Hot Web, Inc. Provides Investor Update in Special Letter to Shareholders Wednesday August 15, 9:35 am ET
BOISE, Idaho--(BUSINESS WIRE)--Hot Web, Inc. (Pink Sheets: HWBI - News) Chairman, George Stevens, issued a special letter to shareholders today to highlight accomplishments over the past 12 months, as well as to outline the Company's future plans and expectations in light of shareholder requests directly resulting from recent trading activity in Company shares. The complete text of the letter is as follows: ADVERTISEMENT
Dear Fellow Hot Web, Inc. Shareholder, This letter has been a long time coming and I am glad that, despite somewhat alarmist notions stemming from recent market activity, our shareholders have taken the interest and initiative to reach out and ask that I address both existing and prospective shareholders alike.
It has been roughly 12 months since the Board of Directors of Hot Web's predecessor company embarked on a decision that would serve as the genesis of what we all know today as Hot Web, Inc. In 2005, Hot Web's predecessor, Snap n Sold Corporation, acquired HotAutoWeb, a two-and-a-half year-old on-and-offline consigner of fine and classic automobiles with folksy appeal and consistent organic growth, to address and capitalize on a distinct market need. At the Corporate level, business integration issues and failures to create growth in the Company's core "drop store" business forced the Company's Board of Directors to decided on a course of action to eliminate the non-performing management team and business and make a strategic bet to redirect all resources to the Company's HotAutoWeb business unit, that while undercapitalized, was still managing to perform at or above expectations. While the decision was something of a calculated gamble at the time, it also represented the opportunity to build a leading-edge company around a highly-unique, bricks-n-clicks vehicle consignment model that re-introduced humanism to commerce - one that we believed that could someday become the dominant force in "Fraud Free" on-and-offline line big-ticket commerce.
Fast-forward to today and it looks like the decision was the correct one, as we have managed to transform the Company from a struggling concern, concentrated in a business of questionable merit, into a viable niche-focused enterprise with an impressive list of milestones attained and even more impressive potential for growth in the future. Quite simply, Hot Web, Inc., is more stable and successful today than at any time in its history. Consider for a moment the extraordinary developments and strides made in a little less than a year.
The Company was reorganized as Hot Web, Inc., complete with new trading symbol and CUSIP number. Brian Hanold, the founder of HotAutoWeb, was named as President & CEO and I was named as the Company's Chairman. 7 total regional representatives have been recruited and trained, in line with the hub & spoke operating strategy that evolved into Hot Web's Regional Representative Program (RRP). The Company now has local marketing, inspection and listing collection representation for classic cars, show cars, hot rods, cycles, boats, airplanes and RV's in areas of Arizona, Southern California, Illinois, Iowa, Wisconsin, New Mexico and Texas. The Company secured a long-term lease on, renovated and launched a 4,570 sq ft. World-Wide Head Quarters in Boise, Idaho complete with offices, a warehouse, vehicle showroom, inspection facilities, photography operations and online listing operations and a bonded dealers license from the sate of Idaho. A new Corporate website was launched, significant upgrades were made to the HotAutoWeb site and two new sites designed and launched - HotCycleWeb and HotBoatWeb - representing two critical components for our future growth. Preparations have been made and relevant information aggregated from former management and operations to file an Information and Disclosure Statement pursuant to Rule 15c2-11 of the Securities and Exchange Act of 1934, though St. Petersburg, Florida-based Spartan Securities Group, Ltd. in order to move the Company from "Unsolicited" Pink Sheet listing status to "Fully Compliant" listing status. We have aligned the Hot Web "brand" with that of best-of-breed participants in the automotive and business community, such as Proctor & Gamble (NYSE: PG - News), Dodge(TM), Texaco Havoline(TM)(a trademark of Chevron Corporation (NYSE: CVX - News) and General Motors (NYSE: GM - News) by active and frequent participation in prestigious exhibitions and events nationwide. Several hundred thousand automotive and vehicle enthusiasts have now had a chance to "meet" and "get to know" Hot Web face-to-face. We have initiated a monthly nationwide print advertising campaign - the first in company history - to compliment online marketing efforts. These initiatives have provided immediate dividends in sales and listing increases, brand awareness in the community and dramatically increased online traffic. The Company has successfully listed some of the most highly coveted show cars in America and has become a "favorite resource" for well-known and extremely affluent domestic and international automotive collectors. A 26-year auto industry veteran was hired to run Corporate Sales & Operations in the Company's Boise, Idaho Head Quarters. We have generated dramatic increases in Internet traffic to the Company's flagship property, HotAutoWeb. According to Alexa® Internet, a subsidiary of Amazon.com, Inc. (NASDAQ: AMZN - News), the HotAutoWeb site climbed into the top 100,000 most visited sites on the Internet for the first time in Company history. Additionally, the HotAutoWeb domain was ranked as the 18,098 most visited Internet destination in the United States. According to Ranking.com, HotAutoWeb was recently is ranked 40,059 of all websites worldwide, while the domain is currently ranked 3rd worldwide in the "Classic Car" category. New Company records for the value of system-wide listings obtained in a single-month were established. A new record was established in May 2007 when $1.76 Million (USD) in system-wide listings were secured, only to be broken 60-days later, in July 2007, when $3.6 Million (USD) in system-wide listings were obtained. Announced un-audited financial performance for the fist six-months of FY 2007 of $1,222,058.00 USD, or $.005 per common share and a modest net loss of $96,899.00 USD, or $.00039 per share. The Company surpassed $13,000,000.00 USD in total vehicle sales in its history. If you consider the above list, and the amount of time it took to accomplish the items listed, I think you will all agree that we have accomplished a great deal in a relatively short period of time. The progress made to-date, however, is merely prologue to a chapter in Hot Web's history that, we believe, will highlight the most significant series of events to come. The real purpose behind this letter is to provide shareholders with an overview of our plans and expectations for the foreseeable future, and in so doing, set expectations and goals for us, as management, to deliver to you, the shareholder.
