*******************************************************
INTERNET GAMING PERSPECTIVE
*******************************************************
Monday, February 8, 1999
'''''''''''''''''''''''''''''''''''''''''
Hello everyone,
It's been a while since our last issue. As promised, we have an article on
eConnect, formerly Betting, Inc. (BETT) one of the companies we watch, and
like. However, due to the length of this article, we are suspending any other
stock discussions in this issue until the middle of the week when we will
release a regular stock/industry update. Recently, the Internet Gaming stocks
have been quiet. Today (Monday) we saw a few move. But we will have more on
that later.
''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
EConnect, Inc. , formerly Betting, Inc. (OTC BB- BETT)
A company that we have been watching, Betting, Inc., (BETT), merged with eBet,
Inc on January 11, 1999 to form a new company called eConnect, Inc.
Though still traded under the same symbol of BETT, we have seen the shares
rise from the $.08 level to almost one dollar subsequent to this merger. So,
what is this new company all about, and where is it headed? Let's first take
a look at the history.
Betting, Inc., was a small company with a big idea. Tom Hughes, Betting's
president and creator, is a highly motivated, hard working individual who
created a hand-held device whereby a person could place a wager and/or conduct
a business transaction (e-commerce) from anywhere around the world using what
is known as PERFECT (Personal Encrypted Remote Financial Electronic Card
Transactions) same as cash- technology. Tom had developed a great concept
that would, in the future of global commerce, be in demand. But Tom was, like
so many other entrepreneurs, looking for a way to sell his idea and raise the
necessary funds to make his idea a reality. His hard work and perseverance
paid off when he made contact with E. James Wexler, a man with equal
foresight who immediately recognized the potential that existed for this kind
of technology. Jim was CEO of eBet, Inc. and had experience not only in the
industry of Internet Gaming, but also much experience within the financial
realm of investment banking. Each of these men brought together their
collective talents and decided to merge into a new company called eConnect,
Inc..
Now the stage was set. Hughes had the resources now at his fingertips for the
financial end of the business, and Wexler had a product that could be
phenomenal in the future of e-commerce. Together, they have created a
business plan aimed at capturing and harnessing the e-commerce industry and
making their company one with great potential for the new millennium.
The new company, eConnect, is a high technology Internet entertainment company
that has its own wholly owned Internet Sportsbook, eSportsbook.com,
(www.eSportsbet.com). They also license customized turn-key Internet gaming
systems to third party licensees in exchange for participation in their
revenues.
Moreover, eConnect will focus on eCommerce by providing a common currency (e-
cash) for use over the Internet. These transactions will be same-as-cash
transactions using their PERFECT technology. Customers will purchase e-cash
through use of their credit card, smart card, or ATM that is then sent through
a secured link over the Internet. Their company then acts as a merchant by
accepting their payment in e-cash and then facilitates the settlement in real
currency. eConnect then charges its customers a merchant fee in the form of a
percentage of the transactions- just as a credit card company charges discount
fees to their client companies. eConnect will also facilitate Internet and
non-Internet related wagering for companies. The wagers will originate from
locations such as homes, offices, cars and public locations. Making this
possible is their portable handheld payment devices that not only send the
encrypted information for payment, but also print out a receipt upon
completion and confirmation of the transaction. One of their new products, the
PocketPay, is set for introduction in the spring of 1999. ET&T (Electronic
Transactions and Technologies) one of the partners of eConnect will handle all
of the transactions that take place between the consumer and the companies to
which the consumers are placing bets, or are purchasing merchandise.
Beginning in December, eSportsbook to use Betting Inc's Perfect Paymaster
system. They report their customers using the Paymaster with great
satisfaction. For more information on the PERFECT encryption technology,
please visit www.hpos.com
I think it is safe to say that eConnect is a company that shows promise in
their
long term business plan. Currently, there is no other company in direct
competition with eConnect regarding their Pay Masters and PocketPay devices.
The staff of eConnect is hard at work to become pioneers in the e-commerce
industry- in both wagering and e-commerce transactions. Shareholder value is
also a prime objective in that they have worked to make it a stable,
attractive stock with long term value and yes- short term possibility as well.
Shares have risen nearly 1000% in value since their merger, and have settled
at the $.60 to $.70 level. Furthermore, eConnect is one of the few stocks
available within this industry that is under one dollar. This makes for an
investment with little down-side risk yet tremendous upward potential.
