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Strategies & Market Trends : Fatty's Donut Shop

KKD 21.00

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Aug 4 5:00 PM EST

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To: Matt Brown who wrote (1450)	5/28/1999 10:26:00 PM
From: Matt Brown	Read Replies (1) of 5041

Do a full search on GOCA on SI...People are buzzing about it everywhere.. Remember me telling you all that if it was good, good things would eventually happen? Here is an excellent post: To: Kimberly Lee (6584 ) From: gizmo&jack Friday, May 28 1999 5:34PM ET Reply # of 6593 GOCA seems to be the most "real" sure thing out there. The amount of companies that decide to become an ISP service is becoming ridiculous and their stock prices skyrocket for no other reason. I think it is just plain dangerous and many of these stocks will be totally unsuccessful. I really don't get the mentality here. And one day the shoe will drop. A company like GOCA is a no brainer though. Revenues of $11MM in one quarter for a company that has a market cap of $18MM. If you annualize today's # (which is probably extremely conservative given the growth it is experiencing), you're talking about a forerunner internet casino company operating in one of the largest potential markets there is trading at 1/2 its revenue. FYI: SNMM trades at a multiple of 53X revenue. It's trailing 12 month sales were $9MM and it's market cap is $250MM. It's totally absurd. The $8 these analysts were saying GOCA should trade at was based on $2.5MM for the entire year of 1998. $2.5 X 50 = $125MM. $8*8.5MM shares=$68MM so so they were actually being conservative as analysts often are and using a multiple of about 27X. Now we are talking about year over year revenues going up about 18 times to $45 million. $45 X 27 = $1.2 billion / 8.5 MM = $140. $140 dollar price and I am dead serious. I don't think people realize how huge this number today really was. Read the release closely. It wasn't a quarter by quarter comparison. It was 1Q1999 all of 1999. And this quarter's revenue beat Starnet's revenue for its entire last year. So while everyone keeps betting upon unknow ISP services, watch GOCA hit the NASDAQ and become the first huge internet casino company, get analyst recommendations from BankAmerica, Morgan Stanley, Hambrecht & Quist, etc. and hit triple digits within a year. It does happen (NSOL and GNET are perfect examples) when companies are this severely undervalued. G&J

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