I copied this from the RB thread, for those that are interested:
Mike
By: WorldCup1998
Reply To: None Wednesday, 28 Apr 1999 at 9:36 PM EDT
Post # of 1036
Thanks to all who participated in last night's chat & also to those of you who e-mailed me your questions. I was able to gather 25 questions for today's conversation with Mr. Skinner & had written them down the way they were asked in the chat/e-mails (Yahoo chat doesn't give you the cut/paste option). This is the first time I've attempted to relay sharholders' questions to a CEO & quite frankly, I got a little sidetracked a few times when other questions came to mind during our conversation.
According to David Skinner, the Kyl Bill has played a major role in expanding WINR's focus outside of the online gaming sector. In regards to security issues, David said that their software was able to prevent stolen credit card from being used by a group in Spain. Debit Card applicants will soon be contacted via e-mail. They will be given futhur instructions on how to go about submitting additional data such as passport info prior to the actual issuing of the debit cards. The WINR Debit Card will be like a bank's check card, not a credit card - they're not in the business of lending money. When asked about what he acheived during last year's gaming show in New Orleans, he said that he met a lot of interested parties, one of which was Winalottery.com. In regards to marketing, each client (ICHG, Winalottery, TISS, AiB, etc.) advertise on thier own, while WINR is currently meeting with various e-commerce business as I've described in #17. The following are the 25 questions in no particular order:
> 1. Are there any acquisitions in the works & if so, what type of companies?
> (TreeTopper01)
There are companies that were brought to Skinner's attention, but he wouldn't elaborate.
> 2. When will we see a new home page? (ron2w)
The new computer designer in Europe is working on an updated site - we "may" see something in the next 2 weeks.
> 3. How many employees are dedicated for marketing efforts in Europe and the
> US? Is WINR planning on hiring more employees for the future? (ron2w)
Skinner has been the primary person in dealing with major companies, a marketing staff was recently announced in the the April 14th PR.
> 4. Is there a marketing effort planned? (CGRox99)
There will be more marketing efforts as the interest in WINR grows. (This is what I understood - not a direct quote from Skinner) Skinner is currently talking several parties that have approached WINR.
> 5. Why haven't we seen more gambling/sport book sites since AiB? (PowerPlay47)
We may see gaming sites from TISS & another one metioned "in the Jan PR" (I don't know which one he was referring to)
> 6. Are there any existing warrants and/or stock options? (Stock2021)
No
> 7. How active and what position does Skinner Sr. hold in the company? (swedelo)
He serves as a consultant to the European banks.
> 8. Suggestion - file the 10Q as soon as possible with the SEC. (swedelo)
See #20
> 9. When is this year's CC? (gwg2547)
It will be announced soon & will take place before July 31. Dr. Proksch, managing director of CLT, will also be at the CC.
> 10. Suggesion - Set up a CC where (an) investor(s) or CFG personnel can ask our questions and we can listen in. (swedelo)
See #9
> 11. What are the fees that WINR receives from each transaction? Is each contract different? (WorldCup1998)
A transaction fee with "say.. a flower shop" will be 4% while a sale of a car on an auction site would be be a flat fee due to the amount of the transaction. A client who's site generates a high volume of transactions will be charged a lesser fee per transaction.
> 12. Who are WINR's main competitors? Has the competition increased?
> (TreeTopper01)
There are no direct competitiors at this time. Remember, WINR is in the business to provide secure transactions over the internet. Their debit card ensures merchants to be paid in whatever currency they want to get paid in. They are not a credit card & do not want be in the business of lending money out.
> 13. Describe WINR's interface with CFG - how often they talk, how much can
> CFG report? (ron2w)
WINR has a contract with CFG to last another year or two. They correspond on a regular basis.
> 14. How about a deal with an auction site? (Why should you go out and
> purchase a money order when WINR can process a transaction immediately &
> charge a small fee) (Gary417)
An auction company is currently in talk with WINR.
> 15. How important is the stock price at this time, as actions seem to
> indicate that it is low priority - how about Nasdaq? (TreeTopper01)
He's aware of Nasdaq's price requirement & by reiterating that we'll see positive number, I get the impression that he's not worried about the share price at all.
> 16. What is the industry average for licensing fees? How do WINR's fees
> compare? How about an endorsement from an industry watch dog? (Stantera)
I didn't get to this question.. but he covered it in #11. He also stated that the main difference in the WINR system is the ability to get paid in a very short time as far as gaming sites are concerned. He also mentioned that some changes were made after the "Madsales" incident. See the post on RB.
> 17. What are the prospects for landing a contract with a heavyweight like
> EBAY? (ron2w)
WINR is currently in talks with online auctioneers, brokers & other e-commerce businesses. Skinner couldn't mention any names.
> 18. Vaudeville Holdings & Vanguard, N.V. singed contracts with WINR, what is
> the status? (hybridmsg)
I'm not sure if this was what he meant in #5
> 19. We haven't seen a lot of PRs lately, how is WINR going to get the word
> out? "I can see not lying about your co. but this low profile is a bit much".
(gwg2547)
The earnings will be out within a week.
> 20. When is WINR expecting to become fully reporting (audited).. by the end
> of Q2/99? When is the filing for Nasdaq small-cap, Q3? Are these realistic
> time frames? (hybridmsg)
They have filed the first 2 sets of required documents to the SEC & are in the process of filing the 3rd set by July 31, 1999.
> 21. Has an auditor been selected (who)? (TreeTopper01)
The same auditor who's been doing their numbers since 97 may be used in the future. No name was mentioned.
> 22. WINR has been distancing themselves from online gaming, but we haven't
> heard more on the processing deals - which markets are being targeted?
> (consensus)
Check #17.
> 23. Based on the last PR, will he change the name of the company to something E-Related. I think Winners is a great name for the entertainment division,
> but lacks the sophistication needed to convince the investing public that
> Winr can compete in the E-Commerce world. (jah - e-mail)
I didn't get to this question, but had asked about the name to Kevin a while back & he said "WINR is a great name!" Name starting with an "E" are getting a lot of attention. How about ECOM? (E-Commerce) It may be taken already, but it would fit their operations.
> 24. Earnings? (several e-mails)
Within a week
> 25. Any y2k concerns as they relate to Europe and winr.? Y2k will have greater impact on europe and therefore winr business. (Mike from AOL)
None
As you can see, I wasn't able to get to everyones' question answered in detail. I hope that we'll get our questions ready for the CC sometime before the end of July. The biggest surprise was the mention of auction sites. I hope there's a deal in the works with a major online auctioneer like E-___? (I don't mean to start rumors). I also like the fact that he confirmed that we'll see positive numbers - CFG has been saying this over the past month. Hopefully, we'll get some more answers during the CC or the next PR.
WC98
P.S. Many of these topics were covered in the previous PRs:
cfgstocks.com
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