Subject: Animated and Interactive Greeting Cards - Win $500 Cash -AVD

From: [email-masked]
Date: Wed, 4 Aug 1999 13:09:33

WALL STREET RESEARCH GROUP

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July 26, 1999

Research Analysis

POWER DIRECT, INC.

(OTC BB: PWDR)

Shares Outstanding: 17,327,500

Active Float: 13,127,500

Recent Price: $ .47

52 Week Bid Range: $.23 - $1.48

Capitalization: $8,131,000

1999 EPS: $ .31(Est)

2000 EPS: $1.39(Est)

P/E Ratio: 1.5/1(Est)

Debt: NONE

Dividend Yield: N/A

Year Ending December 31, 1999

1999 (E)

2000 (E)

2001 (E)

2002 (E)

2003 (E)

Revenues (millions)

$28.2 Mil

$109 Mil

$161 Mil

$236 Mil

$347 Mil

Earnings (millions)

$5.4 Mil

$27.2 Mil

$41.8 Mil

$63.7 Mil

$97.1 Mil

Shares Outstanding (millions)

17.3 Mil

19.5 Mil

21 Mil

22 Mil

25 Mil

Earnings per share

$ .31

$1.39

$1.99

$2.89

$3.88

Projected Price P/E Ratio of 20/1

$6.20

$27.80

$39.80

$57.80

$77.60

Business Summary:

Power Direct, Inc. (OTC BB: PWDR) is a Company investing in viable business opportunities globally, with particular emphasis on the Internet and the opportunities available in the multi-billion dollar e-commerce area.

Power Direct's latest acquisition is the world's first "Greeting Card Based" sweepstakes game. Cardstakes.com (http://www.cardstakes.net) consists of an electronic Greeting Card that is sent to the recipient via e-mail enabling the recipient to play an "Instant Win" ticket for cash and participate in sweepstakes for huge jackpot prizes. With the same ticket the recipient and the sender also participate in two draws, a monthly and a yearly draw. Both the monthly and the yearly draws are shared by both the sender and the recipient.

Statistics indicate that this untapped business sector has a world-wide market of over U.S. $15 Billion per year. Cardstakes.com will be the leader in this lucrative industry by being the FIRST online greeting card sweepstakes on the Internet. Half of all annual greeting card sales are seasonal with the remaining being birthday and everyday occasion cards. Cardstakes.com cards will be of high quality featuring special effects, animation, music, and custom design abilities.

GREETING CARDS, SWEEPSTAKES & THE INTERNET - A WINNING COMBINATION

Combining three of the world's most profitable growth industries into one viable and powerful marketing platform, and being the first to do so, virtually insures that Power Direct, Inc. will be immensely successful.

PWDR expects to capture the lions' share of this new business by being the first to combine two of the world's oldest and most popular traditions, Greeting Cards and Sweepstakes, with the explosive growth of the Internet.

The traditional greeting card industry is a tremendously large and thriving business! In 1998, over 7 billion greeting cards were purchased by American consumers, generating a total of $7.5 billion in U.S. retail sales. Of the total greeting cards purchased annually, roughly half are seasonal and the remaining half are everyday cards. Sales of alternative cards, especially non-occasion cards, are also on the increase.

The traditional Instant Lottery and 6/49 style ticket sales in the USA and Canada in 1998 were over $42 billion U.S. dollars.

According to the Computer Industry Almanac, there were more than 147 million Internet users in the world at the end of 1998.

This source further projects that there will be 320 million Internet users worldwide at the end of the year 2000, and more than 720 million users worldwide at the end of 2005. The U.S. Internet population will grow to more than 207 million Internet users in 2005, which will represent approximately 29 percent of the world's total.

Therefore, PWDR feels that it has created a niche market that will far outperform some of the more traditional Internet Lottery concepts - because it is able to capture the entire population since everyone sends Greeting Cards.

MORE FACTS ON THE HUGE GREETING CARD MARKET

The most popular card-sending holidays are, in order, Christmas, Valentine's Day, Mother's Day, Easter and Father's Day. People of all ages and types exchange greeting cards. Women purchase more than 80 percent of all greeting cards, and the average card purchaser is a woman in her middle years, although this historically steady demographic picture may be changing. Cards range in price from $0.38 to $10.00, with the average card retailing for around $2.00. Cards featuring special techniques and new technologies are at the top of this price scale.

The average person receives 24 cards per year, seven of which are birthday cards. Estimates indicate that there are more than 1,800 greeting card publishers in America ranging from major corporations to small family organizations. Greeting Card Association members together account for approximately 90 percent of the industry market share. A typical family sends out 125 greeting cards per annum.

