Analyst Initiates Coverage, Assigns Starnet
Communications(SNMM), Target $14 to $20 in IRI's
Public Analysis & Review Program
Business Wire - March 08, 1999 12:41
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
Entertainment Target Price (12 mos.): $14 -$20 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 Christinansen/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
mawest.com
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