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CINT - Crystal In. Travel - Von Beaconequity mit Speulative Buy eingestuft - $$ Autor: Tomcat72 Datum: 08-31-08 01:39 Von Beaconequity mit Speulative Buy eingestuft - Thats Great $$ http://www.beaconequity.com/index.php?option=com_content&task=view&id=590&Itemid=62 http://www.beaconequity.com/reportsonline/CINT http://www.crystalitg.com/ CINT - Crystal Int. Travel BOARD http://investorshub.advfn.com/board...?board_id=13218 Here is what we know: PR out on August 25, 2008 - Did not hit the major wires yet. Last news out on Nov 29th, 2007. Looks like they are getting back into the limelight after delisting from OTCBB. Link to PR:http://www.ereleases.com/pr/intelli...s-nov-1st-12918 Last filing shows Earnings per basic share were $0.03 and $0.01 fully diluted on income of $544,969 for period ending 7/31/07 - Tell me a pink that trades this low with an actual positive EPS! It's one year later, one can only imagine what the revenues and profits are now! As per PR on Aug 25th, Intellifares, Inc. announced that it will make its patented airfare stabilizing product, Intellifares, available to the general public for the first time. Intellifares, which substantially reduces airfare for pattern and repeat travelers, has only been offered to wholesalers in the past. This move is designed to allow those travelers who fit into the category of repeat and pattern travelers substantial savings without the traditional markup applied by wholesalers. This is only part of the business!!! Travel House They acquired Travel House in 2006. Imagine getting in at the ground floor of expedia!? Here is your chance. With it's intellifares system, plus an online travel site, imagine the potential here. CHART As Early as May this was at .015. It only took 30,506,945 shares to get it down to .0003. With some profit takers on the way up. 50 million gets us over .01+ Easy! PPS Estimates From a report issued in November of 2007, here are some estimates of PPS values. http://www.beaconequity.com/index.p...d=590&Itemid=62 As you can see from the report, it shows 30 million O/S!!! http://www.beaconequity.com/report/CINT.pdf Using the Earnings from July 2007 of $544,969 and the O/S of 41,578,553. $544,969 / 41,578,533 = .0131 Using Expedia's P/E ration of 16.8X .0131 x P/E ration of 16.8 = .22 PPS Valuation!!!!! The Executives One of the best parts of this. They have a great management team with years of experience in the on-line travel reservation market. Peter Dugan CEO / President 30+ Years Marketing / Branding Experience - Founder and Chairman of DVC Group, the premier promotion marketing company for Fortune 100 companies Peter Gallic Chief Financial Officer 20+ Years Consumer Goods and Financial Industry - President CCPC, Arch Financial, Tymarc Children’s RTA Furniture Hank Cohn Mr. Cohn, age 36, is Executive VP at Galaxy Ventures, LLC. Galaxy is closely held family fund with a multi-pronged investment strategy concentrating in two areas, bond trading and early stage technology investments. Hank acts as Portfolio Manager for investments. Prior to joining Galaxy Ventures full time in 2003, Hank worked at Atlas Capital, an investment banking boutique in New York. At Atlas Mr. Cohn in the capacity of Vice President worked on sourcing and structuring PIPE (Private Investment in Public Equities) for Atlas's proprietary fund and a few select clients including Galaxy Ventures. From 1999 until joining Atlas Capital in 2001 Mr. Cohn worked as an analyst at The Middleton Group, an Investment Banking boutique in Stamford CT. The Middleton Group specializes in raising capital for private start-up companies and had raised over $25 million during Hank's tenure there. Mr. Cohn graduated with an MBA in finance and investments from Baruch College in 1999. Prior to getting his MBA, Hank successfully co-founded and sold Webspan Inc. an Internet Service Provider startup in 1996. Peter Dugan Mr. Dugan, age 54, is a founding member of Crystal Capital Partners. Mr. Dugan was Director of Global Business Development of DVC Worldwide from 2000 to 2003, a 1,400 person integrated marketing communications company that did branding and promotional marketing programming for Fortune 100 companies. During this time he operated both here and in the UK where he helped manage and integrate two acquisitions into the fold. From 1986 to 2000, Dugan was Chairman of DVC Group, a company he founded and sold in a $125 million private equity raise creating DVC Worldwide. During his tenure he personally consulted for the presidents, CEO’s and senior management of companies such as AT&T, Georgia Pacific, Lucent Technologies, Johnson & Johnson, Warner Lambert, Coca-cola and others. He sits on the board of Crystal International Travel Group and Southern Motor Company, and he is also on the advisory board of Cornell Dubilier Electronics of Liberty, SC, and a Trustee of the Morristown Memorial Hospital Foundation. Peter D. Gallic Mr. Gallic, age 39, is a founding member of Crystal Finance and Crystal Capital Partners (both are boutique financial engineering firms) as well as Crystal Hospitality Holdings, Inc. He has an extensive background in financial re-engineering that has spanned the last ten years. Mr. Gallic has worked in Mexico, China, Korea, Japan, Poland, and England on financial projects ranging from insurance enhanced municipal bonds of third world countries to MBS work. He worked on the development and sale of