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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Joe Copia who wrote (603)	4/2/1998 4:07:00 PM
From: Scott A. Trapp	Read Replies (2) \| Respond to of 25711

Joe, Maybe I can get your opinion as no one else will give me their's. What do you think of WIRL. I love the idea of internet access via wireless modems. They have the airwave licenses but carrying a lot of debt but it looks like it is coming under control. Oh well just thought I would ask. Scott

To: Joe Copia who wrote (603)	4/2/1998 4:54:00 PM
From: Rande Is	Read Replies (1) \| Respond to of 25711

FASCINATING HYPOTHETICAL ON ICUT: - - -Shows 500 pct sales increase is planned by CEO, whether he realizes it or not. At the efficiency rate discussed on DD of previous post, each time Mr. Silver closes one mall store, he can easily open at least 4 kiosks and not increase overhead a dime. [Assuming start-up costs are covered] 800 sq ft. store = 25,000/mo expenses 120 sq ft. kiosk = 5,000/mo expenses At this rate, you could safely assume that he could convert mall stores into kiosks at a ratio of better than 1:4. Now converting the 8 stores that remain, into 4 kiosks each would yield 32 new kiosks. Again, according to his scenario of 8 stores bringing in 90 grand/month each and kiosks 80 grand [discussed in DD]. The net gain after this conversion would be as follows: 1 Mall Store= 90,000/mo x 8 stores = 720,000/mo 1 Mall Kiosk= 80,000/mo x 32 Kiosks = 2,560,000/month revenue Add these to the 14 existing kiosks and you see why I get excited: After all retail stores are converted to kiosks there could be a total of 45 kiosks running at the same expense as they are currently running. But generating 500 PERCENT more revenue. 1 Mall Kiosk= 80,000/mo x 45 Kiosks = 3,600,000/month revenue. Now, understand that this is a speculative scenario, based on hypothetical numbers provided by the CEO of ICUT. And not every store will generate 80,000/mo each and every month. Also there are substantial start-up costs associated with each opening. If start-up money is not acquired, kiosks are not opened. But that is where the shareholders come in to take up the slack. Price of stock gets pushed up...more interest is generated...easier to get loan...etc. etc. Now this scenario is such a RADICAL departure from the less than impressive past earnings reports. No wonder the next earnings report is expected to be substantially better. Coupled with the fact that it is a real company with stores you can visit owned by the majority shareholder, makes ICUT a truly undervalued stock with a bright future. . Rande Is ~~~~~NOTE: These are strictly my hypothetical opinions and are not to be used as factual information for the purpose of research. Many things can happen that would hinder sales performance. Do not buy and penny stock as an investment, but are strictly for gambling.