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Microcap & Penny Stocks : Greenland Corp. (GLCP) -- Ignore unavailable to you. Want to Upgrade?

To: fubsy cooter who wrote (1662)	5/19/1998 12:50:00 AM
From: Mark B. Martell, CCM	Read Replies (2) \| Respond to of 2278

Gentlepersons, I'm not sure about this new acquisition. Let me say this though: These machines are quite lucrative. I have been in Treasury for 14 years now. The ATM/Check cashing machines have proven to be a boon to the banking industry. They first launched ATM machines to cut costs, ridding themselves of the high cost of Branch labor. Now, they are beginning to charge fees for ATM usage.... These Check Cashing Machines will do wonders. They will allow low-income people an automated means of moving money without bank accounts. The cost of these transactions to the individual is much greater than regular ATM fees through their checking accounts......hence, they are more lucrative, but involve a measure of risk exposure. I'm not sure what the acquired company does in this regard. Do they provide the machines? Provide the services associated with managing the checks processed by the machines? Handle the banking transactions associated with check clearance? If they only provide the machines, then they are a fixed cost nightmare, having to create the machines for sale. This requires up front financing/capitalization. If they service the machines? Variable revenues tied to the transactions......much, much more lucrative. These guys have a shareholders meeting in a few weeks. These details better be spelled out by then. My guess is that the management can't be that stupid, and that this deal will provide revenue to the bottom line and quickly. It does them no good to acquire a company which desires additional financing. It would be difficult to press forward a business case to financiers based on no revenues at this time. Wow. Either way, it seems to me that for a small company with a handful of employees they have no focus. From Real Estate to Airlink to ATM's for the bankless...... Tomorrow will be hell. Mark