insurance related financing products for the commercial real estate market selling over $500 million dollars worth of product during the period from 1997 – 2002. Prior to banking Mr. Gallic founded the second largest children’s furniture company in the US which developed over 56 children’s furniture products for JC Penney, Sears, and 200 other retail customers. Mr. Gallic holds a BS in Economics from the Ateneo de Manila in the Philippines. Frank Salerno Mr. Salerno, age 46, spent nearly 25 years in the institutional investment management business before retiring to pursue private investment opportunities. Mr. Salerno held senior positions at both Bankers Trust Company and Merrill Lynch and Co. where he retired as Managing Director and COO. He managed departments that offered investment services to Fortune 500 companies and large governmental agencies. In addition to being on the DataCom board, Mr. Salerno sits on the boards of two public companies: K-Sea Transportation Partners, L.P. (KSP)(Trades at $25.30!!! and Index Development Partners (IXDP). Mr. Salerno received a B.A. from Syracuse University in 1981 and an MBA from New York University in 1986. Tony Soich Mr. Soich, age 46, has been a Managing Director in the Investment Banking Division of Ladenburg Thalmann & Co. Inc. since June 2002. Prior to joining Ladenburg, Mr. Soich was an independent consultant from November 2001 to June 2002. From August 1999 to October 2001, Mr. Soich was a Managing Director of Corporate Finance at Roth Capital Partners and head of the Structured Finance Group (SFG) and Director of Investment Banking at The Boston Group in Los Angeles. Mr. Soich started his career as a tax and corporate attorney in New York City with Shearman & Sterling and Deloitte, Haskins & Sells, advising investment banking clients and LBO fund clients in tax and financial structuring. Mr. Soich holds a BSBA, MBA, and JD, with honors, from Drake University and an LLM, in Taxation, from New York University. Mr. Soich is a Certified Public Accountant in Iowa and Attorney in New York and Iowa. Rae Hanneman, Executive VP of Crystal International leads our team of travel professionals, bringing her twenty-two years experience to the job, including 16 years at Club Med, and a multi-year stint at 1800CheapSeats where she introduced and implemented corporate travel. In addition to assisting you in the purchase of individual travel components (air, hotel, etc.) her team of experts create travel packages, melding multiple travel components sold as a package, which bring you fabulous vacations at extraordinary prices. Since they negotiate bulk contracts with travel suppliers for wholesale costs that are much lower than individual components, your choice of buying travel on the phone rather than through the web can be quite rewarding. Crystal International Travel Group, Inc. operates as a diversified multi-asset travel company. The company offers products and services to address price stability in the travel industry with a focus on higher income, frequent, leisure travelers. Crystal offers IntelliFares™, a service that provides five years of air travel at a fixed price. The IntelliFares flat pricing model enables consumers to engage in multi-year marketing programs with travel product retailers. Additionally, Crystal owns and operates a travel agency business, The Travel House. Websites: http://www.crystalitg.com/ http://www.intellifares.com/ http://www.res99.com/nexres/air/fro...gi?src=10017751 Authorized shares 500M Outstanding Shares 147M Restricted 95M Float 52M As of 8-25-2008 FIRST PR since last YEAR! Intellifares Announces Public Fares Available Nov. 1st MORRISTOWN, N.J., Aug. 26 /PRNewswire/ -- Intellifares, Inc. announced that it will make its patented airfare stabilizing product, Intellifares, available to the general public for the first time. Intellifares, which substantially reduces airfare for pattern and repeat travelers, has only been offered to wholesalers in the past. This move is designed to allow those travelers who fit into the category of repeat and pattern travelers substantial savings without the traditional markup applied by wholesalers. On November 1st, Intellifares plans to make fares available for over 200 routes in over 50 cities worldwide. Intellifares revolutionizes the airfare industry by creating a commodity to create substantially lower prices for airfare. The current backlog of customer inquiry is expected to be fulfilled prior to the November 1st launch date. Intellifares CEO Peter Gallic described the move as bold and revolutionary. "Never before has a program been offered which gives ongoing benefits to repeat customers in the airline industry. This product also has the ability to enhance profitability of any airline even in the worst economic circumstances, by bringing a new form of expense management to the table," Gallic said. To inquire about an Intellifare please visit: http://www.Intellifares.com. Intellifares is a patented financial instrument meant to allow forward price modeling of airfare. Contact: Dan Gallic, Director of Marketing Phone: 908-507-0156 This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com. SOURCE Intellifares, Inc. 08/26/2008 08:26 http://channels.isp.netscape.com/ce.../0927278124.htm Angehängte Grafiken Company Background Crystal International Travel Group, Inc. (CINT) is a development-stage company that provides diversified, multi-asset travel products and services focusing on