In the coming 12 months, the Hot Web management team will be singularly focused on our 4 pillars of growth:
1.) Utilizing our existing hub & spoke system of centralized management and regional representation throughout each of our business lines to increase penetration domestically and internationally while minimizing costs - Regional representatives are the keystone to monthly listing and sales growth, and while finding, recruiting and training candidates who are committed to our processes, quality, integrity and customer experience isn't easy, it is vital to protecting our image and ensuring repeat customers over time.
2.) Dramatically increasing consumer awareness of our branded businesses through a combination of merit-based media coverage, event-driven sponsorship and representation and direct-to-source marketing and advertising - We will continue to market ourselves to local communities through event sponsorship and participation as well as increase the volume of our highly-targeted nationwide print advertising and radio advertising to compliment our increased levels of online marketing initiatives over the next 12 months.
3.) Rolling-out new service offerings including our HotPlaneWeb, HotInsuranceWeb and HotloanWeb properties - These properties will slowly take shape over the next year, just as HotBoatWeb and HotCycleWeb did over the past year. Our feedback has indicated that product focus generates loyalty among product-focused consumers. One size does not fit all, particularly for the product-focused business community members and individuals we are looking to attract.
4.) Completing at least one highly synergistic "platform" acquisition - We are, and have been, in active discussions with several candidates that fit our "platform" mandate. While for a number of reasons, the business nature of these companies must remain confidential for the time being, it is important to note that each has established revenue and earnings bases that would propel Hot Web to immediate profitability, if acquired, and possess little "service offering overlap", only enhancement. Ultimately it is our belief that one of these, or other, potential "platform" acquisitions will lead to a "1+1=3" scenario.
It is important to note that at the corporate level, Hot Web management has taken steps to provide our shareholders with assurances that can only be gained by full disclosure and transparency. As previously announced, we have aggregated the necessary information and are preparing the documentation to file an Information and Disclosure Statement sometime in the next financial quarter. While the costs associated listing on the OTC Bulletin Board and maintaining ongoing regulatory compliance, reporting and financial transparency pursuant to Sarbanes Oxley legislation are prohibitive at this point, it is our intent to take these steps when we can justify the additional costs. In the meantime, I will reassure that we are absolutely committed to our fiduciary responsibility to the shareholder and the maximization of shareholder value and will, whenever possible, file voluntary information to keep you up-to-speed.
Lastly, the prospect of financing and the dilution commensurate with such activities is of great concern to many of our shareholders - particularly as the specter of dilution pertains to the trading of Hot Webs' common shares. The capital structure of Hot Web has remained static for a considerable length of time. Officially, there are currently 250 Million shares Authorized with 243,601,372 shares Issued and Outstanding. Our internal estimates of the "tradable" float are roughly 180 Million shares. Management is acutely aware of the tension that exists between the need for capital to drive growth and the ultimate cost of that capital in terms of share appreciation potential. While it is a distinct possibility that we may need to raise capital at some point in the extended future, we have no intent and/or no immediate plans for financing in the near future, particularly at the valuation the market has recently assigned to the Company. As for the trading of our shares, I cannot comment on the "in's and out's" of every trading day, but I do maintain that the Company is considerably stronger and more viable than at times in its past when it carried a valuation 7 to 10 times higher than what it is today. All we can hope for is that eventually the company's intrinsic value and growth prospects become reflected in the value of the shares. My personal opinion is that they currently are not.
In summation, I want to thank the shareholders that have stuck by us over the past year for their votes of confidence and the commitment they have made to the Company. Investing in early-stage companies a highly speculative endeavor that requires both patience and fortitude and everyone at Hot Web acknowledges your role in our early successes. It simply would not have been possible without you. My hope is that your resolve as a shareholder has been strengthened by our accomplishments so far and I can say with all confidence that the company's management, employees and stakeholders look forward to rewarding you with impressive returns on invested capital as the company continues to grow. With your continued support we will complete the task of building a world-class enterprise originally set before us.
