Subject:
A Great Buy: NETZ
Date:
Mon, 23 Feb 1998 08:32:46 -0800
From:
"analystsgroup" <analystsgroup@goplay.com>
To:
forum@the-stock-market.com
Undervalued Dog, Volume 3, No. 6, Feb. 23, 1998
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ZULU-tek, Inc.(NETZ, OTC BB, formerly Netmaster Group, Inc.)
Recent Price: $0.18-8-0.25/share
Daily Average Volume: 120 K
97' EPS (first nine months): $0.19 share (loss)
Estimated 1998 EPS: $0.35/share
Div/Shr: None
Yield: None
52-week Range: $0.15-1.00
Shares Outstanding: about 30 M
Float: about 15.5 M
Profit Margin: 25-30%
1997 revenue: $3.5 M
Estimated 1998 revenue: $60 M
Insider buying: Positive
SEC filing: No
NETZ is very bullish. Tendencies for prices to continue advancing are
extreme at 90-100% with a short term
(1-3 months) upside potential of $2.00 and a long term (6-24 months) upside
potential of $10.00. Buy under $1.
BUSINESS SUMMARY AND CORPORATION BACKGROUND: ZULU's subsidiaries are
echoMEDIA Technology, Inc., NETZ-Autotrak, Inc. and SOFTBANK Interactive
Marketing, Inc. ZULU
( echomedia.com ) is the only vertically integrated
Internet company with in-house technical development and support for
Internet, CD-ROM and other digital
advertising and e-commerce applications as well as a Web-based automobile
industry tracking system. EchoMEDIA's interactive advertising software,
Sesame-Ad(TM) and While-You- Wait(TM), for the first time allows
advertisers to realize the full potential of the Web as an advertising
medium. The software enables advertisers to run multimedia, Beyond The
Banner (BTB), commercials on the Web -- elements of the same commercials
that are used on television, with all the drama, color, sound and impact.
Web advertising messages are no longer confined to static banner ads. Based
on connection speed, browser type and plug-ins, the software automatically
delivers the most effective ad creative to each end user. No impression is
missed due to lack of a plug-in or slow connection speeds. Sesame-Ad and
While-You-Wait seamlessly deliver the advertisers' message to all viewers.
EchoMEDIA's customers include AltaVista, Bellcore, Daytimer Technologies,
Kodak, Prodigy, Symantec, United Airlines a!
nd USA
Today. Last month, NETZ acquired SOFTBANK Interactive Marketing, a world
leader in interactive marketing and advertising sales from SOFTBANK Holding
Inc.. SOFTBANK (http://www.simweb.com) is representing many of the world's
most prestigious Web sites and providing both media clients and advertisers
with results-oriented interactive marketing solutions. Through a portfolio
of its branded Foundation Buy sites and ad network, the company provides
the largest single source of Web impressions in the world. the Foundation
Buy and the SOFTBANK
Network are complementary products that offer a broad range of benefits,
including brand affinity with leading
sites, strong editorial context, reach, frequency and one-to-one marketing.
In support of these products, the
Internet Strategies Group develops and implements turn-key Internet
marketing solutions, such as sponsorships, sweepstakes, promotions, and
custom programming. SOFTBANK Interactive Marketing's clients are a select,
prestigious group of Web sites, including: Telia's Alta Vista mirror site;
Carling Net; CricInfo; Hotmail; MapQuest; Intellicast; Netscape;
NewsClassifieds; OzEmail; Playboy; WBS; and ZDNet and more than 50 Web site
affiliates in The SOFTBANK Network. Headquartered in New York City,
SOFTBANK Interactive Marketing maintains offices in Atlanta; Boston;
Chicago; Dallas; Los Angeles; San Francisco; London; Melbourne and Sydney.
SOFTBANK
Network has signed up more than 30 new quality Web sites as affiliates
during last 2 months, including leading and diverse brands such as AT&T,
American Stock Exchange, Disney, Dow Jones, Intel, Fuji, First USA,
Fischer/price, GTE, Microsoft, Schwab, Sprint, Toshiba, etc.. Combined
gross sales for ZULU and SOFTBANK Interactive Marketing
For the month of December 1997 totaled $7.1 Million.
RECENT DEVELOPMENTS: When shares of DoubleClick Inc. (DCLK, Nasdaq) surged
70 percent after the Internet
advertiser kicked off its initial public offering on the Nasdaq last Friday
(Feb. 20, 1998), NETZ jumped into our
radar screen. We have followed NETZ for a while. Technically, NETZ is
bottomed out, but DCLK's IPO is a trigger to make NETZ break out. The DCLK
shares opened at $29, up $12 from the $17-a-share IPO price. DCLK sold 3.5
million shares, roughly a 20 percent stake in company, and raised $60
million -- nearly double the money it expected when it first filed to go
public in December. The shares moved even higher in their first few minutes
of trading, reaching as high as 31-3/4. Despite DoubleClick's lack of
profits and slim revenues ($30 million), the
offering has been one of the most talked-about deals in IPO circles this
year, with audiences of fund managers
jam-packed into the company's roadshows, analysts said. The draw was the
potentially hot industry of advertising on the Internet. DCLK sells blocks
of advertising across many different sites. It also points clients toward
specific sites heavily trafficked by their target markets, and buys
advertising space there. After IPO, DCLK now has a rough valuation of $450
million based on the 15 million outstanding shares. DCLK foresees losses
into 1999 as it reinvests in international expansion. SOFTBANK is a major
competitor of DCLK in the industry. Unlike DCLK, which considers its space
the first-tier sites, SOFTBANK offers networks of upper-end second- and
third-tier sites. Last December, former BMW Executive Ronald I. Meatchem
agreed to join NETZ as Chairman and CEO. NETZ is
well positioned to become a leader in the international market of providing
Internet-based service technology with it's innovative technology and
interactive advertising services under leadership of Mr. Meatchem. He is
confident that the revenues of the company will be increased sharply to
$300 million a year from $60 million of this year revenues within three
years. Since NETZ is a non-reporting company, some information about the
company's assets, liabilities, cash flow, debt and so on is not available
to public. We were reluctant to recommend NETZ to our readers. But we
strongly feel that NETZ is substancially undervalued after we compared it
with DCLK and interviewed some members of the management They appear to be
confident that the company's financials will surprise everybody, as
they feel they have a better financial condition than DCLK. They expect the
company's audited financiasl will be
out as soon as possible.
Contact:
Neil Miller; President, Thomas Burgess; Exec V-P, Rosanne Kander; Secy.
OFFICE- The Exchange Building, 38 Washington Square, Newport, RI, 02840
(TEL.:401-842-0002, FAX: 401-842-0005).
WEBSITE:
netmastergroup.com.
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