Newsletter

August 15, 2000

Volume III, Issue 67

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

PawnBroker.com (OTC BB: PBRR)- More Positive Developments

PawnBroker.com had another substantive and positive news release this morning. We were hoping to see the stock drift back down from its rebound to $3, but unfortunately there were too many buyers today for any meaningful pullback. If the stock opens tomorrow near today's close of $2.75, it may turn out to be the lowest entry level in what appears to be a real comeback for the stock.

Today's news release informs us about a key development in the single most important area for small companies- Management. Management's ability to execute their business plan is always the most important factor in long term success.

Today, PawnBroker.com announced the hiring of a new CEO, and it appears they have reeled in and boated a huge fish. Glen Spiro has been hired as the CEO. Sprio left the venerable Christie's Auction House in Los Angeles where he was the senior director of the Jewelry center. According to the press release, during his five year tenure the department grew from a revenue stream of $3,000 to $19.5 million in annual revenues. Prior to Christie's he was the founder of The Slade Group PLC, a jewelry manufacturing company with $50 million in annual revenues.

PawnBroker's new CEO has taken one jewelry related enterprise from zero revenues to nearly $20 million, and another jewelry related enterprise from zero to $50 million in annual revenues. This is a major upgrade for the company in the single most important arena for their ultimate success: Management.

In the last two weeks three important things have happened with PawnBroker.com:

The Company announced a financing.
The Company announced new senior management with an outstanding track record
The stock has appreciated about 40% with a 10 fold increase in daily volume.

If you do not own this stock now would be an excellent time to take a look at this company. We originally profiled the company at $7 on December 10, 1999. The stock traded very quietly for about three months, then rocketed to a high trade of $17 shortly after rolling out the beta version of their transaction based web site which acts as an intermediary between Pawnbrokers and consumers. Please go to our archive section and review our previous editions on Pawnbroker.com. Click here to get there, or go to the home page and click on profile archives on the left hand menu bar.

The stock got clobbered in the April sell off. The sell off has been severe due to the unwarranted perception that this company was just another Dot.com with huge overhead and no realistic revenue and profit model.

In our opinion PawnBroker.com has an excellent business model in a unique market niche. Down the road they could be handling millions of transactions without the cost of maintaining inventory. It is estimated that there are over 200 million items for sale in Pawnshops nationwide. Furthermore, unlike the eBay auction model, prices for goods on the PawnBroker.com site go down, not up. They are also in a position to modernize the way Pawnbrokers communicate with each other and the way inventory flows throughout the entire industry with the help of the Internet.

If you don't believe it is possible for this stock to return to its $17 high you are wrong. We have seen this many times. The stock gets hot in a bull market. The market turns down and the company has a hiccup in its business plan. The company regroups and gets back on track. The market turns around just as the company's sales and earnings explode. The stock goes back to its previous high, and then higher.

This scenario is possible. It is unlikely to be completed in 2000, but we could see it by the end of the first half of 2001. A return to the previous high would yield investors 600% on their money.

This stock has just begun to rebound off its lows and we see mostly upside and very little downside from these levels if they can keep the momentum going. Here is the complete text of the news release for your review:

Tuesday August 15, 8:45 am Eastern Time
Press Release
SOURCE: Pawnbroker.com, Inc.

Pawnbroker.com Announces Christie's Executive as New CEO

RENO, NV, Aug. 15 /CNW/ - Pawnbroker.com, Inc. (OTC BB: PBRR), the online provider of previously-owned, higher value merchandise for immediate purchase, today announced that Glenn Spiro was appointed as CEO of Pawnbroker.com.

Mr. Spiro is an industry veteran with nearly 20 years of experience in the jewelry and collectibles industry. Most recently, he was a Senior Director of Christie's Auction House in North America and established a flagship selling center in Los Angeles. During his 5-year tenure, Mr. Spiro increased Christie's jewelry department's revenue 2,294 per cent to $19,500,000. His experience also extends to founder and CEO of The Slade Group PLC, a large jewelry manufacturing company with $50 million in annual revenue prior to merging with Paisley Hyer, a large international manufacturing group.

``The appointment of Mr. Spiro is an important step in the evolution of Pawnbroker.com as we make the transition to a more mature e-commerce operator,'' said Joe Schlader, president of Pawnbroker.com. ``His in-depth knowledge of the jewelry and collectibles industry and impressive track record of building companies into market leaders makes Mr. Spiro the right person to lead Pawnbroker.com.''

``Pawnbroker.com is in a pivotal market position with the opportunity to build the premier online destination in the multi-billion dollar pawn industry,'' said Spiro. ``I am delighted to be joining the Pawnbroker.com team and look forward to helping Pawnbroker.com further its promising B2C and B2B initiatives.''

Mr. Spiro replaced Neil McElwee, who left the Company on August 8, 2000.

About Pawnbroker.com

Pawnbroker.com, an emerging e-tailer of previously-owned, higher-value merchandise available for immediate purchase, is the world's first online network of pawnbrokers to sell in a global marketplace. Consumers can expect to find high-quality merchandise such as jewelry and gemstones, watches, electronics, musical equipment and collectibles. Pawnbroker.com offers the pawnbroker industry powerful services including a global online sales channel, industry information and news, and communication tools. Pawnbroker.com was founded in April 1999 and the Company headquarters are located in Reno, NV. For further information about Pawnbroker.com, Inc., visit our website at www.pawnbroker.com.

Pawnbroker.com and the Pawnbroker.com logo are trademarks of Pawnbroker.com, Inc. All other company and product names are mentioned for identification purposes only, and may be trademarks of their respective companies.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding the Company's financing arrangements, future business plans, product and web site offerings, business opportunities and expectations. All forward-looking statements are subject to certain risks, uncertainties and assumptions, including the Company's ability to complete the registration of the common stock issuable under the equity line for resale in a timely manner, the trading volume of the Company's stock, the market price for the Company's stock, dilution caused by issuing stock to the invest at a discount to market, changes in market conditions in the industry in which the Company operates. Some of these risks are more fully described in Pawnbroker.com's registration statements and reports filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.

Disclaimer

The OTCjournal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. Moreover, as detailed below, this publication accepts compensation from certain of the companies which it features. Likewise, this newsletter is owned by MarketByte, LLC. To the degrees enumerated herein, this newsletter should not be regarded as an independent publication.

Click Here to view our compensation on every company we have ever covered, or visit the following web address: http://www.otcjournal.com/disclaimer.html

All statements and expressions are the sole opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

The editor, members of the editor's family, and/or entities with which they are affiliated, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication.

The profiles, critiques, and other editorial content of the OTCjournal.com may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.

You can unsubscribe from this list at any time by Clicking Here and HITTING SEND. If you are having difficulty removing yourself or wish to change your address please go to http://listserv.otcjournal.com/opt.cgi?.