Yours truly,
George Stevens, Chairman
Hot Web, Inc.
About Hot Web, Inc.
Hot Web, Inc. is engaged in the business of consigning "big ticket" transportation related items through its diversified presences, both online and offline. The Company's mission is to "change the way the world buys and/or bids online" by harnessing the power of the Internet and coupling it with human interaction and expertise to create a safe, productive, comfortable and 'Fraud Free' way to conduct online/offline commerce. The company utilizes both its internal certified regional representative base in addition to online third-party marketing tools like eBay Motors (NYSE: EBAY - News) and others to attract and market vehicle listings
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Hot Web, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
FOR FURTHER INFORMATION, investors are asked to visit the Company's website at www.hotwebinc.com.
IP: Logged |
posted
As of today the HotAutoWeb.com domain is ranked 32,800 of all of the web sites in the world. From 49k, to 40k to 32k in 3 months...this is absolutely phenomenal...Please, do yourself a favor and don't just sit this one out!!!
Excerpt: Further validating the Company's recent increase in activity, Hot Web management referenced dramatic increases in total Internet traffic to the Company's HotAutoWeb division (www.hotautoweb.com) over the past financial quarter. According to Alexa® Internet (a subsidiary of Amazon.com, Inc.) the HotAutoWeb site climbed into the top 100,000 most visited sites on the Internet for the first time in Company history. The three-month average traffic rank for HotAutoWeb is now 157,040, while the percentage of global Internet users who have visited the HotAutoWeb site has increased a staggering 4,700% over the past 3 months. In addition, The HotAutoWeb domain currently ranks as the 18,098 most visited Internet destination in the United States.
Excerpt: Lastly, the Company also released details regarding its dramatically improving web traffic in recent months and weeks. According to Ranking.com, the Company's HotAutoWeb domain (www.hotautoweb.com) is ranked 49,451 of all websites worldwide, while the domain is currently ranked 3rd worldwide in the "Classic Car" category, directly behind Hemmings Motor News (www.hemmings.com). HotAutoWeb's current Ranking.com information can be accessed by visiting: http://scripts.ranking.com/data/details.aspx?theurl=hotautoweb.com.
Excerpt: The Company also released that web traffic for the HotAutoWeb unit continues to increase. According to Ranking.com, the Company's HotAutoWeb domain (www.hotautoweb.com) is now ranked 40,058 of all websites worldwide. This ranking is a 19% improvement from mid-June when the HotAutoWeb ranking was 49,451. HotAutoWeb's current Ranking.com information can be accessed by visiting: http://scripts.ranking.com/data/details.aspx?theurl=hotautoweb.com.
IP: Logged |
posted
From the Hub....... Posted by: Rocky05 In reply to: None
Bloomfield strongly recomends this stock Here's what they said today (have to be a member to get it):
"...Hot Web, Inc. (HWBI)
1. Just released financials for the first six months of the current fiscal year of 1.2 million dollars
2. Announced in the month of July that they had record breaking listings for the company's flagship business www.hotautoweb.com of 29 vehicles for a total of 2.5 million dollars.
3. Sent out a "Letter to the Shareholders" that updated shareholders and interested investors and outlined what can be expected in the future.
4. Recently closed international sales from HotAuto Web in New Zealand and Australia for $119,000 and also recently closed domestic sales of $194,000 for a combined total of over $300,000.
With the share price of HWBI sitting at .008 x .0085 currently, Bloomfield Investment Club thinks that this company is poised for major growth in a sector of the market that is exploding. Bloomfield is even thinking that a buy out is not out of the question...as we all know eBay recently purchased PayPal for 1.5 billion
With all of this said we have to reiterate that now is the time to seize the day and embrace the opportunity that presents itself during this time of year. We all know that the rule of thumb for many famous investors is "Buy when there is blood in the streets" Looking at the public markets there is definitely an argument that would say that time is now!!!..."
-------------------- "Man who excels at putting worm on hook is Master Baiter"
IP: Logged |
posted
2. Announced in the month of July that they had record breaking listings for the company's flagship business www.hotautoweb.com of 29 vehicles for a total of 2.5 million dollars. WOW 29 cars!!!!!! LOL!!! mentioned EBAY and PAYPAL deal! comparison is a joke!!!! 29 cars listed on the website! talk to me (and EBAY) when it hits 2900!!!!
IP: Logged |
posted
Might want to keep an eye on this one, volume has been pretty steady, a bit of a spread as of now. Not much buying, but is getting a little oversold. Will keep it on radar for a while. Might be a nice play in the next few weeks with a little more drop in the pps......
-------------------- Damn, this is hard...but it's worth the challenge $$$$$
IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Eek!]](eek.gif)
