The Wall Street Research Report is out.
It has not yet been e.mailed to the members - unless I have not got it yet - but it can be found at the following sight. wallstreetresearch.net You need to input your e.mail and go to the research section.
March 6th, 1999
Special Report
Bingo.com
(OTC BB: BIGG)
Shares Outstanding: 11,395,000
Active Float: 7,710,000
Recent Price: $6.50
52 Week Bid Range: $1.75-$8.00
Capitalization: $59Mil
1999 EPS: $.93(Est)
2000 EPS: $5.53(Est)
P/E Ratio: 7/1
Book Value /Share: N/A
Dividend Yield: N/A
Year Ending December 31, 99
1999 (E)
2000 (E)
2001 (E)
2002 (E)
2003 (E)
Revenues (Millions)
$33
$182
$385
$693
$945
Earnings (Millions)
$8.4
$62
$114
$205
$283
Shares Outstanding (Millions)
9
11.2
13.4
15
15
Earnings per share
$.93
$5.53
$8.50
$13.66
$18.87
Projected Price P/E Ratio of 20/1
$18.60
$110.60
$170.00
$273.20
$377.40
Business Summary:
Bingo.com is a high technology Internet Company that is developing the world's first FREE
"Bingo-based" e-mail community. The Bingo.com site uses the latest in Flash technology, with
full-motion, 3-D graphics, music and sound effects. The Flash technology unveils the new
Bingo.com logotype, the Company's proposed sample home page and the Company's
designated location for advertisers purchasing banner ads on the Bingo.com Website. The site
will be set up as an information center with free e-mail, free web pages, free news,
chat rooms, music, sports, entertainment and lifestyle information in a fun and
exciting environment, surrounding the most popular game in the world, BINGO!
THEIR MISSION
"TO BECOME THE MOST RECOGNIZED BINGO AND ENTERTAINMENT
DESTINATION ON THE INTERNET"
A HUGE INDUSTRY
In 1998, there were over $80 billion wagered on land-based Bingo games. Due most
likely to its association with churches and charities, Bingo is the most socially accepted form of
gambling in the world with a 79% acceptability rate. On a per visit basis, in North America,
Bingo is more popular than all Hollywood movies, rock concerts, professional sports and
casinos combined! Unlike conventional gaming where the house always has an opportunity to
lose and the net profit is generally only 3% to 5% of the money wagered, in Bingo, the house
always wins. In fact, about 35 cents of every dollar wagered goes back to the house.
The demographics of Bingo have changed. According to Indian Gaming Magazine, it is now
the "Baby Boomers" that are playing Bingo, a perfect combination with Internet users!
BINGO, YOU'RE THERE!
The word 'bingo' is an internationally recognized and identifiable word and the Company is
developing a globally accepted destination site on the Internet around this identity, "Wherever
you want to go, Bingo! You're there!" Bingo.com will provide Internet users with a
destination point or portal site that will be easily recognized as an informative home page.
Bingo.com is soon to be the home of the "Million Dollar Jackpots" and a destination site
like no other. The site will offer extensive free downloads, free information and free "hot links"
with a wide variety of exciting prizes and promotional partnerships, creating a communicative
infrastructure of international chat, e-commerce, entertainment and excitement. Bingo.com will
combine the features of TheGlobe.com, Geocities.com and Microsoft's Hotmail, all
surrounding the world's most popular game of chance, Bingo!
EXPONENTIAL GROWTH OF THE INTERNET
The Internet is experiencing exponential growth worldwide. The volume of electronic
data, whether it is voice, fax, audio or video, that is being transmitted over global networks is
no longer measured in "mega" or "giga" digital bits-per-second, but rather in "tera" or trillions of
bits per second. In the United States alone, the number of PCs connected to the Internet
soared 35% between January and August, 1998, from 45 million to just over 60 million,
according to Ziff-Davis's Technology User Profile 1998 Mid-Year Study. Home PCs
represent the lion's share of the market, with 28 million consumers hooked up to the Internet.
The survey found that almost a third of the U.S.'s 103 million households are connected
to the Internet and that 61% of all homes that own a PC also access the Net – a figure that
has increased by 30% since January 1, 1998.
The number of people surfing the Internet globally is set to top 250 million in 2002
and 300 million in 2005, according to a report published by market analysis firm
Datamonitor. It is estimated that 170 million people at present have access to the Internet and
it appears the greatest growth will be in South America and Asia.