price stability, including airline, rental car, cruise and hotel reservations, tours and excursions and travel documentation assistance. CINT addresses the needs of business and leisure travelers who travel frequently such as timeshare owners, cruise vacationers, college students, and businessman – the so called “Predictable Pattern Travelers” who are looking for reliable services, quality and stable pricing. The Company’s unique offering, IntelliFares™, is a service which allows frequent travelers to lock in 5 years of air travel at a fixed and discounted price. Crystal International Travel Group, Inc. uses a patent-pending process to set prices for IntelliFares based on current and predicted future airfares. Crystal distributes its products and services through traditional travel supplier networks, including airlines, online and off-line travel agencies, cruise lines, time-share developers, and sellers. In addition, CINT owns and operates “The Travel House,” a traditional travel agency that make reservations for airlines, hotels, rental cars, tour packages and cruises and then issue tickets and reservation confirmations. All its products and services are available online. Investment Highlights A business model that ensures fare price stability for business and leisure travel CINT’s business model merges the knowledge, reliability and human touch of the travel agent community with the advanced technology, speed and flexibility of online travel planning to address one of the travel industry’s most pressing issues - price stability. The Company focuses on business and leisure customers who travel frequently and in predictable patterns such as timeshare owners, vacation home owners and others. It addresses the needs of this lucrative travel niche segment with an innovative new offering that allows them to lock in five years of roundtrip travel at fixed rates and discounted prices. Two complementary product offerings address broad spectrum of travel needs IntelliFares™ was created to address the needs of business and leisure travelers for flexibility in their travel planning, a rich variety of travel options and competitive fares. Customers are able to purchase airline tickets for future travel between two designated cities at competitive prices. Authorized distributors of IntelliFares (or I-Fares, depending on the distribution channel) sell round trip tickets for five years of travel; customers on average realize 20% savings on their air fare over the course of the 5 years. The Travel House employs teams of travel experts who create attractively-priced travel packages for customers. Prices are low because the Company negotiates bulk contracts with travel suppliers at wholesale costs. The Company’s Travel concierge team assists leisure customers in planning their next vacation and helps business travelers ensure their next business trip is free of hassles. Partnerships to increase the Company’s visibility and contain costs CINT creates relationships with travel suppliers through a wide range of promotional strategies designed to increase its visibility while reducing marketing and customer service costs. For example, the Company has finalized a partnership agreement with Mexicana Airlines for ticketing IntelliFares customers in the West Coast markets that Mexicana Airlines serves. In addition, the Company has signed a 60 day exclusivity agreement with ResortCom International, a leading resort and timeshare operator, in order to complete an agreement to distribute its IntelliFares products. CINT has also partnered with Flying Dutchmen Travel to distribute IntelliFares, and with AIG Travel Guard to provide travel insurance at no additional cost for the customer’s first round-trip IntelliFares flight. Finally, the Company has engaged UBS to manage customer deposits to ensure resources are available to honor service delivery. August 2007 launch of IntelliFares provides impetus for future growth The August 2007 commercial launch of IntelliFares positions the Company for robust revenue growth in the second half of this year. CINT is offering IntelliFares in partnership with Mexicana Airlines for air travel between Los Angeles to key Mexican resort destinations with price availability beginning August 27, 2007. Other West Coast gateways will be announced in upcoming months. Frequent travelers can enjoy significant fare price savings with IntelliFares. For example, travel between Los Angeles and Cancun is priced at $1,532.80 for five years, including a one-time $59 activation fee; fares from Los Angeles to Huatulco are $1,666.75 for five years, including the activation fee; fares between Los Angeles ando Cabo San Lucas are $1,264.85 for five years, including the activation fee; and fares from Los Angeles to Puerto Vallarta are $1,666.75 for five years, including the activation fee. Strong 2007 sales outlook CINT expects to sell more than 3,000 five-year IntelliFares units by year-end 2007. Ticket prices for IntelliFares range from $1,265 to over $4,000, depending on the round trip cities and travel dates. The Company anticipates 2007 gross revenues from IntelliFare sales could range between $3.8 million and $12 million. Experienced management team The Company’s management team together represents over 90 years of travel and hospitality industry experience gained with leading travel industry competitors such as Club Med, Celebrity Cruises, Royal Caribbean Cruise Lines, MGM Grand Corporation, CMI Network and