SPOOZ Inc (SPZI)

[martingale]

I spent 45 minutes this afternoon talking with Darryl and
Errol on the phone. Paul was out of town for the week as wing
mentioned earlier. This is what I learned from Darryl:
-The Trading Technologies (TT) contract is signed and there is
no expiration date. This gives them immediate access to 110
brokers worldwid. So, the first targeted clients will come from TT when they announce the product in June.
-Darryl explained that how the business relationship would work. When a TT client logs onto his account there will be a
Spooz Toolz pop up which he can access. They will be given a
2 week free demo of the system. If they like it they can contact Spooz to sign up for a subscription. They estimate that the average user will sign on for about $400 per month
with the extras that are offered above the base price of $89.
-TT gets two things from this deal. They receive 10C per trade
(5C both sides). The average trader they think does 100-600
trades per day. This is also a market which TT does not currently serve and by themselves did not have the capacity
to do the customer service support required. This gives TT
a way to make money and gives value added to the platform
which they do offer their clients.
-Darryl thought Spooz should be able to sign up 500-600 screens
3 weeks to 3 months after launch @$400 per average. This income would pay the operating overhead and perhaps allow them
to reach profitability in that time frame. He also said they
hoped to have 50,000 screens within 3 years.
-He said that on the equities side it would take a great deal
more customer service technical support than the high end future traders would require. He expected the average equity
client to spend $160-200 per month for the service when it is
available.
-He thought their technical support for June would be open
between the hours of 7:00AM-5:00PM CST. They did plan on adding at least 2 new people to help with this role in addition
to what they already have on staff. He said they would also
add a couple of new marketing people to help with sales.
-Darryl and Errol did not give a definite date for the launch
but thought June 15th was not far off the mark. They are
eagerly awaiting the launch to see how successful they will be
in signing up new clients. I think they believe it will be a
huge success.
-They did say that they had a permanent patent application in
for Fractal now to replace the provisional which was due to
expire and that they have filed a provisional patent for Spooz
Toolz.

My thought here is that on signing the 1,000th client we all
have cause for celebration because this company will be profit-
able and growing steadily from here.