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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (40058)	7/5/1999 3:29:00 AM
From: jhnewman	Read Replies (1) \| Respond to of 122087

A@P: SNMM is the REAl DEAL... I saw your earlier post of one of Starnet's news releases...and you called it "scammy" (or "scummy", can't remember which). Of all the companies in the growing online gambling sector...SNMM is one of the few honest ones (along with Cryptologic...CRY.TO, which trades on the Toronto exchange.) SNMM is also one of the few companies in this sector that is fully reporting to the SEC. Many of the companies in this sector report "gross wagers" as their revenues...which is totally false. For instance, if an online gambling site has $1 million in bets placed there in one month, these companies report that they've got revenues of $1 million. They forget to mention that they then have to pay out a bunch of money on the winning bets...and then cover expenses, etc. True revenues in this industry are typically 3-4% of these gross wagers...and that's what Starnet reports. As for this big run that SNMM is in...it's based on very solid results. Starnet had earnings of $.01/share in its first two quarters of FY99. It's earnings in the third quarter were $.04/share...and in about 2-3 weeks it will be making its fourth quarter and end of year reports. Its fourth quarter earnings will be at least $.06/share. That will give it earnings of $.11/share for FY99 (which ended at the end of April). If I'm not mistaken, another Internet company...Yahoo...earned about $.11/share in its last fiscal year. Along with great earnings coming out, Starnet will be getting on national NASDAQ anywhere from late July to mid-August...and will be making a number of news announcements...such as signing up a number of new licensees, etc. What makes this company special in the online gambling sector is that it is focused on grabbing market share by signing up licensees to use its casino and e-transaction software...and then Starnet gets a sizeable chunk of ongoing revenue from each one of these licensees. So far, Starnet has announced 41 licensees, including some major ones in Asia. The big issue facing this industry in the U.S. right now is the Kyl bill...to ban internet gambling in the U.S. It didn't pass Congress last year. It's been very watered down this year. It may very well pass in some version...but the Justice Department has already said it's unenforceable. Much of the uncertainty of the Kyl bill has already been priced into SNMM's stock. As I said earlier, SNMM is the real deal. If you're looking for a scammy stock in this sector, check out GGNC. It has had four P&D's in the last 6 months. Just check out it's 6-month chart and notice the 4 big spikes and the inevitable and fast stock drop thereafter. Regards, Newman.