Analyst Initiates Coverage, Assigns Starnet Communications (SNMM) , Target $14 to $20 in IRI's
Public Analysis & Review Program
NEW YORK--(BUSINESS WIRE)--March 8, 1999--Public Analysis & Review (PAR),
the unique professional independent analyst program administered by the non-profit
Investors Research Institute, Inc., announces that John M. Dutton, professional analyst
qualified in the PAR program, has initiated coverage of Starnet Communications
International, Inc. (OTC BB: SNMM), and has assigned the company—which is enrolled
in the PAR program along with Planet City Corp. (PINC), ALYA International (ALYA),
Mortgage Bankers Holding Corporation (MBHC), LifeOne, Inc. (LONE), CorpHQ, Inc.
(COHQ), Auto Network (ANWK), Cadapult Graphic (GRFX), BoysToys.com (GRLZ),
Virtuallender.com (VLDC), and Crys-Tel Telecommunications (CYSS) -- a “buy” rating,
with a 12-month target of $14 to $20.
A summary of the report follows. PAR has authorized the company to post the full report
at its website at12:30 p.m., following requisite NASD notifications and wire
disseminations. In addition, the report may be obtained upon request
from info@mawest.com or via fax upon request to 650-588-2678.
Date of Report: March 8, 1999 Shares Outstanding : 22,638,262
Stock Price: $4.93 Estimated Float: 9,000,000
Latest 12 mos. Price Range: $6.03 - $ 3/8 Recommendation: Buy
Industry Sector: Internet Gaming and Target Price (12 mos.): $14 -$20
Entertainment 10 Day Avg. Volume 335,320
Starnet Communications International, Inc. (BB: SNMM), formed in 1997 by the
acquisition of Starnet Communications Canada Inc, is a SEC full reporting Delaware
corporation operating from Vancouver. Using the Starnet Canada
capabilities in internet technology, site development, and EFT transaction processing, the
Company has grown to be one of the three leading international licensors of on-line
gaming. Starnet is the only licensor that also operates its own on-line gaming site. SNMM
developed five gaming venues including 22 casino games, brokerage of international
lottery tickets, operation of live sports book wagering, and twenty-four hour live simulcast
and paramutual betting on horse and dog racing. A bingo/keno game soon will be
operational.
Starnet's first sale of its $100,000 license closed in Q4 of FY 1998, an additional seven
were concluded through Q2 of FY 1999. Three more were added in Q3 and six so far in
Q4 for 17 licensees total. Our earnings model projects
the sale of 22 in fiscal 2000, and 25 in fiscal 2001. The use of the internet to deliver a
gaming product has opened a substantial, worldwide market. Frost & Sullivan estimate
that wagering via the internet for casino games and sports
events was approximately $1 billion in 1998. A recent report quotes gaming industry
consultants hristinansen/Cummings Associates estimating internet wagering to reach $2.3
billion by 2001. The US's 1961 Interstate Wireline Act and the possible Kyl Act removes
US residents from this market. Major gaming companies, including Harrah's, Park Place,
and others including possibly Microsoft, have made substantial casino investments in
Australia as a way to position themselves for the growth of worldwide internet from
Australia.
Starnet revenues and EPS for the current fiscal year ending 4/99 are projected at US $9.7
million and US $.10 respectively. This is projected to grow to $37.3 million and $.75 - $.80
for the year ending 4/01. Its shares should
move to NASDAQ or AMEX after the fiscal year end.
About John M. Dutton, Analyst
John M. Dutton, a member of both the Boston and Los Angeles Security Analyst
Societies, has been an analyst and director of research at several firms including Moseley,
Hallgarten, Estabrook & Weedon and LH Friend, Weinress,
Frankson & Presson. He was president of Corsair Asset Management, an asset
management firm, for over 11 years. For seven years he was a senior executive at the
international hospital company American Medical International. Mr.
Dutton's present work includes development and execution of strategic and financial
planning for small cap companies.
About Public Analysis and Review Program
Public Analysis & Review (PAR) is a program of the Investors Research Institute, Inc.
(IRI), a non-profit membership organization for individual investors and others advocating
higher standards of “accessibility”, “scrutiny” and “disclosure” for public companies.
Continuing quarterly coverage by an independent analyst is a requirement to meet the
“scrutiny” requirements for the elite “Seal of Best Practices in Investor Relations”
standard. Anyone, including a company, may enroll a company for coverage. PAR
analysts are responsible only to the public, and are qualified and assigned solely by the
Institute, separate from the fiduciary entity, which is IRI, Inc. (IRIK), a public company in
registration and financial administrator for the non-profit Institute. PAR analysts are paid
in advance to eliminate pecuniary interests and insure independence. PAR enrollment fees
are $15,000 per annum.
See full disclaimer at website before investing. Information, opinions or recommendations
contained in this report are submitted solely for advisory and information purposes. This
report or study is not intended as an offering or a
solicitation of an offer to buy or sell the securities mentioned or discussed.
Contact:
John M. Dutton
213-630-4401
jmdutton@ix.netcom.com
or
Investors Research Institute, Inc.
C. Partridge
Phone 212-484-4747
parprogram@usa.net
investorsresearch.org
or
Starnet Communications
Alan Poole
604-685-7619
snmm.com
or
M&A West
Scott Kelly, 650-588-2678
scott@mawest.com |
