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INTERNET GAMING PERSPECTIVE
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Monday, February 8, 1999
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Hello everyone,
It's been a while since our last issue. As promised, we have an article on eConnect, formerly Betting, Inc. (BETT) one of the companies we watch, and like. However, due to the length of this article, we are suspending any other stock discussions in this issue until the middle of the week when we will release a regular stock/industry update. Recently, the Internet Gaming stocks have been quiet. Today (Monday) we saw a few move. But we will have more on that later.
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EConnect, Inc. , formerly Betting, Inc. (OTC BB- BETT)
A company that we have been watching, Betting, Inc., (BETT), merged with eBet, Inc on January 11, 1999 to form a new company called eConnect, Inc.
Though still traded under the same symbol of BETT, we have seen the shares rise from the $.08 level to almost one dollar subsequent to this merger. So, what is this new company all about, and where is it headed? Let's first take a look at the history.
Betting, Inc., was a small company with a big idea. Tom Hughes, Betting's president and creator, is a highly motivated, hard working individual who created a hand-held device whereby a person could place a wager and/or conduct a business transaction (e-commerce) from anywhere around the world using what is known as PERFECT (Personal Encrypted Remote Financial Electronic Card Transactions) same as cash- technology. Tom had developed a great concept that would, in the future of global commerce, be in demand. But Tom was, like so many other entrepreneurs, looking for a way to sell his idea and raise the necessary funds to make his idea a reality. His hard work and perseverance paid off when he made contact with E. James Wexler, a man with equal foresight who immediately recognized the potential that existed for this kind of technology. Jim was CEO of eBet, Inc. and had experience not only in the industry of Internet Gaming, but also much experience within the financial realm of investment banking. Each of these men brought together their collective talents and decided to merge into a new company called eConnect, Inc..
Now the stage was set. Hughes had the resources now at his fingertips for the financial end of the business, and Wexler had a product that could be phenomenal in the future of e-commerce. Together, they have created a business plan aimed at capturing and harnessing the e-commerce industry and making their company one with great potential for the new millennium.
The new company, eConnect, is a high technology Internet entertainment company that has its own wholly owned Internet Sportsbook, eSportsbook.com, (www.eSportsbet.com). They also license customized turn-key Internet gaming systems to third party licensees in exchange for participation in their revenues.
Moreover, eConnect will focus on eCommerce by providing a common currency (e-cash) for use over the Internet. These transactions will be same-as-cash transactions using their PERFECT technology. Customers will purchase e-cash through use of their credit card, smart card, or ATM that is then sent through a secured link over the Internet. Their company then acts as a merchant by accepting their payment in e-cash and then facilitates the settlement in real currency. eConnect then charges its customers a merchant fee in the form of a percentage of the transactions- just as a credit card company charges discount fees to their client companies. eConnect will also facilitate Internet and non-Internet related wagering for companies. The wagers will originate from locations such as homes, offices, cars and public locations. Making this possible is their portable handheld payment devices that not only send the encrypted information for payment, but also print out a receipt upon completion and confirmation of the transaction. One of their new products, the PocketPay, is set for introduction in the spring of 1999. ET&T (Electronic Transactions and Technologies) one of the partners of eConnect will handle all of the transactions that take place between the consumer and the companies to which the consumers are placing bets, or are purchasing merchandise. Beginning in December, eSportsbook to use Betting Inc's Perfect Paymaster system. They report their customers using the Paymaster with great satisfaction. For more information on the PERFECT encryption technology, please visit www.hpos.com
I think it is safe to say that eConnect is a company that shows promise in their
long term business plan. Currently, there is no other company in direct competition with eConnect regarding their Pay Masters and PocketPay devices. The staff of eConnect is hard at work to become pioneers in the e-commerce industry- in both wagering and e-commerce transactions. Shareholder value is also a prime objective in that they have worked to make it a stable, attractive stock with long term value and yes- short term possibility as well. Shares have risen nearly 1000% in value since their merger, and have settled at the $.60 to $.70 level. Furthermore, eConnect is one of the few stocks available within this industry that is under one dollar. This makes for an investment with little down-side risk yet tremendous upward potential.
