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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Joe Copia who wrote (7528)	8/25/1998 10:19:00 PM
From: JohnO	Read Replies (1) \| Respond to of 25711

For those who are interested all the bad news is out on AMGV. 1st & 2nd quarter results are published. 2nd quarter results are published below. They anticipate the results for 3rd quarter to far exceed 2nd quarter and they'll show a profit for the year 1998. They are the EXCLUSIVE vendor for the Computer Built-To-Order for PC's and Notebooks with Wal-Mart Online and also have a banner add on Microsoft Hotmail.com. These 2 ventures will enable AMGV to exceed previous quarters in bringing in revenues. They also have other programs they are developing to enhance revenues in the future. August 24, 1998 AMERICAN GENERAL VENTURES INC (AMGV) Quarterly Report (SEC form 10QSB) - MANAGEMENT DISCUSSION AND ANALYSIS Results of Operations During the period from April 1, 1998 through June 30, 1998 the Company revenues were $120,318 compared to $310,727 for the same period in 1997. The decrease in revenues was due to decreased orders for computers and accessories from Wal-Mart Stores, Inc. taken by the Company's subsidiary ACI Micro Systems, Inc. ACI terminated its sales to Wal-Mart retail stores since it was issued a second vendor number from Wal-Mart Online. The Company is now marketing its products through Wal-Mart's Internet store and not to Wal-Mart's physical retail stores. The Company presently offers seven pre-configured computer systems on Wal-Mart Online and expects to have a "build to order" (BTO) desktop and notebook computer online in August 1998. The BTO computer has been very successful with Dell Computers and Gateway 2000. The Company expects that by partnering with Wal-Mart it will capture a percentage of Dell's and Gateway's market share. This quarter's revenues are up 64% from last quarter's revenues and the Company expects to exceed this trend of increased revenues. In addition to having an exclusive agreement with Wal-Mart Online to manufacture its BTO computers, the Company is developing its own Internet web site. The Company has an advertising agreement with Microsoft's 16 million member e-mail service, Hotmail, Inc. Early indications suggest that revenues for the third quarter will more than double from this quarter's revenues. Since the Company has changed its strategy to sell its product through Wal-Mart Online, its losses have significantly decreased. The Company losses in 1997 were less than half of the losses in 1996. The Company expects to show a profit for 1998. Working Capital and Capital Resources Working capital at June 30, 1998 (current assets less current liabilities) totaled ($39,474) compared to ($58,606) at June 30, 1997. The reduction in the working capital deficit was primarily due to a decrease in accounts payable. The Company was able to reduce a debt of $110,000 to $32,000. The Company will use the "just in time" inventory method for sales through it web site. This will reduce the need for operating capital for its own web site because these customers pay in advance by credit card. Also reducing the need for additional working capital is due to the Company establishing terms with its primary vendor to exceed the length of time of Wal-Mart payables to the Company. The Company recognizes the need for marketing and continues to seek additional capital for these expenses.