ALERT...Must read this if your thinking of investing in this company.
what a joke todays press release is!!!!!!! I can't believe that these guys are trying this again.
"TMANglobal.com Joins Forces With VistaQuest In Nationwide Investor Relations Program"
Please read the attached press release from 1996. Lents then with ISGI, (the former FSGI)hired for the newly TWTI, (the now CHOP) a PR firm. Guess who? Vistaquest and Mark Kabash!!!!!!!...I wonder what they are being paid this time....how many shares and millions will they milk out of the shareholders again. For the record TWTI is history and so is the many millions invested in it. As will this company before Lents and the gang move on to the next target. Just incredible!!!!! Please read this and save your money. Keep in mind that anything VISTAQUEST says is only said because they have a position in this stock. Thats how they are paid! Nothing in the attached press release was accurate nor came true for ISGI and TWTI. Nor will it for FSGI and CHOP.
VistaQuest, Inc.
Financial Public Relations
(212)551-7874
Mark Kabbash, Principal Andrew Schamisso, VP
INTERNATIONAL STANDARDS GROUP, LTD (NASDAQ:ISGI) JUNE 18, 1996
STRONG BUY
Recent Price $1.03 Common Shares Outstanding 38MM
Fiscal Year (9/30) 1995 1996 Float 17.9MM
Revenues $4MM $100MM Market Cap $39MM
Earnings Per share($.29) ($.25)
(1)Does not includes Approx. 33MM (144 restricted) shares reserved for TWT acquisition.
Acquisition Update
ISGI has changed dramatically since our original buy recommendation on May 21, at $.62. Within the last week, ISGI bought a long-distance telecommunications company that is ranked as the 25th largest in the US and, at a profit, sold back to the original owner its off-shore insurance business. In light of these recent developments, we have CONSERVATIVELY increased our revenue and EPS numbers. Here's our breakdown:
I. $5MM revenue company buys $100MM revenue company
Last year, ISGI had approx $4MM in rev. Last week, the Co. bought Total World Telecom, a $100MM rev. generator, for a preferred convertible into 33MM shares of ISGI stock.
In order to compete, TWT requires access to the public markets not only for financing but also for recognition as viable global company. ISGI provides that access and also has the finance-oriented management to keep TWT frowing in excess of 200% annually with improving profit margins.
ISGI's benefit from the acquisition is a pure shareholder value play. TWT, as one of the largest Tier 2 telecommunication companies in the US, has doubled rev. and income each year since inception and management projects rev. to exceep $170MM in 1997. TWT's management will be kept in place and ISGI will handle the fiscal responsibilities of the telecommunications concern while continuing to grow its credit union financial services business.
II. Revenues Increase, Dilution Decreases
ISGI expects to pay 33MM shares for TWT while returning 45MM shares and options from the sale AIC. The AIC shares have been cancelled and the TWT shares (144 Stock) will be added to the shares outstanding over the next year. Therefore, on a fully diluted basis there will be 71MM shares outstanding. However, the next quarterly report will show 38MM shares outstanding and we will use the 38MM number in our current market-cap calculations.
A. What the purchase of TWT is worth:
VistaQuest estimates EBITDA to be $10MM in 1996. Currently, telecommunications market valuations are roughly at 13x - 15x current year EBITDA.
With 71MM fully diluted shares -> TWT IS WORTH $1.83 - $2.11 per share
With 38MM current shares out. -> TWT IS WORTH $3.42 - $3.94 per share
B. What the sale of AIC is worth:
In essense, ISGI sold AIC back to its original owner, Global Re:, for a profit that we conservatively estimate to be approx. $13.2MM over the next 4 years. To reiterate, 45MM shares originally used to purchase AIC from Global Re: have been returned and have been cancelled.
With 71MM fully diluted shs -> AIC may contribute $.14 per sh per yr
With 38MM current shs out. -> AIC may contribute $.26 per sh per yr
III. Synergy
Keep in mind that ISGI has a growing financial services business for credit unions that did approximately $4MM in rev. last year. Currently, the company serves credit unions representing approx. 2.2MM members. VistaQuest fully expects ISGI to provide telecommunications services to these members, possibly in the form of an 800 number or phone card which is commonly found on the back of most credit cards. The advantage to credit unions could come in the form of a rebate and the advantage to ISGI will be a brand new market for TWT. At the present time, TWT is generating its entire rev. with just over 200,000 long distance clients. ISGI's client base could potentially add 2.2MM users to that numbers.
IV. Conclusion
TWT represents terrific value to ISGI shareholders. TWT's rev. have doubled each year since its inception in 1991 and, this year, may exceed $100MM (taking into account acquisitions of other growth). In an acquiring and consolidating telecommunications industry, TWT stands out with state of the art technology, strong management (all fully retained after the acquisition) and new financial strength that the public markets affords them.
FOR A COMPLETE INVESTOR PACKAGE, PLEASE CALL LISA HALPENAT ISGI.
1-800-522-5820
This report is published solely for informational purposes and is not to be construed as a colicitation of an offer to sell or of an offer to buy any security or options thereon. This report is based on data obtained by sources which we believe to be reliable but is not guaranteed by us as being accurate and odes not purport to be a complete statement or summary of the available data. Vista Quest, Inc. may either have a long or shrt position in the afrementioned stock which may or may not increase or decrease at any time. |
