TO ALL:
Good morning everyone. It is pleasant to see all of the new names and interest that has been generated in WINR the last few days. I thought I might do a quick overview of the company for the newcomers here. First I would suggest reading the header, as the share counts and corporate outlook information are fairly current and remain unchanged to my knowledge.
********************WHAT WINR IS**************************
Winners Internet Network (Nasdaq WINR: OTCBB) is a provider of secure, confidential, multi currency and multi lingual financial processing/accounting software packages that are applicable to ALL forms if international E-commerce. WINR has formed a binding, no competition (for 10 years & renewable I believe) alliance with the Cyberlink Trust (CLT) and its affiliate the CyberLink Monetary System (CMS). The CLT is a Liechtenstein based trust managed by the company Proksch & Associates, that handles literally billions of dollars in trust for many major world wide institutions. Through WINRs affiliation with the CLT & CMS they have established themselves as the sole on-line financial processing agent for the CLT & CMS who in turn have provided WINR with a world wide network of financial institutions and international credibility.
*****************WHAT WINR PROVIDES*********************
WINR is a consumer oriented service organization. It provides secure, confidential, multi currency, worldwide, on-line processing and accounting to consumers at NO CHARGE! WINR derives all its revenue from processing fees paid by those gaming entities* (casinos, sportsbooks, lotteries) and merchants (E-commerce or E-tailers) that use the WINR processing system. WINR also generates revenue through start-up and annual licensing fees and a small percentage of interest income accumulated on the trust account. WINR basically provides a safety net for individual consumers and merchants worldwide through the safety provided by the centralized trust based in Liechtenstein. Any consumer can rest assured that any funds they process on-line through the WINR/CLT/CMS system will be safe, secure, and completely confidential, backed by a huge trust fund based in arguably the safest banking haven in the world. Also, WINR/CLT/CMS are now taking applications for the WINR/CMS Debit card for use at more than 300,000 ATM (Cirrus & Interlink) machines world-wide in over 117 countries. This means that any individual with a WINR account can have instant access to cash from said account literally 24 hours a day, 7 days a week around the world. Also, Instantaneous and updated account information is available on a 24/7 basis (try getting that from any other processing system!). Remember, all of this is at NO CHARGE to the consumer, all fees are paid by the merchants or casinos.**
******************WINR CURRENT STATUS***********************
WINR is currently handling transaction processing for 8 casinos, 7 sports books, 1 Lottery (due up any day), and 1 shopping mall. Another sports book has been signed and is being connected. Also, WINR has contractual agreements with three (3) marketing companies world wide to generate between 30-40 new gaming sites this year alone. The CMS will be bringing on the world wide shopping mall
shoppingdowntown.com soon , bringing a plethera of world wide shopping destinations to the WINR/CMS clientelle. All of WINR current sites can be easily accessed from their website at
winr.net . Also, for a look at possible future changes in the WINR website check WINR test page at test.winr.net .
WINR was formed in the summer of 1997. Until December 14th 1998 the company was in development stage and thus had no revenue stream to account for. Since the company has been operational (generating revenues) for only a little over three (3) months there are no public audited financial statements at this time. The only statement by the company so far has been "expected" first year revenues of 8 - 10 million dollars in processing fees and 1 - 1.5 million in licensing fees, from the 7 casinos and 7 sport books that they originally opened with. These estimates do not include the Atlantic Interbet Casino (http://www.interbetcasino.com ), WinALottery (http://www.winalottery.com) or The icharget shopping mall (http://www.ichargeit.com) all of which now use the WINR system. I have been told, but have not been able to confirm, that management will present audited 1st quarter financial statements in late April to Early May for quarter ending March 31st. At this time it is expected that they will file all the proper forms to become a fully reporting entity (even though they are not required to do so at this time). And will also file for full NASDAQ listing as soon as they fill all requirements, which may be end of 1st quarter, but most likely sometime during or at the end of 2nd quarter.
