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<From: WizardAlert@excite.com <Reply-To: WizardAlerts14@excite.com <To: <Smart_Investor< <Subject: VHLD - Undervalued and Overlooked? UPZ <Date: Tue, 20 Nov 2001 01:04:05 -1800 < <The Market Wizard's SPECIAL ALERT--November Edition < <****************************************************** < <MARKET WIZARD'S SPECIAL ALERT: <Vector Holdings,Inc <OTC BB: SYMBOL: VHLD <52 WEEK HIGH: $ 14.00 <52 WEEK LOW: $ 0.33 <SHARES OUTSTANDING: 9,500,000 <PUBLIC FLOAT: APPROX: 1,600,000 <SHORT TERM PRICE PROJ.: $3.64 <12 MONTH PRICE PROJ.: $10.41 < <****************************************************** < <Reasons to BUY VHLD: < <VHLD Just received $8.8 Million Dollar commitment for 1st hotel. < <VHLD is doing 1 million in revenues and anticipates closing on 9 Hotels in <South Beach, Fl. by year-end 2002, that will generate 100 Million in <Revenue, 25 Million in Profit, 200 Million in Assets < <VHLD looking to close 1st Hotel within 30 days < <VHLD will have solid assets in one of the most desirable real estate <locations in the world, South Beach, Florida < <Top notch management team, Richard Wildheim who ran Trump properties < <In talks with one of the most popular restaurants in the world for first <hotel property. < <Expand to Las Vegas and Arizona. < <One of the only distributors of gourmet food who distributes Iranian <caviar online, including other products of beluga caviar, oils, pasta, <meats, cheeses, etc. < <VHLD selling at bottom of trading range. < <Bestfoodonline.com does business with Disney, United Air, Marriot, Ocean <Reef and Turnberry Resorts. < <Once the completion of 1st hotel co w/ have solid RE assets & revenues. <development. < <VHLD should attract major shareholder value with tremendous upside <potential. < <VHLD with tremendous growth in assets in one of the most secure industries <in a volatile market REAL ESTATE. < <In a marketplace where co's continue to disappoint on earnings, VHLD is <positioned to grow at a massive rate with tremendous earnings and assets. <************************************************************** < <The Company < <Vector Holdings , Inc (OTC BB: VHLD) Vector Holdings, Inc., through its <subsidiary Bestfoodonline.com, distributes specialty food products to the <hospitality industry. The flagship website can be found at <www.bestfoodonline.com, where products may be purchased on a wholesale <basis to the hospitality industry worldwide. Clients of Vector Holdings/ <Best Food include Walt Disney, United Airlines, Ocean Reef Club, and <Turnberry Isle Resort and Country Club. < <The Company has carved out its niche within the management and hospitality <industry through management contracts with name hotel properties within <the South, Florida region. Vector Holdings' present strategy to maximize <shareholder value is to acquire "boutique" hotels located in South Beach, <Florida through its relationships and existing contracts. <**************************************************************** < <INVESTMENT OPPORTUNITY < <When you talk about real estate, you talk about LOCATION, LOCATION. When <you talk about Commercial Hotel real estate, you talk about LOCATION, <LOCATION and MANAGEMENT. VHLD appears to be on to something, VHLD's <present strategy to maximize shareholder value is to acquire "boutique" <hotels located in South Beach, Florida. < <For those Wizard subscribers who are not familiar with South Beach, <Florida market, let The Wizard try to describe. First, this area is home <to nearly 800 Art Deco buildings which were primarily constructed during <the 1920s, 30s and 40s. The South Beach area is comprised of small <"boutique" hotels, nightclubs, restaurants and lots of chic shopping <stores. South Beach is a unique area to Miami Beach, from 1st street to <12th street, including Ocean Drive, Collins Avenue, and Washington Avenue. <Miami Dade's hotel occupancy rates have lead the nation for the first five <months of 2001. South Beach is strategically located near Miami's <financial district and a very attractive destination to tourists from all <over the world.. < <VHLD's plan is to acquire existing "boutique" hotels in South Beach, FL., <that are currently operating and profitable. VHLD is simply taking <existing hotels and attempting to make them better, by partnering with an <experienced hotel management company that has a proven track record of <doing exactly what VHLD is looking to accomplish. < <To this extent, VHLD has retained Hospitality Advisory Group, Inc. (HAG), <which is led by Mr. Richard Wilhelm. Richard Wilhelm is a hotel management <professional, with over thirty years of experience in management of a <number of premier hotel and resort properties in the United States. These <properties include such landmark hotels as the