It is important to note that in merging the two companies, they have not diluted the company stock and have no plans to do so. Their goal is to increase shareholder value, not dilute it. They shall also release their long awaited 1998 10K and thus become a reporting company. The company will follow this SEC filing with continual quarterly reports.
The company intends to aggressively market themselves by profiling eConnect at such places as the Internet Stock Market, Digital Stock Market, and other specialists who are experts in sharing the eConnect story with the investment community.
eConnect will continue to raise capital from the private sector in order to fund operations, attain new customers and thus increase shareholder value. Should eConnect have excess cash, they intend to use it to buy eConnect common stock on the open market.
eSportsbet plans to continue to add new clients monthly by direct advertising and word of mouth. Again, adding revenues, and importantly, profits to the bottom line.
Also, they will continue to foster strong alliances with vendors for the "Paymaster" system as well as Sportsbook and casinos that they hope will use their unique system with great satisfaction.
Finally, eConnect will adapt to the evolving arena of gambling entertainment. If on-line lotteries or off-track horse betting on the Internet appear to areas that present profitable opportunities for the company, eConnect plans to be there.
1999, 2000, and beyond…
eConnect was formed with the two primary intentions. One, to own, manage, provide consulting services, complete turnkey solutions for international Sportsbook and casinos.
Two, and with equal importance, we will provide effective, efficient, and encrypted financial transactions for the international Sportsbook and casino industry.
These two facets of their core business will help propel eConnect into and to the forefront of a $600 Billion market. In their own words, "Despite the many challenges, we are more excited than ever about the future of eConnect and our role in it. With hundreds of millions of connected computers around the world, people are demanding more and more from their PCs - whether they use them to market new products or to explore online encyclopedias for a school project, whether they conduct millions of corporate transactions a day or download the family banking statement, or whether they entertain themselves with various forms of eGaming. No person can deny what is on the doorstep and the horizon with the Internet. Globalization of the Internet is one of the engines of eConnect's growth, now and well into the next century. There will be dislocations and speed bumps on the road to prosperity as people become accustomed to and comfortable with this new medium.
However, the path to efficiency and success with the Internet is irreversible, and eConnect will be there.
Most technology companies would be satisfied being participants in the greatest growth industry in history. At eConnect, we expect more. We see ourselves as pioneers of that growth story not merely participants. The minute we are satisfied is the minute we fail. Business history, in technology and elsewhere, is littered with the remains of companies whose achievements were undermined by complacency. We won't be one of them."
The merger of Betting Inc and ebet Inc. Inc. has given eConnect distinct competitive advantages in the rapidly growing international sportsbook and casino wagering industry. As a result of this merger, they have combined to create a formidable management team with more than 60 years of combined experience in complimentary fields of expertise.
A Word about Shareholder Value… (statement from eConnect)
The most important way we can improve shareholder value is to win in the marketplace.
We are not concerned about daily fluctuations in eConnect stock price. The management is committed to the long-term. We know that if our customers are happy. Our shareholders will be rewarded.
A Note on Principles …
The marketplace is the driving force behind everything we do. At our core, we are company with an overriding commitment to quality. Our primary measures of success are, and will always be, customer satisfaction and shareholder value.
Finally…
We have prepared and are ready to compete in an industry that is computerized, sleek, sophisticated and awesome in size. Yet, despite its size, the Internet Gambling and Entertainment industry is like the gold rush fields of 19th century California. With very few participants and no industry leader to consolidate the now fragmented global sportsbook and casino market; the ground is truly untouched. As the saying goes, "there's gold up in them there hills" - today, we start digging.
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Keep close watch of eConnect over the next few months. They have tremendous potential and have exceeded their goals as of this date. I have been crazy about this technology. Though it may not be mainstream yet, the time is coming when it will be very much in need and in demand. Their long-term goals and hard work will make them winners in this industry. You can BET on it :)
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The information contained within this report is believed to be reliable. However, no guarantees can be made as to its accuracy. The statements made above concerning any investments are opinions. Please consult with a licensed financial advisor before any monetary investment. |
