vice-President of Bask Entertainment Inc. and is the producer of Eclipse Entertainment's current feature film, The Process. He has acted as a financier in several film projects and now spends much of his time on the phone with directors. In the past, Mr. McNamara has financed and operated businesses in international trade, real estate, and film production and oversees all production activities for Westar Entertainment. He is currently preparing Eclipse's next feature, a family adventure tentatively named "Shadow's Amulet".
Current Developments
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Eclipse recently made the announcement that bodybuilding champion and film star Mr. Franco Columbu has been appointed President of the company. Mr. Columbu has been active in the film industry for over 20 years. He starred in the bodybuilding classic "Pumping Iron" and then continued acting alongside his best friend Arnold Schwarzenegger in "Conan the Barbarian", "Terminator" and "Running Man". Mr. Columbu also appeared in "Big Top Pee-Wee" and has produced "Port of Crime', "Circle Man", "Beretta's Island" and "Doublecross".
As part of the deal, Eclipse has acquired "Beretta's Island" and "Double Cross" from Franco Columbu Productions. An independent film, "Beretta's Island" stars Mr. Columbu and Ken Kercheval and includes a rare special appearance by Arnold Schwarzenegger. Double Cross stars Franco Columbu, William Smith of "Red Dawn" and "Conan", Barbara Niven, and Frank Stallone.
Eclipse is in pre-production on a family action/adventure film, which will begin shooting in October 1998. (Pre-production is the process of breaking down the script into a shooting schedule, budgeting, signing actors, and hiring crew.) Westar will market these and other films at all the major international film markets including the Cannes Film Market on May 13, 1998.
The Buzz
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This section covers a number of points about Eclipse Entertainment that lend credence to the company.
On December 23, 1997, Eclipse received a favorable write-up in the international edition of the Hollywood Reporter. The Reporter detailed additions to ECLE's management team and covered the company's films acquisitions, television productions and new movie productions.
Eclipse Entertainment is just completing renovations to their offices in Los Angeles and already has a production office in Vancouver. The LA office is located just one block from Sony Film Studios, in the heart of the film production capital of the world.
Franco Columbu is in negotiations with the Italian government to construct a production studio in Italy, probably on Franco's home island of Sardinia. In hopes of bolstering the local economy, Italy has offered to contribute up to eighty percent of the construction costs for the studio. Furthermore, on Sardinia there is an abandoned village that is owned by Franco's village. The local governments have made this abandoned town available to Eclipse as a stage, or even for use in action scenes involving explosions.
The field in the entertainment industry is wide open for Eclipse to perform acquisitions to speed its growth into a fully integrated production and distribution company. We believe that the company may try to acquire the assets of other, less-well-managed film companies.
Eclipse is in pre-production on their new film, "Shadows Amulet". The script was written by veteran "The X-Files" writer Jim Guttridge. The budget for this movie is three to five million dollars. The company's vice president of finance, Brent Nelson, is taking due diligence packages to Europe to present to various financing groups. Eclipse is preparing to cast the main characters and have already cast the jaguar used in Disney's "The Jungle Book". The film is scheduled to be in production by October and should be completed in time for February's American Film Market in Santa Monica, California.
Eclipse Entertainment has retained Charlotte Parker of Parker PR as their publicist. For those of us outside the film industry, Charlotte Parker was the genius behind Arnold Schwarzenegger's transformation from just another brawny Bavarian to one of the kings of the big screen. In Hollywood, deals are made not on the basis of what you know, but on whom you know-so having a powerful publicist is paramount. This coming week, Eclipse will be hosting a party to celebrate the opening of their new offices. The party will be held at Schatzi on Main, (Arnold Schwarzenegger's restaurant,) and the guest list (prepared in part by Charlotte) will be one of the most exclusive of the year. Arnold himself will attend the party in honor of his friend Franco's latest efforts.
Talent
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One of Eclipse's scriptwriters is also a writer for "The X-Files" television series. "The X-Files" producers enforce the most stringent quality requirements for their scripts. To have signed a writer with this employment history speaks well for Eclipse.
A key element in profitable filmmaking is to use actors with a strong box office track record. Eclipse, through long-time contacts in Hollywood, is in negotiations with well-known actors for their upcoming films. Unfortunately, for our newsletter to disclose the identities of those actors would undermine those negotiations so we will refrain at this time. However, we will forward those announcements to our subscribers as Eclipse releases them.
Another advantage enjoyed by Eclipse is their ability to attract higher-priced acting talent at a reduced cost. The president of Eclipse, Franco Columbu, is known both as the Chiropractor to the Stars and the Trainer to the Stars. Franco has adjusted the spines and exercised the fat off of all the biggest names in Hollywood. In a place where whom you know is more important that what you know, there is no gratitude like that of one who stands at once proud and painless, thanks to years of experience and some well-placed vertebral adjustments. Franco is acquainted with everyone of importance in the city, and he should have no problem calling in favors to secure big-name talent at a reduced rate.
