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Gold/Mining/Energy : CSI Credit Systems CSU.VSE -- Ignore unavailable to you. Want to Upgrade?


To: Stephen O who wrote (84)6/16/1999 2:25:00 PM
From: richieg  Read Replies (1) | Respond to of 90
 
I've been monitoring this stock very closely and I would suggest that there are more than probably three parties buying. It will be interesting to see what the Royal does as I don't believe they are going to get control at $1.30 ... at least I hope not ...

Here's a place to start some interesting thought... There is approximately 1 large food store for every 10,000 population ... we have 30 million plus people in Canada ....all do FAR IN EXCESS of 100 transactions per day to regular customers ... There are 5 major banks (Royal - 1st and CIBC - 2nd)... most of these stores are open 7 days a week. Remember, this is only the large FOOD stores ! Not Sears, Canada Tire or the corner store etc. let's say they get 2 cents per transaction ( I have no idea of the real rates but understand it is as high as 5 cents)
At minimal amounts this suggests that a bank could easily generate 4.2 million per annum just from it's major food chain clients.
Work this out with whatever numbers you can find for various business ventures in Canada... Add in foreign business potential (???)...Let's not forget the internet (What potential we have here is still a mystery as we have no particulars)...

What we have gentlemen is a lot of funds generated by this small Vancouver venture when in the right hands... I think we may now envision management's stand. It's a nice dream to grow wildly with lots of backing and a huge ready made market on your plate.

How much are the shares worth ? A lot more than the current offering, it has been suggested ... I concur...

Depending on your school of thought the price may vary between one and five years gross return at a P/E of five to fifteen (or more if you live in Vegas)..When we have 14 mill fully diluted shares based on one years bank return when going full bore in a year or two or three we have again a value far in excess of the current offering.

I would be most interested in your interpretation of the value both to us and to a large financial institution like the Royal Bank.

I have held shares for about 2 years and am fully prepared to continue even if the wait is long.. someday we may even see a dividend !

I am surprised that a recommendation to sell can be made without FULL disclosure of all current and known future market potential, particularly when the internet market is so very explosive.