The Unabridged History of Winners and Losers

[Tatari Gami]

Pennystocks Picks Report, March 27, 1998
as found through web archive:
http://web.archive.org/web/19990221172757/www.cfgstocks.com/...

The current PennyStock Pick for Friday, March 27, 1998 is:

Winners Internet Network, Inc. (OTC BB: WINR)
Ask - Bid: 0.56 - 0.50

Newsbreak

Winners Internet Network, Inc. (WINR) is a pioneer in establishing the first ever Worldwide Gaming Payout Structure and is expected to reap huge rewards, since it has no known competition. The suitability of WINR is an attractive speculation for these significant reasons:

Unique Software System for Internet Casino Gaming and Sportbooks - WINR's centralized and uniform system has the potential to become the standard for consolidating the fragmented gaming and international sportsbook industry, and providing safe payouts for customers.
Explosive Market Potential and Could Set The Standard for International Gaming on the Worldwide Web - The individual growth histories of both gaming and the Internet leaves no doubt that legal, credible, and convenient gaming on the Internet will experience explosive growth.
Experienced Management - The principals have been active in the gaming industry, and are experienced in accounting, networking, and government regulations.
Strong Revenue Potential - The combination of leasing, licensing, and transaction fees is expected to generate revenues and profits of $5 million and 2 million respectively in 1998, growing to approximately $15 million by 2000.
Company Overview: WINR is a holding company which owns and controls Davki Agency Ltd., Inc. that has the exclusive right to a software program which provides a means of managing and guaranteeing Internet gambling payouts. WINR is a pioneer in developing a software system that makes possible a secure and reliable payout structure for worldwide Internet casinos and sportsbooks. The existing gaming sites suffer from credibility problems. There is no uniform payout structure that gives the players confidence that their legal winnings will be paid. WINR has been recognized in various publications to be the much needed "Standard for the Industry."

Market: The worldwide gaming industry is estimated at $500 billion annually. There are currently over 55 Internet gaming sites in operation with an annual volume of approximately $100 million, a relatively small part of the total gambling industry. It is estimated that legal Internet gaming could reach $10 billion within 5 years when WINR's secure, credible, and reliable system is operational.

Competition: At present, there is no known competition to the proprietary software for which Winners has exclusive rights. However, there is always the possibility that another company could develop a superior or similar product.

Special Research Reports:

1. George T. Schlieben of Global PennyStocks at http://www.pennystock.com, published a Special Research Report on WINR, dated August 26, 1997. At that time, the stock was rated a "BUY" (with speculation) with a one-year target on share price of $8.00 to $10.00 and a two-year target of $9.00 to $12.00. Currently, the stock trades at about 0.50.
2. Lawrence C. Oakley of the "Conservative Speculator" recommended a midterm & long-term appreciation "BUY" in October, 1997.
3. Guidera Communications (GC), profiled WINR on September 19, 1997. The professional staff of GC provided brokers with information on WINR, who have expressed an interest in this special situation.
Financial Data:

Revenues: $5 million (1998E) to $15 million (2000E)
Profits: $2 million (1998E) to $4.2 million (2000E)
EPS: $0.19 (1998E), $0.31 (1999E), $0.40 (2000E), $0.66 (2001E)
Estimated Growth Rate: 50-100%
Market Cap: $25 million
Shares Outstanding: 10.5 million
Estimated Float: 2.5 million
Recent Business Highlights:

3/03/98 Winners Internet Network, Inc. Signs Letter of Intent For Financing.
Winners Internet Network signs an agreement with Atlantic Holdings Limited for a corporate loan. This proposed funding will enable the corporation to begin operations providing its worldwide Internet Gaming Payout System. Winners Internet Networks hopes to become fully on-line and operational within 45-60 days from receipt of the funding.
11/07/97 Winners Internet Network Inc., Formerly Known as Comstock-Empire International Inc., Makes Announcement.
Winners Internet Network will be among 80 of the top growth companies in the world to gather November 19 at Discovery Expo '97 to meet 1,000 Wall Street movers and shakers at the New York Hilton and Towers. This Expo is organized to bring together undiscovered companies with high-profile growth fund managers, analysts, stockbrokers and sophisticated investors in a one-day event.
8/07/97 Comstock-Empire International Changes Name to Winners Internet Network Inc.
Comstock-Empire International Inc. has changed its name to Winners Internet Network Inc. and changed it's domicile from the state of Washington to the state of Nevada. WINR announced that on July 31, 1997, Winners Internet Network Inc. completed a reverse acquisition with The Davki Agency Ltd Inc., a Delaware corporation, thereby becoming a wholly owned subsidiary of Winners Internet Network Inc.
Additional information of these PR newswires can be found at http://www.newsalert.com/" target="_new">http://web.archive.org/web/19990221172757/http://www.newsalert.com/ "WINR", and http://quote.yahoo.com/?u" target="_new">http://web.archive.org/web/19990221172757/http://quote.yahoo.com/?u ("WINR" and "News").

For additional information on the Company, contact David C. Skinner, Jr., Winners Internet Network, Inc., 800-358-4242 (FAX [phone]), or for an investor relations package, 888-540-WINR. The Company's Website is: Winners Internet Network. You may also call Columbia Financial Group (Jim Price), 888-301-6271 (FAX [phone]). To visit their website: Columbia Financial Group

Technical Position - PennyStock Picks

Our interpretation of the technical position of WINR indicates that this stock is moderately to highly undervalued for the short to moderate term outlook. Its 52-week high is 4.875 and 52-week low is 0.15. The stock price achieved rock bottom prices (about 0.20) in January and February, 1998. Since then, it has more than doubled in price, but we do not believe its price has reached any upper levels of resistance as of yet. This move is correlated with the financing news released on March 3, 1998. A week prior to this news release, an increase in volume was apparent and the price increased to as high as 0.75. Since then it has drifted back to its current price of 0.56 (ask) to 0.50 (bid).

Technical indicators support this interpretation, and the price should begin to appreciate from this level. The strongest technical indicators are the MoneyStream and BOP (Balance of Power). When comparing these indicators to price, they show the development of a moderate to strong positive divergence (a clear bullish-signal). Other significant indicators, the Moving Average Convergence-Divergence (MACD) and Momentum have been increasing as the stock price consolidates. Time-Segmented Volume (TSV) has shown during March positive accumulation. A "BUY" marker was interpreted late in February, 1998, slightly prior to the PR newswire being released on March 3, 1998. The significance and full potential of this move has not been achieved as of any means.

Another technical indicator, the Stochastics oscillator does not appear to have reached overbought conditions. The trading volume has increased since late February and another surge can be initiated with the purported funding. The new level of support is about 0.50. A moderate level of resistance may be experienced at about 0.75. PennyStock Picks places a short term target price (3 months) at 1 $/sh and a longer term target price (6 months to 1 year) at 1.5 to 2 $/sh, if its venture achieves mainstream operation, becoming fully on-line and operational about 2 months from receipt of the funding.

Disclaimer

© 1997, 1998 PennyStock Picks. All materials presented within the website are not to be regarded as investment advice and is only for informative purposes. Before making a purchase or sale of any securities featured on this website, we recommend consultation with a registered securities representative. Stocks we select as our picks are not to be regarded as a solicitation to buy or sell securities. As with any pennystock, companies we've selected as our stock picks involve a high degree of investment risk and volatility.

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