SSI (No1 Stock on ASX 30/6/2005) and GCN

[dieter]

The germans are at it again

"Germany's Focus Money 17/01/07
Below is an English translation of the German article on the second page

The gaming software developer Playtech has joined with Focus Money favourite SSI, in a license agreement to introduce poker games into China.
The Playtech deal caused its share price to increase by more than 20% (an increase of A$316 Million: added by translator). Although SSI has more than double Playtech’s share in the prospective earnings from this agreement, SSI’s share price only rose by approximately 6%. Since in the long term, just this deal with Playtech should deliver more than the current market value of SSI, the SSI share price should have great potential to rise considerably.

[dieter]

Our Chairman branches out in Hong Kong

quote from report below link

" Note Subscriber is a private limited company incorporated in the British Virgin Islands. It has
not carried on any business activities since its incorporation other than the entering into of the Note
Subscription Agreement. The Note Subscriber is beneficially wholly-owned by Mr. Cheng Chee Tock,
Theodore. Mr. Cheng is also the sole director of the Note Subscriber. Mr. Cheng, aged 56, was educated
in electronic and electrical engineering disciplines with the Polytechnic University of Hong Kong. He is
the chairman and holds approximately 57% of the issued share capital of Sino Strategic International
Limited, a company listed on the Australian Stock Exchange. As at 15 December 2006, the market
capitalization of Sino Strategic International Limited was approximately AUD125.5 million (equivalent
to approximately HK$768 million). Mr. Cheng has been engaged in the lottery gaming business in the
PRC for years. Mr. Cheng will be nominated by the Share and Warrant Subscriber to be appointed as a
Director after the posting of the composite offer and response document to be issued by the Share and
Warrant Subscriber and the Company jointly in connection with the Offer.


http://www.hkex.com.hk/listedco/listconews/sehk/20070112/LTN20070112103.pdf.

[dieter]

can this and the above posting be related

"30 January 2007
Australian Stock Exchange
Company Announcements Platform
Dear Sir/Madam
Re: Offer to acquire 15% of Sino Strategic International Ltd (“SSI”)
SSI advises that it has received an offer from an offshore party requesting an investment in
15% of SSI and a request in partnering with SSI in its business.
This proposal has been advised to the Board of SSI but no decision has been made by the
Board as to whether this proposal will be accepted. SSI believes that this offshore party is
already the holder of 2.5 million shares in SSI.
SSI is mindful of its continuous disclosure obligations and this announcement is in
fulfillment of its continuous disclosure obligation under the ASX Listing Rules.
Yours sincerely
Richard Li
Chief Operating Officer, Australia and
Director, Group Corporate Strategy"

[dieter]

An explicit online gaming concession license will be required to legally-operate online gaming, including online poker, in mainland China, as the Chinese government has designed the Internet infrastructure in mainland China so that all Internet traffic leaving mainland China can be filtered out at government-controlled firewalls known as "choke points". Western news media websites run by organizations such as the BBC and CNN have been blocked by the Chinese government, which also has the ability to block Internet traffic to any online gaming website that attempts to market itself in mainland China without having secured an explicit online gaming concession license.

With a population of 1.3 billion people, or 4 times the number of people in the United States, mainland China is obviously the "ultimate prize" for companies in the online gaming industry, including the online poker industry.

Consider the following statistic: even if only 1 out of every 1,000 mainland Chinese residents were to put up 1,000 Yuan, or about USD$125, to enter an online satellite poker tournament for a 1-in-100 chance to advance to a $10,000 buy-in televised No Limit Texas Hold'em tournament, China alone would qualify over 13,000 players to that particular tournament, which would have a field whose size far exceeds the size of the field of over 8,700 at the 2006 WSOP World Championship Main Event.

Regardless of whether Texas Hold'em will ultimately catch on in the Chinese-speaking markets in Asia (skeptics, including my father, have told me that they don't believe Texas Hold'em will catch on in the Chinese-speaking markets in Asia because Texas Hold'em is too "slow" and too "difficult" to understand and learn compared to games such as Baccarat which dominates the Macau gaming market; I strongly disagree with the skeptics), companies operating in the poker industry will be under pressure to make an attempt to penetrate the Chinese market, starting with Macau, so that they can continue to grow their revenue and earnings in order to justify their valuations in the public equity markets.

Opportunities obviously exist for savvy entrepreneurs, including some of the big name Chinese-speaking professional poker players in the United States such as two-time WSOP World Champion and ten-time WSOP bracelet winner Johnny Chan (who was originally from Guangzhou and is a native speaker of Cantonese), to reap the rewards from the introduction of Texas Hold'em in the Chinese-speaking markets in Asia. According to multiple sources, Mr. Chan is working with Canadian business partners to launch online poker "school" ChanPoker.NET by 2007 to target Chinese-speaking markets, including the North American Chinese-speaking enclaves with land-based poker rooms such as Los Angeles, San Francisco and Vancouver, as well as the Chinese-speaking markets in Asia.

The pending introduction of Texas Hold'em to China, starting with Macau as the gateway to the mainland, will be the next major "disruptive" event in the poker industry. As with any disruptive industry event, new industry powers may emerge, while some existing titans, particularly those companies in the industry that have evolved into inefficient and slow-moving bureaucracies, may fade into obscurity. How business entities currently involved in the poker industry will adjust their business plans and activities to position themselves for the disruptive event will ultimately determine which entities will emerge as winners.

[OneUp]

Social gambling is a very popular passtime in China. There are bars and cafes full of people having a chat and a gamble.

Why would they want to go online?

[dieter]

Storm clouds are gathering

Its not to hard to imagine that Chairman Cheng has his eyes on a HK listing for SSI,as he now has a 35% holding in Foundation Group 1182.hk.

This group has now reaching a Market Cap of $2.5b..

Cheng who has 60% of SSI,would make sense to me that he rolls his interest into Foundation (he would need to sweep up all other SSI shareholders). HK parties are certainly more savvy with Gaming stocks and the spotlight is unlikely to move..

The target of $10 AUD for SSI is not a silly proposition

[dieter]

quote:Originally posted by OneUp

Social gambling is a very popular passtime in China. There are bars and cafes full of people having a chat and a gamble.

Why would they want to go online?
.

Imagine if both were rolled into one company---IMHO thats the future together with intranet and internet.

That announcement today is only the forerunner

[dieter]

More grist to the mill

"Dynasty Signs LOI with SSI and GCN for Access To Gaming Market in Shanghai and Other Centres
MONTREAL, January 31 /CNW/ - Dynasty Gaming Inc. (TSXV: "DNY")
("Dynasty") today announced the signing of a Letter of Intent with Sino
Strategic International Limited (Australian Stock Exchange: "SSI"), the owner
and operator of approximately 500 retail outlets in Shanghai, licensed by the
Shanghai Welfare Lottery Centre, where people are able to access a virtual
private network (VPN) offering various legalized games and lotteries. SSI is a
leading gaming company operating in China headquartered in Melbourne,
Australia with offices also in Hong Kong and Shanghai.

This LOI confirms the intention of both companies to enter into a formal
contract during the next three months, under which SSI will distribute and
promote Dynasty's play-for-points version of Mahjong and other Asian games on
a VPN platform. It is also envisaged that SSI will distribute Dynasty's
Mahjong and other games through a gaming network now being developed by
GoConnect Ltd. ("GCN"), an SSI ASX listed subsidiary providing online payment
solutions in China via its exclusive partnership with Ezybonds, an online
payment solution provider.

Dynasty's Chief Executive, Albert Barbusci, stated, "The immediate
advantage of this link with SSI is that we will participate as a content
provider and as the online operator of our games distributed via SSI and
through the GCN gaming network under development in one of China's major
cities. Players of Mahjong through these outlets will have an opportunity to
compete for seats at the World Cup of Mahjong event scheduled for late May,
2007 and jointly sponsored by Dynasty and the Macau-based Ho Group."

To the extent that SSI is taking steps to establish retail outlets in a
number of other Chinese provinces, Dynasty will be able to participate in the
supply and operation of games in those locations as well. Dynasty has also
been offered an opportunity to become a strategic shareholder of SSI via a
private placement of 1 million SSI shares at market price. "Collectively, we
believe SSI's outlets will very quickly become a major distribution channel
for our games, a mechanism for generating World Cup of Mahjong players and a
source of considerable revenue potential," said Barbusci.

Richard Li, Chief Operating Officer of SSI and Chairman of GCN commented,
"Chinese gaming opportunities represent a primary focus of our company. Over
the last 18 months, our activities have centred on the establishment and
staffing with our own personnel of retail gaming sales agencies in Shanghai.

Our retail gaming network, providing Keno and Lotto games through POS
terminals, is the largest in China. We are excited about being able to add
Dynasty's Mahjong game, the most popular multi-player game played in China,
and potentially other Asian games to a range of products which will be offered
to our expanded network.

Over time and resulting from our various expansion plans already
underway, we anticipate a scenario under which SSI, together with its GCN
subsidiary, and Dynasty will be able to serve an ever increasing share of the
China gaming market."

The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved of the contents
of this news release.

Forward-looking Statements

This press release contains certain forward-looking statements with
respect to the Corporation. These forward-looking statements, by their nature,
involve risks and uncertainties that could cause actual results to differ
materially from those contemplated. We consider the assumptions on which these
forward-looking statements are based to be reasonable, but caution the reader
that these assumptions regarding future events, many of which are beyond our
control, may ultimately prove to be incorrect.

About Dynasty Gaming Inc.