The talent pool in Hollywood is in a constant state of flux. As older stars fall out of favor or pass on, there is a huge population of restaurant waitpersons vying for their crack at the big time. As an independent film company, Eclipse is best positioned to take advantage of undiscovered talent. The company is not required by the pressures of big-name directors to sign the hot actor-of-the-hour at astronomical rates. Eclipse can take a more relaxed approach to scouting the next big star. Isn't it more economical to create talent than purchase an inflated ego?
Case in point: In the first Terminator movie, Arnold Schwarzenegger was paid about $150,000. In the sequel, he made almost that much PER WORD! I don't think any of we lowly theatergoers saw an appreciable difference in his acting, either.
Eclipse has access to much of the rising talent through a working relationship with Charlotte Parker of Parker Public Relations. Ms. Parker is one of the unseen hands that can make or break companies and careers in Hollywood. As Arnold Schwarzeneggers publicist from his early years through his success as a box-office icon, she was instrumental in helping him to build his career. Eclipse has retained Ms. Parker to act on the company's behalf, and this relationship allows Eclipse to "cherry pick" the best new talent from Ms. Parker's client list. Eclipse intends to create "buzz" within the industry by combining known actors with promising new arrivals to the acting industry.
The European Union
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According to Eclipse, the European Union has passed legislation specifying that only thirty percent of films sold to European Union member nations can be from non-Union nations. To be enforced in the coming year, this bit of legislation will work to Eclipse's advantage. Franco Columbu holds Italian citizenship, and should be able to sell his company's films within Europe without restriction. In addition, if the company secures a listing on the Berlin Stock Exchange and completes their studio in Italy, free access to the European market is guaranteed.
Vancouver Offices
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Vancouver, Canada (also referred to as "Hollywood North") is a Mecca for the film and television industries. Films shot in Vancouver include the new Antonio Banderas film "Eaters of the Dead", "Seven Years In Tibet", "Rumble in the Bronx", "First Blood" and "Rocky V". The dollar is extremely strong in Canada, with one American dollar buying 1.45 Canadian dollars. There are provincial and federal tax incentives, which have now been extended to foreign production companies like Eclipse. The area boasts experienced production crews, studios, and post-production facilities. Two of the Eclipse officers are from Vancouver and can leverage their contacts in that area. Finally, Canada and Italy have a treaty that allows Canadian films to get around the upcoming European Union legislation mentioned previously.
Stock Structure
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Eclipse Entertainment has 13.7 million shares issued and outstanding. Of those, eight million shares are restricted. This means that they cannot be traded on the open market for a minimum of one year. That leaves just 5.7 million free-trading shares. According to sources close to the company, seventy-five percent of the free-trading stock is held by persons friendly to the company, i.e. investors with a long-term view- including several European institutions. That leaves just about 1.4 million shares in the actual trading "float".
Activity in the stock is starting to heat up. Over the past three months, the company's stock has risen from fifty cents to the $1.75 range, closing this Friday at $1.25 per share. Volume is increasing as well. Any buying we observed in the weeks while we were researching the company served to drive the stock price higher. When the rumors about Eclipse come to fruition in upcoming weeks, we believe the stock will see a quick jump.
Vice President of Finance Brent Nelson plans to apply on behalf of the company for a listing on the Berlin Stock Exchange. This will help the company gain international exposure and will also help circumvent restrictive legislation. See the "European Union" section for an explanation.
Debt
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Eclipse Entertainment is debt-free, with no long-term or short-term obligations. Furthermore, they have secured their Los Angeles offices rent-free. The company president has estimated cost savings of fifty thousand dollars per year.
Risk
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Since Eclipse is a full-fledged entertainment company, persons who invest in Eclipse or in one of Eclipse's movies can enjoy reduced risk when compared to a one-shot, make or break movie deal put together by a bunch of starving artists. Franco Columbu has provided office space to Eclipse and Eclipse employs just six people, so overhead is minimal. Furthermore, the company was founded to take advantage of thirty years of goodwill amassed during involvement in the entertainment industry. We believe that the connections made by the company's management team will prove to be a competitive advantage for Eclipse.
Summary
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Eclipse Entertainment has built a knowledgeable management team, bringing together some of the best members of the entertainment and finance industries. In addition, Eclipse president Franco Columbu enjoys international recognition and goodwill and has contributed to Eclipse the use of his office building, his Hollywood contacts, and his expertise in an effort to build the company. Very few entrepreneurs will contribute that much to a deal. Special recognition also goes to vice president of finance Brent Nelson who, we believe will build help build Eclipse into the next of a distinguished history of successful companies.
With industry wide price to earning (PE) ratios ranging from eighteen to one to thirty-eight to one, a couple quarters of good earnings could put Eclipse on the map. A profit of just three million dollars on a film could yield a share price between four and eight dollars. This is a respectable return for a company now trading in the sub-two-dollar range.
Eclipse Entertainment Inc. has all the necessary ingredients for a very successful company. The president of the company is known worldwide and is very well connected within his industry. He is backed by an experienced production and marketing team. Add a vice president of finance with a credible track record, a world-class publicist, and plenty of acting talent and this company could be a blockbuster.
Contact Information
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For more information about Eclipse Entertainment Inc., contact Alec Rossa of Investor Relations at 1-888-822-ECLE (3253) or visit the company web site at eclipse-entertainment.com . |