Greeting Card Sales broken down by Occasion:

Seasons

Units

Birthdays

2.7 billion

Christmas

2.6 billion

Valentine's Day

900 million

Mother's Day

150 million

Easter

120 million

Father's Day

95 million

Graduation

60 million

Thanksgiving

30 million

Halloween

25 million

St. Patrick's Day

15 million

Jewish New Year

10 million

Chanukah

10 million

New Year's

8 million

National Grandparent's Day

3 million

Sweetest Day

1.5 million

Passover

1.5 million

Professional Secretary's Day

1 million

National Boss' Day

1 million

April Fool's Day

500,000

Nurses' Day

500,000

Total U.S. Retail Sales

1998

$7.5 bllion

1988

$7.5 bllion

1997

$7.3 bllion

1987

$3.8 bllion

1996

$6.8 bllion

1986

$3.7 bllion

1995

$6.3 bllion

1985

$3.5 bllion

1994

$5.9 bllion

1984

$3.2 bllion

1993

$5.6 bllion

1983

$2.7 bllion

1992

$5.3 bllion

1982

$2.5bllion

1991

$5.0 bllion

1981

$2.35 bllion

1990

$4.6 bllion

1980

$2.1 bllion

1989

$4.2 bllion

Information from the Greeting Card Association web site (http://www.greetingcard.org/gca/facts.htm )

In addition to the regular holiday cards, PWDR will provide senders with a large assortment of non-occasional cards for use at any time of the year.

MARKETING STRATEGY WILL PRODUCE EXPLOSIVE GROWTH

Being the first on the market and utilizing innovative marketing techniques, PWDR expects to capture a significant percentage of this huge niche market. Power Direct plans on utilizing some of the most unique Internet Direct Marketing plans and systems available today.

Most of the sales will come from "word of mouth" style of marketing (most effective), but by e-mail and not by voice, which sets the stage for exponential growth for PWDR.

The initial marketing plan is to e-mail out to millions of users, a FREE Greeting Card with an imbedded Sweepstakes ticket with the potential to win $5,000.00 (or more).

The Instant Win Portion of the Sweepstakes ticket is also a winner for every player. But instead of winning money, each player wins a gift certificate good for 10 free promotional Cardstakes.com greeting cards to send out to 10 of his or her friends and family.

Each of these promotional Cardstakes.com cards is of the same nature as the one he or she received directly from Power Direct, Inc.

Based upon this scenario, it is anticipated that PWDR will have millions of clients in a very short period of time - as one person sends to 10 people, and those 10 send to 100 people, and those 100 send to 1,000 people and so on. The numbers build at an extremely rapid pace.

Multiply this by the number of users who will receive the initial e-mailed cards and the sky is the limit!

Additional marketing plans include e-mailing free coupons, invitations, and other marketing materials to the millions of users of the cardstakes.com system on a regular basis.

HOW IT WORKS - DYNAMICS & FUNDAMENTALS

Instead of spending $3 to $6 on a card that ends up at a land fill in a week, one can send an animated, singing, speaking, personally customized, virtual card through the Internet for just $3.00. The card contains a scratch section that offers instant winnings of up to $1,000 and other prizes. The ticket number on the card will be entered into the sweepstakes jackpot of the month, (jackpot could be $5,000 and up), and the year-end grand jackpot (possibly $100,000) which is drawn on a yearly basis. Both the recipient and sender will share the prize money.

Should you want to review the cards in the future, they will remain in your Cardstakes.com mailbox until you delete them. There is no time limit like other Internet greeting cards.

REVENUE ALLOCATION

As previously stated, the cards are sold for $3.00. Thirty-five percent of the purchase price is kept by Power Direct, Inc. as a royalty.

ECOLOGICAL BENEFIT

Thousands and thousands of tons of cards printed with toxic colored ink are dumped on the landfill each year. The "Virtual Sweepstakes" card will help to eliminate this huge unnecessary waste and save our planet. The cards not only provide a high-quality, sophisticated greeting card, but they also allow the sender a high level of interaction in the designing and viewing process. First, there are 500 ready to send stock cards, (from art deco, vogue, classic, Victorian, and cartoons to 3D animation), thousands of available clip art and pictures, and speak as you type audio capabilities. (For example the card will say "Hi! John, thank you for a wonderful time, love, Susan White". If you are willing to pay for the premium card, you could have your own voice and pictures on the card.

This is a "state of the art" product, not to be confused with the typical low quality free greeting card available on the Internet.

A TRUE "WIN-WIN" LEADING TO IMMEASURABLE GROWTH POTENTIAL

The growth potential of this business is immeasurable. Imagine if one lady sends 100 Christmas cards to her friends, and if each of her friends sends out 100 and so on. That is 10,000 cards generated by just one customer. This effect will, in fact, keep growing year after year. The customers of Power Direct become their unpaid sales persons, advertising their cards to every corner of the world.

