*** CHNW *** Summary of Recent News, Including HUGE After-Hours On-Line Gambling Related PR.
As you may already know, CHNW relased a huge after hours PR, illustrating that they are exploring alternative ways to pay for internet gambling in light of the bill recently passed by the President. Given the insane amount of money associated with that industry industry, this obviously is potentially treeemendous stuff. In addition to that PR, the company has recently released a bunch of news which illustrate an outfit that is creating mutiple revenue streams and diversifying beautifully. Here's a nice summary, which imho, makes it very hard to believe that this thing won't be seeing multiple bags in the very near future. (Major props to Stock Lobster and Wang for putting me on to this gem.)
Recent News in Reverse Date Order Starting With Friday's After-Hours PR (Actual PR's can be found on CHNW board)
10/20/06 -- Exploring Acquisition of 3rd Party Payment Processor Assets & Entering The Incredibly Profitable On-Line Gambling Market The company is exploring the possibility of acquiring a payment processor which provides for the processing on on-line credit car settlements for consumer purchases. In short, the impetus of this exploration was the George Bush’s recently passed bill (signed on October 14, 2006) which, among other things, prohibits Americans from using electronic funds transfers, credit cards, and checks in placing bets with gambling sites worldwide. However, since the bill makes no mention of utilizing loans, or securing credit, CHNW is exploring the proper technological and legal avenues to pursue in order to permit Americans to continue to legally gamble on-line.
It goes without saying that this would be HUGE. From the PR: US gamblers make up about one-third of the world's online betters wagering over $637 billion in 2003 alone. Estimates put the value of the American online gaming market around $12 billion in 2005. Worldwide Internet gambling revenue in 2003 was estimated at $5.7 billion on about 1,800 websites, and was projected to triple by 2009, according to the American Gaming Association.
INSANE.
10/20/06 -- Executes Agreement In Principle To Acquire An ATM Network Enterprise and a Factoring Company. The agreements are both subject to diligence that will be conducted by the company which will focus on viability, revenue generation and client base. The ATM business has provided CHNW with unaudited statements of sales of over 1.5 million dollars in 2005. The factoring business will permit CHNW to purchase the debts of other companies (which have an immediate need upfront money) at around a 25%-to-50% discount and permit CHNW to substantially profit when the debt is eventually collected.
10/19/06 – Completion of Check 21 into Payday Express System. Check 21 is designed to foster innovation in the payments system and to enhance its efficiency by reducing some of the legal impediments to check truncation. According to the research conducted by the company Cash Now is the only payday loan software system developer that has integrated the Check 21 into its system. The company expects robust first sales quarter in 2007 when it plans to contact over 10,000 current payday and check cashing establishments to offer its services.
10/18/06 -- Purchase & Launch of Loan Consultant.Com Site. The www.loanconsultant.com site is being marketed to business minded people and entrepreneurs in the mortgage and finance industry. The domain name is perfect as people looking for assistance with loans will undoubtedly stumble across it by doing a yahoo or google search. CHNW expects to begin generating revenue the Loan Consultant sites in the first quarter of 2007.
10/16/06 -- Launch of 2 Additional Revenue Streams. The 2 new revenue streams launched are the Financial Suite and the Sales in Motion Suite models. The Financial Suite model facilitates communications with lenders and underwriters for the loan and mortgage industry. The Sales in Motion model allows lead gathering, appointing, tracking and has a built in e-mail marketing engine. The company tested the products in Canada and received about $500,000 in sales revenue. The company estimates that this sales revenue can easily be multiplied several times over with the launch into the USA market.
10/12/06 -- Share Buy-Backs and Shareholder Guidance. Noting its position that the value of the company is not reflected in the share price, CHNW announces its intention to purchase shares on the open market to increase shareholder value.
10/10/06 -- Launch of LeadPro System. The LeadPro system is designed to increase productivity and efficiency by automating tasks – to assist individuals with limited working capital who wish to enter the payday loan business. The company estimates that the sale LeadPro has the potential to add several million dollars in sales revenue for the company.
10/06/06 – Launch of NetCash System. The system allows lending companies to conduct their business through CHNW’s NetCash, rather than incurring exponential costs (and time) associated with developing and maintaining such technological infrastructure in-house. Specifically, the ability to use NetCash will save these companies up to 90% over traditional software and infrastructure. In addition, it will allow the companies to focus on developing their core business, rather than worrying about technology.
