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News Alert
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Freestar
Technologies, Inc. (OTCBB: FSTI)
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6
Month Target Price: $.40 |
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| Shares Outstanding |
48.7
million |
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| Approx. Float |
24.6
million |
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| 6 Month Price Proj. |
$.40 |
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A
Few Reasons to Own FSTI:
| 1. |
FSTI
has currently deployed 2500 units and has projected orders for more than 30,000
units with Banco Nacional de Credito; which will derive revenue of approx $1.8
million once the units have been deployed. |
| 2. |
FSTI
has a $900,000 deposit to offset production costs on the first 66,000 units with
Asia Pacific Micro, who are capable of producing 200,000 units per month. |
| 3. |
FSTI
has acquired privately held Rahaxi Processing a leading Northern European on line
Processing enterprise headquartered in Helsinki Finland, which currently provides
processing services for over 1300 merchants. Rahaxi currently supports a network
serving over 5000 point of sale devices that generate over one million transactions
each month and produces revenue of over $100,000 per month and is expected to
increase exponentially. |
| 4. |
FSTI’s
payment solution opens the doors for over 40million Americans who are deemed uncreditworthy,
to be able to purchase goods and services on the internet with their ATM cards.
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| 5. |
The
only solution to enable the use of ATM cards for Internet transactions, dramatically
increasing the consumer market for online merchants and enabling cash-only industries
to capitalize on the Internet for instant, low-cost transactions. |
| 6. |
Unparalleled
security via card-present transactions, two factor authentication and the separation
of sensitive financial and personal data. |
| 7. |
Strategic
relationships with National Financial Group and its divisions (Banco Nacional
de Credito, EnelPuntoNet.com and Tricom), La Nacional de Envios. |
| 8. |
Banco
Nacional de Credito fully endorsed and certified the PaySafeNow System; allowed
developers the opportunity to work behind the bank’s security screens to
produce the most advanced and compatible software available. |
| 9. |
Re-occurring
revenue streams from transaction and licensing agreements, low burn rate and ready
to ship hardware and software solution. |
| 10. |
Vertical
market potential: e-commerce, gaming, securities industry, insurance and bill
payment, and global money transfer. |
| 11. |
Easy,
low cost integration into existing systems; complete compatibility with all banking
systems; and transactions cleared on ATM backbone. |
| 12. |
FSTI’s
revenue model provides for the Company to generate income from both sales of the
ePayPad device and from fees charged each time a user makes an online transaction.
Currently, the Company is collaborating or in negotiation with established global
financial institutions, major online merchants and advertisers, technology resellers
and other potential strategic partners to gain rapid market acceptance of the
PaySafeNow system. |
|
| UPDATE |
This
is a major milestone for FSTI. With this announcement, FSTI goes
from a developmental stage company to now a company that can start
generating revenues from their PaySafeNow system. HUGE NEWS!!!
In
our opinion, the next step should be marketing and distribution
agreements to sell their product.
As
always, one never knows when these announcements will pop up. |
| Valuation |
In our opinion,
if we were to assume that FSTI could sell their PaySafeNow product to OEM'S, Financial
Institutions, and individuals, which according to FSTI management they can. What
is the potential for FSTI? To better understand the potential, let's take a look
at just one company, Amazon (AMZN). For the year ending Dec. 31,2002, AMZN projects
revenue of $ 3.68 BILLION DOLLARS, and AMZN has more than 17 million customer
accounts and 30 million cumulative customers, and an average sales per customer
account of more than $100 dollars. What this says to us, is that at least 30 million
people buy something online, from just 1 website.
If over the next
6 month's, if we were to assume, that just 1 half of 1% of the people that shopped
at AMZN were to acquire the PaySafeNow directly or received it for FREE, from
their BANK, then this would equate to 150,000 PaySafeNow units sold, or $ 9 MILLION
DOLLARS in REVENUE ($ 60 per unit times 150,000 people). IF we were to assume
the average individual bought something once a month or 12 times a year, then
this would equate to $ 6.00 per user in transaction fees or $ 900,000 DOLLARS
in REVENUES.
Based on these assumptions
FSTI would generate $9.8 MILLION DOLLARS IN REVENUE AND APPROXIMATELY $5 MILLION
IN PRE TAX PROFITS OR $0.10 PER SHARE IN EARNIGS.
IF OVER THE NEXT
6MONTH'S, FSTI REALEASES EARNING'S REPORTS, DEMONSTRATING THAT FSTI IS ON TARGET
TO EARN $ 0.10 PER SHARE. USING A DISCOUNTED MARKET MULTIPLE OF 4 TIMES EARNING'S
(WHICH IS MORE THAN A 75% DISCOUNT TO THE S&P 500
INDEX)
THIS WOULD EQUATE TO A STOCK PRICE OF $.40 PER SHARE
BASED ON TODAY'S PRICE THESE ASSUMPTIONS WOULD IMPLY
AN APPROXIMATE 400 PERCENT INCREASE IN SHARE PRICE!!!!! |
| Press
Release |
FreeStar's PaySafeNow System Receives VisaNet Certification
NEW YORK--(BUSINESS WIRE)--Dec. 5, 2002--FreeStar Technologies,
Inc. FSTI,
a company providing one of the world's first live and operational
debit and ATM solutions with PIN-authenticated payment technology
on the Internet, is pleased to announce it has received VisaNet
certification for its proprietary PaySafeNow system. FreeStar
is now fully certified to implement its PaySafeNow system to any
financial institution that accepts Visa-branded products. In addition,
the VisaNet certification provides all Visa-affiliated financial
institutions worldwide with the opportunity to offer FreeStar's
proprietary PaySafeNow system to small merchants and businesses.