Let say, John won the jackpot of the month. He will receive $5,000 and Susan, the sender will receive $2,000. The more cards Susan sends, the more chances she will win. There will be a preferred customer bonus. Anyone who has sent out over 100 cards in a calendar year will receive a free bonus sweepstakes for every 50 cards. This once-a-year jackpot will be 100% awarded to a lucky sender. All winners will be contacted through e-mail or their mailing address. The money will be deposited in an offshore bankers trust account ready for their money transfer instruction.

INCREDIBLY TALENTED & SUCCESSFUL MANAGEMENT TEAM

Michael Wright (Chairman of the Board of Directors)

Mr. Michael Wright has valuable executive experience in the gaming and lottery industries. Mr. Wright has held such positions as Director of Distribution for Bally Gaming Inc., an affiliate of Las Vegas based Bally Casinos. Bally Gaming Inc. is a licensed manufacturer of legal slot machines and video lottery terminals that are distributed internationally. In 1997 he was President of San Diego based On-point Technology Systems, Inc. (ONTP: NASDAQ), which specializes in lottery ticket and high-tech point of sale vending machines. Mr. Wright has first hand expertise in the establishment of new lotteries in Central Europe after he resided in Prague, Czech Republic to oversee the successful start-up of the nationally telecast TV BINGO NOVA lottery in 1994.

Mr. Wright and Mr. Niessen worked together to set up the TV BINGO game in the Czech Republic.

Brian Niessen (Game Design & Software Systems Controller-External Consultant)

Mr. Niessen has expertise in the design of software, Internet sites, gaming systems, television production and operations necessary to run a successful lottery program.

He is a recognized front runner in the development of "interactive touch-screen" electronic gaming systems and video game development as early as 1982.and was responsible for in the software development and technical production of the highly rated game shows "TalkAbout", "The Last Word", "5-4-3-2-RUN", produced in Canada and England; and broadcast in Canada, the United States and England.

Mr. Niessen and his team are credited with the success of the "Televizni Bingo" game in the Czech Republic during September 1994 though April 1996, during which time approximately US$ 44 million was paid out in prize winnings out of approximately U.S.$ 80 million gross revenue. He is currently involved with registered charities setting up fundraising sweepstakes in North America and abroad.

Employment History

NET Software Inc., President.

Video Game Software Company

International Video Game Development and Manufacturing Company.

PirateBusters, Inc., President.

Video Game Anti-Piracy Development Company

Supplier to Electronic Arts, Inc., the largest Video Game manufacturer.

DesignTech Business Systems, Inc., President.

Provided all computer technology to popular television shows.

FOX Network -"TalkAbout" - Number 3 rated TV Game Show in USA,

CBC Network -"TalkAbout" - Number 1 rated TV Game Show in Canada.

FOX Network -"The Last Word" - Number 4 rated TV Game Show in USA.

CTV Network -"The Last Word" - Number 2 rated TV Game Show in Canada.

ITV Network, Leeds, UK - "TalkAbout"

CTV Network -"5-4-3-2-RUN" - Children's Television Show.

CTV Network -"Lingo"

NBC Network -"Lingo"

BC Place Stadium - Provided hardware and specialized software to perform animations on 20 x 40 foot screen.

BNG Design Group, Inc.,President.

Developer of Home Banking Systems for major Canadian Bank.

DesignTech Electronic Gaming Systems, Inc.,President

Developer and Manufacturer of Touch Screen Electronic Bingo/Gaming Systems.

Skywalker Management, Inc., President.

Developer of Software and Systems, Startup and Operations Manager of Czech Republic TV Bingo Lottery.

BingoNet Technologies, Ltd., President

Developer and Data Centre Operations of Lottery Management and Operational Systems.

Conrado Beckerman

Conrado Beckerman has the qualifications to direct the international marketing and Internet Affiliation program.

Mr. Beckerman's assistance with his proven track record of developing international Telecommunications markets, studies in International Relations, cultural background in social, political & economic issues as well as his industrial sales experience and negotiation skills, intuitive understanding of international business dynamics, unique language skills, and understanding of Government Liaisons, Protocol, Diplomatic and International Business upbringing will greatly assist PWDR in expanding into the worldwide markets.

Mr. Beckerman's accomplishments include: Developing International markets for various high technology companies, dealing successfully in transfer of technology agreements in Argentina and Brazil, developing national standards for wireless cable and Government of Uruguay. In addition, Mr. Beckerman consulted for wireless cable operators in Nepal, Pakistan and Indonesia, South Africa and Latin America.

Mr. Beckerman's past positions include:

1998 - present:

Strategic Planning Director, Southern Cone

Vitacom Corporation, Mountain View, Ca.

