@@@@GLOW "GENERAL OVERVIEW INFORMATON"@@@@
(This information has been compiled by me, an independent investor, and is presented to be as accurate as possible according to what information I have been able to obtain from public and private sources. This should NOT be assumed exact, but is presented as a
starting point for research purposes.)
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Ticker Symbol: GLOW (OTC:Bulletin Board)
COMPANY:
Global Games Corporation
400 S. 4th Street, Ste 720 Main
Minneapolis, MN 55415
Telephone: (612) 672-0834
CEO & PRES: Gary Borglund
CFO: Barry W. Phillips
E-MAIL: (CEO) gborglund@globalgames.com
WEB SITES:
globalgames.com (Company Web Site)
vegas-live.com (Game Demo Site)
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TRANSFER AGENT:
Liberty Transfer
191 New York Avenue Drive
Huntington, New York 11743
AUDITING FIRM:
Feldman Radin & Co., P.C.
805 Third Avenue, Level 21
New York, New York 10022-7513
frco-cpa.com
SEC STATUS:,
Currently filing to be a fully reporting company with the SEC by the end of June, 1998.
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SHARE INFORMATION:
TOTAL SHARES AUTHORIZED: 100 million
TOTAL SHARES OUTSTANDING: 57,459,313 *
* 13 million of these shares were issued as part of a previous deal that has not materialized as expected so the company anticipates getting those shares returned as that deal is "undone." That should bring the total outstanding shares down to about 44.4 million.
RESTRICTED SHARES: Apx 11 million
INSIDER HOLDINGS: Apx 7.5 million
SHARES IN THE FLOAT: Apx 33 million
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OTHER QUESTIONS:
Q. Are there any 504s (Reg S, Reg D, etc) still out?
Answer: No
Q. Do you expect ANY reverse split to reach your EPS target for FY98?
Answer: No.
Q. How much total debt?
Answer: $2 million
REVENUES:
1997 (To be released with filing of 10-K)
1998 (My Projection) $36 Million
PROFIT MARGIN: 50-70%
GLOW can benefit from an accumulated loss carry-forward of about $7 million.
EARNINGS:
1997 Loss (Developmental Stage & Ramp-up)
1998 I project 28-36› EPS
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LIST OF RECENT PRESS RELEASES:
biz.yahoo.com
GENERAL BUSINESS INFO:
GLOW is an Internet-based commercial service business providing secure automated transaction processing for merchants and Internet customers. This includes secure online credit card processing and secure online check transactions.
GLOW also licenses software for Internet gaming, and, through Electronic Card Services, Inc. (ECS), also sells prepaid electronic chat-line cards through ATM-style dispensing units.
Additionally, GLOW provides management and consulting services.
GLOW's core marketing strategy is to develop "recurring electronic revenue streams" based on targeted niche markets where the company's expertise can be leveraged.
There are 3 basic recurring revenue streams:
1) Electronic Card Services (ECS)
GLOW recently acquired 100% of ECS (Electronic Card Services, Inc.). ECS sells prepaid electronic chat-line cards. ECS President is Bob Heward.
ECS sells electronic cash cards through ATM-style dispensing units. These cards are accepted by major retailers and can be used as prepaid phone cards. Electronic cash cards will soon include access for prepaid cellular usage, chat lines, internet access for travelers, and include applications that will function much the same way as a bank debit card. Initially, the ECS market was Toronto, Canada. But ECS is now expanding throughout Canada and will enter US markets later in 1998.
Here's an SI post that describes how ECS cards work...
Message 4204945
ECS sales for 3Q 1997 were $450,000 and for the 4Q, sales were $750,000. ECS estimates 1998 net revenues (pre-tax) of about $7 Million and about $.05 EPS just from ECS.
2) Licensed software to Internet Gaming Corp in Dominica.
GLOW licenses software for internet gaming to Internet Gaming Corp of Dominica, W.I.
Internet Games include:
- Multi-player Bingo (http://www.vegas-live.com),
- Multi-player Blackjack using Java,
- Four versions of Slot Machines,
- Video Poker and
- Netshow for video Bingo calling.
