TAHG info Post 1
Gold Coast Resources, Inc. (GCRI) Gold Coast Resources, Inc. (GCRI) was reorganized December 1996. The Company's primary thrust has been the acquisition of small projects and companies that needed additional funding, management, promotion, or other administrational help. Since the reorganization management has been successful in acquiring numerous entities and assets. Most recently it acquired The Travel Agents Hotel Guide (TAHG) in the last quarter of 1997. TAHG is currently the #2 hotel guide, in terms of competition, in what is projected to be an $8 billion industry by the end of 1998. This should cause great excitement for GCRI. We expect GCRI to go to at least $8.00 over the term and should be able to reach it's previous high of $20 in the long term. GCRI already consists of numerous subsidiaries including: + Biostasis, a company with a patent pending storage process for perishable produce and flowers. Biostasis has a pending arrangement with Mexico that could reap millions in profits for the company. And several other companies that can be viewed on their web site (see link below) The main emphasis of this write up is dedicated to the recent acquisition by GCRI of TAGH. The Travel Agent's Hotel Guide's Media Kit may be seen on the Company's web site. A direct link can be found below. For many years the only real competition to TAHG, the Hotel and Travel Index has enjoyed a near monopoly for providing travel agents with a printed hotel research guide. Because of their near monopoly and tremendous cash flow it is reported that this business was the major part of a package purchase for over $500 million in 1991 by Reed Publishing. TAHG is the only direct competition for the Hotel and Travel Index which has sales of $80,000,000+ in each of the previous 3 years. The operating profits were approximately 40%. Due to the acquisition, TAHG has made plans to vastly increase its fiscal growth. Conservative estimates suggest TAHG's market share, with its intensified and accelerated marketing plan, product/service development and customer service, should be about 20% of that of the Hotel and Travel Index to generate approximately $20,000,000 (combined cash and trade) sales in the next two years. A survey of travel agents revealed the following about the TAHG product: + Over 70% of new TAHG agents said it was superior to the competition. + Another 63% said that TAHG's "User friendliness" is what sets it apart from the competition. + Over 80% of TAHG agents said it's main advantage over the Hotel and Travel Index was its "ease of use" and "cost value".; + Furthermore, another 60% said that TAHG has a more efficient format than the Index and 58% said its compactness makes TAHG their favored choice over the Index. + An overwhelming 98% of TAHG users said that its format and layout helped them increase productivity by decreasing research time (thereby increasing profits). Responses from customers indicate that TAHG is enjoying an excellent reputation. The first issue of TAHG was printed in the fall of 1984. It is the intent for the Company to grow to a point where it is operating beyond its original intended scope and become competitive with the industry leader, the Hotel and Travel Index. TAHG has expanded its scope to compete for a larger share of the market and has the objective to "produce a high quality, high use, good value publication that sets the standards for hotel researching effectiveness, while maintaining a high level of cash flow and profitability for the shareholders". TAGH enjoys an established track record of excellent support from and for its customers. Based on the research Stockwatchman has done into TAHG, including going to their current base of operation in Sacramento to check things out first hand, we feel that the acquisition of TAHG by GCRI makes it a good acquisition in the small cap portfolio.
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