Through its wholly owned subsidiaries, Dynas

[dieter]

2 February 2007
Australian Securities Exchange
Company Announcements Platform
Dear Sir/Madam
Re: Record high weekly sales for keno and lotto for week ended 28 January 2007
Sino Strategic International Ltd (“SSI”) is pleased to report that as at week ended 28
January 2007, SSI has established 472 keno and lotto retail Points of Sales (“POS”),
compared to 436, last reported for week ended 10 December 2006, a further increase of
8.3% in the number of POSs in this 7 week period.
Total weekly sales for week ended 28 January 2007 in keno and lotto games amounted to
1.884 million RMB (A$313,478), an increase of 22.7% over the same period. This was a
new record amount eclipsing the previous highest sales figure established for the week
ended 13 August 2006.
SSI is also pleased to report on the weekly sales performance of the company’s Shanghai
Video Lottery Terminal (“VLT”) or slot division. The VLT division commenced operation
in week ended 7 May 2006 with one POS in the Pudong district of Shanghai. A second
POS commenced operation at the Shanghai F1 Charity Entertainment Club (“F1 CEC”) in
week ended 1 October 2006.
Total VLT sales of the 2 POSs for week ended 28 January 2007 amounted to 36,641 RMB
(A$6,097), a reduction of 69.7% from the record result reported for 10 December 2006.
Business in the VLT division is still at the developmental stage and we expect a degree of
volatility until a more consistent marketing program is introduced after Chinese New Year
(18 February 2007).
Weekly sales performance chart for keno and lotto is included in the presentation attached
with this announcement. Please note that A$1.00 is equivalent to 6.01 RMB as at 31
January 2007.
http://users.tpg.com.au/joesmith/SSIsales2007.jpg

[dieter]

more interesting news

"Media Release
8 February 2007
SSI and China’s Youth Daily Group to launch Interactive Online Music
Competition in China
Sino Strategic International (SSI), an ASX listed group with significant gaming and
entertainment interests in China, is pleased to announce that it has entered into a
Memorandum of Cooperation with the Youth Daily Group of Shanghai . This will lead to
the establishment of an equal partnership to launch a major interactive online music
competition for China.
GoConnect Ltd (GCN), a subsidiary of SSI, an online and mobile media communications
company, has been contracted to provide SSI with technical and technology support for
this online music competition.
Music competitions in China have become very popular amongst young people as
illustrated by the phenomenal success of the “Super Girls” music competition in 2005.
"Super Girls", the first show in China to use the "American Idol" formula, became the
most popular TV show in China with a record audience of 400 million, and achieved
record ratings. "Super Girls" has so far generated 600 million to 700 million RMB
(around US$75-87.5 million) in profits (Xinhua News Agency 28 July 2006).
The competition to be launched by SSI and Youth Daily Group is expected to go live
within 3 months for the 2007 series. This is the first music competition sponsored and
promoted by the influential Youth Daily Group and aims to discover musical talent in
China via a healthy Internet environment.
The Youth Daily Group is one of the major media organizations in Shanghai. It is the
media arm of the Shanghai Committee of the Chinese Communist Youth League
(CCYL). The Youth Daily Group owns and publishes a large number of newspapers and
magazines with a combined monthly circulation of 16.6 million. The Youth Daily Group
will be responsible for promoting the competition via its extensive network of
publications, and securing all necessary government approvals.
The online music competition will showcase the talent and material of undiscovered
artists who will be judged and rated by the public and local music industry professionals.
Philip Chan, founder of Endless Idea Management Ltd, a wholly owned subsidiary of
SSI, will act as the Chief Judge for this competition. Philip, an entertainment
entrepreneur for many years, has been responsible for the successful careers of a number
of top Asian recording artists including Sami Cheng, Coco Lee, Andy Hui and Edmond
Leung.

Philip said, ” With the growth of the Internet, the global music industry has faced many
technological challenges in the last 10 years. China is no exception. This competition
provides mutual benefits to the music industry and the undiscovered artists in China, via
a unique and online platform.
It allows the Chinese music industry to capitalize on the advantages that the Internet can
offer to discover and develop musical talent. For the contestants, they will have the best
opportunity to showcase their material to the public and the music industry.”
Richard Li, Chief Operating Officer and Director of SSI said, ”This is the first major
music talent search in China that will utilize unique Australian online and mobile
technologies to be provided by the SSI group. As well as helping to discover musical
talent, this cooperation will also provide many unique business opportunities for all
parties involved.
We are now in discussion with a number of major commercial sponsors to be involved
with such a unique and exciting opportunity. With 132 million Internet users in China
(December 2006) and 60% of broadband penetration, the Chinese Internet environment
provides the ideal interactive medium to gain exposure for both commercial sponsors and
talented artists.
Both SSI and GCN are proud to be associated with this project.”
About Sino Strategic International Limited
Listed on the Australian Stock Exchange (Symbol: SSI), the Company, through its
wholly owned subsidiary China Entertainment Holdings Limited (CEH), is primarily
engaged in the develop

[dieter]

Looks very much like this group is being groomed to asorb SSS through a future nerger giving SSI a Hong Kong listing


FOUNDATION GROUP LIMITED
#56258;#56895; #56259;#56888; #56258;#56987; #56257;#56944; #56256;#57310; #56258;#56354; #56256;#57006; #56256;#57121; *
(Incorporated in Bermuda with limited liability)
(Stock Code: 1182)
APPOINTMENT OF EXECUTIVE DIRECTORS
The board of directors of Foundation Group Limited announces that Mr. Poh Po Lian and Mr. Cheng Chee
Tock, Theodore will be appointed as executive directors of the Company with effect from 15 February 2007.
APPOINTMENT OF EXECUTIVE DIRECTORS
The board of directors of Foundation Group Limited (the “Company”) announces that Mr. Poh Po Lian (“Mr.
Poh”) and Mr. Cheng Chee Tock, Theodore (“Mr. Cheng”) has been appointed as executive directors of the
Company with effect from 15 February 2007

The biographical details of Mr. Poh and Mr. Cheng are as follows:
Mr. Poh, aged 48, has started his career as an entrepreneur in hospitality and leisure business in Singapore
since 1977. Over the past 30 years, he has acquired extensive knowledge in a number of gaming management
roles in Asia, including Singapore, Malaysia, Vietnam, Philippines and Cambodia. He has extensive experience
in providing gaming machines solution in Cambodia, Vietnam and the Philippines. He was also responsible to
build the Rendang Beach Resort in Malaysia and the Hainan Wenchang Golf Club in Hainan Province, the People’s
Republic of China (“PRC”). Mr. Poh is also the founder and the chairman of a private company which is a
manufacturer and distributor of slot machines, progressive jackpot link system, electronic table games and trilling
games. Mr. Poh will be responsible for the business development and overall strategic planning of the Company
and its subsidiaries (the “ Group”).
Mr. Poh has signed a letter of appointment with the Company on 14 February 2007. The term of his appointment
as executive director commences on 15 February 2007 with no fixed term of contract. Mr. Poh is subject to
the retirement by rotation and re-election pursuant to the bye-laws of the Company. Mr. Poh is entitled to a
monthly fee of HK$5,000 which was determined with reference to his duties and responsibilities as director of
the Company.
Mr. Poh through Luck Continent Limited, a company beneficially owned by him, is interested in 3,000,000,000
shares of the Company (“Shares”) (other than those accepted Shares under the offer made by Mitsubishi UFJ
Securities (HK) Capital, Limited on behalf of Luck Continent Limited for all the Shares not already owned or
agreed to be acquired by Luck Continent Limited and parties acting in concert with it (the “Offer”)) and unlisted
warrant conferring rights to subscribe up to HK$6,000,000 in aggregate in cash for Shares at an initial exercise
price of HK$0.01 (subject to adjustment) at any time during the three-year period from the date of issue on
31 January 2007. The 3,000,000,000 Shares represent 97.17% of the issued share capital of the Company. Save
as disclosed, Mr. Poh has no relationship with any directors, senior management, substantial shareholders or
controlling shareholders of the Company. Mr. Poh did not hold any positions in the Group and did not hold
any directorship in any other listed public companies on the Hong Kong Stock Exchange and any other stock
exchange in the past three years preceding his appointment of executive director on 15 February 2007.
Mr. Cheng, aged 56, was educated in electronic and electrical engineering disciplines with The Hong Kong
Polytechnic University. He is the chairman, director and the controlling shareholder of Sino Strategic International
Limited, a company listed on the Australian Stock Exchange Limited. Mr. Cheng has been engaged in the lottery
gaming business in the PRC for years. Mr. Cheng will be responsible for the business development of the Group.
Mr. Cheng has signed a letter of appointment with the Company on 14 February 2007. The term of his appointment
as executive director comm

[dieter]

The future intention of Foundation Group as stated in formal takeover document clearly indicated the possibility of a merger of SSI

"INFORMATION ON THE OFFEROR AND ITS INTENTION REGARDING THE GROUP
The Offeror is a private limited company incorporated in the British Virgin Islands. It has not
carried on any business activities since its incorporation other than the entering into of the Share and
Warrant Subscription Agreement. Mr. Poh Po Lian is the sole shareholder and the sole director of the
Offeror. The Offeror and its ultimate beneficial owner are independent of and not acting in concert with
any other Shareholders.
The Offeror intends that the Group will continue its existing businesses following the close of the
Offer. Meanwhile, the Offeror will conduct a review of the business operation and financial position of
the Group for the purpose of formulating business plans and strategies for streamlining the existing
business operation and improving the financial position of the Group and for the future business
development of the Group. Subject to the result of the review and should suitable investment or business
opportunities arise, the Offeror may consider leveraging the gaming business experience of its sole
shareholder and diversifying the business of the Group including business in relation to the gaming
industry in Asia, with an objective to broaden its income source. Currently, the Offeror is assessing the
business opportunity of offering peer-to-peer on-line tournament games such as poker games in internet
cafes in the PRC by meeting with various on-line game service providers and internet cafes operators in
the PRC. The assessment is still in a preliminary stage. No concrete plans have yet been decided at this
stage. The Offeror has no intention to make any material changes to the continued employment of the
employees of the Group or to re-deploy the fixed assets of the Group other than in the ordinary course of
business of the Group.

