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Microcap & Penny Stocks : PNEC - Planet entertainment ready to spin gold -- Ignore unavailable to you. Want to Upgrade?

To: inchingup who wrote (62)	4/16/1998 10:44:00 AM
From: Jim B	Read Replies (3) \| Respond to of 221

I want to share with you the details about a conference call that took place yesterday between a few select investors, myself and Wally Giatkis, the CEO of PNEC. The following is a composite of what Wally shared with us. PNEC was started about 3 years ago. Wally, working with the former CEO of PNEC Joe Banary (who was one of "THE TOKENS" that sang the original "Lion Sleeps Tonight" song that we all know so well). Since then PNEC has spent a tremendous amount of time meeting with major singers and producers and record labels and has accumulated over 15,000 MASTER RECORDINGS of diferent but popular artists. These are not 15,000 CD's like you or I would have. They are 15,000 different finished recordings that have only need to be duplicated to be sold. The cost to create 1 Master Recording, if done well, is anywhere from $10,000 to $15,000 EACH. Well PNEC has let someone else do the creating and they have made deals and bought most of EACH of these Master Recordings for about $800 to $1000 each. So hmmmm 15,000 master recording x say.. $10,000 to produce... $150 MILLION in cost HAD PNEC done all the production. But they haven't; they just bought the final products. PNEC has $15 million in assets and about $1million in debt. Wally himself has put millions of dollars of his own money into PNEC and made readily available any cash flow that they might need. Last year, it was decided that the 1st target market that PNEC would seek sales in was the FAR EAST. This is because by the year 2002 according to BILLBOARD that 50 cents of every dollar spent on music would be in the FAR EAST! This is a huge market including Japan and Malaysia, etc. NIPON COLUMBIA will be releasing 50 albums (not 50 individual $19.95 CD's) but 50 different albums ( of the 15,000 different ones that PNEC holds) to mass produce and distribute. I don't think that many of us understood the magnitude of the press release earlier in the week on PNEC. I too was confused. What will happen is that for EVERY Album that is sold by NIPPON COLUMBIA.... PNEC will get $1.00. So imagine how many copies of each of these 50 titles they will sell! Again, PNEC's cost on this in MINIMAL as they don't even produce this stuff. They have just been buying the finished product and then making the deals for distribution. This gives them a huge profit margin. PNEC plans to have readily shipping and selling 100 albums by year's end. KOCH company did a test of JUST 7 (not 50) of PNEC's albums (master recordings) and was able to bring in $42,000 in one month!!!! Imagine what 50 albums will do on a FULL DISTRIBUTION bases... not just a "test" basis. And don't forget another 50 albums to follow. We're talking Millions of dollars in profits for PNEC. Each month, PNEC will release new albums into the market for sale. As they do this, re-orders of the first set of albums will start flowing in. Then they'll release a 3rd set... and you have a domino/pyramid effect that grows and builds with every month. Did you know that Catalog Music is 40% of the worldwide market! This is why I and Wally and PNEC are very excited. Wallstreet has made readily available any and all support for just about every kind of music company out there because they know that people... whether happy,sad, depressed, in love, bored will want music. And depressions, recessions don't matter much either as people still want to hear music. We all know this. PNEC does NOT produce or solicit brand new singers that haven't established themselves. They are NOT in the business of finding the next Janet Jackson. They in the business of selling Janet Jackson. The Entertainment and Technology Industries are the world's biggest industries. Thus, Wally is working aggressively to put together some major acquisitions. He is also working on pulling in under PNEC a distributor that can ship these albums out for PNEC, rather than PNEC paying for distribution agreements. PNEC has virtually NO overhead. About 5 employees (all whom are highly respected in the music industry). Typically we see that the PRICE/EARNINGS ratio for companies of this nature/business are around 60! Not 10, or 15 but 60! The first month of revenue flow occured just a few months ago and was about $400,000! They have been building the business for 3 years, and again are JUST NOW ready to make money. Again, Wally is working to get us a distribution company to help lower costs and again MAXIMIZE our profits. They are fully confident that a NASD listing will be happening soon. But they are focusing on getting the revenues to flow in. Only a matter of a few weeks before the sales start going off the charts. PNEC has been waiting 3 years for this and is now positioned and ready and simply are hopeful that the investing market will take more time to learn about PNEC and the massive potentials that this market holds. Please check the Silicon Investor thread techstocks.com for more info as we have posted more about PNEC there as well. We have also confirmed with several brokers that also feel PNEC has great potential and have also confirmed that some of the Market Makers on PNEC are short. Don't let them fool you into a panic sell. Buy if you like what you see, sell if you don't. We however have gotten our shares above $5.00 and you all now have a change to get in below what we are in at. Take care and good hunting. Wally is also going to send me an investor kit so I will let you know what I find in it. James Bristol