Apple Vacations. Peter Dugan became CINT’s Chairman, President and CEO in July 2007. He was the founder and Chairman of DVC Worldwide, an award-winning consumer marketing and promotion services company dealing with Fortune 100 companies. Mr. Dugan brings over 30 years of marketing and branding experience to the Company. $871 billion market opportunity US personal travel & tourism expenditures are estimated at $870.6 billion or 9.0% of total personal consumption expenditures in 2007. By 2017, US personal travel & tourism expenditures are expected to reach $1,439.7 billion and represent 9.2% of total personal consumption expenditures. Rising oil prices, personal income and travel prices make locking in today’s air fare for future travel an attractive alternative. According to Accenture’s Transportation & Travel Service practice, travel companies must devise innovative solutions and focus on cost effectiveness to profit from travel industry growth. Accenture also predicts travelers will increasingly lose interest in commodity products and instead demand solutions specifically designed around their needs. Travel service providers must also blend the right mix of distribution channels – such as the Web, agents or catalogs – to provide complete solutions1. 1) http://accenture.tekgroup.com/article_print.cfm?article_id=4512 Business Model Crystal International Travel Group, Inc. focuses on so-called “Predictable Pattern Travelers” with products and services that address one of the travel industry’s most pressing issues – fare price stability. The Company has developed a two-fold business model that merges the knowledge, reliability and human touch of a travel agent with the advanced technology, speed and flexibility of online travel. CINT combines three key aspects of the successful modern travel company: 1) It is creating and developing a nationally recognized travel brand with an active, loyal customer base; (2) It is building a fully licensed travel agency able to handle negotiations and contracts with industry suppliers, as well as day-to-day tasks such as reservations for airlines, hotels, rental cars, tour packages and cruises, and (3) It is creating a solid portfolio of diversified travel products that address the needs of a lucrative niche segment - the Predictable Pattern Traveler. CINT plans to grow through the expansion of its existing travel product offering. Through the 2005 acquisition of SunTrips’ brand and other intellectual property, the Company came into possession of a well-recognized travel brand with 29 years of history and a potential customer database of 270,000 members who regularly buy travel either through the call center or via the web site. In 2005, 56% of SunTrips travelers bought two or more vacations per year. Growth strategy CINT’s growth strategy focuses on integrating modern marketing and sales tools with the more desirable traditional travel agency services. The Company utilizes the Web to attract customers and then redirects these customers to its call centers and a travel specialist to assist them in planning their trip. Its emphasis on personal interaction with customers differentiates CINT from other industry competitors who rely exclusively on cost-effective but impersonal online booking models. Building IntelliFares as a Franchise As the Company gains experience in marketing the IntelliFares brand, it intends to broaden its market reach beyond Predictable Pattern Travelers in the timeshare market. CINT is in early discussions to make the service available to college students who fly more than 2 hours to and from school. These students or their families usually make at least four trips per year, including the school year start and end, Thanksgiving weekend, winter break, spring break, and at least one parent visit. Additionally, CINT is involved in early-stage discussions with one of the world’s leading food products companies regarding applying IntelliFare style advanced payment methodology to the international freight segment. Even a single digit annual savings from using the IntelliFares model could save these companies millions of dollars annually in intermodal transport costs. Finally, the Company is in discussions with travel agents and country tourism officials exploring applications for the IntelliFares model with affinity groups who are repetitive travelers, such as Evangelicals who make annual pilgrimage to the Holy Land. Leverage acquired SunTrips’ brand CINT plans to enhance its visibility by leveraging the brand name and sales access points it acquired from SunTrips. The Company targets the Northern California market, using leads sourced from the SunTrips website and is currently focused on destinations in Mexico and Hawaii. Currently, the Company is generating a small amount of commission revenue by serving this customer segment through an online booking engine in partnership with Travelocity. In the future, CINT intends to gradually expand its list of destinations to include the Caribbean, Asia/Pacific and seasonal markets like Costa Rica and Azores. Relationships with travel suppliers CINT plans to heighten its visibility while keeping marketing and customer service costs low by forging strategic relationships with travel suppliers. For example, CINT recently finalized a commercial partner relationship with Mexicana Airlines for ticketing of IntelliFares customers in the West Coast markets Mexicana Airlines serves. The Company believes this is