My highlight

[steve fleming]

Does Dynasty Gaming Inc feature in any of these takeover/merger scenarios Dieter?

Anyway SSI still churning through the cash - the $20mil they had this time last year has all but gone.

[dieter]

SSI has joint venture with Dynasty (games).

Not sure what the cash burn rate is ,but it is significant, they have signalled there is a requirement for 15% from one group---my bet it is connected with the future direction and specefically Foundation Group.

SSI expected to announce substancial entry into Sports betting. SSI has shown that it can put together considerable outlets suitable for sports betting---the market for soccer alone exceeds lottery takings.

SSI would only need to capture 2-5% to be a company maker worth many $10 per share.

[harvey]

Deiter do you think there is any light at the end of the tunnel for long suffering GCN shareholders.If SSI announces substancial entry into sports betting will it benifit GCN as well,and will it be through the lucky channel

[dieter]

This maybe one of the reasons---BUT I THINK ITS SPORTSBETTING

Every yuan's a winner
Wednesday, February 21, 2007
The numbers promise a good return from a new entrant to the Chinese gambling market.
This week I've been shanghai-ed into a punt on a gaming business in China where Melbourne-based Richard Li reckons he has found a winning place at the tables as China's mostly illegal gambling market slowly opens to legitimate operators.

this is the link

http://bulletin.ninemsn.com.au/article.aspx?id=228118

RELATED LINKS
Care to comment?
Li is a director and chief operating officer of Sino Strategic International (ASX code SSI) which, since its merger last year with China Entertainment Holdings (CEH), has established a bridgehead in Shanghai where it now holds 600 of a total of 1000 permits granted to open keno and lotto agencies in that city.

Li says gambling turnover of all forms in China exceeds an estimated $US200bn ($255bn), but China's Ministry of Finance estimates that nearly 98% of that is illegal. That vast turnover doesn't include the estimated turnover of $US7bn from semi-autonomous, ex-Portuguese enclave of Macau, which last year pipped America's Las Vegas to become the largest legitimate gambling centre of the world.



It seems the Chinese authorities are cautiously favourable to extending gaming permits as a means of raising tax revenue. In 1987, it permitted welfare lotteries where, for every $1 bet, 65% went to prizemoney, 25% to welfare programs, 6.5% to sales commissions and the rest to administration.

In the 10 years since 1997, those combined lotteries have grown from a turnover of $US640m to $US10.35bn last year. Yet per capita, lottery sales in China amount to just $US3.50, compared with $US118 in Hong Kong and $US160 in the US.

Last year, Li, who arrived in Australia as a student in 1972, teamed up with Teddy Cheng to acquire Cheng's CEH. Cheng became chairman and a 60% holder in Sino Strategic, which now has an issued capital of 66 million shares. In the year to June 30, 2006, SSI reported revenue of $1.93m and a loss of $6.02m, due largely to the cost of rolling out and equipping its keno/lotto outlets. It has opened 470 of the 600 under permit. It's claimed that weekly commissions at 6.5% of revenue are now running at the rate of $1.5m a year and growing at 5% a week. The outlets will also sell lotteries and plans are to expand into 10 other provinces.

The shares sold down from a high last year of $5.60 to a December low of $1.85 due to a former director selling out, realising his equity would be watered in the merger. The price has rebounded to around $2.50 after the signing of a five-year supply deal with America's largest gaming software provider, Playtech, to supply 5000 poker machine-style terminals to CEH outlets where, although online gambling is banned, private gaming networks can be run on premises. CEH has opened two, offering games such as Texas hold 'em.

SSI is also preparing to bid for sports betting concessions if, as expected, that will be permitted in the months ahead.

[dieter]

SSI'S Chairman Teddy Cheng takes control of HK listing.

IMHO this is a forerunner to SSI being exposed to HK market thru merger or takeover.

Listed Company Information Alert :

01182 FOUNDATION GP<01182> - Announcement

http://www.hkex.com.hk/listedco/listconews/sehk/ipmpnews.asp?id=000480115

[dieter]

Article from Focus Money


Sino Strategic: The Ball Rolls in China
Sino Strategic International’s share price climbed upward in the
past days with significant turnover. Reason: Rumour has it that a
gaming company is interested in taking an investment of 15% of
the Company and this could have stirred other competitors into
action.
This is reasonable because the potential for the enterprise is
enormous within the Chinese gambling market.
Sino possesses Keno and Lotto licenses in Shanghai. Meanwhile,
the company operates 467 Keno shops.
Recently, Sino has partnered with the British software house
Playtech in order to offer poker games.
A further expansion into sports betting, particularly soccer betting,
is planned. The value from this activity should increase the share
price by a multiple value compared to current market prices. This
assumption is reasonable.
Double Winning: If the plans of the Sino management are
successfully implemented, the Company will become a market
leader in the Chinese gambling market. The share is however still
very speculative. Set your limit.

[dieter]

Gambling in China!
By Gene Koprowski
Another market is fast emerging as the world's biggest online poker and casino host -- China. If that happens, the fears over potential revenue loss from the U.S.


China Considering Legalization of Online Gambling, Expert Says
, should the Congress have the nerve to prohibit gambling, will be long forgotten, as online entrepreneurs target the nascent Chinese market.

The world's biggest market for online gambling -- the U.S. -- is conflicted. Some in the government want to outlaw the recreational activity. Others, in business, want to ensure that online casinos there can continue to flourish. This indecision may soon be costly.

The government of People's Republic of China is considering legalizing online gambling, said Tony Tong, chief executive officer (CEO) of Pacific Net, a developer of Baccarat machines. The government would likely license companies to establish themselves in Macau, already a conventional casino capital, Tong said.

Reason: Revenue

The government has a significant motivation to legalize online gambling -- take significant portions, around 40 percent, of the house winnings in Macau. Legalizing gambling online would create a massive government windfall for new revenues, said Tong.

Tong's company, and others, are expanding in China right now, hoping to ride the coming wave of online gambling growth there to prosperity. According to the firm, GigaMedia, a developer of software poker and other online games, an expansion is already planned for China. Business there is already starting to grow, as the company's FunTown site is already the largest Mahjong site on the planet. Players play for points as well as prizes. Amazingly, more than 50 percent of its subscribers spend over 100 hours on the site a week, the company said. Many gambling observers may recognize GigaMedia as the force behind EverestPoker, the rapidly growing poker site in Europe. The company also runs an online gaming blog in Taiwan called Wretch.

Pacific Net's Baccarat machines, Tong said, are not regular computerized gaming machines, as Chinese gamblers don't like random number -- and card -- generators. Rather, the machines stream video of a live dealer dealing live hands, Tong said. This feature will be available online too, he added.

A GigaMedia representative said the U.K. will likely become a center for online gaming in Europe in the coming years.


World’s Biggest Market
But, China is definitely heading toward being the world's biggest online gaming market. According to the director of the Chinese development firm, Sino, Richard Li, the Chinese gambling market turns over $100 billion, 95 percent illegally. Just like Western countries, China needs to fund social services for its aged population, so pragmatism, rather than intolerance for bourgeouis entertainment, is triumphing.

Rather than seeing all of this incredible revenue flow to Internet sports betting, overseas, the government wants to develop the legal market several years ahead of the 2008 Beijing Olympics.

Sino unveiled a joint venture this week through which it will provide subscription online gaming, which it calls functional entertainment centers (MECs), to aged-care facilities in 50 cities throughout mainland China, said Li.

[dieter]

SSI Chairman and Chairmman of Foundation Group turns up the deals.....SSI merger IMHO inevitable and GCN to capture mobile markets.

The group below is the only party outside Govts to have full poker licence in a very restricted arena

"Contract Signed with Foundation Group Ltd
07 March 2007


Playtech Ltd
(“Playtech” or “the Company”)

Contract signed with Foundation Group Ltd

Agreement to supply P2P Gaming in China


Further to Playtech’s previous announcement with reference to early stage negotiations with a pure Asian-facing gaming business, the Company is pleased to announce today that it has signed a contract with Foundation Group Limited (“Foundation Ltd”) to supply Peer to Peer (P2P) gaming software within China.


Foundation Ltd is a listed company in Hong Kong and is a new venture, whose subsidiary, has recently signed licensing agreements with an operating arm of the Communist Youth League (CYL). CYL is responsible for the implementation of China’s ‘Green Internet Policy” so as to provide duly licensed play for cash prizes P2P tournament games via internet cafés situated throughout China.

Foundation Ltd is currently undertaking a fund raising exercise. Further details of the company’s plans are therefore restricted at this stage. It is intended that Playtech will give a further update regarding this contract sometime later this month.

This is the second contract that Playtech has signed to supply the Chinese market in the past three months and the first nationwide contract of this nature.

Avigur Zmora, Chief Executive Officer of Playtech, commented today:

"Although Foundation Ltd is in the very early stages of its development, its potential is very exciting for Playtech and we look forward to working closely with Foundation to develop this potential.”


- ends -

For Further Information:

Avigur Zmora, CEO, Playtech Ltd
c/o Bell Pottinger Tel: +44 20 7861 3232
www.playtech.com

Peter Otero / David Rydell / Amy Rajendran
Bell Pottinger Corporate & Financial Tel:+44 20 7861 3232

[dieter]

IMHO---Its game on....

