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Microcap & Penny Stocks : WINR-Secure Banking to Global Internet Gaming & E-Commerce -- Ignore unavailable to you. Want to Upgrade?

To: E. M. Edds who wrote (2587)	12/6/1998 2:48:00 PM
From: Mags	Read Replies (6) \| Respond to of 6545

I just listened to Skinner interview on stock-line.com and I got a much better understanding of exactly what services WINR provides and what the implications might be. Some of this information might be redundant to some of you but with operations set to begin shortly for WINR I think it might be a good refresher. WINR strictly provides secure payout services using its debit card. This technology is not limited to internet gambling; it can be used for anything, from purchasing stocks through a stockbroker, to buying flowers from an online flower merchant, this was something that I was not aware of. I initially thought that the technology was strictly target at online gambling. I am not going to spend time describing the operations here because all of that information can be extracted from the website and the interview, I am more interested in the revenue possibilities which I will get to next In terms of revenues, WINR receives an up front $100,000 licensing fee. This is not where the majority of revenues comes from. WINR also receives a 4% processing fee for the funds both in and out the door. As an example, if $100 is deposited to use to gamble at a licensee site, $96 is sent to the licensee to gamble, $4 is kept by WINR, and the remaining $4 is credited back to the customers account by the licensee so the customer never really sees his account debited. This means that WINR has no accounts receivables because they initially debit the customer and do not wait to get credited by the licensee, this is the front end of the transaction. They also get 4% of any funds paid back out following the same process which means that they really receive 8% of the total amount deposited. On top of all of this is the float that they earn from holding the customer's fund. Following is my attempt to project the revenues assuming only 10 licensees. Also, keep in mind that it is a bit difficult to figure the base off of which to calculate the 8%. I will assume the 8% off of turnover and new funds for each month. So here is my crack at it: Assumptions - $1,000,000 wagered at each site per month, very realistic and conservative (GLOW and TTLN numbers are much higher per month) - 10 licensees (also very conservative) - 8% of total amount wagered (remember that this is totally different from net hold as with GLOW and TTLN) - 80% profit margin - 35% corporate tax rate - P/E multiple of 20 Calculations - $1,000,000 X 10 X 8% = $800,000 in monthly revenues - $800,000 X 12 = $9,600,000 in yearly revenues - $9,600,000 X 80% X 65%= $4,992,000 in yearly profits - $7,680,000 / 11,000,000 (shares outstanding) = .45 EPS - .698 X 20 = $9.07/share This analysis is intended to be simple. I realize that penny stocks trade in their own world and can wildly different valuations from company to company, but this is just a rough calculation. If anyone has anything to add please do so. Even the conservative numbers are amazing. Another part of this that I like is that each licensee has to use WINR's technology exclusively for all funds wagered in order to keep track of everything. For each additional licensee that is added, simply take the amount wagered and do the above calculations. I am very anxious to see how the next couple of months plays out. Again, please feel free to add any comments or criticisms about this analysis.