Hier haben wir die Analyse (mit der Kernaussage "significant upside potential"):
8.June 2005
GoConnect Ltd.
Rating: Speculative Buy
2005 Price Target: Under Review
Response to recent licence agreements in China
Key Points
On 4 May 2005 GoConnect (GCN) announced that it had
formed a licensing agreement with China Entertainment
Holding Ltd (CEH), a wholly owned subsidiary of Best
Winning Investments Ltd.. The license is for GCN’s mobile
gaming technology Mobile 8888, designed for purchasing and
viewing the results for number based games such as lottery
and Keno. CEH is already active in these businesses with
permits for over 500 sales locations in Shanghai. Once
implemented, Mobile 8888 will facilitate lottery and Keno
players to play anytime, anywhere.
On the heels of this announcement, Sino Securities Ltd., the
major shareholder of GCN with approximately 54% of the
outstanding shares, announced that it intends to acquire CEH
from Best Winning Investments in exchange for Sino shares.
Best Winning also agreed to subscribe to additional Sino
shares at A$0.60 per share. Sino offers investment banking
services and its most significant holding is GCN.
On 6 June 2005 GCN announced that it had formed a
licensing agreement with Horizon Investment Group Ltd., the
biggest shareholder of CEH. The license covers the GoTrek
Internet TV and m-Vision mobile delivery platforms. Using
GoConnect’s technology, Horizon intends to broadcast the
results of lottery and Keno, as well as interactive game shows
and sports content over the Lucky Channel in China via the
Internet and mobile phones.
Recommendation
These series of announcements have acted as a catalyst for the
Sino stock, bringing the price to a high of A$2.28 from
A$0.18 in the last three months. We believe that the Horizon
Investment Group’s primary interest in Sino is tied to GCN
and the funds raised in Sino’s planned capital increase will
fund GCN’s operations. At this point it is too early to provide
projections about future earnings arising from these
agreements. However, we are of the opinion that GCN offers
significant upside potential and are reiterating our Speculative
Buy recommendation. We intend to provide projections as
more information becomes available.
Risks
The primary risks to our price target are: exclusive
concentration on the Windows Mobile platform, difficulties
with the pricing structures of the international mobile phone
operators and the weak capital base of the company.
Company Profile
GoConnect Ltd. (GCN) is an Australian based internet media company which distributes media content to a worldwide audience
using its patented GoTrek technology. This technology allows the delivery of broadcast-quality, interactive audio/video content to
Windows based PC’s, smart phones and pocket PCs.
Analyst Information
Scott McCollister
First Berlin
Equity Research Group
Schumannstr. 17
10117 Berlin
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