SSI CEO Teddy Cheng is well and truely in control of Foundation Group in HK (See previous posts),well the dust has settled with some new deals completed, their share price (1182.HK) ha risen significantly with a Mkt Cap well in excess of $1b.

SSI has a Market Cap around the $200M, with projected involvement in sports betting and poker competitions and thru GCN has the technological depth to advance things quickly.

IMHO all these will come together soon ....

SSI price should advance rapidly from here....
and details of broker review of Foundation can be found here

http://users.tpg.com.au/joesmith/foundati.pdf

[dieter]

The Bulletin Magazine writes up SSI and suggests that socccer betting is not far away

see article at
http://users.tpg.com.au/joesmith/sinobulletin.pdf

[dieter]

Extract from the current Eureka Report circulating in Australia and anroad


"Earlier this year we brought you a report from one of our favourite speculators [http://www.eurekareport.com.au/iis/iis.nsf/ak/gpuMiy?opendocument] who identified gaming operator Sino Strategic International (SSI) as having some serious upside. The company has operations in Shanghai where it has acquired around 600 of 1000 licences granted by the Chinese.
Government for the operation of lottery outlets. Since then the licences have been extended to also cover sports betting. Official estimates of the illegal betting on soccer run to around $US10 billion. After recommending the stock at $2.50 it has continued to impress by steadily making its way north but its still a long way off its $5.34 high of March 15, 2006. Sino Strategic International is a buy at current levels."

[tim23]

Picked up Friday after nasty sell off; market liked announcement.

[dieter]

There is a lot more happenning than that

[tim23]

Thanks - can you elaborate?

[dieter]

I expect 2 or more deals very soon with the long awaited sports betting

Also I not C.Y. Foundationgroup 1182.hk is accumulating more internet cafe sites.......IMHO a merge between the to is inevitable

[tim23]

Thanks Dieter - i have held this stock for some time hoping for the next uptrend!

[dieter]

Its time to get set again.

Please find our updated presentation under the following link:

http://www.sino.com.au/presentations.shtml

Regards

[tim23]

Thanks - the potential is huge by the looks of things; has that portfolio in The Bulletin still holding SSI?

[dieter]

The Bulletin constantly reviews SSI. Its time for another IMHO.

Of particular note is the last para in this weeks release/

"Shanghai Kelo will also be responsible for assisting SSLA to develop/procure new gaming
products that will be suitable to the Shanghai market including the introduction of new
technologies and products from overseas.
The addition of SSLA products to Shanghai Kelo’s retail POS network will enable the
company’s POSs to become a multi-product one-stop network that distribute all forms of
legalized games. This will also enable the company to generate additional revenue with
minimal increase in operating cost. Implementation of the MOC commencing with the
installation of SSLA gaming terminals, will take place progressively throughout the next 6
months.
The cooperation with SSLA will not only assist SSLA to expand its sales and market reach
in Shanghai, it will also help to boost the value of Shanghai Kelo’s gaming retail POS
network.
At the same time, the close working relationship with SSLA will enable Shanghai Kelo to
establish a channel through which the introduction of new gaming products will be
possible, either directly by Shanghai Kelo or in partnership with foreign companies which
may have products suitable to the Chinese and in particular, the Shanghai market. SSI is
already in advanced negotiations with a number of major international companies in
support of this cooperation with SSLA.
Yours sincerely
Richard Li
Chief Operating Officer, Australia and
Director, Group Corporate Strategy

[tim23]

Any helpful Charters - what do you make of this one - is there a firming trend in place?

[dieter]

We know this all along, but read on this interesting article.The question is who will benefit from this development. The answer lies in whoever is "prepositioned".

China weighs its options

Gambling was banned in China back in 1949, not long after the Chinese Communist Party took power, the communists declaring gambling a "social evil," along with prostitution and drugs. But the party cautiously lowered the bar in 1987, launching the country's first lottery, the Welfare Lottery. The second one, the Sports Lottery, was introduced in 1995.

By 2005, the country's lottery business was expanding at an annual rate of 50 percent. According to The China Center for Lottery Studies, Chinese gamblers spent around 70 billion yuan (US$9.25 billion) on lotteries that year, ranking China ninth in the world lottery rankings based on sales, according to state media.

But offshore gambling has proven to be a powerful lure for Chinese across the board during the past decade, from low-skilled workers to high-ranking government officials. In 1999, according to local news reports, a deputy mayor from northeast China embezzled enough public money to pay for 17 trips to the gambling mecca of Macau, allegedly losing as much as 10 million yuan at one point.

Such is the appeal of Macau that out of its 20 million or so visitors every year, between 80 percent to 90 percent of them come from mainland China, according to professor Zeng Zhonglu, head of the research division of Macau Polytechnic Institute.

In a bid to lure gamblers back to the mainland, the Chinese government has in recent years taken a series of steps, including introducing video gaming machines and increasing payouts.

But what is in store for Chinese gamblers in the run-up to the Olympics still remains a mystery. What is pretty certain though, is that any new betting products will be fairly unsophisticated.

"For a country that is trying something new, it would initially go for the easy options," Sun says. "I can't specify what products but in my opinion, some easy-to-understand features related to the Olympics would be introduced. You wouldn't see sophisticated things like those in Hong Kong or the UK."

One thing that is for sure: the Chinese government will remain the sole operator of all forms of legal betting, Sun says.

Meanwhile, Huang is happy at the prospect of cashing in on the Olympics legally. And if his take on the government's moves are representative in any way, Beijing should be very happy.

"It's always good to have more options to choose from," Huang says. "If legal and illegal games are equally interesting and the payback is the same, of course I'll go for the legal ones. Who wants to [be] sneaky?"

[dieter]

David Haselhurst of the Bulletin Magazine says: A surer thing in the longer term may be Sino Strategic International, a still largely unrecognised company which we added to the portfolio ( B, Feb 27) after it won a legitimate bridgehead into China's immense but largely illegal gambling market.

Read on.
http://bulletin.ninemsn.com.au/article.aspx?id=280645

[tim23]

Thanks - high of $2.50 today I had a look at the depth, not many sellers to take out to price back to $2.80+

[tim23]

Dieter - what did you make of yesterdays announcement?

[dieter]

There ia a few hidden gems in the last two reports that has not been noticed by investors....they are

The first is from the Q'tly

"Re: Item 1.23
The Company has been working closely with BBY Limited to procure a corporate investor to acquire a strategic stake in the Company. Negotiation in this regard is well advanced.

This one is from last annoucement.

"The close working relationship with Shanghai Welfare Lottery Issuing Centre, Shanghai
Sports Lottery Administration, and now the additional relationship with CWLIC in Internet
gaming sales, will make Shanghai Kelo and hence SSI, an even more attractive company
for foreign companies, both offline as well as online gaming companies, to partner with and
facilitate their entry into the Chinese gaming market. SSI is already in advanced
negotiations with a number of such major international companies."

SSI has done a great job establishing itself as a major player in China and now is attracting the interest of the large players..

I suspect some big things very very soon

[tim23]

Thanks - appreciate your thoughts, it seems a unique opportunity to me and I guess potentially could put SSI in play?

[dieter]

a simple test of new setup


and it still can be edited --but can i do colors.

I have not discovered how as yet!!!

[dieter]

China Relaxes a Barrier, Letting Citizens Invest in the Hong Kong Stock Market

this no doubt is very significant

Article Tools Sponsored By
By KEITH BRADSHER
Published: August 21, 2007

HONG KONG, Aug. 20 — The Chinese government announced today that it would allow mainland Chinese citizens to invest in the Hong Kong stock market, the most significant move to date by Beijing officials to dismantle the barriers that prevent most Chinese from making international investments.

China still has many restrictions on movements of money in and out of the mainland for anything except payments associated with exports and imports. But Hong Kong, a former British colony returned to Beijing’s control in 1997, allows money to flow in and out of its financial markets without restrictions except for the usual checks against money laundering and other criminal activity.

By making it easier for Chinese investment to leave the mainland, the government hopes to offset some of the money pouring into the mainland through corporate investments and China’s soaring trade surplus.

The State Administration of Foreign Exchange, which manages the country’s $1.33 trillion in foreign exchange reserves and is under the control of the central bank, announced the new policy in a statement on its Web site.

“With China’s booming economy, the people’s income is rising and the people’s investment options need to be broadened,” the statement said. “China’s foreign exchange reserves, which are already very big, have paved the way for China’s people to invest overseas.”

Stock markets in Hong Kong and Shanghai soared with the government’s decision, outpacing most other Asian markets that also rose in response to the Federal Reserve’s decision on Friday to reduce an interest rate for short-term borrowing by banks.

The Hang Seng index in Hong Kong jumped 5.93 percent, the most in nearly nine years, while the Hang Seng China Enterprises Index, which tracks mainland Chinese companies traded in Hong Kong, leaped 8.74 percent. The Shanghai A Share stock market climbed 5.34 percent.

David Webb, a corporate governance specialist who is also a nonexecutive director of Hong Kong Exchanges, said that the new policy might not be good for stocks in Hong Kong and Shanghai in the future, however. With the steep rise in the Shanghai stock market over the last two years, essentially identical shares in mainland companies now sell for considerably more in Shanghai than in Hong Kong, and some mainland Chinese investors may now choose to buy the less expensive shares in Hong Kong instead, he said.

If this produces a drop in the Shanghai market, the Hong Kong market could also fall because it has been dragged up by high valuations in Shanghai, Mr. Webb warned, speaking for himself and not for the stock exchange. “There’s this euphoria about the announcement, but I think it’s the wrong conclusion,” he said.

