Investology

Jan 16, 2000

By emckoba

Snr. Investment Analyst

Week Ending Jan 16/2000 : We brought to your attention last week a company called Rocca Resources and we do expect the stock price to move up considerably in the near future. It is holding around the $1.50. Don't say we never told you.

For the coming week, readers might want to take a look at a company called Southland Financial Inc. (OTC BB:SINC) - $US2.50. These are the highlights:-

• SINC has highly connected people in the People's Republic of China and Hong Kong on their Board of Directors
• SINC has a Letter of Intent with Macquarie Bank Limited of Australia to establish a $200 million international telecommunications gateway link into Hong Kong (fiber optics network) to be financed by the latter (this announcement will come out in the next week or so).
• SINC has obtained landing rights in Hong Kong for the $14 billion global marine cable company, Project Oxygen (potentially a $100M+ per year in revenues).
• Once the merger with Bel-air is completed, SINC will own 3% of China Unicom and has the option to increase this to an 18% stake in the IPO of China Unicom (2nd largest telecom company in China worth between $5-$6 billion).

• With the increasing stampede in China for anything in the telecommunications industry, we feel that if China Unicom doubles, (an understatement) at the IPO, SINC may potentially have a $2 billion worth of China Unicom stock. Even if the options aren't exercised, SINC would have China Unicom stock potentially worth $360 million of China Unicom shares (SINC currently has market around $US30M)

• Once the merger with Bel-air is completed, SINC could own 49% of Chinese WebTV (55 million subscriber base) and growing exponentially
• SINC also may own the only fiber optics cable making factories in China through the acquisition of Belair
• A Form 10 filing with the SEC is due to be completed shortly, SINC expects a reporting status on before 15 February 2000