Plaza Hotel, the St. Regis <and the Waldorf-Astoria in New York City; Trump Castle in Atlantic City; <and recently, the Island Outpost group of hotels in Miami Beach's popular <South Beach area. < <The core business of HAG is that of providing comprehensive hotel <management services to their clients, which is VHLD. Services typically <provided include the full spectrum of operational, financial, and <marketing management of hotel properties. HAG works in every appropriate <way to drive revenues. A key element in HAG?s management program is the <focus on a comprehensive, targeted sales and marketing effort to "put <heads in the bed. <************************************************************** < <VALUATION < <Some of the greatest corporations in America were created with a simple <concept. VHLD is currently under contract to acquire prime South Florida <hotel properties that on average are 70% occupied year round. By <partnering with a top-notch hotel management company, leveraging off their <expertise, hope to increase the annual occupancy rate to over 80% within 2 <years < <For example, HAG became the management company for the Tides Hotel in <South Beach, Fl. when it reopened after a major renovation. By the end of <the 1st year the Tides had an 88% occupancy rate. < <VHLD intends to acquire 9 hotels by the end of calendar year 2002 that <will be running at an annualized revenue rate in excess of $100 MILLION <DOLLARS. These 9 hotels assets will be in excess of $200 MILLION DOLLARS. <VHLD intends to close on 3 of the nine hotels by the end of this calendar <year (2001). These three hotels are estimated to generate $12.8 Million <Dollars in revenue's and Net Operating Income (NOI) of $2.5 Million <Dollars on assets of $28 Million Dollars in 2002. < <VHLD intends to close on their 1st hotel within 30 days. When achieved <this should become a significant milestone for VHLD as well as the stock. <The first hotel is called The Astor VHLD currently manages The Astor. The <Astor was originally built in 1936 and remodeled in 1995. VHLD is Buying <The Astor for $16 Million Dollars in a combination of cash and debt <(mortgage). < <In year 2000 The Astor generated about $5.5 Million in revenues and had <approx. $1 Million NOI. < <According to HAG, based upon their projections using their management <techniques, HAG projects The Astor?s revenues to rise to $7.2 Million and <NOI to $1.5 Million in 2002. < <In addition, HAG projects that in all hotel acquisitions by VHLD, a <portion of the profits in the 1st year under their management will be <reinvested back into the hotels for improvements. Thereafter HAG projects <NOI to approximate 25% of revenues. REMEMBER, VHLD is currently acquiring <only profitable hotels, and looking to make them more profitable. < <VHLD is currently trading near a 52 week low. VHLD has been working <quietly on achieving its goal of increasing shareholder value. There is <hardly any news on VHLD, and virtually no chat over on the Internet. The <Wizard believes this too might change shortly. The Wizard believes that <once VHLD closes on the Astor Hotel the story becomes a little bit more <believable. BUY ON THE RUMOR. <***************************************************************** < <CONCLUSION < <One way to value a company is to look at its peers in the industry. Within <this group companies currently trade at about a 50% discount to the S&P <500 index, which equates to about 14x earnings. Based on VHLD closing 3 <hotels by year-end, and using HAG's forecast for profits of $2.5 Million <or $0.26 cents per share. If VHLD were to trade in the market at 14x <earnings, then this would equate to a stock price of $3.64 per share. < <****************************************************************** < <DISCLAIMER < <Marketwizardalerts (MWA) publishes reports providing information on <selected companies that MWA believes has investment potential. MWA 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. MWA accepts no liability for any loss arising from an <investor's reliance on or use of this report. An investment in VHLD is <considered to be highly speculative and should not be considered unless a <person can afford a complete loss of investment. MWA has been hired by a <third party consultant, and is contracted to receive 100,000 free trading <shares of common stock for the publication and circulation of this report. <MWA intends to sell all or a portion of the of the VHLD stock at or about <the time of publication of this report. Subsequently MWA may buy or sell <shares of VHLD 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 VHLD including the company's most <recent annual and quarterly reports < < _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp
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