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This is a situation I am beginning to investigate. I think it's good enough to bring to your attention. I pick these situations from those presented to me by my network of brokers, market makers, PR companies, investment bankers, venture capitalists, & key people in various industries. My primary criterion is the same as I apply for Conservative Speculator -- my opinion of the stock's potential to double or better in the next six to 12 months.
My opinion of this situation will be online here until I find another one for you. I will, however, occasionally do updates on situations featured here which I continue to follow, either in the "Larry Oakley's Opinion" column, or in the "Larry Oakley's Comment" column. Please -- do not use these picks for investment decisions unless you decide on the basis of facts you uncover in your own investigation.
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Current Larry Oakley's Stock Pick:
Date Posted: 07/08/08
TrackBets International, Inc. (Other OTC: TRKB)
My Opinion
I interviewed CEO John D. Samuel. He joined the company in 3/2007, restructured, changed the company’s focus, did extensive due diligence, & is effectively achieving a turn-around. I suggest that you look into this emerging growth situation before the investing public realizes what it is doing. It’s trading at $0.001 as I write this, so the price is low enough to take a modest position, but as I always tell my readers, by all means do your own homework – that’s always a good idea when you are dealing with a company that has some exceptional long-term appreciation potential, as I believe this one does.
What TrackBets Is & Does
TrackBets operates in the legalized gambling market in Brazil, primarily in quality pari-mutuel thoroughbred horse racing.
Samuel’s Approach
Many companies fail in their attempt to establish a successful operation in a country like Brazil. They move ahead without sufficient knowledge or understanding of the laws, demographics, political climate, & especially the idiosyncrasies of the country’s culture. TrackBets has one competitor in Brazil that is not doing well because although it invested a substantial amount of money, it failed to accumulate the knowledge & contacts needed.
John Samuel understood what was needed. He spent many months having extensive research made into each of the necessary areas. He did a great job in my opinion. He has developed a masterful base of information, knowledge, & especially the important network of contacts that will assure that his company will be a successful player in the Brazilian turf industry as well as in any of the other portions of the wagering market in which the company may decide to participate.
For example, he now has the contacts needed to bring Brazilian horse racing to the rest of the world, & as a start is laying the groundwork in the U.S & Europe to have everyone able to bet on Brazilian racing. No one else has been able to do that – they failed because they did not have the contacts, the knowledge, or the understanding required. Samuel did his homework & in my opinion will be able to achieve success.
Recent News
6/23/2008 -- Management is exploring new avenues in which to expand its wagering operations within the Brazilian turf industry. It is committed to fulfilling the existing demand in the Brazilian market for quality pari-mutuel horse racing & other legalized wagering establishments, & is considering acquisitions & business partnerships as it prepares to open the first of its BetBrasil betting facilities in Brazil. These actions will ensure that it has an advanced deposit-wagering portal with premium content.
TrackBets has worked closely with a local market research firm to identify the market's potential, performing in-depth research, presented sales proposals, & helped establish strong relationships with turf industry insiders & other potential partners. As a result of the research, it discovered that the lack of competitors in the Brazilian horse wagering industry puts TrackBets at an advantage as it moves toward opening new betting facilities.
Games of chance, including cards, lotteries, & bingo, have grown year by year in Brazil, particularly in the middle-class population of approximately 60 million, a number which is expected to double in the next 10 years. In 2006, Brazil's Federal Savings Bank's lotteries collected more than $4.2 billion. Newly introduced legislation this month by the Brazilian bingo lobby would provide for federal legislation that would ultimately resolve the status of bingo nationally.
Analysts & lobbyists predict legalized bingo could produce up to $3 billion in tax revenue which would provide much needed support as the Brazilian government struggles to meet long-term budget constraints.
John Samuel says: "We're open to exploring all options for mergers in Brazil & with U.S. companies. Due to the lack of publicity & information, pari-mutuel betting is still a market in its infancy in Brazil, & we expect to capitalize on that untapped potential."
TrackBets previously had simulcast races in four facilities within the State of Rio De Janeiro & intends to relocate three facilities by the 4th quarter of this year, projecting 30 locations over the next three years. The Company is also in direct negotiations with the Ministry of Agriculture & the premier national Jockey Clubs to export Brazilian racing content internationally.
In Brazil, in 2006, horse racing wagers amounted to approximately $128,000,000. Last year, TrackBets generated over $500,000 in gross wagering revenues on international & domestic simulcast races in Brazil.
6/16/2008 -- TRKB is improving its infrastructure to capitalize on the growing Brazilian turf industry, a direct result of the strong Brazilian economy. TRKB is committed to fulfilling the existing demand in the Brazilian market for quality horse racing & other legalized wagering parlors contracting a local market research firm, Idéias e Imagens, to identify that market's untapped potential.
Idéias e Imagens has performed in-depth research, presented proposals, & as a result of their efforts forged crucial new relationships for TrackBets with turf industry insiders & representatives. This relationship building process is crucial in fulfilling TRKB’s objective of exporting Brazilian racing content internationally. The specific details regarding the various marketing studies will be released soon. Its "deep-dive" market exploration has exposed a significant competitive advantage, specifically, an in-depth knowledge of the industry, which TrackBets will exploit as it opens new wagering facilities. In 2007, greater than 32% of the jobs created in Latin America were in Brazil (Source: ApexBrasil www.apexbrasil.com.br).
6/9/2008 -- TrackBets is intensifying its efforts to expand its horseracing simulcasts to new facilities within Brazil. It is also taking the necessary steps to expand its product offering to include quarter horse racing.
Samuel said: "Interest in pari-mutuel horseracing has increased significantly, & TrackBets International strives to be at the forefront of that wave of popularity. We are in the process of acquiring new contracts with additional organizations throughout Brazil, & we have the infrastructure & the industry connections in place to capitalize on the demand for quality Brazilian horseracing content."
Call TRKB’s IR firm at 866-THE-APPL(E & visit www.track-bets.com.
My comments in this column are strictly my personal opinion. At times, I will include forward-looking information as that term is defined in the Private Security Reform Act of 1995. Such information & the related company are subject to many risks & uncertainties. There can be no assurance that actual results, business conditions, business developments, losses & contingencies, local & foreign factors, & other matters will not differ materially from those suggested in any of my forward-looking statements. Such differences are the result of all sorts of factors (some examples: market conditions, competition, advances in technology, acquisitions, mergers, potential litigation, personnel changes, market changes, capital availability, etc., etc.).
Do not run out & buy a stock just because I am enthusiastic about the situation. Call the company before you buy -- satisfy yourself first. I always include a phone number for that purpose. My purpose in this column is to respond to your request for my personal opinion. You have the responsibility of making your own investment decisions. Do not give up that responsibility.
My editorial coverage has always been, is now, and always will be without charge. That includes what I write in Conservative Speculator, and what I write in "Larry Oakley's Opinion, " "Larry Oakley's Stock Pick," "Larry Oakley's Comment," & "Larry Oakley's Bold Ventures" columns. It also includes what I write in such venues as articles submitted to other publications, interviews on radio & television, and at the investment seminars and conferences at which I am a featured speaker. By doing all my editorial work free of charge, I have the advantage of writing about what companies I particularly like. There are occasions when I will write about a company that is a paying participant on WallStreetCorner -- that's because I like the company. I always make it clear to them that editorial coverage is free and is not a part of the fee they pay to have their Profile researched, prepared, & posted at WallStreetCorner.
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