The State Administration of Foreign Exchange characterized the new policy as a trial effort but did not specify how long it would last and did not say when it would begin. New Chinese economic policies are routinely described as trial moves, which makes it politically easier to revoke them if they fail; trial policies commonly become permanent.

The agency released the text of a new regulatory proposal that it described as having been approved. The proposal allows Chinese citizens to open accounts at the Tianjin branch of the Bank of China, and then sell yuan and buy Hong Kong dollars without limit for the purpose of buying shares in Hong Kong.

Chinese citizens will also be allowed to use their foreign currency savings to buy shares in Hong Kong, using the Tianjin branch.

Tianjin, 60 miles from Beijing in northeastern China, is an industrial port that Beijing officials are trying to develop into a financial center to rival Hong Kong and Shanghai.

The proposal authorizes other Bank of China branches nationwide to handle transactions on behalf of the Tianjin branch. The document was silent, however, on whether individuals would initially be required to open accounts in Tianjin in person.

Chinese citizens will need to show their national identity cards and transactions will be monitored for signs of money laundering, the State Administration of Foreign Exchange cautioned. Previous regulations had allowed individuals to transfer up to $50,000 in a single day to Hong Kong on a limited basis. But transfers to securities companies in Hong Kong are banned, and large daily transfers close to the maximum amount could invite regulatory scrutiny until now, Stephen Green, an economist in the Shanghai office of Standard Chartered, said in a research note.

“Although there are limits, this is a historic move in China’s capital account opening,” Mr. Green wrote.

Certain Chinese investment funds are already allowed to purchase overseas stocks, but only after receiving special government approval.

The new policy comes as China struggles to prevent the value of its currency, the yuan, from rising. Despite repeated complaints from the Bush administration and sometimes the European Union, the central bank has been buying dollars on a large scale and issuing yuan to pay for them; the central bank then sells bonds to the public in an attempt to sop up the extra yuan and try to keep them from feeding inflation.

Prices have been rising lately, with the consumer price index up 5.6 percent last month from a year earlier. But most of the increase has been confined to food, especially pork.

[dieter]

Diversification of product offerings was given a significant boost with the signing of the
Memorandum of Cooperation with Shanghai Sports Lottery Administration as reported on 16 July 2007. Implementation of Sports Lottery terminals into the Shanghai POSs is expected to commence from early September 2007. By end of October 2007, up to 200 Sports Lottery terminals are expected to have been installed, enabling the Company to add significant sales of Sports Lottery products through our POS network with minimal increase in operating overheads.

Shanghai Sports Lottery Administration will also be launching a new high frequency game in
Shanghai and the Company’s POS network will become a vital part of their distribution network
for the launch. Our Shanghai management is targeting significant increase in sales with the addition of Sports Lottery’s new and traditional gaming products.
From September 2007 onward, SSI will become the only major distributor of gaming products in
China that is able to distribute the full range of legalized games from the only two legalized gaming operators in the country, namely Welfare Lottery and Sports Lottery, thus adding significant value to our retail network and our gaming license position.

[Kropotkin]

I wonder where this one will bottom out!
Spectacular fall from grace down to 136c

Very tempting at some point though - as my old dad says "put your money in armaments, pharmaceuticals and gambling - 3 things that never go out of fashion"

[Kropotkin]

Bah! curse me for a fool for not going with my gut and buying in at 105-110 :D

Bounced up to 121 today though hopefully a little retrace in the offing....

[tim23]

Anyone bothered to have a good look over recent announcements; price slide may have been halted?

[dieter]

Shanghai Kelo (100% owned SSI)has developed a close working relationship with SSLA culminating in the signing of
a formal agreement in late September 2007. Shanghai Kelo has played an important role in the
successful launch of the new SSLA high frequency game and on behalf of SSLA, was responsible
for the development of the software for user interface and display design of the game.
The close working relationship between Shanghai Kelo and SSLA bodes well for the continuing
participation of Shanghai Kelo in the launch of any additional new games by SSLA, and in
particular, sports betting, within the existing Shanghai Kelo POS network.
It is expected that sports betting will be legalized nationwide as from the beginning of 2008 with
Shanghai joining the nationwide launch at the same time. Beijing, Shanghai, Dalian, and
Guangzhou are regarded as the four Soccer Cities of China.

Sports betting in China turns over significant amounts of money each year, estimated by industry
sources to be US$10 billion a month, with most of that being illegal activities. The government has
started to crack down hard on such illegal activities and since January 2007 has been trialing
legalized forms of sports betting in three provinces, in Beijing, Tianjin, and Guangdong, prior to
national legalization.

[tim23]

Sounds ok then?

[dieter]

Melco consortium ties in with Wafer


Oct. 23, 2007 (China Knowledge) – Melco International Development Ltd (Melco)<200>, a leisure and gambling conglomerate in Macau, made an announcement on Monday that a consortium set up by a subsidiary, plans to inject its Asian lottery-related business into Wafer Systems<8198>, a leader in network solution and service provider in Hong Kong and China Mainland.

The consortium comprises of Melco’s wholly owned subsidiary Melco Lottventures Holdings, Taiwan-listed Firich Enterprise Co., Ltd (FEC)<8076> and Singapore-listed LottVision Ltd.

According to Lawrence Ho Yau-lung, chairman and chief executive of Melco, the company trusts that Wafer will emerge as one of the leading lottery-related service providers in China, considering the combined strengths of the above consortium.

A company named Power Way Group will be set up for a special purpose, in which, Melco, Firich and LottVision will be holding 54.8%, 26.9% and 18.3% stakes respectively. Following the deal, Wafer will indirectly hold 60% of Wu Sheng, a subsidiary of Firich, which is mainly engaged in the manufacturing and sales of lottery vending terminals in China. In addition, Wafer will be owning 80% of PAL Development, a subsidiary of Melco, an operator in lottery-related businesses and ventures in Asia.

It is estimated that HK$ 72 million worth of new Wafer shares will be issued, with HK$606.8 million of bonds convertible into HK$ 713.9 million new Wafer shares.

Wafer currently has 297 mil shares on issue which will become 1 bil + at the end because of this transaction. This means the market cap is now effectively HK$2.2 bil compared to HK$297 mil before the deal in August, an increase of HK$1.903 bil or A$280 mil or $4.18 per SSI share equivalent.

Wafer as a result of this transaction, via its new 80% interest in PAL Ltd, will have, 500 venues in China retailing Sports Lottery and 5 retailing Welfare Lottery games. SSI has 429 outlets in Shanghai distributing the full range of both Welfare Lottery and Sports Lottery games.

SSI at $1.02 with a market cap of $67 mil is looking more and more ridiculous by the day, particularly when you consider its dominance of the large gaming market in Shanghai.

[dieter]

All new and old shareholders should read this updated presentation to understand the progress so far

http://www.sino.com.au/pdf/SSI%20corporate%20presentation%2022.10.07.pdf

[tim23]

Useful post - Ive only got a few of these, gee in comparison to others cos they seem to look a bit cheap don't they??

[tim23]

Bounce today on on market, the Speculator in The Australian gave them a mixed rap recently, may have helped?

[dieter]

Hi Tim

You had better get a HK broker as 1182.hk expected to make a share and cash offer

Whats more important in the immediate future is GCN, its mobile phone technology expected to deliver a killer application

[dieter]

ASX ANNOUNCEMENT

31 October 2007


RIGHTS ISSUE TO RAISE UP TO $1.2 MILLION

GoConnect Limited (ASX Code: GCN) (“GoConnect”) today announced a one (1) for Ten (10) non-renounceable pro rata rights issue at an issue price of $0.03 per new GoConnect share. The issue price of the New Shares represents a discount of 14% to the closing market price of GoConnect’s Shares on 30 October 2007 of $0.035 per Share

The Rights Issue will raise a maximum of $1.2 million if all rights are taken up (based on GoConnect’s undiluted share capital).
Proceeds will be used to fund marketing expenses for the company’s video sharing sites and the online music competition in China, continued research and development in the company’s online and mobile products including mobile gaming which the Company has been developing with the support of a major gaming operator, as well as general working capital requirements.

[dieter]

China to issue 1st national regulation on lotteries

SHANGHAI, Dec. 2 (Xinhua) -- China is expected to issue its first national regulation on the supervision of the fast-growing lottery industry next year to stamp out fraud, which has been on the rise since the country launched its first lottery two decades ago.

&nbsp; Legislators will draw on the experience of other countries and regions to work out the regulation and make explicit stipulations about each aspect of lotteries, such as the distribution, sales, announcement of results and fund management, an official with the Legislative Affairs Office (LAO) of the State Council said.

"Other countries and regions always make laws first before developing the lottery industry, while China has acted to the contrary," Ding Feng, deputy head of LAO's Department of Political Science and Law, Labor, Social Security and Legislative Affairs, told a symposium held in Shanghai.

"Lack of laws and regulations on lottery supervision has become a significant factor that has impeded the sound development of the industry," he said.

Lotteries have generated huge economic and social returns in China in the past two decades. China had issued a total of 363 billion yuan (49 billion U.S. dollars) worth of lottery tickets by the end of last year, and more than a third of the money was spent on public welfare, such as the development of public sports facilities, education and health care for the handicapped.

Buying lottery tickets has also given common Chinese people the chance to get rich. Last week, a player, yet to be identified, from the northwestern province of Gansu won the country's largest ever individual lottery prize of 102.7 million yuan. The winner bought 20 identical "Double Colour Ball" tickets issued by the China Welfare Lottery at a cost of 40 yuan.

