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Microcap & Penny Stocks : JNNE Jones Naughton: Go Online via Kiosk -- Ignore unavailable to you. Want to Upgrade?

To: IRVINESULLY who wrote (1886)	5/4/1999 7:52:00 AM
From: Witold	Read Replies (1) \| Respond to of 4824

Important! Regarding revenue projections for JNNE (from Raging Bull): By: hgoddard66 Reply To: 10664 by hgoddard66 Monday, 3 May 1999 at 6:05 PM EDT Post # 10784 of 10887 Analysis of JNNE's Business Model: I took some time this weekend to do some DD on JNNE (I am long at $0.23). As I approached this I thought for sure that I was going to convince myself to bail-out during the next bump - WRONG! Here is what I came up with...this is only my opinion...BUT, it IS based on FACT. First, I estimated JNNE's "usage fee" revenues using two methods which correlated nicely. Assuming that each kiosk is used for 4-8 hours per day @ $0.2 per minute JNNE would pull in $17K-35K per kiosk per year. I talked to two different kiosk suppliers that estimated annual revenue in this range. Based on these "per kiosk" numbers, JNNE's revenue potential is strong. At 100 kiosks in operation, their usage fee revenue stream would be $1.7-3.5 million annually. At 1000 kiosks, revenues could be as high as $35M. THESE ESTIMATES ONLY INCLUDE "USAGE FEES" - other revenue streams will include advertising fees and GoOnline.com sales, which I believe will dwarf the usage fees. JNNE has the potential to be a $100M company in a relatively short time. Second, I started to think of JNNE's place in the internet value chain. This is what really got me excited! Kiosk owners/operators are going to CONTROL the user's interface with the internet - JNNE will determine what the user sees when they walk up to the terminal, what browser is used, which portal is selected, etc... This is a tremendous amout of power! Imaging what YaHoo! would pay to have their portal be the default for a couple of thousand pulic access terminals at serve hundreds of thousands of users. If JNNE can establish a foothold in a couple hundred locations or lock-in muli-year contracts with a number of hotel chains, their power over the users will be worth hunderds of millions of dollars to the big players on the web. At $200mm, JNNE is a $6 stock, at $1bb we are looking at $30/share (based on 35M shares outstanding). I think these valuations are reasonable based on current market caps and buyout prices. Another interesting twist to the internet kiosk industry is that the number of small players that are entering the market. As the industry grows, we will see these small companies consolidate through mergers and aquisitions. As it becomes clearer to the "big guys" that internet kiosks control the user interface, we will see these companies invest huge amounts into internet kiosk networks - like JNNE. They will have no choice if they want to protect their business models (what would happen to Yahoo! if every internet kiosk defaulted to AOL or Excite?). To drag this out a bit more, here are a couple of other stray throughts on this business: As intenet kiosk networks take root, you will see the usage cost decrease quickly. In fact, I predict that the kiosk operators will figure out a better way to generate revenues...for example, make it free to users but make them enter user profiles. User information is where the money is - it will enable more focused advertising. I believe there is HUGE potential here. I am holding my last 10,000 shares for the long haul. If JNNE takes a hit, which it might, I am going to backup the truck and load it up.