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Technology Stocks : MBT International Inc. (MBTI) -- Ignore unavailable to you. Want to Upgrade?

To: caly who wrote (92)	2/5/1999 5:02:00 PM
From: Hal Rubel	Read Replies (1) \| Respond to of 212

Storefront Growth I anticipate that MBTI will add more than it's projected 1000 storefronts in 1999. My simple model projects a 10% month-to-month growth rate in new store fronts through out the year. Based on this month's results: Storefront Projection: 78 85 92 100 110 121 133 146 160 175 190 205 = 1400 new sites in 1999. In other words, the monthly unit storefront growth will be 3x higher at the end of the year than it is now. I would expect incremental growth to continue into the year 2000 at about this same fast rate, but of course, it is too early to tell. To bring these numbers of new storefronts on line smoothly will require a substantial investment in staffing, which will eat up earnings for now. Income Growth: I anticipate a substantial growth in daily hits on MBTI as its variety of offerings increases. Increased traffic will lead to advertising revenues to augment income. I do not anticipate that MBTI will be reporting profits any time soon. Like AOL, they will be churning income and share appreciation into growth. On the plus side, I do not see MBTI to have the need for the huge marketing overhead that AOL endured. Either their target agri-market catches on to them the way it has or it does not. Right now the prospects look very very good. Long Term: I anticipate that if MBTI meets conservative growth projections, the shares may command a buy-out capitalization of $50 - $100/sh within 18 months. Short Term: Shorter term, if growth remains on track for the next three months and with no effective competition in sight, I anticipate that the market may then be valuing MBTI shares at double the $6 they sell for now. If share price rises sooner rather than later, the resulting flow of funds will substantially accelerate growth, moving the 18 month buy-out end game up by several months. End Game: My MBTI scenario leads to a buy-out. MBTI will become a buy-out prospect only when it gains a reputation for internet marketing savy. I anticipate that buy-out prospects would be something like Ford Motor Co., ADM, or some other low-key major corporation with fingers in the agricultural pie but lacking an internet presence in the agri-market. MBTI, with its lock on the agri-market should be a stand out. Hal