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New Age World: Dedicated to the modern devotee of the New Age. Information & products from a variety of areas including aromatherapy, healing, meditation, yoga, & other disciplines.

Present Alternative: Created to supply information & products for those interested in metaphysics & practices of other cultures including Far Eastern, Tibetan, Egyptian, South American, Australian, & Indonesian.

Books 'N Things: A comprehensive alternative & magic superstore of New Age related books & music.

Shaman's Gate: A haven for those interested in Native American & other indigenous people's practices & beliefs.

Psychic Cities: Home of the See & Hear" psychics. People will prepay for blocks of time with a psychic that they can see & hear over the Internet using streaming technology.

Market

The market for both New Age & alternative health care products & services is large & growing. Competition for reaching this market through the Internet is practically nil -- I do not know of any site that provides what NACT is creating.

If you have listened to me on the radio or at investment seminars, or have read my market comments related to Internet companies I've covered in the past, you are well aware of the growing power of the Internet. A brief summary:

  • There are over 62 million Internet users in 150 countries.
  • The number of users is growing at about 85% per year.
  • "The number of Internet users will reach about 320 million by the end of 2002." (1)
  • "At that time, approximate worldwide commerce on the Internet will reach $425 billion." (1)
  • More than two in five people in No. America are Internet users. (2)
  • 60% of them, or 55 million, are also Internet consumers. (2)
  • "Electronic commerce will be the engine for economic growth in the next century." (3)
  • "By 2006, almost half of the U.S. workforce will be employed by industries that are either producers or intensive users of information technology products & services." (4)
  • "One fact about the Internet is that every statistic will be obsolete within three months because of its rapid growth." (5)
  • "The number of Internet users will be accelerated by the lowering prices of computers for Internet access." (6)
  • "Business-to-business sales will help drive e-commerce revenues to $1 trillion in the 2003 to 2005 time frame." (7)
  • "The OEDC says the Net economy will result in lower prices for consumers, better information access & increased competitiveness of small & midsize businesses. It will also pave the way for a true global trading community." (8)

 

(1) International Data Corporation estimate.
(2) Nielsen Media Research & commerceNet study released mid-1999.
(3) First report of the U.S. Dept. of Commerce.
(4) Second report, titled "The Emerging Digital Economy, II."
(5) Ken Coleman comment at the recent Bahamas conference.
(6) Larry Oakley comment at the Bahamas conference.
(7) The Organization for Economic Cooperation & Development (OEDC), in a report titled "The Economic & Social Impact of Electronic Commerce,"
(8) Maryann Jones Thompson, in Spotlight: "The Economic Impact of E-Commerce," in The Industry Standard, 4/26/99.

Management

Joseph Ardito, Jr. is CEO. He owned & operated a successful New Age retail store, was VP/partner of Professional Accounting Services Corp., & has been recognized many times by the New Age Retailer magazine & by The New Age Publishers Retail Association.

Kenneth Shenkman, Ph.D. is president. His doctorate is in Cognitive Developmental Neuroscience. He has over six years in Internet development/consulting to Motorola, First Data Merchant Services, First Miami Securities, Outsource International, & The Nokia Sugar Bowl. He was director of Internet marketing for Arc Communica-tions, VP operations for Computer Coach, has been published in five books on Internet development, has been on National Public Radio, & widely published in technical publications.

Cory Smith is CTO (chief technical officer). He has eight years in Internet design & development, having done large scale website development for Knight-Ridder Publishing, Equifax, International Hurricane Center, & The Nashville Network. He has been a member of the boards of Association of Internet Professionals, South Florida chapter, & the St. Petersburg Jr. College Webmaster Certification program. He has been a guest lecturer for web site design at Comdex & Byte, & the winner of numerous awards for web design.

Financial Status

NACT is emerging from its development stage. It will soon move to its commercialization stage. When it publishes its financials, I will report on them in an Update Brief.

Recommendation

I recommend NACT for both midterm & long-term appreciation. It should be developing an attractive cash flow beginning this coming year. I consider it a high growth, high

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