GATOR, a glowing report on SNMM from Raging Bull board...
InternetStocknews-A MUST READ!!!!
Giving you a quick status update of some of our featured companies, let's start off with Starnet Communications (OTC BB: SNMM). We made the decision to buy some more shares in the company recently. (This doesn't mean you should!, Please read our disclaimer at the bottom of this newsletter!)
We were particularly impressed by their quarterly report in which they reported revenues of over $2.6 million for the past quarter with almost $1 million in profit. That represents a 228.2% increase compared to the previous quarter while operating expenses only increased by 7.8%. At the rate the company is going, they may generate revenues of over $25 million in the next year with the majority of that being profit.
Compared with another e-commerce company that sells airline tickets & other travel items over the Internet named Preview Travel, the projections for the next year are quite similar. Preview Travel (NASDAQ: PTVL) currently has a $311 million market capitalization while Starnet has a $145 million market capitalization. With Online Gaming (Gambling, etc.) on the Internet being , in our opinion, far more scalable then the sale of travel reservations, we cannot help but enjoy the company being on our 'Ones to Watch in 1999!" list.
In addition to the impressive earnings reported on Thursday, the company announced that they had applied to become listed on the NASDAQ National Market System. In our opinion, this will allow the company to receive far more exposure than if they were quoted through the OTC Bulletin Board and will allow the company to finally receive institutional investment and analyst coverage. Lastly, John Dutton, analyst with the Investor's Research Institute PAR Program, initiated coverage of the company with a target of $14 to $20.
As you can see, it has been an excellent quarter and exciting week for Starnet. We wish the best for them in the future. Trading at $7 1/32, don't forget where you heard about them first. We put the company on our 'Ones to Watch in 1999" in our December 31, 1998 newsletter when the company's stock was trading at approximately $1.50 per share.
News:
3/11/99-Starnet Quarterly Report: Starnet reports 228.2% increase in revenues compared to prior year quarter.
sec.yahoo.com
3/11/99-Analyst Initiates Coverage, Assigns Starnet Communications, Target $14 to $20
biz.yahoo.com
3/11/99-Starnet Applies for Listing On NASDAQ National Market System
biz.yahoo.com
There was no disclaimer at the end of the post on Raging Bull, but Internet Stock News said there should be one. So, beware!
Regards, F. Goelo + + +
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