KYOM - from Dave Gore
To: Mr Metals (42 )
From: Dave Gore
Monday, Apr 19 1999 12:32AM ET
Reply # of 45
NEW INVESTORS: *** KYOM PROFITS COULD BE BIGGER THAN I
REALIZED ***
Yes, gang, I AM on vacation in Hawaii, but I had a lot of time to think on the 8 hour
plane ride and sat right next to a good Chinese friend of mine and we talked about
KYOM in depth.
Take a look, the profits could be much bigger than anyone is thinking ... even the CEO
is being very conservative.
******** FOLLOW MY LOGIC AND HEY, FIND FAULT WITH IT *******
In fact, I am serious, because I come up with a valuation as high as $20+ dollars per
share over the next 12 months.... am I wrong?
I do not mean to hype at all, but this seems reasonable to me.
HERE GOES:
**KYOM** is real intriguing in that while not without risk, the Lottery System that they
have developed with the approval of the Chinese Government will net them lucrative
profits...
** a 6% cut of every transaction of every lottery they do **
What's even better is that their overhead is only 1% or so they
*** apparently NET 5% PURE PROFIT! ***
according to the CEO, who remember was a highly respected International Fund
Manager with tons of Asian clients, which is how this whole idea started many months
ago.
So in their initial lottery target area of Sichuan Province with a population of 100
MILLION people who LOVE to gamble
(btw, asians gamble way more than we do in the U.S.),
the NET PROFITS could be extremely impressive.
HOW BIG WILL THE PROFITS BE?
Let's be CONSERVATIVE and say that when things get rolling, that there will be
lottery entries of $10 MILLION PER WEEK
(i.e that's 10 cents per person per week).
OK, so $10M per week x 5% profit = $200,000 per WEEK PROFIT for KYOM
= PROFITS OF $10,400,000 per YEAR
Divided by 8.5 million shares =
EPS of $1.22 per share
x PE of 20 (average for the industry is 28)
SHARE PRICE BASED ON ABOVE = $24.
CAUTION: I could be way off, but one thing I am not off on is that the Chinese are
gambling maniacs. I have several dozen Chinese friends and contacts, and have run the
figures by some of them this weekend.
*** Plus guess what happens if their lottery is so successful that the Chinese
Government grants them additional licenses in other parts of China?
In fact remember that Chinese outside Sichuan Province can play the lottery if they have
access to a computer I understand, but I am not even counting those customers at all.
I am only counting those gambling via the public Lottery Kiosk machines that KYOM is
installing.
ALSO, remember the Chinese Government already granted KYOM one of 4 licenses
in the Sichuan Province of 100,000,000 people as an Internet operator.
And the Chinese Governement loves lotteries as a means of raising money for sports
and welfare program.
If everything breaks well, we might have a real winner in time.
Again, please do your own DD. This is a specualtive stock with risks, but a real
promising one, imo.
Again, a really nice REWARD TO RISK RATIO.
DAVE (checking in will on vacation) |
