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Non-Tech : Starnet (SNMM)Online gaming, sexsites, lottery, Sportsbook -- Ignore unavailable to you. Want to Upgrade?

To: Jay D. who wrote (236)	5/11/1998 1:36:00 PM
From: M_Power	Respond to of 8858

Jay, further to your comments on licensees... I spoke to Thomas in IR about Softec fees and revenues. Gator was right - it makes sense to keep those figures hush-hush. Thomas said, "A significant percentage of a licensee's revenues sounds great to Starnet shareholders...but might sound lousy to prospective new licensees." Hmm...good call. I'd rather have Starnet rack up a bazillion licensees on undisclosed terms and let their 10Q's do the talking. Anyway, he said so far they've charged up to $100,000 US as a setup fee, and the minumum monthly revenue to Softec is $25,000. IE, if a licensee doesn't make a dime, they still have to cut Softec a check for 25k. He says the setup fee and "sliding scale" revenue percentages are structured to minimize the barrier of entry in to the market...not like other licensing companies that charge $100's up front. I'm watching the stock with concern...great news, major media coverage, independent promotion - yet a steady slip. I made this no secret to Thomas. He said they felt the same frustration, but over the weekend, their CEO gave them a pep talk, and told them to stop looking so short-term and look at the big picture. They are in a business development stage: signing horseracing tracks, signing licensees, marketing a 6-month-old World Gaming Site, talking to other potential real-world allies. Numbers are what matter, and when they start producing them, "the stock will take care of itself." So their job now is to focus on the development COMPANY and its awareness - real value is developed this way. "We want to be the Blue Chip of Internet Gaming," he said. Thomas told me they expect their forthcoming 10Q (mid-June) to look "much better than the last one," and a real turnaround will the the announcement of THIS quarter's results (mid-September). I'm going to stop waiting for an overnight upside. I'm gonna hold (at least there will be that much less $%^$#$ selling!) for a couple quarters. Still looks like these guys are as real a deal as can be found for a buck. Everybody else is talking about what they're "gonna" do. ///M