It is important to note that in merging the two companies, they have not
diluted the company stock and have no plans to do so. Their goal is to
increase shareholder value, not dilute it. They shall also release their long
awaited 1998 10K and thus become a reporting company. The company will follow
this SEC filing with continual quarterly reports.
The company intends to aggressively market themselves by profiling eConnect at
such places as the Internet Stock Market, Digital Stock Market, and other
specialists who are experts in sharing the eConnect story with the investment
community.
eConnect will continue to raise capital from the private sector in order to
fund operations, attain new customers and thus increase shareholder value.
Should eConnect have excess cash, they intend to use it to buy eConnect common
stock on the open market.
eSportsbet plans to continue to add new clients monthly by direct advertising
and word of mouth. Again, adding revenues, and importantly, profits to the
bottom line.
Also, they will continue to foster strong alliances with vendors for the
"Paymaster" system as well as Sportsbook and casinos that they hope will use
their unique system with great satisfaction.
Finally, eConnect will adapt to the evolving arena of gambling entertainment.
If on-line lotteries or off-track horse betting on the Internet appear to
areas that present profitable opportunities for the company, eConnect plans to
be there.
1999, 2000, and beyond…
eConnect was formed with the two primary intentions. One, to own, manage,
provide consulting services, complete turnkey solutions for international
Sportsbook and casinos.
Two, and with equal importance, we will provide effective, efficient, and
encrypted financial transactions for the international Sportsbook and casino
industry.
These two facets of their core business will help propel eConnect into and to
the forefront of a $600 Billion market. In their own words, "Despite the many
challenges, we are more excited than ever about the future of eConnect and our
role in it. With hundreds of millions of connected computers around the world,
people are demanding more and more from their PCs - whether they use them to
market new products or to explore online encyclopedias for a school project,
whether they conduct millions of corporate transactions a day or download the
family banking statement, or whether they entertain themselves with various
forms of eGaming. No person can deny what is on the doorstep and the horizon
with the Internet. Globalization of the Internet is one of the engines of
eConnect's growth, now and well into the next century. There will be
dislocations and speed bumps on the road to prosperity as people become
accustomed to and comfortable with this new medium.
However, the path to efficiency and success with the Internet is irreversible,
and eConnect will be there.
Most technology companies would be satisfied being participants in the
greatest growth industry in history. At eConnect, we expect more. We see
ourselves as pioneers of that growth story not merely participants. The minute
we are satisfied is the minute we fail. Business history, in technology and
elsewhere, is littered with the remains of companies whose achievements were
undermined by complacency. We won't be one of them."
The merger of Betting Inc and ebet Inc. Inc. has given eConnect distinct
competitive advantages in the rapidly growing international sportsbook and
casino wagering industry. As a result of this merger, they have combined to
create a formidable management team with more than 60 years of combined
experience in complimentary fields of expertise.
A Word about Shareholder Value… (statement from eConnect)
The most important way we can improve shareholder value is to win in the
marketplace.
We are not concerned about daily fluctuations in eConnect stock price. The
management is committed to the long-term. We know that if our customers are
happy. Our shareholders will be rewarded.
A Note on Principles …
The marketplace is the driving force behind everything we do. At our core, we
are company with an overriding commitment to quality. Our primary measures of
success are, and will always be, customer satisfaction and shareholder value.
Finally…
We have prepared and are ready to compete in an industry that is computerized,
sleek, sophisticated and awesome in size. Yet, despite its size, the Internet
Gambling and Entertainment industry is like the gold rush fields of 19th
century California. With very few participants and no industry leader to
consolidate the now fragmented global sportsbook and casino market; the ground
is truly untouched. As the saying goes, "there's gold up in them there hills"
- today, we start digging.
''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
Keep close watch of eConnect over the next few months. They have tremendous
potential and have exceeded their goals as of this date. I have been crazy
about this technology. Though it may not be mainstream yet, the time is coming
when it will be very much in need and in demand. Their long-term goals and
hard work will make them winners in this industry. You can BET on it :)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The information contained within this report is believed to be reliable.
However, no guarantees can be made as to its accuracy. The statements made
above concerning any investments are opinions. Please consult with a licensed
financial advisor before any monetary investment.
|
