Recent

% | $
Quotes you view appear here for quick access.

ModusLink Global Solutions, Inc. Message Board

  • tech12_98 tech12_98 Dec 23, 1998 3:38 AM Flag

    OT: Fellow CMGIers. Check out MLRE from

    Wall Street Whistleblower: At Millionaire.com,
    the Web Site of the Rich and Famous
    By Gregg
    Wirth
    Staff Reporter
    12/22/98 11:24 AM ET


    Want
    a Rolls-Royce? Get it on the Internet -- and a
    house in Tuscany, too.

    Customers with these
    desires are what Millionaire.com (MLRE:OTC BB) wants. The
    newly public company, formed last week through a merger
    of a small private company with a rarely traded
    public shell, hopes to become the eBay (EBAY:Nasdaq) of
    the upper class. With eBay and other Internet stocks
    rallying again this week, Millionaire.com doesn't want to
    miss its chance.

    Investors already seem to be
    buying into the vision, despite a dearth of available
    financial information about the company. Millionaire.com
    has seen its stock increase more than fivefold in the
    first four days of trading. It reached a new high
    yesterday of 16, eclipsing Friday's record high of 11 1/2.
    It closed Monday at 14, up 4, on volume of 1.4
    million shares, before giving up 2 5/8, or 19%, Tuesday
    morning to trade at 11 3/8.

    Such volume and price
    run-ups may not be unusual these days, especially an
    Internet stock. However, there are stark differences
    between Millionaire.com and other highflying Internet
    stocks. Primarily, Millionaire.com is the offspring of a
    penny stock and trades on the over-the-counter bulletin
    board. This could make liquidity a problem since
    bulletin-board stocks tend to be thinly traded and sometimes
    difficult to sell, especially if many holders decide to
    bail out at once.

    Also, the company doesn't
    report financial information to the Securities and
    Exchange Commission, making a true evaluation of its
    financial health difficult.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The company says it's creating an online commerce
      and auction house for luxury goods, including
      "fantasy shopping, art, antiques, exotic travel, yachts,
      classic autos, real estate, premium cigars, fine dining,
      interior design, high-tech electronics, gems,
      collectibles, watches and wine." The Web site is expected to be
      up and running by Jan. 15.

      The company also
      owns Millionaire magazine, which is printing its first
      issue under new management. It's due at newsstands next
      month. In addition, the company has a new
      20,000-square-foot auction house in Hilton Head, S.C., scheduled to
      open before year's end.

      Millionaire.com was
      formed in a merger last week after it acquired a public
      shell called Charter Investor Relations of North
      America, which had traded on the OTC bulletin board under
      the ticker CRNA. As part of the merger,
      Millionaire.com changed its name from Lifestyle Media and raised
      $1 million to do the deal. The company also
      established headquarters in Bluffton, S.C.

      Lifestyle
      Media, previous publisher of Millionaire magazine, was
      acquired by Robert "Rusty" White shortly before the merger
      into the public shell. White founded the Robb Report,
      a magazine for the affluent, in 1968, then sold it
      in 1983. He now is heading up Millionaire.com.


      Millionaire.com recently purchased some good press through one of
      those paid stock-touting Web sites. Millionaire.com
      issued 50,000 shares of restricted stock, now worth
      roughly $700,000, to Small Cap Journal for mention as a
      feature company on its Web site. Small Cap Journal is
      operated by Fortune Marketing & Capital Consultants, which
      has been retained as Millionaire.com's investor- and
      media-relations firm.

      Steve Samblis, Fortune Marketing's
      president, says Millionaire.com will cross-market its Web
      site, magazine and auction house to maximize revenue.
      The revenue will initially come from advertising, but
      eventually will flow from the sale of assets, such as wine,
      cigars and art, that could be auctioned as well, Samblis
      says. "I think we will redefine how you go after these
      markets," he adds.

      Laughing off the inevitable
      question of whether wealthy sophisticates will really sit
      at their computers and guide a mouse to buy a
      Rolls-Royce, Samblis says, "Well, [Rolls-Royces] will be
      available."

      There are neither revenue nor earnings
      projections available, Samblis says, adding that the company
      wants to be judged on its performance since it's a new
      venture.

      • 1 Reply to tech12_98
      • The company has peppered the investing public
        with press releases, about one a day since the merger,
        including an announcement Monday morning that it inked an
        agreement with SGD International for $8 million in
        advertising in the magazine.

        SGD International is a
        trading and bartering company based in New York. Its
        president, Jerry Galuten, says he agreed to buy $8 million
        in advertising in the magazine over the next three
        years. Galuten says he was unaware Millionaire.com even
        had a Web site.

        Samblis says the company
        wants to book the $8 million advertising agreement from
        SGD International as a receivable asset, pending
        approval from its auditors. That asset could allow
        Millionaire.com to qualify for a Nasdaq listing, Samblis
        explains.

        The company has 6.7 million shares
        outstanding (after a 3-for-1 split during the merger), and
        about 78% of the shares are in "management's and
        friendly hands," according to Samblis.

        Investors
        commenting on the stock via the online message boards were
        ecstatic about the chance to join the upper crust -- if
        not in the real world, then online. One message-board
        poster on Silicon Investor pointed out the irony that,
        presumably, most of the company's shareholders could afford
        to buy the stock but none of the products that were
        going to be sold on Millionaire.com. Other investors
        seemed to be swept up by the climbing stock price. "What
        is due diligence?" asked one erstwhile newbie during
        Friday's run-up. "Is it too late now to get in?"

 
MLNK
3.45-0.03(-0.86%)May 29 4:00 PMEDT