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Microcap & Penny Stocks : New Sky Communications (NSKY) -- Ignore unavailable to you. Want to Upgrade?

To: findstock who wrote (2533)	9/25/1998 12:40:00 PM
From: Donster	Read Replies (1) \| Respond to of 2601

Don't know re discussions with Reynolds. I've been too busy to do it this week and he was not in his office yesterday when I attempted to contact him. Unlike most companies in which we invest, movie production companies work out deals for a percentage of the distribution profits. For example, that's why all the production costs of Freak have been paid and we will have 33 percent of the distribution profits, when they occur, free and clear. I don't know what has been worked out with Winchester to get the estimated $3- to $5-million up-front production money and worldwide distribution of Face Facts, but (IMO) it would almost have to be for a percentage of the profits. And, with the Face Facts world-wide distribution deal included, we won't be sitting around waiting for a film festival as we are with Freak. I don't know what numbers, other than contract percentages and project budget projections, we can get from NSKY that are not already included in its 10-Q's. I also don't know if Reynolds can even legally estimate earnings, because much will depend on audience acceptance and scope of distribution. What I do know is that several years ago I bought some very inexpensive stock in a little movie production and distribution company, Cannon Pictures, which went on to become reasonably big in the industry and was at $6/share when I sold it. Didn't follow them after that but I believe they were bought out by another company. I'm not saying that New Sky will become another Cannon, but with projects and connections like they are developing, they certainly could. I'll post any information I get as soon as my schedule allows me to talk with either Carl or Colleen.