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Microcap & Penny Stocks : 1ST MIRACLE GROUP (MVEE), founders last co. went $0.20-$46 -- Ignore unavailable to you. Want to Upgrade?

To: Carolyn S. who wrote (453)	6/18/1998 8:49:00 PM
From: Tadsamillionaire	Read Replies (2) \| Respond to of 5541

Thank's Cap, This appears to be one of those IRA stocks @ these prices. (By the way I am still having problems with Schwab in obtaining trades on this stock.) Tim

To: Carolyn S. who wrote (453)	6/19/1998 12:51:00 AM
From: Capitalism	Respond to of 5541

Page 5 the last and final may generate in excess of $7 million in additional guarantees for a potential total of approximately $15 million in minimum guarantees from presale alone, not including overages. Pursuant to the outside financing agreement, Magic Entertainment will receive 20% distribution fee ad infinitum until investors recoup 110% of their investment, after which Magic will retain, in addition to its 20% distribution fee, 65% of all revenues. What we find so attractive about the off-balance sheet financing is that Magic will not be responsible for the amortization of the cost of its films since copyright and negatives remain the property of the investment partnership vehicle, while Magic retains the exclusive right to distribute and license the productions. This unique method of financing relieves the company of the debt service and equity participation traditionally accepted by the movie industry. The absence of creative accounting and the investor's principal protection afforded by the structure of the off balance sheet financing leads us to believe that this method may become popular and an acceptable template for future financings of similar nature. The library unit may add to these numbers of up to $500,000 in revenues by licensing various titles to television. As of the end of April (the first five weeks it was released), Grizzly Mountain video brings the Company's share to at least $350,00. This family film ranked number eight on the top ten video sellthrough. We expect Magic to receive overages from its films which should provide unlimited potential after any advances have been recouped. It should receive 50% of theatrical revenue, 30-35% of wholesale revenue from it video sales and 60%-70% from wholesale TV revenues. While the athletic clubs have the potential to add another $3 million in revenues approximately $1 million will help fund the entertainment subsidiary's start up costs which leaves these clubs with a net loss of approximately $2 million. Based on projected minimum guarantees, we therefore believe that First Miracle's net revenues could exceed, depending on financings, between $7.22 million and $11.17 million before including potential sales from TV and video. We are confident that if Menahem Golan and Yoram Globus, et al. Execute their proven business model, then First Miracle Group has a strong possibility of attaining the potential success previously by Cannon in 1986. Consequently, we initiate coverage of MVEE with a speculative Buy rating and recommend the stock to those with speculation as their main goal.