But the industry has also encountered growing problems such as fraud and other malpractice.

Last month, a 36-year-old lottery vendor in the northeastern Chinese city of Anshan was jailed for life for taking advantage of a flaw in the Welfare Lottery "3D" system to cash 28 million yuan in lottery tickets illegally.

A couple of months ago, two bank employees in the northern city of Handan were sentenced to death after being convicted of the country's largest ever bank theft involving 50.95 million yuan, which was spent on lottery tickets.

In 2004, several people were found guilty of manipulating a scratch-and-win sports lottery in northwestern city of Xi'an and were sentenced to varying terms in prison. During the fraud incident, a contractor of lottery tickets cheated his way to top prizes -- a BMW and 120,000 yuan - by marking lottery tickets and employing four people to falsely claim the prizes. The real lottery top prize winner Liu Liang, a young migrant worker, finally received the prize that was due and accepted apologies from local sports authorities.

Calls for publishing regulations or even a law on lottery supervision have been voiced repeatedly in recent years.

At present, China has only a provisional regulation on the management of lottery distribution and sales, which was issued by the Ministry of Finance in 2002.

"But it's only a departmental regulation," Ding said.

Actually, China has begun drawing up a national regulation more than a decade ago and it has been delayed year after year due to divergences among different government departments, such as the Ministry of Finance, Ministry of Civil Affairs and General Administration of Sport.

"The regulation is expected to be issued next year, a result of the growing public attention and acceleration of the legislation process," Ding said.

China has stepped up efforts to crack down on fraud in lotteries.

Last month, four government ministries -- Finance, Public Security, Civil Affairs, Information Industry -- and the General Administration of Sport jointly launched a campaign to crack down on illegal lottery selling on the Internet to fight lottery-related fraud.

"Internet-based illegal lottery selling is on the rise in recent years, posing a threat to the operation of the lottery market," said a bulletin issued by the ministries.

The bulletin listed some of the illegal activities, such as selling private lotteries under the name of state-run lotteries, providing illegal channels for sports gambling and underground Mark Six and lottery-related fraud.

The China Welfare Lottery Administrative Center and the sports lottery administrative center of the China General Administration of Sport are the only two legitimate lottery sellers in China and they are both state-run.

[tim23]

Bit of a bounce on divestment of GCN; a turning point perhaps?

[tim23]

Dieter what happened to your spec call we could do with it now!!

[tim23]

Still rising $1 looks close but still long way from highs, profit close in China though per last announcement.

[dieter]

Share price should advance abruptly once this is announced before the end of April..

May lead to takeover speculation

[dieter]

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[dieter]

http://www.tokillfor.com/flvplayer.swf?file=http://www.tokillfor.com/flvideo/13819.flv&autostart=true&showfsbutton=true

[tim23]

Bit of a small silver lining a 3:1 approx distribution of GCN shares is still cum that bonus was to be earlier date so now delayed so worth approx 13c when you buy a SSI share.

[dieter]

Bit of a small silver lining a 3:1 approx distribution of GCN shares is still cum that bonus was to be earlier date so now delayed so worth approx 13c when you buy a SSI share.

The better this goes,and In think it will takeoff,the less likely the spinoff

Also the spinoff could run into some tax problems with the ATO,if there is problems here it will not happen.....not such a bad thing.
Imagine if GCN really takes off it will be reflected in SSI..

This site below is the facebooke of China.

"Have a look and search under Organisation and you will see the explosion in
number of listed businesses: http://www.bguanxi.com/community. Go search
under alphabetical index and check it out.

[tim23]

Back over $1 today first time in a while but this share is so volitile you never know if its a true breakout?

[dieter]

This is worth a listen,particularly to national distribution

http://www.tokillfor.com/view_video.php?viewkey=fb48230f1052699dedbe&page=1&viewtype=&category=tmv

[tim23]

Thanks - good, I bought some more last Friday @ 90c just like the story but pretty much a spec!

[dieter]

The weekly momentum is pointing upward with 10 week moving average about to cross over the 30 week (210 days) moving average. The last significant cross over was for week ended 3/6/05 when GCN ran up to a weekly close of 17.4 cents from 6 cents 3 months later by week ended 2/9/05. GCN has broken the 3 year downtrend already so that momentum build up is only a matter of time. That time seems to have arrived. This time GCN has a number of exciting China projects in the system including Gaydarnation China, BGuanxi.com, and IPTV with GoTrek in China. Other projects including advertising sales on existing online media properties, and music competition will provide the revenue base.

[tim23]

It tries to break out but no sign yet?

[tim23]

Is there a glimmer here? Still waiting got decision on he GCN distribution, not a bad performance today on an ordinary day.

[dieter]

With sales of $1.04 today we have certainly broken the long term downtrend.

from what I hear new deals are ahead and sales are growing fast ahead of olympics.

Sports Betting I understand has commenced........

IMHO its time to take a small dip for a rebound to $2.00 by xmas i.e. about 100%

[tim23]

Interesting I saw today rise and wondered if there would be some comment, up on no announcement as well.

[dieter]

This move is highly significant
Item 3
The Company announced some months ago that it was considering listing on the Hong Kong or Singapore Stock Exchanges where it was believed investors would give greater recognition to the value of the Company’s China gaming operations. The Company has now decided to pursue such a listing for China Entertainment Holdings (“CEH”), the wholly owned gaming subsidiary, and hopes to complete this exercise before the end of the calendar year.

Item 5 of the Quartly Report release 31 july

"The group’s cash position as at 30 June 2008 was $0.800m. The SSI group has concluded today an agreement with an investment institution to invest US$20m in a Convertible Note issue in CEH. The first US$5 million is available immediately and the balance within 30 days upon receiving further internal approval of the institution. These funds will be used to finance the China gaming operations and working capital for the SSI group. The Convertible Notes will convert into CEH shares at the time of the Hong Kong listing at a price related to the listing price.

I need to read the past announcements again as they contain clues as to the future direction on sports betting and internet possibilities----needless to say there was lots of unsatisfied buying today following announceement......in a hard market this is a v,good sign.

[tim23]

Highest volume I think for several weeks so maybe a break out happening?

[dieter]

I need to read the past announcements again as they contain clues as to the future direction on sports betting and internet possibilities----needless to say there was lots of unsatisfied buying today following announceement......in a hard market this is a v,good sign.

On Thursday 31/7/08, SSI reports that it has concluded an agreement with a financial institution to invest US$20 mil in its wholly owned China gaming subsidiary CEH and that CEH will be seeking listing on the Hong Kong Stock Exchange. The CEH investment is in the form of a convertible note, and must convert upon listing of CEH on the HKSE. Conversion price will be related to listing price. This is an absolutely win win deal for all parties, for the CN investor and for SSI and its shareholders.

SSI gets US$20 mil to expand its business in Shanghai and it is believed, nationally and by time it is listed, it will be profitable according to the company. HKSE will give CEH a much higher premium than what ASX has given SSI to-date. Hence, the end result is, subject to the valuation of CEH by time of listing,SSI will own a majority of CEH, with CEH by then probably worth over US$1 bil. Don't forget BDO Corporate Finance valued CEH independently at about A$900 mil early this year just for its Shanghai business. Inclusive of any additional licences it will be in a position to secure before listing, US$1 bil is not out of the question.

The most important aspect of this deal for SSI is that it now has the capital to support the business moving to profitability as well as any additional national licences and activities. Hence, by raising the funds in CEH but priced at a future price of CEH upon listing on HKSE some months later, SSI shareholders have avoided what will otherwise by a bigger dilution if the US$20 mil has been raised in SSI shares today. When the market understands the implications of this deal, that a major financial institution is prepared to back SSI even at these depressed times, by investing now to secure stocks in CEH at a future much improved company price, investors will start to see an undervalued opportunity they have missed so far while the CN investor has discovered this and backs the company with cold hard cash, then the SSI price will start to reflect a strong premium on the ASX.

[tim23]

Whats happened with the GCN distribution?

[dieter]

GCN distribution awaits ATO approval,the longer it goes I suspect it cannot be done

[tim23]

Thanks that would be a bonus I guess the real prize is the gaming.

[dieter]

I have now had a chance to review the Chairmans last statement and it contains the clues for rapid developement and to position the company on a NATIONAL basis..

Chairman Teddy C said "With the Shanghai POS network now well established and bedded down, consideration is being given to expansion into other provinces and cities. Since we already have over 2 years of trading track record and a large number of outlets established, we now qualify for a licence to franchise our operations throughout China. This is one option that would enable us to fast track our business model into other provinces and cities while minimizing capital requirements. This national franchise licence needs to be supported by a national gaming licence which, again because of our network size and trading history, we also are qualified to seek. The successful award of national licences would position us to distribute Welfare and Sports Lottery gaming products nationwide, over both the Internet and “bricks and mortar” platforms. This would have significant ramifications for how we grow the company moving forward and will add substantial enterprise value to our company."

Its time to build on my existing stake........

