Kimberly,all..Did you all see the news on **CAOL** and analysis of 20-30M revenue per year?
(of course analysis below assumes acquisition of all 200 kiosks)
For those unfamiliar this stock was $1.50 not long ago and has dropped back waiting for news. Now 65 x 75 but really the B/A is a bit tighter than that, although the MM's are only filling at .745 right now.
Also they have a second thrust into China which is their apparent alliance with a profitable ISP with which they hope to become a leader in the early E-Commerce of the rapidly growing Chinese internet business.
NEWS....
CathayOnline Inc. Receives Confirmation to Proceed to Acquire the First Online
Lottery Kiosks in China
Business Editors
NEW YORK--(BUSINESS WIRE)--May 17, 1999--The Board of Directors
of CathayOnline (OTC BB:CAOL) has received confirmation to proceed to
acquire the first Online Lottery Kiosks in China.
The lotteries in China today are Government sanctioned and
operated by our local China Partner.
The Company has targeted Guangzhou as the first city in China
with a population in excess of 8 million people to launch the project.
The acquisition of approximately 200 electronic lottery kiosks is
expected during the first phase of operations.
At this time a representative of the company is currently in
China locating a number of sites for the initial acquisition. It is
estimated each site, based on historical revenues, will generate
between US$100,000 to US$150,000 each year.
The Company has now completed a financing, in the form of
restricted shares to complete the initial acquisition.
This project confirms the focus of the Company to engage in
businesses that provide significant cash flow opportunities and
established management.
CATHAYONLINE INC.
More information can be obtained about CathayOnline Inc. by
visiting wvfg.com
Statements included in this press release which are not
historical in nature, are intended to be, and are hereby identified as
"forward-looking statements" for purposes of the safe harbor provided
by Section 21E of the Securities Exchange Act of 1934, as amended by
Public Law 104-67. Forward-looking statements may be identified by
words including "anticipate," "believe," "intends," "estimates,"
"expect," and similar expressions. The Company cautions readers that
forward-looking statements, including without limitation, those
relating to the Company's future business prospects are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those indicated in the forward-looking
statements.
To: +Investor Clouseau (275 )
From: +gizmo&jack
Monday, May 17 1999 8:08PM ET
Reply # of 296
200 X $100,000 to $150,000 = $20 to $30 MM reveune/year. Not including ISP
service at all. Based on historicals with unique barrier to entry: the Chinese government.
Company's market cap is under $8 million, right? 10 million shares I believe (correct me
if I am wrong someone). Trading at 1/2 to 1/3 of historically projected revenues of only
a portion of its business with the other half of its business an Internet Service Provider in
a province of 8 million in an exploding industry in an exploding country. Absolutely
massive undervaluation here. Too big for people not to notice real soon. Bigger things at
work today. People were sellers due to the FOMC meeting tomorrow IMO. If this
company sold for an extremely conservative 10X revenues (conservative because of
China's size, love of lotteries, CAOL's current contract and opportunity to expand way
beyond 200 kiosks if initially successful), we would be talking $200 million market cap
just for a conservative estimate on the lottery portion alone. That is $20 per share not
including expansion of lottery beyond initial acquisition or ISP service. Keep your
shares, enjoy the summer, look at their price in August. The returns on this one will be
unreal.
NICE SOURCE OF ASIAN INTERNET NEWS: asia.internet.com
Remember when you think of China, think of Hong Kong too
As always do you own DD
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