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

To: Lou Farrell who wrote (2592)	12/6/1998 5:47:00 PM
From: Mags	Read Replies (1) \| Respond to of 6545

Good questions everyone. First, Lou, you bring up an excellent point that I did not consider. A good estimate, since we don't know the percentage of the total amount wagered that the deposits represent, would be 50% of the handle. Even with that or something less than that, the revenue stream is still large enough that once it has commenced, would warrant a stock price much higher than it is today. I could recalculate everything but just assume half of what I posted. Also remember that all of my assumptions were conservative. Nittany, I think you bring up a good point about the second 4%. If the customer loses all of his money, then that means that he gets nothing in return so their is nothing to take a percentage of. However some win, some lose, some do nothing. So you might expect on average that maybe 50% of the people gambling will get at least all of their money back. That means that you just take the total amount wagered, no the net hold, apply the first 4% to the 100% of the total, and then apply the second 4% to only 50% of the total. You could do that calculation many ways given different assumptions, again, these are only back of the envelope calculations anyway. Also regarding the total # of shares outstanding, I got the 11 million from a research report on CFG's website, that info might be a little dated, but changing from 11 to 13 million or something else close to that will not have a big impact on the projections, the biggest impact comes from the top line, revenues. E.M. I am not sure how currently the functionality that WINR provides is done. In the interview, Skinner does address that and says that currently, other people are charging 6% to process the transactions and he goes on to mention how WINR will be cheaper at 4%. This is a good area to clear up, I will also be doing some more DD this week to tie up these loose but very important ends. I don't have any idea either when everything will be operational, but I think you can measure it in days rather than months. Skinner is in Europe, at least he was last week, and they are extremely tight lipped about everything. I am also hoping that once they are operational, WINR will become more of an open book that we can all scrutinize.

To: Lou Farrell who wrote (2592)	12/6/1998 6:48:00 PM
From: E. M. Edds	Read Replies (1) \| Respond to of 6545

You are assuming, I think, that the gambling sites must be up and running and then incorporate WINR before WINR will be up. However, WINR could choose to be up first, which could/would allow the gambling sites to more comfortably and intelligently choose to incorporate WINR. From the responses I've read so far, it would be cheaper for both the gambling site and gambler to use WINR system, and would allow the gamblers who come out ahead easier and more timely access to their winnings. Another question: for non-gambling uses (flowers on-line), would WINR charge the florist up front for incorporating the WINR system? What costs would these florist incur in setting up a system utilizing WINR? The question is how many non-gambling sites would consider the up front costs acceptable (licensing fees and any set up fees)? Or, is it functional on regular credit card or internet systems already? The last question is how many people wanting to buy flowers would want to put in the extra effort of establishing a WINR account, when they could just buy flowers with a credit card with much less effort. The utilities of the WINR system in gambling is becoming clearer to me now, although any extra insight would be useful. Credit cards charge 5%, WINR charges 4% both in and out (to total 8%). Do credit cards also charge both in and out? I'm assuming the gambling sites would be able to decrease their in house expenses on money management with WINR. How many states to present allow internet gambling? I know my home state has made it illegal, and assume many (if not most) will or have already done the same to ensure that any gambling is state-run and therefore the money stays in the state. Finally, as to the timing of WINR's grand opening, did Skinner indicate in his interview or at any other time a general time frame (such as "by the end of the year" or "in the next several months" etc)? How much of the current price of the stock represent run up due to rumor of WINR's opening last week? What was it before such rumors?