the first commercial relationship of its kind which provides airfare price stability over a five-year time horizon. The Company has also signed an exclusivity agreement with leading timeshare operator ResortCom International to finalize an agreement distribute its IntelliFares and I-Fares brands. With a quarter million travel club members representing just under 1 million air tickets a year from the US to ResortCom Mexican destinations, this relationship can add millions of dollars to the Company revenues. CINT anticipates completion of this agreement by mid-November. Marketing and promotion CINT has marketing programs and initiatives featuring promotional offers such as coupons and gift cards, frequent traveler club and early booking discounts. As a part of its marketing campaign, CINT has partnered with lead distributor Flying Dutchmen Travel to offer travel insurance at no additional cost for the customer’s first round-trip flight using their purchased IntelliFaresTM. Company’s brands IntelliFares™ is designed to offer secured airfare prices whereby companies and or consumers (e.g. time-share sellers, vacation clubs, etc.) may purchase blocks of flights by identifying two city pairs. Authorized IntelliFares distributors sell roundtrip travel between the two designed cities for a fixed price spanning a five-year term; travelers on average save 20% on air fare over the five-year period compared to what they would have paid purchasing each fare individually. This tool allows individuals or families to fix the cost of travel to vacation homes; business owners achieve better control over corporate travel expenditures; and students can lower the cost of traveling home. More than a savings program, the service is designed to leverage the customer mindset, particularly timeshare and second homeowners, who have purchased their vacation location to not only manage costs, but to guarantee access. IntelliFares fits into this forward-thinking and planning paradigm. Companies and consumers can buy future airline tickets at prices less than today’s air fare. CINT uses a patent-pending process to establish fixed prices based on the current and predicted future price of air fare. IntelliFares addresses the travel needs of a lucrative but underserved niche segment – the Predictable Pattern Traveler. How it works: The customer purchases IntelliFares from one of CINT’s distributors. For each IntelliFares purchased, the customer receives an IntelliFares Card with five booking numbers representing five years of air travel. These booking numbers are coded to reflect customer’s travel preferences and the destination the customer originally purchased. At 120 days prior to selected departures, the customer is contacted to confirm his travel arrangements. He can then change the time of departure, the destination, even the name of the traveler anytime before his booking number is redeemed and CINT purchase the airline ticket. Once the travel arrangements are set, CINT’s ticketing fulfillment supplier sends the customer a confirmation. Confirmations are sent no later than 60 days prior to his trip. In August 2006, CINT acquired The Travel House, which now serves as an established call center for its fulfillment of travel sales. The Travel House is a traditional travel agency which owns the licenses and other operating agreements which enable the Company to make reservations for airlines, hotels, rental cars, tour packages and cruises and then issue tickets and reservation confirmations. It serves as the cornerstone of the Company’s customer care operation. Travel House professionals assist customers in creating travel packages and melding multiple travel components sold as a package, which provides the customer with great vacations at low prices. Prices are low because CINT negotiates bulk contracts with travel suppliers at wholesale costs. By providing the human touch and assistance of a travel agent, CINT differentiates its business from pure online travel agencies. As the Company expands, it plans to either grow the Travel House brand organically or acquire an agency with a national presence. Travel/Tourism Industry Outlook World travel and tourism revenues are expected to exceed $7 trillion in 2007 and rise to over $13 trillion within the next 10 years, according to Accenture2 The US travel and tourism industry is expected to generate revenues of $1.7 trillion in 2007, and to reach $3.1 trillion by year-end 2017. Demand is expected to grow 2.7% in 2007 and by 3.8% per annum, in real terms, between 2008 and 2017. In 2007, US demand for tourism and travel services represented 23.9% of world market share. The Company’s area of initial focus, resort timeshares and fractional ownership, has been growing at double-digit rates for the last five years and is predicted to continue to generate double-digit annual growth. Strong oil prices as well as increasing personal income and travel prices increase the attractiveness of CINT’s fixed long-term air fare pro ducts. According to Accenture’s Transportation & Travel Service practice, companies that provide innovative solutions and focus on cost effectiveness are likely to profit from travel industry growth. Accenture also notes an increasing trend of consumers losing interest in commodity products and instead demanding travel solutions tailored to their specific needs. Exhibit 1: United States Travel & Tourism Total Demand (2000 Constant $ billion) Source: World Travel & Tourism