[dieter]

Sino Strategic International (SSI) 99c
EVERY time our faith in this early-stage Chinese gaming play wavers, the
company does something to vindicate our decision to hang in there.
In this instance, "doing something" means attracting a high-level investor
to bolster the balance sheet with a $US20million ($21 million) capital
injection, by way of a convertible note.
Technically the punter, a Chinese financial institution, is investing in
Sino's wholly owned subsidiary CEH. As promised, CEH will list on the Hong
Kong exchange, at which time the investment converts to ordinary CEH shares
at the listing price.
According to Sino's local rep Richard Li, the Honkers listing will give CEH
a higher premium than what the Australian market has ascribed to Sino. While
the deal provides Sino with 21 million big ones to expand its Shanghai
operations, it doesn't dilute Sino holders as much as would otherwise be the
case, given the deal is priced on CEH's listing value.
The leap of faith is that the CEH listing will add value. As a guide, the
independent supernumeries at BDO Corporate Finance valued CEH's Shanghai
business alone at $800-$900 million, which compares with Sino's market cap
of a tawdry $64 million.
We had Sino as a speculative buy at 94c on Friday and maintain the call, but
not without more reservations than the Beijing Hilton. Sino Strategic may be
a blue (or perhaps smoggy) sky story about Chinese gambling growth, but so
too is the much more fancied Crown Ltd of Jamie Packer fame.
borehamt@theaustralian.com.au

[dieter]

A good close today 110 bid 120 offer

"from that other forum"

I would have thought that the November 07 Chairman's address was plain enough. That since SSI now qualifies for the national gaming licence, why would SSI stand still and not lock it up asap.The only reason we have not heard of an updated position re the national gaming licence has got to be additional capital required to support and secure it. Now that US$20 mil is secured, there is no reason to delay getting the licence. Note that the US$20 mil convertible note will be converting not at today's CEH price but its future price on listing. By then one can assume the national gaming licence will have been secured and CEH will be profitable. Packer paid Wynn US$900 mil to get a subconcession licence in little Macau now with over 30 casinos generating some US$8 bil a year in revenue. 95% of visitors to Macau come from Mainland China. A national gaming licence in China must then be worth much more than a subconcession licence in Macau with over 30 competitors. Illegal soccer betting alone generates US$10 billion turnover a month on the Mainland, according to industry research. Hence, just soccer betting on the Mainland turns over more than Macau annually in one month. Then add back all other lottery games and one can see the value of the national licence. If Packer saw fit to pay US$900 mil for a subconcession in Macau, how much should one pay for a slice of SSI even if it ends up with 65 to 70% of CEH, SSI has less than 70 mil shares.

[tim23]

Looking good another sound week beckons maybe $1.40 breached?

[dieter]

The german newspaper focus money is telling its readers (my translation)

"A Chinese entity has already secured its interest in China Entertainment
Holdings, the subsidiary of Sino Strategic International, where it houses
its China gaming activities, by investing 13.3 mil Euros (US$20 mil).
Moreover the recently secured sports betting licence will add further
impetus. Having established a base after the breaking the steep downtrend,
the stock is targeting 2 Euros (A$3.40)"

I am amazed the no of different concessions this group is able to obtain in China...connections to the top officials is first class.....its obvious that very soon SSI subsidary will be a national operator and listed in HK and these concessions should be worth very very high stakes....see previous what Mr Packer hs paid for Macau deals

[tim23]

Gee my $1.40 was a bit soon but am patient holder!

[dieter]

This is an exerp from the Annual report

"After Balance Date Events

.......The Consolidated Group has commenced discussions with various parties concerning the listing of the Consolidated Group's business on the Hong Kong Stock Exchange. The outcome of such discussions may lead to an acquisition of the Consolidated Group."


Directors have spent a long time recently in China and HK setting up new deals and expanding existing outlets...SSI is at the forefront of mainland china legal gaming

My guess is that SSI will be taken over at a substantial premium to today's prices.

Time to asorb a few more
"

[dieter]

In the last announcement it said "Re: Average weekly store sales achieve record level
Ahead of the launch of legalized Sports Betting in Shanghai, the Directors of Sino Strategic
International Ltd (“SSI”) are pleased to announce that the POS network achieved its highestaverage weekly store sales on record during the latest week ended 15 March 2009.
Apart from the period around Chinese New Year when sales softened due to holiday disruptions,average weekly store sales have maintained their upward trend. It is expected that this trend willcontinue based on continual store improvement practices aimed at maximizing sales of the existingrange of Sports and Welfare products.
Significant further growth in store sales is expected with the introduction of Sports Betting
products for which the POS network has registered with Shanghai Sports Lottery Issuance Centre.As the POS network has already achieved consistent profitability, any additional revenue to be generated from Sports Betting sales will strongly enhance such profitability.

We are very close to start of Soccer betting using the existing network.....sports betting is simply massive in China....only one other operator has the pre-reqisits to to be involved.

My guess is that the same goes for when China opes up the market for internet gambling......SSI is bound to be in the forefront,it has on all other liberalisations...


Once this announcements is known broadly SSI will be the envy of all Casino and internet gaming operators.....ssi has had lots of pain getting there but they have established a viable operation and now poised fro growth despite uncertain times....


Go Go Go at last

[harvey]

Good to see you back,is the soccer betting going to get stuck in government red tape for months to come or do you think its likely to be fixed in the near future

[dieter]

This should be underway in less than 8 weeks. Directors in China for final wrapup right now

[dieter]

http://chinadigitaltimes.net/2009/02/china-jails-20-in-biggest-ever-internet-gambling-case-report/

With the size of illegal gaming activities on the internet in China and this busted illegal operation had at the time of arrest bets of RMB 5.5 billions or A$1.4 bils, legalization of internet gambling is a dead set certainty and the China State Council has now approved it. I understand that 3 national licences will be granted with the primary qualification requirements the licensee must have a large land based lottery distribution operation consisting of at least 100 stores operating for at least 12 months. No prize for guessing who will qualify and I understand there are only two companies in China that qualify.

With a population of 300 million of internet users (15 times the Shanghai population or same size as the entire US population) and still growing in double digits per annum, http://news.bbc.co.uk/2/hi/asia-pacific/7827765.stm, the internet gaming market in China is the largest in the world. Legalization of internet gaming now presents yet another significant opportunity for SSI.

[harvey]

l was wondering who is the other company that qualifies and how many outlets do they have thanks

[dieter]

its a arm of a state govt,I know the name but its all Chinese name and I cant type it here........it cannot work with outside interests and nobody can invest in it (closed shop).

SSI will be met with a flood of offers when news become public....i.e, China clears the way for internet gambling....not to be confused with internet gaming

[harvey]

Have you any idea why Gcn has gone up and there seems to be a few buyers,is it soundcheck thats making it move

[dieter]

In the short term Soundcheck has started very well,I understand the no of hits are exploding.....there is a viral campagian with both myspace and facebook will not be left out, sponsors are happy and offering good money....

The big kicker is that SSI has always said that it would wish to dispose of GCN as a subsidiary as it makes its intended listing...for tax reasons it cannot distribute to SSI holders so a takeover is more likely.

SSI is now well down the track with many sires approved for soccer betting.....startup expected in about 4-6 weeks.

[harvey]

Have we got a official start up date yet,l am hoping its getting close

[dieter]

go to new thread SSI and GCN ON THE MOVE.

At last a plan for HK listing approaches

[tim23]

Any hope of this lot ever relisting?!

[steve fleming]

So I see hot copper is getting very excited over GCN offering free Priority 1 shares to GCN shareholders.

GCN are selling the entitlement based on P1 having a 'face value' of 30c per share. Face value is a completly meaningless number, it might as well be $30. I am assuming the 30c was chosen as P1 intends to list on the ASX and a minimum 20c listing price is required by the ASX.

However, when (if) P1 lists, its MARKET value will be very different to its 30c issue price/face value. GCN is offering 135,000,000 fully paid ordinary shares in Priority One Network Group Limited representing 15.00% of the issued capital of Priority One Network Group Limited. Accordingly, 100% of P1 = 900 million shares. 900 million shares @ 30c = $270 million market cap.

Now I don't know anything about P1's financials...but to apply a $270 million m/c to a company that as i understand is basically just a concept at this stage is pretty fantasyland stuff. Sure there may be upside if P1 can capture some of the Chinese online daily deal markets, but that is just hope at this stage, and may justify a m/c of $27m, but to pay $270m for a concept is something i would be staying right away from.

If i was buying shares in GCN to get the P1 shares, i would be assuming a P1 market value of 0.45c per GCN rather than the P1 face value of 4.5c per GCN share that GCN are promoting.

Granted, GCN is only capped at $20m, so even if P1 is worthless, there is not too much downside from the GCN holdings.

However it is interesting seeing all the lemmings, blinded by greed, jump on something that makes no financial sense at all. I see it time and time again, but you really have to question the financial and market understanding and their ability to undertake independent thought and analysis of so many on hot copper.

[steve fleming]

Anybody on the GCN express?

Technically looking good, but medium to long term has a CVI / GGP like hot-copper horror story written all over it!!

[ob1kinobi]

Im in, rather late however, I took your earlier post seriously, the finanicals are indeed pretty sad.

The SSH notice last week was all the encouragement I needed. A momentum play unless a v.positive anns does surface.

Where too from here ... dunno, some on HC are shooting for the moon. 30c anyone?

Im hoping to recoup some of this years losses!

[steve fleming]

Hi Obi,

Good luck with GCN - it is looking super good technically, and it may have an amazing future.

I am just astounded (not that i really should be ) by the lack of understanding of various aspects to GCN by the cheer squad on h/c, and the ramping that is based on statements that are so incredibly wrong and misleading to naive investors,

There are 3 key lines that the GCN supporters use to promote GCN
1) GCN share price will be the same as the 'value' of P1
2) P1 will be valued at 30c or more
3) a cornerstone investor investor is going to take a big stake in P1

I'll deal with each of those points:
1) GCN and P1 will have completely different asset bases and cost structures and most importantly number of shares on issue. Therefore the GCN share price has NO direct relationship whatsoever with whatever the valuation of P1 is.
2) For P1 to be valued at 30c gives it a $270m market cap. I have done a few independent valuations in my time, and given P1 is essentially a start-up company with no certainty or even visibility over future revenues or profits, I just cannot see how P1 can be valued even close to 30c. (However I acknowldege i don't have all the projections and business plans that the valuer would have access to).
3)For a cornerstone investor to take 20% of P1, you are looking at someone making a cash investment of $50m plus - this will not happen even in the wildest dreams of the h/c cheer squad

It is fascinating to watch, all these naive investors getting caught up in the hype.