Also, during 1998, there was a significant boost in average connection times, according to the
ZD survey. E-mail is still the biggest reason to go online, say the roughly 7600 users surveyed.
But a notable increase in average connection times suggests that other activities—such as
reading online publications, downloading software, shopping, and playing games—are
becoming more popular. The number of users who stay online for more than 10 hours each
week jumped from 19% to 27% between January and August of 1998. By the end of the year,
that figure grew to 30%. Also the survey found that almost half of all Internet users have been
surfing for less than a year which is not surprising since 7 million households joined the wired
world in the first half of 1998.
Internet penetration increases with household income and education levels. Almost a third of
homes online reported an annual income of $75,000 or greater and more than a quarter of
Web surfers have completed post-graduate studies.
Internet related stocks saw much higher trading volume than the rest of the market in the fourth
quarter of 1998. The close co-relation between on-line trading growth and Internet stock
volume growth is not surprising given the fact that on-line traders are, by definition, Internet
users and therefore much more likely to be aware of and interested in Internet stocks.
THE GAMING INDUSTRY - THE NUMBERS ARE ASTONISHING!
Online gambling is a $535 million industry worldwide that is expected to grow to $10
billion in three years, according to Datamonitor PLC, a market researcher in London, U.K.
According to Wired Magazine, "gaming is the fastest growing industry in North
America. It is the United States' national past time, with a 2800% increase since
1974. By the year 2000, it is estimated that the industry of Internet Gaming will
surpass U.S. $20 billion per year."
MULTIPLE SOURCES OF REVENUE
Unlike other Internet sites that obtain their revenues strictly from banner advertising, Bingo.com
will get revenues from four distinct and substantial revenue streams:
1.Banner advertising revenues
2.Licensing revenues obtained from Bingo.com merchandising
3.Licensing revenues and royalty revenues obtained from proprietary Bingo software
technology
4.Wagering revenues obtained from Bingo games
At the moment Bingo.com has 17 sites that can be explored which range from Business &
Finance, Travel & Vacations to Politics, and Real Estate. Through an extensive array of media
partnerships once every 24 hours, a surprise jackpot Bingo will be announced with a
30-minute countdown notice.
BINGO.COM WILL BENEFIT CHARITIES THROUGHOUT THE WORLD
The Company is currently taking applications for registered charities. Twenty-five charities will
be chosen each month and will be posted on the buy-in portion of the Bingo site. At the buy-in
station, or point of sale, players will have the opportunity to pick one of the twenty-five
charities. A portion of their sale will be donated directly to the charity of their choice. Exclusive
charity packages will be made accessible through outside banner placement. The destination
site, "Bingo.com" is expected to be fully operational by April 30, 1999 and will be
launched in conjunction with a national radio and media campaign as the world's first
free "Bingo-based" e-mail/web page community.
BINGORADIO – AN EXCLUSIVE
Bingo.com's media site has an exclusive in radio: This site takes you in a click to radio stations
all over the globe. Real-time broadcasting can occur through the computer from any of the
world's major cities; such as, Chicago, London, Johannesburg, Cairo, Melbourne, etc. The
Company's goal is to have a radio station in every country in the world!
BIGG HAS ALL THE "RIGHT STUFF" FOR SPECTACULAR GROWTH
Combining the world's most popular game with the continuing explosive growth of the Internet
should translate into huge profits in the years ahead. When you add in advertising revenues,
e-commerce, e-mail, web pages, and all of the other things that are planned to make this a true
"destination site", the numbers become mind-boggling!
RECOMMENDATION: STRONG BUY
Future earnings growth for BIGG should be staggering! We anticipate substantial
stock appreciation from the current levels. We expect that BIGG could be trading in
the $18 to $25 area by December, 1999. By year end 2000, we believe the stock has the
potential to be trading in excess of $75 per share!
Bingo.com should become a MAJOR global destination site! BINGO, you're
there!
Bingo is the most popular game in the world. 1998 - $80 billion wagered!
Site is expected to generate significant net earnings. Big profit margins in
Bingo!
Company will be an obvious buyout candidate.
Company's site addresses the multi-billion dollar e-commerce market.
BIGG has multiple sources of revenue in huge markets.
Internet is expected to continue its explosive growth! |
