TO ALL,
I thought I might take a little time to express my opinions, conclusions, and possibilities pertaining to WINRs' latest press release.
1). Mr. Skinner.."Atlantic Interbet will put chills down your spine when you sign on their site. It has the feeling of reality that you would get if you went to Las Vegas or Atlantic City". I couldn't agree more! As many of you know I have downloaded the 16 MB v.122 AiB software and it is truly everything Mr. Skinner implies. I re-iterate, everyone should download at least the 4MB version and play it off line on the highest screen resolution. It is amazing.
2)".Play has already commenced from many countries around the world including but not limited to USA, Canada, Netherlands, Germany, Malaysia, Singapore, Australia, Russia, Hong Kong and South America". Well, obviously, there are now players registered in the WINR system from all these and more countries not listed. If the WINR product works as advertised, word of mouth recommendations should help WINRs' customer base grow rapidly.
3)." Winner has changed its home page to accommodate even faster play and selection of options". The cosmetic changes on the WINR page have indeed been fast and furious in the last few weeks to those who have been watching. Also, I don't know if anyone else has noticed a very marked increase in server speed over the last few weeks, but I certianly have.
4). "...the site in the past few weeks, has had more than 150,000 hits and that number is increasing daily." I assume this is since the TISS sites came on, and with Atlantic InterBet now on board boasting a client base of anywhere between 20,000 to 40,000 players look for this figure to jump dramatically in the next few months.
5)."Negotiations are underway to provide the WINR site its 1st Internet lottery that will undoubtedly be (a) first for the industry. The lottery market has been an active target for Winners." This is huge, plain and simple. David has been spending a lot of time in Europe and especially Austria, and I do remember reference being made to discussions with the Austrian government to handle their national lottery. If this is, in fact, the lottery the press release is making refrence to it is huge for two reasons...First, the fact that it wil be the first international internet lottery and, ...Secondly, and maybe most importantly, By working with a national government it gives instant cedibility to WINR, in the eyes of all other national governments world wide, as being government and regulation/tax compliant. And WINR will be given due credit for being the pioneer to this end. Once other countries around the world see how much of their money is flowing to Austria via an international internet lotto, don't think they won't want to get one up and running as quickly as possible, and who will be the only one positioned, and have the reputation to handle the internet transactions....WINR!
6)."A further expansion will be unveiled in future weeks because many inquires have been made to use the Winner Debit Card for on line Cyber mall shopping." I can only conclude one thing from this statement, that being, that issuance of the Debit Cards and the grand opening of shoppingdowntown.com are just weeks away. Note that David uses the phrase "future weeks". Remember David and WINRs' shareholders were dissappointed by target dates on two (2) different occassions last summer and fall and it appears he won't be cornered in that trap again. I take solice in the fact that he did not say "months" meaning to me he fully expects this to come to fruition within the next 30 days.(This is my conclusion...could be longer...could be shorter)
7)."We always knew that the creation of the Winners Debit Card for processing would open doors for Internet shopping. Internet gaming is only one of the potential market areas. We want to be flexible to shift direction since our processing system was developed with that in mind. We have other ideas that we feel will expand the Winners market in all areas of Internet Commerce. That is our goal and focus that is shared by our partners in the CyberLink Trust in Liechtenstein. CyberlLink has provided us with the ability to operate throughout the world with immediate recognition and acceptance." Man thats a mouth full. I'd call that a pretty good corporate expectation outline. I would add only one item to this statement concerning other "areas" of E-Commerce. Most who have bought shares of WINR have done so under the auspices that they would handle Internet gaming transactions. I think now, most are becoming comfortable with the idea of the overall E-Commerce aspect that WINR can provide. One item I haven't seen touched on that could/will also be huge is something David brought up in a conference call last May. That is, the WINR systems capabilities in the area of international internet securities investing. How many of us who actively invest online here in the USA have accounts or invest in Japan, Hong Kong, South America, Europe.....I certianly don't, and at this point don't know how to. Can't you imagine brokerage firms from around the world wanting to be a part of a system that brings in individual investors money from around the world. I certianly can! And, on the flip side of the coin, I would certianly be interested in having the opportunity to make foriegn investments at their source. After all it is a world economy, isn't it?
Well, that about sums up what I have gleened from what I consider a ver positive and forward looking press release by WINRs' management.
On a separate, but important issue, I have noticed that some of the on line casinos (not under WINRs' umbrella) have put out some monthly revenue figures that might give us an idea of what to expect from WINRs' current clientelle.
TTLN: recently reported December Revenue of $2,982,500 (35% increase over November)
GGNC: recently reported December revenues of $5,341,284 (250% increase over November)
As I understand it these sites offer both casino and sportsbook action so I will assume each is equal to 1 TISS casino/sportsbook. Including Interbet that would make 8 sites. TTLN and GGNC's December average was $4.22million/site in revenues (cash flow in). Multiply that by 4 (8 sites divided by 2 sites) and you get a figure of $16.88 million revenue estimate for all of WINR's current on line clients. 4% of $16.88 million is equal to $643,000/month in JUST inflow transaction fees. Assuming only half of that flows back out, add another $321,000; or, approximatly $964,000/month in gross revenue for WINR with JUST the sites up now. Apply a 40% operating margin (the very lowest end) and you get a net profit of $385,600/month in net profit. Or a net profit of $4.63 million/yr. This equates to .32 cents/share earnings if NO new clients are added and the industry remains stagnant. NOW, we all know that isn't going to happen, WINR will likely bring on many new clients in the next year, and notice the percentage growth rates month over month at TTLN and GGNC. Ya know, from my perspective, I'd have to say everything is coming up roses in the WINR garden, if we can just avoid the hailstorms, weeds and insects it will be one beautiful garden to behold indeed.
Best Wishes,
Swedelo
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