I mentioned .COM Entertainment Group Inc. (DCEG) yesterday and came accross this article that was on the InvestorsGuru.com site. It's quite informative and I thought I'd share it here.
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April 3, 1999, InvestorsGuru.com Hot Flash Profile
Dot Com Entertainment Group, Inc.
.com -- a Diversified Internet Software Development Company is on an Aggressive Mission to be a Leader in Internet Entertainment!
(OTC BB: DCEG 4 7/8 bid, 5 1/16 ask) Dot com Entertainment Group, Inc. (OTC BB: DCEG) -- the Company may be in a position to achieve outstanding growth. Significant factors mark this company as having potential for an outstanding future in the Internet entertainment business, such as:
+ Its aggressive growth strategy -- the Company is presently growing at about 20% per month and is expected to maintain or exceed this pace, since its products and services are being introduced into a rapidly growing and exciting industry.
+ Upcoming events and several press releases are due to come out over the next couple of weeks and couple of months.
+ Currently profitable on modest revenue with tremendous upside potential.
+ The Company does not require financing to continue growth.
Company Profile:
dot com Entertainment Group, Inc. (".com") is a diversified Internet software company, specializing in the creation, support, maintenance, promotion, licensing and sale of entertainment software products for private, not-for-profit and commercial use. .com is not an Internet gaming company, rather it licenses the use of its proprietary commercial software products and trademarks, such as CyberBingoÖ (www.cyberbingo.net), to independent, arms-length third parties, who are located in jurisdictions who have embraced and licensed Internet gaming. .com sales are generated through license and royalty fees based on the gross sales of Licensees. .com recently acquired all legal rights and ownership in the CyberBingoÖ software system, through its acquisition of The Precyse Corporation ("Precyse") of Toronto. The Company maintains a head office in Buffalo, NY.
The Significance of the Acquisition:
The CyberBingoÖ software system was developed by Precyse in 1996. In 1997, Precyse entered into a License, Technology and Support Agreement with The CyberBingoÖ Corporation of St. John's Antigua, which has since operated CyberBingoÖ on the Internet. The CyberBingoÖ game has already hosted more than 810,000 players, who have played more than 50,000 games, resulting in more than US$560,000 being returned to players as winnings. This agreement allows the Company to:
+ Have immediate cash-flow.
+ Enter the Internet entertainment market with an interactive, on-line, software product which is scaleable to an unlimited number of players.
+ Have immediate generation of sales through license and royalty fees based on the gross sales of Licensees.
+ Have the potential of marketing & distributing its products and services to a worldwide audience through the Internet.
+ Earn ancillary software maintenance and development fees for the support of the CyberBingoÖ game system, and in the future as yet unannounced, entertainment software products.
+ In addition to royalties it is already generating. .com plans to create additional Internet entertainment products over the next several months, including games such as Keno, Slots, Blackjack, and Poker.
Methods & Strategy for Investor & Media Awareness:
The Company's public relations strategy is designed to strategically mix institutional and broker support with retail attempting to create an even more powerful company and an excellent investment opportunity. This combination fits within their Corporate Mission, which is to increase awareness and interest of their software products from new players and licensees. .com is presently working aggressively to generate awareness of the Company within the financial community and the media.
Industry Highlights:
The buzz fueling Wall Street's captivation and Internet deal mania can be summed up in two words -- "sticky sites." According to a recent article in the Wall Street Journal, companies are scrambling to create enticing websites that can keep those restless clickers lingering. The deals estimated to be the survivors in the Internet battles for recognition are those that are "sticky" or, translated, those that are appealing, fun, and friendly -- naturally enticing visitors to stay awhile. According to the WSJ article, the ten most "Spellbinding Sites" included two relatively unknown gaming/betting sites that were grouped with the more household names like Yahoo!, ebay and E*Trade. As the world embraces the Internet, it is emerging as a premier forum for entertainment.
Bingo, likewise, is one of the world's most accepted forms of wagering utilized by the public, private and not-for profit sectors. .com is prepared to capitalize on this exciting combination of Internet entertainment paired with a successful, on-line, interactive software product for licensing designed to specifically captivate the worldwide Bingo audience.
CyberBingoÖ is only .com's initial Software Offering:
CyberBingoÖ is the world's longest running, fully interactive, Java based, Internet Bingo Hall. CyberBingo's "scaleable" design permits unlimited players per game. As .com promotes and markets CyberBingoÖ internationally, player levels of 1,000 players on average per game are achievable. At these levels, annual royalty income to .com will exceed $16.5 million and does not include additional support, maintenance and other fees which will be assessed to each Licensee on an annual basis. Since its inception on the Internet, CyberBingoÖ has been enjoyed by more than 810,000 bingo players, representing 5 continents. Based on the ever-expanding reach of the Internet, coupled with the projections and intrinsic design of CyberBingoÖ, .com is positioned to experience unparalleled growth in 1999 and beyond as the Internet based Bingo community matures. With an expanded player base and jackpot amounts up to $1 million dollars, CyberBingoÖ hopes to become the international standard and house-hold name for Internet bingo. Additional software entertainment products and new strategic alliances will help establish .com as a leading Internet name and premier licensing company of Internet and commercial software products servicing the under serviced Internet entertainment market.