GLOW will receive ongoing revenue from IGC's Internet gaming income as a percentage of the total gross revenues. GLOW forecasts annual net revenue from its software sales to IGC will reach $10.3 Million for FY98, or $.20 EPS just from the licensed software.
It should be noted that GLOW is NOT interested in conducting internet gambling. GLOW is interested ONLY in providing the licensed software for other companies to do internet gaming.
Some people have asked if internet gambling is legal. In some countries it is and in some it is not. Here is a quote from a spokesman for the US Justice Department...
"Don't expect the Feds to jump in and stop the action... If the casinos are outside the US, there's nothing we can do about it..." - John Russel, spokesman for the US Justice Dept.
IGC is a licensed international business company (IBC) in Dominica, W.I. Here are some SI posts with more info on the relationship between GLOW and IGC (InterNET Gaming Corp).
Message 4871031
Message 3973624
GLOW's software is also being considered for Internet gaming through Casinos in Canada.
GLOW can also increase profits further from market by offering "on-line credit card processing direct account-to-account" and by being able to do "on-line check transactions." GLOW will NOT have to go through a third party for the credit card processing which improves security and increases profit margin.
3) Management Services for Casinos in Canada.
GLOW provides management services to Burnt Church First Nation of Miramichi, New Brunswick, Canada. This is a 10-year management contract and GLOW will receive 40 percent of all pre-tax net gaming revenues for its management services. Further contracts are possible with two additional gaming organizations in the Miramichi area.
Here's some more info on First Nation.
apcfnc.org
Mr. Roger D. Rothe, former Director of Development at Gaming Corporation of America will oversee the Miramichi project. Mr. Rothe has extensive experience in all phases of the gaming industry and is credited with developing one of the top five revenue-generating Native American casinos in the United States.
OTHER BUSINESS ITEMS:
GLOW also recently acquired 100% of Wolf Key, however, GLOW has not yet received adequate documentation on this acquisition. GLOW is diligently working to get Wolf Key to resolve this problem. It is possible this acquisition could be "undone." Wolf Key is a company with commercial Internet and credit card processing capabilities. This acquisition would add revenue, but it does not bring any additional functionality to GLOW's processes.
For FY98, my understanding is that the company expects to do about $36 Million in revenue JUST from licenses for internet gaming software, ECS, and management services ALONE. These revenue sources could generate pre-tax profits of about $22 Million. With the loss carry-forward from previous years of around $7 million and
allowing 40% for tax, I believe the NET PROFITS from these sources would be around $16 Million.
Based on 57.4 million total shares outstanding, that would be over 27.8› EPS.
However, with the return of 13 million shares as expected, that would change the expected earnings to...
$16 Million divided by 44.4 million shares outstanding = 36› EPS
(and this does NOT include ANY estimates of profits from software licensed in Canada.)
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SUMMARY:
$22 Million in Pre-Tax Profits
$7 Million Loss Carry-Forward from previous years
$6 Million in Income Tax
$16 Million in NET PROFIT
Approximately 44.4 million total shares outstanding
$16 Million divided by 44.4 million shares = 36› EPS
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GENERAL INDUSTRY INFORMATION:
Electronic cash card sales in 1997 were just over $2 billion in prepaid phone card usage alone, and annual volume of over $4.3 billion is expected by the year 2001.
An independent U.S. research firm estimates that the total internet electronic commerce market will surpass $150 billion by the year 2000.
Here is a link for info on internet gaming. GLOW licenses software for internet gaming.
vegaslinks.com
Message 4887977
OTHER TALK FORUMS on GLOW
YAHOO
messages.yahoo.com.
CURRENT QUOTE:
cbs.marketwatch.com.
CHART:
tscn.com
INFO on OTC:BB STOCKS
otcbb.com
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PLEASE NOTE:
I am NOT associated with GLOW in any way. I am an individual investor with my own opinions. I don't give advice. Questions should be directed to the appropriate source, many of which are listed above. Everyone is urged to do their own research before investing in anything.
Best wishes,
Brad |