Developed the market in the Southern Cone of South America for VSAT equipment bringing new accounts to the company. Marketed satellite space segment for PTT's. Marketed equipment to ISP's in the region. Introduced new Internet and Voice over Satellite equipment generating interest and achieving letters of intent and contracts worth thirty million dollars. Participated in seminars and conferences as a guest speaker. Developed strategy for local manufacturing in Brasil.

1993 - 1998

Honorary Consul for Uruguay

Vancouver, Canada

Achieved the highest position available as a foreign dignitary for the Provinces of British Columbia and Alberta. Promoted cultural and economic exchange between Uruguay and the Western Provinces. Speaker in various forums related to Mercosur. Promoted Uruguay as a pole for distribution to the Southern Cone. Involved in developing joint venture agreements related to technology investment in Uruguay.

1996 - 1998

Marketing Director, Latin America

Norsat International, Vancouver, B.C.

Designed Market strategy for Cable television encoding/set-top systems in each country of the region achieving sales of CAN$ 20 million in eleven months of work. Worked in joint venture agreement with Brazilian companies for local manufacturing. In addition, developed a Latin American long run strategy for the company to be involved in value added generating incomes from PPV.

1991-1996

President, CB&A

Vancouver, Canada.

Distributor of satellite related equipment worldwide. Designed and installed first cable television network in Brasil. Marketed MMDS equipment in South America. Made own OEM satellite receivers and TVRO equipment. Exhibited and attended in most important trade shows in the industry. Started and finalized joint venture agreement to manufacture low noise equipment in Brasil for M.T.I. Wrote "Televisão via Satellite" in collaboration with Dr. Frank Baylin. Writing for "America Economia" magazine telecommunications column. Participated in trade commissions invited by the Canadian Government. Represented various television transmitter manufactures and won important international bids. Spoke at various seminars and consulted investors on television opportunities in Latin America. Obtained license for MMDS station in Rancagua, Chile; later sold it to TCI.

1988-1991

International Sales Manager

Norsat International, Surrey, B.C.

Developed markets for consumer and commercial satellite receiving systems in South East Asia, Latin America, Middle East, Europe and Africa. Developed technology transfer agreement in Latin America for local manufacturing. Brought a whole range of receiving and transmission equipment for resale. Introduced products to new investors.

1985-1988

International Sales Manager, Europe & Latin America

Nexus Engineering Corp., Vancouver, B.C.

Managed Latin America and European market development and sales.

1982-1986

Radio Canada International, CBC, Vancouver, B.C.

Reporter- Broadcaster

Reporting and broadcasting economic news of British Colombia to Latin America

1979

UNESCO, Paris, France

Assistant to the Ambassador

SUMMATION:

Power Direct, Inc. has a well thought out business plan with dynamic, experienced and very capable management, and is in the forefront of what will be a huge growth industry. We believe PWDR is well positioned to reap a substantial share of the virtual greeting card industry. Their unique niche, with the continuing and tremendous growth & interest of the greeting card industry and Internet combined with the Sweepstakes should pave the way for substantial capital appreciation in the shares of PWDR in the months and years to come.

RECOMMENDATION: STRONG BUY

BASED ON PWDR'S PROJECTED HIGH GROWTH RATE AND THEIR LEADERSHIP POSITION IN THIS DYNAMIC & HIGHLY PROFITABLE NICHE INDUSTRY, WE HAVE A VERY STRONG BUY RECOMMENDATION FOR BOTH NEAR AND LONG TERM APPRECIATION. WE FORECAST THAT THESE SHARES WILL BE TRADING AT $6.00 TO $8.00 BY JANUARY, 2000 AND $25.00 TO $35.00 BY JANUARY, 2001.

Power Direct, Inc. is positioned to become the dominant leader in the multi-billion dollar "virtual" lottery greeting card industry
.

Company's niche is in three huge, growing, & profitable areas - Lottery, Internet and Greeting Cards. Their business strategy should easily generate hundreds of millions of dollars of revenues in the next few years with excellent profitability.

Management team is strong and focused & will contribute significantly to future success. PWDR's business plan is excellent!

With high projected cash flow, Company will eventually be an obvious acquisition candidate.

Company will benefit substantially in any other e-commerce endeavors due to projected millions of clients from their virtual greeting card business.

Company's charitable contributions and ecological benefit will be viewed positively by many people, leading to increasing business.

The profit margins are very high in this business. Earnings per share will be increasing substantially in a relatively short period of time.

Industry potential is projected at $15 Billion per year. Capturing even a small percentage of that business assures PWDR of major profitability.

This message complies with the PROPOSED United States Federal requirements for commercial email bill, Section 301,Paragraph
(a)(2)(C) of S. 1618.

We Honor ALL Remove Requests!
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