************STOCK PRICE/ACTION*****************************
WINR stock initially came on in the $4-$5 range back in the summer of '97. As with so many developmental stage bulletin board stocks they traded on very thin volume down to the .20 cent range by late '97 into early '98. I and my associates bought our first block of WINR stock in Feb. '98 @.60 when it was showing an initial surge of interest. Between Feb. '98 and Dec. '98 the stock traded in a range of .40 cents to $1.625, fluctuating on news of private placement financing and impending news of operations commencement. On Dec.14th'98, the company became fully operational and the stock quickly rose to $3, and has since fluctuated between $1 3/8 and $3. I believe the current interest being generated is due in large part to SNMM's announcement of filing for NASDAQ National Market status, which has created, a rotation back into, and lent credibility to any companies dealing with internet gambling. It's a trend I expect to continue as quarterly industry growth rates are presented. I expect they will be phenomenal! As such I consider WINR to now be an excellent short-term opportunity. But, as the long termers here know very well, I still believe it is even a much better long term investment.
**************FUTURE LOOK********************************
While in the short term WINR should do quite well on revenues generated from transaction processing in the gaming arena, I believe the true strength of the WINR system will show itself in the international E-commerce arena. People will need a little time to become comfortable with the fact that what WINR through its affiliation with the CLT & CMS is accomplishing, is to set up international "banking" (debit side) accounts, NOT credit accounts. I could go into a long diatribe here illustrating why consumers and merchants alike will benefit from debit side international on-line purchasing versus credit side facilities. But I have already done so in a former post (https://www.siliconinvestor.com/readmsg.aspx?msgid=7594528), and so, won't boar you further by repeating it here. At this point in time it is hard for most people to understand why they will need an "international internet banking account" as this is basically what is being provided by WINR/CLT/CMS. Then again some 35 to 40 years ago, when McDonalds opened their first drive-thru window, most thought it was crazy. Who in the world would ever purchase dinner through a window, and in a bag to take somewhere else to eat? Preposterous! Yet now, in hindsight, it was a no-brainer, a shoe-in. Well, of course people will be glad to buy food through a window. That's easy to see, NOW! It wasn't when they first started! Along the same vein, I feel 5-10 years from now most people will look on the necessity of an international internet banking (Debit) account in the same manner. A shoe-in, a no-brainer, isn't it obvious? It isn't now, but I do believe it will be.*** As always…..
Best Wishes,
Swedelo
* Current fee rates for gaming sites are 5% in/transaction and 2 ½% out/transaction. I have no knowledge on the E-commerce side, but it is probably negotiable predicated on both expected and realized volumes. I am guessing 5% at this time. License fees are $50,000-$100,000. I believe this also to be negotiable predicated on expected and realized volumes. I believe there is an annual renewal fee but have no figures to even guess what they may be.
** At this time The 7 casinos and 7 sports books charge WINR customers a 4% in/transaction fee and 2 ½% out transaction fee. Note that these fees are charged to the consumer by the casino, NOT WINR! Mr. Skinner has made it clear in the past all services provided by WINR are free to the consumer. WINR, however, cannot dictate how, or if individual casinos charge fees. He has stated though that this charge back to the consumer is not the norm for the industry, and expects these sites to discontinue this practice as more casinos come on line (like Atlantic Interbet) that charge no fees.
***With ichargeit up, and shoppingdowntown under construction WINR has entered the arena of E-tail processing much sooner than even I had anticipated. In the next year, my hope is for WINR to actively persue the world security and commodity trading exchanges as its' next big venture into providing international financial outlets. Imagine, being able to trade multiple accounts on multiple world wide stock exchanges 24/7 through your WINR/CMS/CLT account. Imagine if you can.
DISCLOSURE: I am in no way affiliated with or paid by WINR or any of its associates. I am an individual investor who, along with a few associates have accumulated approximately 1 ½% of the public float In WINR stock, all of which was purchased in the retail market. I have been, and, as long as management continues to execute, will be, a long-term investor in WINR. As yet I, and my associates, have not sold a single share only accumulated. And, only massive over valuation, poor execution, or financial necessity would cause us to sell any time soon.
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