To: Gordon Owen who wrote (5465 ) 2/11/2000 11:33:00 PM From: OLD JAKE JUSTUS Respond to of 6528
EXCELLENT AREE DUE DILIGENCE, by Thaskell jakejautus [206.155.220.137] badassjake@hotmail.com REPOSTED FROM THE RAGING BULL. POSTED HERE FOR INFORMATIONAL AND DISCUSSIONAL PURPOSES, ONLY. IT IS NOT POSTED FOR PROFIT OR PERSONAL GAIN. ______________________________________________________________________>>> By: thaskell Reply To: 9686 by Caradoc Friday, 11 Feb 2000 at 6:48 PM EST AREE INVESTOR INFO: (revised) AREE is Arete Industries, recent restructure with new management team. O/S: 295 million. Float: 185 million For last 10 trades (20 min delay): host.cnbc.com/jetson/Last_n_Trades.html?Symbol=AREE host.cnbc.com Start with corporate overview and financials: www.areteindustries.com/busframe.htm www.areteindustries.com but first go to www.areteindustries.com/pdf/11-4-99executivesummary.pdf Note new CEO Tom Raabe's expertise in implementing turnarounds. Raabe was savvy enough to realize that core business of providing other companies with marketing/web development services could attract investor interest only after and to the extent customer companies succeed. To assure an early success story, he bought into (44% of) Mike Lowe's Agression Sports, now doing business as Arete Outdoors. Raabe moved coupon and direct mail business to separate subsidiary and can focus on Arete Outdoors. Note Mike's presence in two capacities: COO of AREE and managing director of 44% owned subsidiary, Arete Outdoors. For a hint at what Mike Lowe brings to the table, look at Lowe Alpine, the company which Mike Lowe developed and sold but which still bears his name: www.lowealpine.com/3/home/fr_hm_l.htm Explore the sublinks, note the worldwide market for high end sporting goods, and ask yourself what are the odds that Mike can do again what he has already demonstrated he can do. Then raise those odds based on (1) Raabe having vested interest in making sure Arete Outdoors succeeds and (2) Mike's brother Greg having joined up. biz.yahoo.com/prnews/000120/co_arete_i_1.html Okay, what is it that Arete Outdoors - pushed by Raabe and the Lowe brothers - is going to accomplish? Step 1 is to check out the 6 Jan PR: biz.yahoo.com/prnews/000106/co_arete_i_1.html Note two separate things: 1. Nifty products from the Arete Outdoors side of AREE 2. To be marketed over an e-commerce site produced by the other side of AREE. Raabe needs a bang up successful site to show to prospective clients. (Much better motivation than Mike could get from any other web developer.) Now check out the nifty products by going to prototype of the Arete Outdoors site: www.areteoutdoors.com/ Hit all the links, but save Innovative Products for last. Note two things about the products: (1.) High end gear for outdoor activities has high profit potential. If you're going to spend the night in a tent suspended from a cantilever fastened to the side of a cliff, you'll search out the best hardware and be willing to pay top dollar. (2.) In addition to high end products, the Alpine Scooter has every potential to create an entirely new sport. Easy to learn/use, it works as well on grass/dirt as on snow. With ski slope owners around the world seeing the possibility of making money year round instead of just winter, they'll all have to buy a dozen or more just to rent. Thereafter, AREE will have thousands of "salesmen" working for free. If even a tiny fraction of snowboarders (or skateboarders!) trade up to a scooter, cash flow from this item alone will be huge. So, at pennies per share, AREE is a steal even if only for the Scooter. Ignoring the scooter, it's a steal just to climb on board with the Lowe brothers as they once again market worldclass hardware. Combine the two and you're well into dollars per share once site is up and cash is flowing. Now, take a deep breath and step back a couple paces. As great as Arete Outdoors is and will be, it's only the showpiece that AREE will be able to use to market itself to other customers who in late 2000 and thereafter will want to do what Arete Outdoors will have accomplished. The reason it's a penny stock is that the above hasn't happened yet. Bottom line: The "sizzle" that comes with this steak (and the nearterm profitability that should price out in dollars per share this fall) is having the Lowe brothers and their worldclass hardware out front as example of what AREE can do. The real protein value is that AREE is a B2B company that will be able to market its services with the Arete Outdoors site as a sample. I see 50% odds of double digit dollars by August, 2001. Just my opinion; go figure the odds for yourself and invest accordingly. Regards, Caradoc PS: As a real company, fully reporting, that just happens to be priced in pennies, AREE is one of those rare exceptions to the rule that 99% of BB companies are trash: either outright shams or the equivalent of investing in your cousin's new restaurant. Another exception is PWTC. (Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)>>> [ This message was edited on Fri Feb 11 at 10:46pm by the author ]