To: Gary, Premier, Swedelo and ALL:
I concur, IGT's involvement and the development of legal internet gambling worldwide provide considerable arguments in favor of the industry's continued expansion and longevity!
However, prior to reading the arguments in Swedelo's latest and well thought-out post, I was still having a difficult time comprehending WINR's strategy towards e-commerce…Therefore, I decided to hound Kevin Holmes over at CFG rather than you all!
Unfortunately, Kevin did not have much to say other than that WINR is currently focused on maximizing its competitive advantage in providing financial services to casino operators (a wise move) and that a comprehensive strategy towards e-tailing remains undeveloped and is unlikely to take shape until after Q2 1999.
Indeed, regarding WINR's relationship with CMS, Kevin informed me that it is non-binding and he anticipates that competition will be a considerably stronger factor as WINR seeks to develop into this business arena. This, of course, is simply a re-affirmation of Swedelo's and others' posted information, and signals all the more reason for WINR to focus on rapidly exploiting its competitive advantage in becoming the leading financial services provider to the internet gambling industry (a segment with tremendous upside!) Success in this business plan, IMO, should prepare WINR with greater financial depth and economies of scale, two factors it will need before venturing into the e-commerce foray among the likes of such seasoned competitors as CYCH. Although I do not exclude the possibility that WINR could rapidly catch up to CYCH in its financial performance (should Skinner meet his stated financial projections) for the time being, I will prefer to focus on WINR's upside potential in its core industry: internet gambling. To me, WINR's strategy towards this segment offers plenty! One quick look across the industry sector suggests that should WINR achieve its objectives in its core internet gambling industry (ie profitable in 1999!), IMO, its market capitalization could easily rise from today's $40 million to $200 million within a 12 month period! (All this without even stepping foot into the mystical realm of e-commerce where Druids like Swedelo boldly tread!)
Swedelo: I greatly appreciated your latest post! I am still (burp!) digesting all the weighty arguments you put forth. However, I will definitely offer some feedback on it later this week!
Cheers to all!
Scotty
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