| SPECIAL ALERT | ||||||
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A Few Reasons to Own WGFL:
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| About | ||||||
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WGFL satisfies a need for the average golfer (which represents 99.7% of the total golf population) to compete in professional-like conditions with the excitement of prize money. The WGFL will provide the infrastructure to allow golfers of all handicaps and abilities to compete against one another, in PGA Tour-like conditions, playing on championship prepared courses with scoreboards, press rooms, TV coverage and large cash prize money. The golfers first compete in local one-day qualifying events, with $105 as the 2003 membership fee. Twenty five percent of the field advance to the regional level competition. The top 400 regional qualifiers move on to the National Final tournament in eight flights to potentially compete for over $1 million dollars (prize money is calculated as 20% of all dues received) in a 54-hole tour-like event. WGFL will organize one national event for each 100,000 members. Additionally, similar venues will take place all over the world through license agreements. All world national winners will come together to compete in a Ryder Cup format at the WGFL World Championships for large cash prizes. This event will rotate around the world annually at first class facilities. The WGFL employs a proprietary handicapping system, which prevents sandbagging at all levels of its competition. At present, the USGA & R&A amateur tournaments are only accessible to golfers of an 8-handicap or better, therefore excluding a huge number of amateur golfers from competition. The management of the WGFL has identified a number of routes to market. These are:
There are an estimated 55.8 million golfers worldwide. The WGFL is available to this entire population although the financials reflect only a 2% penetration of this market by the end of 2007. Investment Opportunity: Currently, WGFL is the only organization in the world offering its concept to the average golfer. There are many mini tours around the world for scratch golfers who play for prize money. WGFL is the only known entity to provide average golfers a chance to "Play for Pay" in professional like conditions for an annual membership fee. In addition to the retail and wholesale markets the WGFL have identified other lucrative avenues of revenue including:
On another note, in our effort to be fair and balanced for those members that like to search the Web for additional information as part of your Due Diligence you may come across a few articles pertaining to WGFL. As part of our due diligence we had management in their own words address these issues, and they are as follows: 2001 National Tournament The WGL took a stumble in late 2001 when it had established its National Prize Pool at $850,000. In fact the actual prize pool based on 20% of member dues should have been only $250,000. CEO, Mike Pagnano based on the sale of marketing licenses and future AP due, decided to increase the pool to generate substantial media attention and publicity. With the events of 9-11 and the loss of its primary sponsor, several licensees were unable to meet their financial commitments to the WGL which left a short fall of $600,000 due winners from the 2001 event. This had a negative impact on the 2002 season, which the WGL is still recovering from. Forced to postpone it 2002 national until the 2001 players are paid, the WGL sought additional capital from its original backers and managed to pay the debt down. The final payments to players are scheduled for the end of April 2003 and the rescheduled 2002 event is scheduled for May 22 �24 2003 with a $300,000 prize pool. �As testimony to the tremendous popularity of the WGL concept, of the 60 players effected the vast majority understood the situation and has remained loyal to the WGL until the situation can be resolved� said Mike Pagnano, CEO of the WGL. �We intend to emerge from this stronger than ever and expect significant growth for 2003� he further stated. Litigation The WGL is currently being sued by the Florida State, AG office. This suit is relative to the Florida statute, which governs miss-leading advertising and deceptive trade practices. This suit stems from two complaints from players who argue that the WGL advertisers a $1,000,000 prize pool yet has not yet paid a $1,000,000 prize pool. Through its attorney, the WGL has filed a motion for dismissal based on the fact the $1,000,000 prize pool is clearly disclaimed in its advertising and that the actual prize pool is based on 20% of actual dues collected. The AG�s office is seeking damages of $10,000 on each count (2). However, the WGL attorney expects to settle the issue with the AG in a favorable manner within the next two weeks. There are over 5,000 such suits against businesses in Florida pending from the AG�s office. WGFL is the only company in the world offering this concept of amateurs playing for pay in a gigantic growing golf market. WGFL is the first and only to sell licenses in the USA and Internationally, which should enable WGFL to expose it self and bring on new members in a very quick manner and bring immediate revenue to the bottom line. |
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| Valuation | ||||||
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To all the Hackers out there, and we certainly don�t mean computer, it appears to us that we finally have a venue to look like and act as a Golf PRO. Maybe not Tiger Woods, but certainly get the feeling and the jitters of what the Pro�s go through every week. Golf is now coming into the heart of its season, where the most profiled tournaments like the Masters and other �Majors� from all three tours, PGA, LPGA, and Seniors Tour are coming up. Amateurs are all getting ready for their Golf Season and many will be attending Professional Golf Tournaments or will be viewing them on TV. As stated from WGFL�s most recent PR �Based on our current marketing budget, management anticipates revenues to increase five-fold in 2003 to $11 million over the $2.2 million generated in 2002. Our membership base grew to over 400% members in just three years time. Based on our current projections, we anticipate revenues tripling in 2004 to $34 million. There is a significant correlation between our direct marketing activities and licensees, and our revenues.� Just like McDonalds, Duncan Donuts, Subways, Harley Davidison and many other successful licensed franchises have taken advantage of selling franchises and branding, we feel the WGFL is well on its way. With WGFL being in a unique position of being first to market as a public company with their concept, generally speaking first to market companies usually command a higher premium than their peers. According to Multex, WGFL would be classified as Recreational Activities, company�s within this Industry trade in the Market Place at about 2.4 times sales. IF OVER THE NEAR TERM WGFL DEMONSTRATE SALES GROWTH THROUGH VARIOUS LICENSING AGREEMENTS (their revenue model), AND TRADES IN THE MARKET PLACE AT A 75% MULTIPLE OF ITS PEERS (1.8 times), THEN BASED ON PROJECTED REVENUES OF $34 MILLION DOLLARS NEXT YEAR. WHEN APPLYING THE COMPARATIVE GROUPING�S AVERAGE PRICE TO REVENUE MULTIPLES TO WGFL WE CAN ARRIVE AT A RELATIVE VALUATION OF $0.31 PER SHARE OVER THE NEAR TERM. |
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| Conclusion | ||||||
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The golf industry has been very fortunate to have star players on its tours. From Tiger Woods (USA), Ernie Els (South Africa), to Sergio Garcia (Spain) on the Mens PGA Tour to Annika Sorenstam (Sweden), Karrie Webb (Australia), and Se Ri Pak (South Korea) on the Ladies LPGA Tour, there are many stars from all over the world. Additionally, this summer, Annika Sorenstam will be participating in a PGA Tour event, which should bring a great deal of press coverage around the world, and should be only good for the game of golf. Think about it, with national publicity from the Golf Channel, Sports Illustrated, many national golf publications and now exposure of being a public entity combined with the unmatched growth of Golf, we feel there is upside potential for investors of WGFL. |
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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 WGFL 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 has been hired by the company, and additionally received five million free trading shares of common stock of WGFL by a third party for the publication and circulation of this report. II intends to sell all or a portion of the of the WGFL stock at or about the time of publication of this report. Subsequently II may buy or sell shares of WGFL 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 WGFL including the company's most recent annual and quarterly reports. |
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