Council Report US personal travel & tourism expenditures are estimated at $870.6 billion or 9.0% of total personal consumption expenditures in 2007 and expected to reach $1,439.7 billion or 9.2% of total personal consumption expenditures by 2017. US business travel expenditures are estimated at $178.9 billion in 2007 and are projected to reach $302.6 billion by year-end 2017. Exhibit 2: United States Personal & Business Travel & Tourism Expenditures (2000 Constant $ billion) Source: World Travel & Tourism Council Report The World Travel and Tourism Council forecasts the top 10 markets that will generate the largest travel and tourism demand by 2017. Travelers and travel buyers will find cost-effective pricing and airport congestion a challenge in these markets over the next few years. Travel & Tourism Demand 2007-2017 1. United States 2. China 3. Japan 4. Germany 5. United Kingdom 6. France 7. Spain 8. Italy 9. Russian Federation 10. Canada Air Fares The International Air Transport Association3 estimates that, by 2020, passenger numbers will increase by 500 million travelers, bringing the annual number of travelers to 2.5 billion. The largest increase will come from the Asia-Pacific region, the EU and US domestic traffic, respectively. According to AMEX Business Travel 2007 Forecast & Trends Report4, air fares are expected to climb in 2007, though low-cost carrier penetration continues to dampen prices across the global airline industry. Of note, in a story filed by Associated Press on October 23rd of this year following the announcement of United Airline’s 76% quarterly earnings growth, this carrier reported a 6% increase in average fares, with other carriers appearing to follow its lead. In North America, the continued emergence of low-cost carriers, along with weaker demand, will be balanced by reduced capacity and industry consolidation. In the US, short-haul economy fares are expected to rise by 3% to 6% and international business class fares are expected to increase by 2% to 4%. Increasing market penetration by low-fare airlines, along with reduced demand that could result from a softening economy and a corporate America’s focus on cost-cutting will be balanced by reduced domestic capacity and continued industry consolidation. Increases in international capacity, including non-stop flights to previously underserved destinations, will be offset by premium pricing for upgrades and non-stop flights. Hotels American Express5 expects the US hotel industry to experience higher occupancies in 2007. The industry has seen steady occupancy growth since 2003 when occupancy plummeted to 59%. Despite a slowing economy, demand growth is still outpacing supply, which continues to drive rates up. The hotel industry presents a challenging negotiating environment for travel buyers. North America hotel rates are expected to increase by 2-6% for mid-range hotels and 3-8% for high-end hotels. In the US, hotel rates will continue their upward climb along with occupancy rates due to limited supply growth. Rates in key US cities such as New York may rise as much as 18%. Rates for Boston, Philadelphia and San Francisco are expected to climb 5% to 7% at mid-range properties and 8% to 10% at upper-range properties. Car rental Car rental rates are likely to rise in 2007. There are two key drivers for this sector. The first is a reduction in supply without a commensurate decrease in demand. The second driver is that car rental companies are facing higher fleet costs6. The North America car rental market will likely increases rates 4% to 6% in 2007. Online travel The US online travel industry is evolving in ways that alter the rules of engagement between travel firms and their customers. Online travel is one of the largest e-commerce categories. Internet-savvy consumers are exploiting powerful online resources to find new travel products and pricing options. The fact that online travel is a booming industry is clear from the growing number of travel sites. In 2005, over 79 million Americans used the Internet to plan and book their travel. Jupiter7 expects 38% of all travel revenues to be made online by 2011. eMarketer8 estimated that online consumer travel sales hit $79 billion in 2006 and will grow at a 17% annual rate to reach $146 billion in 2010. According to Forrester Research9, the US online travel industry will grow from $63.6 billion in 2005 to $110.5 billion by 2008. Tealeaf10 estimates online travel sales will reach $142 billion this year. According to the same report, about 90% of American business travelers make travel plans on the Web and about 83% of leisure travelers go online to plan trips. Travel Price Index The Travel Industry Association11 has developed a Travel Price Index that measures the seasonally unadjusted inflation rate of the cost of travel away from home in the United States. The August Travel Price Index, TPI, rose 2.4% compared to August 2006. Lodging prices were up 6.5% compared to August 2006 and decreased 2.0% from July. Air fares declined 1.3% against twelve months earlier and declined 1.7% from previous month. 