ADCM Horse Racing VIA Echostar & Loral.
Horse racing and the wagering on horse racing is just being born NOW in two different systems.
First of all Enrst & Young did a study wherein they identified that on the
North America Continent, 7 million people spend 15 BILLION YEARLY on HORSE RACE
GAMING.
I have heard from reliable sources that UBET which started their horse
racing in Jan 99, is now handling (1) ONE MILLION in wagering on their
system per day. With a 4% commission that is $40,000 per day.This is done
on the internet and there is no way to see the race live at home on your TV. The
concept is FAR INFERIOR to ADCM. The stock was trading around $2.00 ran to
$20.00 and pulled back to $10.00 and is now trading around $17.00 to $19.00
per share.
Now let's take a look at American Digital Communications, Inc Ticker Symbol
ADCM. The concept is quite simple and BRILLIANT.
If a class A race horse track such as Santa Anita can obtain wagering
directly from all over the country (and the WORLD), the mutual handle and
therefore the net to the track overcomes the heretofore limitations of
geographical pull.
In addition if the horse player, as the basketball and football wager can
watch from his home on TV, the live outcome of that wager, the tracks move into
the same dimension. IMHO In my humble opinion I believe that ADCM will have
more than 10 tracks within the next 2 weeks.
Lets say 10 tracks will do a million and a half (1 !/2) million each day,
that is (15) million dollars per day. If ADCM is responsible, through it's
system for getting 20% of the betting that is 3 million dollars gross a
day. Lets suppose they are going to get 4 % commission on it, that is
$120,000 a day, $600,000 a week or $31,200,000 per year. Plus they are
looking to get another 2 !/2 million from the boxes. So they will have
$33,700,000 in gross revenues from only 10 tracks. The gross revenue
divided by 25 million shares gives you gross revenues of $1.35 a share of
gross revenues from only 10 tracks. If you use a very conservative 15 times
revenues, your looking at $20.25 per share on just 10 tracks gross revenue.
Today in start up companies they look at revenue and the acceleration of
revenues to determine value per share, once mature they than revert back
to profits per share. I repeat this assumption is made on only 10 tracks.
All indications of present flows confirm these projections to be realistic
if not conservative.
Just relax and think of the following: In my opinion the concept of an
individual in Hong Kong placing a wager at Santa Anita from his home with a
credit card and watching that race run on his own TV has arrived. It is not
preposterous; it is reality here and now.
This stock is one of the most interesting investments I have logged onto in
my investing career.
The other one is in the medical field and is about to become a .COM company
I will share that later.
You certainly can look at ADCM as .COM stock, because it will bring racing
via satellite from around the world.
Call the management -- and do your own due diligence.
The following are a few references to help you.
1. quote.yahoo.com this will give you price movement 15
Min. delayed plus charts, plus all news releases.
2. ragingbull.com At this site you
can follow all investors opinions re this stock both good and bad.
3. biz.yahoo.com Fridays press release which
started the breakout.
4. trackpower.com Web Site for ADCM.
5. biz.yahoo.com
6. biz.yahoo.com
7. biz.yahoo.com
8. biz.yahoo.com
9. biz.yahoo.com
10. Last ten day trading pattern:
Q : ADCM - AMERICAN DIGITAL COMM INC
Most Recent Closing Prices
Date Ex Open Hi Lo Close Chg Vol #Tr
Apr 16 1999 Q .520 .530 .480 .530 +.040 690700 70
Apr 15 1999 Q .510 .550 .490 .490 -.020 176200 39
Apr 14 1999 Q .590 .620 .490 .510 -.030 1244700 172
Apr 13 1999 Q .460 .540 .440 .540 +.080 974300 110
Apr 12 1999 Q .450 .460 .420 .460 +.010 364500 40
Apr 9 1999 Q .460 .460 .420 .450 +.010 107700 20
Apr 8 1999 Q .470 .470 .420 .440 -.040 121500 28
Apr 7 1999 Q .420 .490 .420 .480 +.060 420300 56
Apr 6 1999 Q .480 .480 .390 .420 -.060 344000 62
Apr 5 1999 Q .460 .500 .450 .480 +.040 1960900 203
John Jacobs
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