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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