2) http://accenture.tekgroup.com/article_display.cfm?article_id=4512 3) www.iata.org/whatwedo/economics/industry_outlook.htm 4) www.traveldailynews.com/makeof.asp?central_id=1363&permanent_id=12 5) http://universal-travel.com/AMEX%20Global%20Business%20Travel%20Forecast%20-%202007.pdf 6) Cost of fleet means the cost of cars that they purchase from the car manufacturers is rising 7) www.jupiterresearch.com 8) www.the-infoshop.com/study/em50735-online-travel.html 9) www.sramanamitra.com/2007/05/15/online-travel-synthesis/ 10) www.bizreport.com/2007/09/online_travel_industry_adapts_to_consumer_wants.html 11) www.tia.org/researchpubs/tpi_current.html Financial Analysis Revenue Since its inception in December 2005, CINT has reported increasing revenues on a quarter-over-quarter basis. The main source of revenues – about 85% - was travel-related services. The remaining 15% came from licensing and services fees. License revenues are generated from licensing of Company’s products to end-users and resellers. Service revenues are generated from consulting services sold to end-users and software subscription services provided to customers. Exhibit 3: Revenue and Gross Profit, $ Source: SEC Filings, fiscal year ending July, 31 Going forward, the August 2007 launch of IntelliFares between Los Angeles and key Mexican resort destinations; the distribution agreement with Flying Dutchmen Travel; and the commercial pact with Mexicana Airlines should allow the Company to accelerate revenue growth. Income Statement The Company has reported losses since its inception. CINT’s general and administrative expenses for the third quarter of FY2007 were $638,200. General and administrative consisting primarily of compensation, professional fees including both legal and accounting, costs associated with securities agreements and compliance reporting as well as salaries of personnel, and development costs associated with IntelliFares. Exhibit 4: Income statement, $ thousand Source: SEC Filings, fiscal year ending July, 31 Liquidity CINT has accumulated significant debt, has modest amounts of cash, negative working capital and an accumulated deficit that raises doubts about its ability to continue as going concern. Despite these issues, new products such as IntelliFares are expected to make a meaningful contribution to FY 2007 and FY 2008 revenues. The Company expects that between October, 2007 and April, 2008, the traditional months of heavy travel planning and booking, CINT will be able to generate sufficient revenues to support operations. However, if revenues fall short on expectations, the Company will need to raise $1 - 2 million in external financing to implement its FY 2008 business plan. If CINT is unable to raise sufficient funds on acceptable terms, the business plan implementation could be delayed. Exhibit 5: Balance sheet, $ thousands Source: SEC Filings, fiscal year ending July, 31 On October 4, 2007 CINT executed definitive agreements for the purchase by institutional, accredited investors of $300,000 of principal amount of 8% convertible promissory notes of the Company, maturing three years from the date of issuance. The Notes will be convertible at the investor’s option into shares of CINT common stock. In connection with the issuance of the Notes, the Company issued these investors seven-year warrants to purchase 10 million shares of common stock. The exercise price of the warrants is $0.025. The Company has received gross financing proceeds of $300,000 and net proceeds of approximately $280,000, after payment of offering-related fees and expenses. Valuation and Analyst Summary We based our valuation analysis on comparisons to a peer group of travel companies with strong online franchises. The Company’s travel industry peers were recently trading at forward Price/Sales multiples ranging from 1.54 times sales for Allegiant Travel to 5.78 times sales for eLong. The companies with stronger online exposure enjoy a premium valuation. Because of CINT’s online business model, and significant progress in rolling out its IntelliFares product and forging strategic partnerships with airlines and other travel partners, we believe CINT shares warrant a valuation at the peer group median despite the weakness of its balance sheet. Source: Yahoo, SEC Filings According to management, during the first 4 months of FY2008 the Company expects to sell 3,000 five-year ticket units with price ranging from $1,265 to over $4,000. Assuming the median price, the Company should report $7.9 million of gross revenues. Considering the Company’s fee ratio at approximately 5% we derive a revenue estimate of approximately $0.4 million for the first 4 months of 2008. Base on the above-mentioned management outlook and taking into account the seasonality of the travel industry, we are expecting FY 2008 net revenue to approach $1 million. Applying the peer group forward 2008 P/S multiple of 3.13 to our $1.0 million revenue estimate, we derive a target price for CINT of $0.11 per share. Thus, we are initiating coverage on Crystal International Travel Group with a Speculative Buy rating and $0.11 price target. Our rating and target reflect the innovative business model that offers saving opportunities for an underserved niche – the Predictable Pattern Traveler; strong growth opportunities due to the launch of IntelliFares operations; partnership agreements with Mexicana Airline, ResortCom International, and Flying Dutchmen Travel; as well as a focus on travel value by consumers sensitive to price changes triggered by higher oil prices. However, we caution investors, that the Company is in the early stages of rolling out its business plan and will likely need to raise additional capital and increase its brands visibility to garner meaningful revenues and market share. Investment Risks Development-stage business