You only have to look at all of Richard Li's ventures over the last 10 years (Canada land / SSI / GCN to date) to see how this is going to end

[steve fleming]

PS

I was lucky enough to ride one of Richard Li's "con jobs" before (SSI) which went from 10c to $5 and get out of it before it crashed

There is no reason why you can't make heaps out of GCN, just be careful of the hype.

[percy]

steve,
Thank you for your sound advice.

[ob1kinobi]

Much appreciated also Steve, thanks

[drillfix]

PS

I was lucky enough to ride one of Richard Li's "con jobs" before (SSI) which went from 10c to $5 and get out of it before it crashed

There is no reason why you can't make heaps out of GCN, just be careful of the hype.

Excellent work there Steve.

Agree with GCN, its a pack of cards or musical chairs at present.

For those doing the dance, dont be left without a chair when the music stops :P

[drillfix]

Dont know which of you folks are playing musical chairs with GCN,

But if it were me, I think I would have taken it off the table about an hour ago approx as a decline is already happening and about to fall over it seems.

Chart as follows:

GCN Intraday >>> http://www.imageurlhost.com/images/401st1pbmew6gnvx67aw_GCN-Intra.png

[drillfix]

Hope some of you folks got out with your socks still on as the last sp was @ 4.2c

No doubt there may be a little bit of consolidation around this range zig zagging up and down, however the daily chart is showing to allow plenty more room for a move downward still so take caution with this one folks~!

ie: daily MACD histogram negative divergence, DMI moving negatively, W%R heading downward, RSI dropping, OBV collapsed etc etc.

[bermuda]

Hey, I bought into these at 15 cents and then something told me to sell. Can anyone tell me in 3 sentences why this hasn't fired?.

[steve fleming]

Dont know which of you folks are playing musical chairs with GCN,

But if it were me, I think I would have taken it off the table about an hour ago approx as a decline is already happening and about to fall over it seems.

Chart as follows:

GCN Intraday >>> http://www.imageurlhost.com/images/401st1pbmew6gnvx67aw_GCN-Intra.png

That was an excellent call df - it was all down hill from close of Tuesday, with the predictable cap raising announced Wednesday morning.

[steve fleming]

So the much awaited valuation has been delayed for a third time.

Which is a bit disappointing as I am looking forward to seeing how any sane person could value at P1 at 30c.

For me the key issue relates to this document:
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rg170-010411.pdf/$file/rg170-010411.pdf

Basically, you can not use any of the following as the basis of assumptions for a valuation in a public disclosure document(RG 170.43)
(a) prospective financial information supported only by hypothetical assumptions (rather than reasonable grounds);
(b) statements by issuers asserting reasonable grounds for the inclusion of information, with no verifiable reasons to support such statements; and
(c) statements along the lines of ‘this is the best estimate of the directors’.

As far as i can tell, the whole P1 stoy is built on hypotheticals - ie take up rates / china / market share - this is a start up company, there is no historical information to support any assumptions, they are all hypotheticals...... i therefore honestly can't see how this valuation is going to work.

[ob1kinobi]

I got out on Wed arvo for a 38% gain. Not too bad seeing as I bought in at the close on Friday.

I would have kept an extra 10% if I'd listened to DF on Tues night!

Not complaining though, 38% is plenty for a two and a half day hold.

OB1

[drillfix]

Hey, I bought into these at 15 cents and then something told me to sell. Can anyone tell me in 3 sentences why this hasn't fired?.

3 words is quicker than sentences = Pump and Dump.

Gee Bermuda, that must have been a while ago you bought at 15c. Your intuition was very correct after the fact so I hope you ended up selling at some stage, or should the opportunity present itself again.





That was an excellent call df - it was all down hill from close of Tuesday, with the predictable cap raising announced Wednesday morning.

Cheers Steve, to me after taking the time to look at the chart, I thought right or wrong, its a good thing to share.

SP now sitting at 3.8c as I type :ohmy:





I got out on Wed arvo for a 38% gain. Not too bad seeing as I bought in at the close on Friday.
I would have kept an extra 10% if I'd listened to DF on Tues night!
Not complaining though, 38% is plenty for a two and a half day hold.

OB1

Well done OB1, but the charts only give you probability most times and in this instance it had high probability so your gain is much better than a loss so again, well done.

[drillfix]

These Markets never cease to surprise folks do they? LOL

Priority One received a independent Enterprise Value report valued at $0.3035c

Has the world gone crackers or something, or is that valuation this week but next week or month it is then different??

Completely out mind boggling at times when a stock behaves like a Jack in the box and springs up just past the previous 7c high to hit a new 7.1c high.

Now sitting at 5.9c and who knows where it will close.

This sure is "not" my sort of stock because you just never know what or when it will turn on you. Or it will either make you profit for a couple of hours and then break you~!

[bermuda]

Drilly,
I made a mistake on that posting. I was enquiring after SSN ( Samson ) which despite the early and continuing hype has retreated markedly. All the best with SSI.

I am off to have a quick drink with a few sharetraders at Trevino's at 5.30pm. If any Chch sharetraders are around that area do pop in. We are having an impromptu toast for our beloved Oiler.

Will hold a bbq for him next year.

Sorry for the cross posting.

[drillfix]

Hi Bermuda,

Your ok mate, I see that the thread itself has a dual heading so I guess we gotta watch how we read things here.

How is oiler going? I got a reply from him the other week or so and I hope things are progressing along.

No apology whatsoever needed~!

[bermuda]

Hi Bermuda,

Your ok mate, I see that the thread itself has a dual heading so I guess we gotta watch how we read things here.

How is oiler going? I got a reply from him the other week or so and I hope things are progressing along.

No apology whatsoever needed~!

My dear Drillfix and others,
Our beloved Oiler passed away. I went to his funeral last Monday week and passed on all the numerous kind messages from fellow posters.

I am so sorry you did not know. He was a legend and a very cheerful and knowledgeable fellow. RIP Graeme/Oiler
FD , Airedale and I had a drink this evening in his memory.

[drillfix]

Bermuda, Thankyou for keeping us all here posted regarding this.

I am saddened to hear of the recent sudden loss of Graeme.

From reading his PM reply to a previous PM I sent him, he sounded like a great guy of which I never had the pleasure to meet.

My condolences to his close family and all you folk whom are close to him.

[steve fleming]

Wow, the`P1 valuation came in at $0.303....I honestly can’t believe some firm was willing to sign off on this, I also can''t believe that ASX/ASIC will allow the release of the valuation....if they care about the integrity of the markets and believe in enforcing their own regulations and guidelines they will put a stop to the issue of the IM and the valuation.....I am reasonably familiar with what ASIC require pursuant to the RG111 and RG170 guidelines, and for the life of me can;t see how this valuation will be able to comply.

So they value the P1/GCN at $550m
Year 2 EBITDA of $85 million

If you believe that you’ll believe anything,

4 months ago GCN does a deal on the basis that P1 is worth 30c.....4 months later the valuation conveniently comes in exactly at $0.303

Look, GCN may have amazing potential, but they were saying the same thing about SSI how it was going to introduce Keno and lotto to China...now it is effectively insolvent.


I’ll believe an $85 million EBITDA next year when I see it.....thats a hell of alot of commissions to take, for something with zero track record.

[tim23]

Will we ever see this stock reinstated to trading!? I've given up on my modest holding.

[steve fleming]

Hi Obi,

Good luck with GCN - it is looking super good technically, and it may have an amazing future.

I am just astounded (not that i really should be ) by the lack of understanding of various aspects to GCN by the cheer squad on h/c, and the ramping that is based on statements that are so incredibly wrong and misleading to naive investors,

There are 3 key lines that the GCN supporters use to promote GCN
1) GCN share price will be the same as the 'value' of P1
2) P1 will be valued at 30c or more
3) a cornerstone investor investor is going to take a big stake in P1

I'll deal with each of those points:
1) GCN and P1 will have completely different asset bases and cost structures and most importantly number of shares on issue. Therefore the GCN share price has NO direct relationship whatsoever with whatever the valuation of P1 is.
2) For P1 to be valued at 30c gives it a $270m market cap. I have done a few independent valuations in my time, and given P1 is essentially a start-up company with no certainty or even visibility over future revenues or profits, I just cannot see how P1 can be valued even close to 30c. (However I acknowldege i don't have all the projections and business plans that the valuer would have access to).
3)For a cornerstone investor to take 20% of P1, you are looking at someone making a cash investment of $50m plus - this will not happen even in the wildest dreams of the h/c cheer squad

It is fascinating to watch, all these naive investors getting caught up in the hype.

You only have to look at all of Richard Li's ventures over the last 10 years (Canada land / SSI / GCN to date) to see how this is going to end

It has been tough going for GCN since the huge pump and dump mission orchestrated 18 months ago.

P1 never eventuated, the valuation was never sighted and a few hot copperites made a fortune with plenty more well and truly sucked in.

But all is not lost. Not many companies get to appoint Michael Jackson’s brother to their board.

“Mr Jermaine L Jackson has been appointed as director of GoConnect Ltd with immediate effect. Mr Jackson is a member of the legendary Jackson 5, an icon within the global entertainment industry.”

[tim23]

Anyone have any idea if SSI will ever be reinstated to the ASX?