CYAA: CONSOLIDATED DUE DILIGENCE.....
1) The Business...
CYAA is in the business of buying distressed real estate for re-packaging and re-sale at huge profits... So far nothing that exciting, except that it provides solid and quantifiable assets to show NASDAQ/AMEX, prior to applying for a listing... Last year, CYAA Principals, through their subsidiaries, Canton Financial Services Corporation and Hudson Consulting Group have become involved in the excellent business of buying shells to perform reverse mergers and acquisitions, such as: GDIS, CHML, AIVD, CTWN...
2) Statistics:
Outstanding: 3.2 Millions shares.... Float: 1.5 Million....Book Value: $1.65... 9 months Financials to Sept 1999, Revenue: $3.6 Millions... Earnings: $1.7 Million.... Cash on hand: $1.4 Million.... Assets: $13 Millions... Liabilities: $8 Millions... My PROJECTION for 12 months EPS: 98 cents... Websites:
hudsonconsult.com and cyaa.com.
3) Incredible Insiders Trading Record: 1 Million shares BOUGHT in one year...
biz.yahoo.com
4) KLYS Potential Worth to CYAA....
CYAA still holds some 12.4 Millions KLYS shares and Richard Surber, some 8.25 Millions, personally, according to the recent filings... Since he is both the CEO of CYAA and KLYS, CYAA pretty much controls a Shell with some $10.5 millions worth of Assets that should soon do a hell of a nice Reverse Merger with enough Assets to go directly to NASDAQ.... IF there is no Reverse Split of the shares, which would seem to be the case, a decent NASDAQ Company would soon be trading between $5.00 and $10.00+ making CYAA 12.4 Millions shares in KLYS worth between $60 and $120 Millions... $60 Millions divided by 3.2 Millions shares gives $18.75/share!!...
5) Some of the Real Estate Properties...
+ Oasis International Corporation, a consolidated subsidiary of CyberAmerica, owns approximately 1,079 acres of mostly raw land, 360 acres being zoned for Casinos, located in Elko County, Nevada. It paid $900,000, or just over $800.00/acre to acquire this property... Yet, they already made two sales, so far, at an average of about $250,000/acre!!...
+ Diversified Holdings, a consolidated subsidiary of CyberAmerica, acquired, through a Stock Acquisition Agreement, 51% of the shares of common stock of a Louisiana Corporation whose sole asset is the General Lafayette Inn, 8 134 units Motel and restaurant, and four adjacent office/retail buildings, in Baton Rouge, Louisiana. Upon completion of the necessary renovations, the Motel will have an estimated value of $6.2 million according to an MIA appraisal report.
+ On July 23, 1998, Canton's Commercial Carpet Corporation, a consolidated subsidiary of CyberAmerica, acquired a two-story 18 unit apartment building that includes 7,500 square feet of commercial space located at 2402 Wall Avenue in Ogden, Utah. The total purchase price was a $850,000.
+ Canton's Commercial Carpet Corporation, a consolidated subsidiary of CyberAmerica, owns a building located at 268 West 400 South in Salt Lake City, Utah, which is currently used as CyberAmerica's headquarters and principal offices. The Office Property is a two-story building with 14,347 net rentable square feet of office space. The purchase price was $418,762.
+ The Glendale Plaza is located at 1100 South Glendale Drive, Salt Lake City, Utah. West Jordan Real Estate Holdings, Inc., a consolidated subsidiary of CyberAmerica, currently leases the retail shopping plaza. The property contains 76,831 square feet of rentable retail space and approximately 100% is subleased to tenants.
6) Management:
CEO, Richard Surber is an Attorney who definitely seems to know what he is doing... He is a graduate of the University of Utah College of Law where he obtained his juris doctorate. Mr. Surber also obtained a Bachelors of Science degree in Finance from the University of Utah School of Business. Mr. Surber is also a director of several other public and private corporations.
Mr. Wolfson is the uncle of Richard Surber, CyberAmerica's chief executive officer, president and director. Allen Wolfson obtained a B.S. in Marketing from the University of Southern Florida in 1968, and in 1970 he graduated with an M.A. in Distributive Vocational Education. Mr. Wolfson is also the head business consultant to CYAA and the primary finder of potential transactions for the company. .
7) Discussion of Value:
Most of CYAA's Financial Assets are booked at cost and have seen tremendous increases in Value... CYAA has various other substantial investments in Companies, such as DIXS and ETPI and owns, at least 20 shells, ready for suitable Reverse Mergers... One Reverse Merger with a decent Private Company, could net them as much as $10 Millions and they could do as many as 6 or 7 per year...
For the nine months of 1999, CYAA recorded a Net income of $1.7 million, up from $649 thousand in 1998, for an increase of 262%.... I have recently estimated that CYAA's Financial and Real Estate Assets were worth well in excess of $100 Millions, or $33.00+/share... However, few Companies with this steep rate of Growth, trade at Book Value and I believe a PE between 30 and 40 would accurately reflect this tremendous Growth rate... I estimate that CYAA will have an EPS of just under $1.00 for 1999... My initial Target is $10.00, which would be a Market cap of only $32 Millions...
As soon as the share price of CYAA stabilizes over the $4.00/5.00 Mark, I expect an application to list, probably on AMEX, as it meets every other conditions, followed by a forward Split... Then, Analysts will start recommending the stock, Institutions will add it to their Portfolios and before the end of the Year we should reach my secondary target of $30.00+... 10K for 1999 is expected on or before 15th April 2000...
8) Disclaimer: This is only the personal opinion of a potentially biased long, not a recommendation and no responsibility is accepted for errors or omissions... Would-be investors should carry out extensive Due Diligence and only invest what they can afford to lose...
JMHO, F. Goelo + + +
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