CINT has accumulated significant debt, and has negative working capital and an accumulated deficit that raises doubts about its ability to continue as going concern. If CINT fails to achieve meaningful sales of its IntelliFares products, the Company could be years away from profitable operation. Seasonality and quarterly fluctuations CINT’s results are subject to quarterly fluctuations caused by seasonal variations in travel demand. The Company’s quarterly results may also be subject to fluctuations as a result of changes in the mix of offered services, fare wars by travel providers, changes in relationships with certain suppliers or vendors, the timing of the payment of overrides by travel providers, extreme weather conditions affecting travel and the timing and cost of acquisitions. Intense competition The travel industry has low barriers to entry and is very competitive. The Company competes with other distributors of travel services, travel agents, tour operators, travel providers, and online travel companies, some of which have greater experience, brand name recognition and financial resources than the Company. Additional financing may increase financial risk While CINT expects to generate sufficient revenues between October 2007 and April 2008 to fund its operating needs, there can be no assurance that revenues will reach targeted levels. If the Company needs to raise debt financing, its financial risk increases while equity issues cause dilution for existing shareholders. Political and economic conditions The Company’s revenues are especially sensitive to events that affect domestic and international air travel, cruise travel, car rentals and hotel room nights. Demand for travel and tourism services may be influenced by political instability, armed conflicts, international terrorism, a decline in the value of the US dollar or a general weakening of economic activity. ManagementPeter Dugan, Director,Chief Executive Officer and PresidentMr. Dugan has served as a Crystal International Travel Group Director since April 2006 and as CEO and President since July 2007. Since November 2006, he has served as Managing Director of IntelliFares Limited, Crystal’s wholly-owned Irish subsidiary. From January 2004 to the present, Mr. Dugan has been Executive Vice President and Secretary of Crystal Capital Partners Corporation, a New Jersey investment banking and business advisory services company. Prior to joining Crystal, from 2000 to 2003 Mr. Dugan served as Director of Global Business Development for DVC Worldwide. From 1986 to 2000, Mr. Dugan was Chairman of DVC Group. During his tenure with DVC Worldwide, he personally consulted with senior corporate officers of Fortune 500 companies such as AT&T, Georgia Pacific, Lucent Technologies, Johnson & Johnson, Warner Lambert and Coca-Cola. Mr. Dugan also serves on the advisory board of Cornell Dubilier Electronics of Liberty, SC, and is a Trustee of the Morristown Memorial Hospital Foundation.Fabrizzio Busso-Campana, Director, Chief Operating OfficerMr. Busso-Campana has served as a director and CINT`s Chief Operating Officer since July 2007. From April 2006 until July 2007, he served as the Company’s CEO and President. Mr. Busso-Campana is a founding member of Crystal Capital Partners and since January 2004 has been a Principal at Crystal Capital Partners, Inc. From 2002 until July 2003, he was the general manager of the MGM Grand Corporation. His portfolio of projects included the restructuring of New York New, York Hotel and Casino for MGM Grand Corporation, Club Med’s North American operations, AIFP, a Near East commodities company where he managed South, Central American and Mexican seafood enterprises, founding team member of Celebrity Cruises, and Fleet Operations Manager for RCCL. He attended University of Miami’s Executive MBA program, as well as Florida International University for his undergraduate work in Political Sciences/International Studies and Developmental Economics, and Nova University for Hospitality and Management.Peter Gallic, Director, Chief Financial OfficerMr. Gallic has served as a director and the Company’s CFO since April 2006. Mr. Gallic is a founding member of Crystal Capital Partners and has been a Principal at Crystal Capital Partners, Inc. From 2001 to 2004, he was the President and CEO of Global Link Technologies, Inc., a consumer electronics distributor. Mr. Gallic has worked in Mexico, China, Korea, Japan, Poland, and England on financial projects ranging from insurance enhanced municipal bonds of third world countries to mortgaged backed securities. Mr. Gallic founded the second largest children’s furniture company in the US that developed over 56 children’s furniture products for JC Penney, Sears, and 200 other retail customers. He sold the business in a management buy-out. Mr. Gallic holds a BS in Economics from the Ateneo de Manila in the Philippines.Teresa Rae Hanneman, Executive Vice PresidentTeresa Rae Hanneman has more than 20 years of tour and travel operations experience from MGM Grand Corporation, CheapSeats, and Club Med. Mrs. Hanneman previously held vice-president positions at Yield Management Club Med and SunTrips. Zu diesem Thema antworten Re: CINT - Crystal In. Travel - Von Beaconequity mit Speulative Buy eingestuft - $$ Autor: Tomcat72 Datum: 08-31-08 01:40 Cint - Crystal Int. Travel ist nur an der OTC in USA Handelbar $$ Zu diesem Thema antworten
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