Visa operates the world's largest and most sophisticated consumer
payments processing system, with enough communications lines to
encircle the globe nearly 400 times. The Visa network, known as
VisaNet, processes over 3,700 transactions every second during
its peak season, and is capable of handling transactions denominated
in 160 different currencies. Visa is the world's leading payment
brand and largest consumer payment system, enabling banks to provide
their consumer and merchant customers with a wide variety of payment
alternatives. Nearly 14,000 U.S. financial institutions rely on
VisaNet to facilitate $949 billion in annual transaction volume
-- including approximately half of all Internet payments -- with
virtually 100 percent reliability.
Paul Egan, President and Chief Executive Officer of FreeStar,
stated, "VisaNet certification represents a major milestone
in the evolution of the PaySafeNow solution which validates our
business model and greatly enhances our credibility in the payment
technology industry. PIN authentication is the future for card
payments and we are working to ensure that FreeStar remains at
the forefront of this new payment revolution."
Continuing, Egan added, "The VisaNet certification is the
catalyst that will enable FreeStar to launch an aggressive global
sales and marketing campaign. The campaign will target financial
institutions and card processors seeking to improve their business
competitiveness by offering clients a cost-effective method of
capturing electronic transactions. The VisaNet certification is
a vital step towards the full realization and successful implementation
of our business plan."
The PaySafeNow system is comprised of a card reader and ETSS software
which allows the consumer to process transaction securely over
the Internet. The ETSS system, marketed worldwide as PaySafeNow,
integrates a consumer-side card-swipe terminal (ePayPad) with
a back-end host-processing center. It encrypts sensitive financial
data at the consumer's personal computer, using powerful DES encryption
and algorithms. The PaySafeNow system enables small- to medium-sized
businesses and merchants to process credit card, debit card and
ATM transactions. 85% of small businesses and merchants in Latin
American and Eastern European countries do not offer credit card
transactions due to the high cost involved with alternative systems.
About FreeStar Technologies, Inc.
With corporate headquarters in New York City, and continental
headquarters in Santo Domingo, Dominican Republic and Dublin,
Ireland, FreeStar Technologies is focused on exploiting a first-to-market
advantage for enabling ATM and debit card transactions on the
Internet. FreeStar Technologies' Enhanced Transactional Secure
Software ("ETSS") is a proprietary software package
that empowers consumers to consummate secure e-commerce transactions
on the Internet using credit, debit, ATM (with PIN) or smart cards.
It sends an authorization number to the e-commerce merchant, rather
than the consumer's credit card information, to provide a maximum
level of security. For more information, please visit the Company's
Web sites at http://www.freestartech.com, http://www.Rahaxi.com
and http://www.epaylatina.com
Certain statements in this news release may contain forward-looking
information within the meaning of Rule 175 under the Securities
Act of 1933 and Rule 3b-6 under the Securities Exchange Act of
1934, and are subject to the safe harbor created by those rules.
All statements, other than statements of fact, included in this
release, including, without limitation, statements regarding potential
future plans and objectives of the company, are forward-looking
statements that involve risks and uncertainties. There can be
no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from
those anticipated in such statements.
© 2002 BusinessWire |
| Conclusion |
FSTI’s experienced
management team is committed to building shareholder value through the delivery
of the most comprehensive, secure online payment solution available in the global
marketplace. By providing consumers with the ultimate solution for transacting
business over the Internet safely and without limitation, FSTI believes that PaySafeNow
can rapidly gain broad acceptance in vertical markets, which can include, but
are not limited to, the gaming, money transfer and securities industries. Moreover,
the system is designed to serve as an impetus for revolutionizing the way that
online merchants promote their products and services, enhance customer service
and increase sales revenue stemming from the Internet.
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******* Important Notice and Disclaimer: Please Read *******
Investor Insights, and affiliates (II), publishes reports providing information
on selected companies that II believes has investment potential. II is not a registered
investment advisor or broker-dealer. This report is provided as an information
service only, and the statements and opinions in this report should not be construed
as an offer or solicitation to buy or sell any security. II accepts no liability
for any loss arising from an investor's reliance on or use of this report. An
investment in FSTI is considered to be highly speculative and should not be considered
unless a person can afford a complete loss of investment. An affiliate of II will
be compensated by a third party, and expects to receive 2.3 million free trading
shares of common stock for the publication and circulation of this report. II
intends to sell all or a portion of the of the FSTI stock at or about the time
of publication of this report. Subsequently II may buy or sell shares of FSTI
stock in the open market. This report contains forward-looking statements, which
involve risks, and uncertainties that may cause actual results to differ materially
from those set forth in the forward-looking statements. For further details concerning
these risks and uncertainties, see the SEC filings of FSTI including the company's
most recent annual and quarterly reports. |
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