To: xbrent who wrote (19 ) 3/5/1999 10:35:00 AM From: Dave Gore Read Replies (2) | Respond to of 70
MORE INFO ON ***SHAL*** To help everyone understand the value and concept To me SHAL is undervalued largely because people don't understand the concept totally....Here goes.... ****** SHAL uses the *CMGI* model and is somewhat timely as well right now as a technology (i.e E-Banking) developed the last 3 years with Oracle and Sun is going public this month. (see below) WHY IS SHAL's MODEL LIKE *CMGI*?: ** Acquires select, "clean" companies, makes them more attractive and brings them public at the right time, and retaining 30-45% of ownership for shareholders. ** Has at least one company public now (http://www.janusinternational.com) ** Perhaps the most significant IPO is later this month called SolutionNet...Enet-Banking, developed in partnership with Sun MicroSystems and **Oracle** ** Expected to be priced at $7.00 per share with shareholders retaining 40% ** Plus at least 2-3 more internet based IPO's to come public in the next few months. SolutionNet -- three-year development partners with Oracle Corp. (Nasdaq:ORCL) and Sun Microsystems (Nasdaq:SUNW) -- is the developer of ENET-Internet Banking, the specialized Internet Software Solution/Gateway Technology slated for its official, international product launch in Singapore on Feb. 26, 1999. Additionally, SolutionNet has a number of other progressive Internet/intranet (IT) Software Solution Technologies poised to enter the market in 1999, including its state-of-the-art EMI-Electronic Medi Info system, which will catapult health-care-industry service into the 21st century. SO HOW DO YOU VALUE THIS COMPANY? Just like CMGI, one way is to figure out what the value is from what they own of the companies they bring public. If SolutionNet is valued at $7.00 and they retain 40% then that one company has a value of $2.80 to SHAL shareholders. If they take 2-3 more companies public in the next 3-6 months then add the price and percentages of those. Plus they have one company public now. Of ocurse the company has assets and a valuation of it's own, beyond the companies it owns. EXAMPLE: Company A goes public 40% of $2.00 = $1.20 Company B goes public 40% of $7.00 = $2.80 Company C goes public 35% of $6.00 = $2.10 Company D goes public 40% of $2.00 = .80 If this was the scenario, the value of SHAL's holdings to shareholders would be (at current value above).... $6.90 Plus value of SHAL itself ........... $4.00 (?) TOTAL VALUE ........................ $11.90 ? As more companies are brought public and as value of their holdings hopefully go up, then SHAL's value goes up. And SHAL has no liability or further costs after the company goes public (as I understand it), since the percentage they retain is a fee for helping to bring the companies they acquire up to a state and value where they can be a successful IPO (which costs SHAL money, obviously). The companies they acquire have great products or potential but no marketing or lousy management or whatever, which SHAL "fixes" before taking them public. Turns them around, so to speak. SolutionNet was a 3 year development. (this is just an example...I do not know the exact figures) **** Sara Hallitex is a public venture-banking firm dedicated to acquiring and investing in companies, new technologies or projects that, when fully developed, can "spin out" as Nasdaq publicly traded companies, providing solid and appreciable long-term portfolio enhancement for its shareholders. For more info, I would call CEO , Garrett Krause, and verify what I said above. I believe it to be accurate, but of course everyone should check my facts. CONTACT: Sara Hallitex Corp., Marina del Rey 310/823-5008 (Investor Relations Dept.) 310/827-6255 (fax) e-mail: invrel@sarahallitex.com