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Microcap & Penny Stocks : MPTVE - Turnaround With Huge Potential -- Ignore unavailable to you. Want to Upgrade?

To: Michael Graham who wrote (31)	8/5/1998 5:14:00 AM
From: Provocateur	Read Replies (1) \| Respond to of 5783

Michael, In response to your questions: 1. For Lake Tropicana, MPTV has already sold somewhere between 100 and 200 intervals and has the corresponding $1 to $2 million in escrow, which will be released once the title is transferred. MPTV also has 600 intervals pending sale with corporate entities that would like to purchase them for their employees and clients. CEO Jim Vellema went down to Texas a few weeks ago to finalize some of these corporate contracts, and will continue to do so in the coming weeks. So they've already sold 100 to 200 intervals, and are in the process of actively closing on another 600 corporate intervals that have been waiting for the MPTV to start business. Therefore MPTV has already started sales at the Las Vegas property. Within 2 to 3 weeks of the closing of the deal (i.e. transfer of title), MPTV will hire a sales force of up to 60 people to do on-site sales. They already have a brand new sales office on the site and have built three brand new floor models of the timeshares people will be purchasing (studio, 1BR, 2BR). So if they start in October (allowing room for possible delays), that will give them approximately 15 months to sell all 9152 intervals by the end of 1999 (15 months was the conservative timeframe MPTV gave, with 9 months being the more liberal one). Further, actual completion time of the renovations has no impact on sales because they will see the floor models and be purchasing a future interest. This is commonplace in the timeshare industry. 2. As for the $12,500 per unit, it is a liftime cost, but does not include the annual expenses for property maintenance and necessary repairs that MPTV will collect each year. As for the timeframe of revenues being generated, MPTV should collect the funds almost as rapidly as they sell the intervals. First, all corporate accounts (which will make up a large chunk of sales) are sold on the basis of full and upfront payment, so there will be no lifetime payments for those. Second, another large number of the intervals will be sold to other timeshares retailers who will resell them. They also will be sold on the basis of full and upfront payment. For the remaining number of intervals which will be sold to private individuals (which will also make up a large chunk of sales), they will pay over a period of time. But if you read the 11th sentence in the second paragraph of Part III (https://www.siliconinvestor.com/readmsg.aspx?msgid=5401999), you will see that MPTV has received a letter of commitment from Stanford Investors Ltd. to do a $100 million in end-loan financing of timeshare receivables. What this means is MPTV will receive their payment upfront and in full from Stanford Investors (less a small charge), and the private individuals will be financed and making payments to a third party. Therefore, the contributing EPS of $.102 for 1999 for the Las Vegas property and the total EPS of $.178 for 1999 are both valid. Further, if you read the first sentence of Part V (https://www.siliconinvestor.com/readmsg.aspx?msgid=5402026), you will see that my estimates are very close to those of MPTV's auditors. This is straight from the CEO's mouth. And these are the conservative figures. Prov