The Company's website www.dceg.com has links to the CyberBingoÖ game system, which operates 24 hours per day and is played by players from countries throughout the world. .com plans to expand its Internet and commercial software product base in 1999 hoping to become a leading provider of Internet entertainment software. Click on each of the following links for Products and Services, License Opportunities, and CyberBingoÖ Products.
Company Highlights & Upcoming Events:
+ According to ActivMedia, 1997 total revenues generated on the Internet were $21.8 billion. It is predicted that annual Internet revenues will exceed $1.2 trillion by 2002. Datamonitor estimates that revenue from Internet gambling alone will exceed $955 million in 1999. The Financial Times of the United Kingdom estimates total internet gambling will increase to $10.2 billion by 2002. This compares to total wagering in Las Vegas of $4.9 billion in 1997.
+ Entertainment is becoming and appears to be destined to be one of the largest components of the Internet.
+ .com has the management and technical skill to become a major player in the Internet entertainment field.
+ CyberBingo is .com's first software product. It is the world's longest running, fully interactive, Java based, Internet Bingo Hall.
+ .com projects with 250 players per Bingo game (on average), annual royalties will exceed US$4.2 million. At 1,000 players per game annual royalties will exceed US$16.5 million.
+ CyberBingo's 'scaleable' design permits unlimited players per game. Based on the above projections, .com may be positioned to experience unparalleled growth in 1999 and beyond as the Internet community matures.
+ Several other entertainment software products will be released in 1999 and beyond. Over the next few months the Company plans to introduce its second software product, which will be an Internet Keno game. Other software products will be released during 1999.
+ Over the next two years, dramatic changes in the way people use and access the Internet are expected to take place. The Company intends to bring Internet entertainment into every home throughout the world and realize the corresponding revenue potential.
Why .com Entertainment Group May Deserve Investment Consideration:
+ A Unique Internet Software Development Company, specializing in the creation, support, sales, and licensing of Internet entertainment products and business services.
+ Revenues already building as a result of the release of the first software offering CyberBingoÖ .
+ Areas where .com anticipates generating additional revenue, include:
- (1) license and royalty fees from existing and future Licensees,
- (2) technology, support, maintenance, consulting and related fees from Licensees and third parties,
- (3) commercial sales and licenses of entertainment software,
- (4) advertising and promotional fees and revenue, and
- (5) fees for the provision of fund-raising platforms in the not-for-profit and charitable business sector which are starved for new fund-raising forums.
+ e-Commerce Revenue Streams through future business activity and relationships.
+ Technology Proven to create "sticky" sites following a successful first year of on-line active gaming.
+ High Growth Market initially capitalizing on what may be the world's most accepted form of wagering--Bingo.
+ Customization to many different languages and markets available.
+ Simple Game Server Set-up with flexible client configuration for game set-ups.
+ Experienced Management Team in the technical and business aspects of operating a successful public company.
+ News Releases are expected to come out in upcoming weeks and months.
+ Tremendous Upside Potential.
Financial Projections:
Revenues 1999 2000
CyberBingo 3,000,000 6,250,000
CyberKeno 675,000 2,050,000
Future Products 525,000 1,050,000
Total 4,200,000 9,350,000
Operating Expenses 1,519,000 2,865,500
Income (pre-tax) 2,680,900 6,484,500
Operating Margin 64% 69%
EPS $0.26 $0.62
EPS Diluted $0.22 $0.54
Corporate Financials:
Exchange Listed OTC BB: DCEG
Issued & Outstanding Shares ~10.5 million
Shares Float ~6.4 million
Market Capitalization ~51 million
52 Week Price Range 3 3/8 - 5 1/4
Recent Price 4 7/8 bid, 5 1/16 ask
Key Management:
Brief summaries of key management are shown below. To find out more about this Company's leading professionals, we invite you to read Management's Biographies on the web based version.
Kenneth R. Lusk: Chairman & Director, a Professional Chartered Accountant who has previously worked as an advisor to publicly traded companies.
Scott White: President, CEO & Director, an attorney with broad experience in sourcing and completing public and private financings, mergers, acquisitions, compliance and development of small cap companies.
Perry Malone: Director & VP Technology, extensive experience consulting to leading companies including IBM, Bell and Canada Pacific.
Ted Colivas: VP Operations, a Computer Systems specialist and consultant.
Samir Zabaneth: Financial Consultant, formerly with Ernst & Young and Coopers Lybrand.
John Reilly: Managing Director of State Street Brokerage Services (Canada) Inc., primarily responsible for bringing E*Trade into Canada.
Howard Rubinoff: Corp. Secretary, experience in major financings of Fortune 500 companies.
George White: Director, 30 years experience as officer, director or consultant to Fortune 500 companies.
Andre Kern: Controller, is a professional chartered accountant who has worked with several publicly traded companies.
Contacts:
Company: Andre Kern
dot com Entertainment Group, Inc.
300 Pearl Street, Suite 200
Buffalo, NY 14202
Tel: (416) 366-1444
Website: dceg.com
E-mail: info@dceg.com
Conclusion:
The intent of this report is to alert our subscribers to this Hot Flash Research Report. Numerous factors mark the Company as being poised for extraordinary growth, such as:
(1) presently producing revenues,
(2) technology proven products and services,
(3) high growth market opportunity with tremendous upside potential,
(4) ability for customization of products and services to numerous markets and languages,
(5) well managed company,
(6) upcoming company events, and
(7) selectively working to build institutional and broker/corporate finance support, which will generate awareness of the Company within the financial community. |
