HogsonlineLLC
Electronic Hog and Cattle Trading / Broking / Market Information /
Funds' Management Business Plans

1. EXECUTIVE SUMMARY

  • HogsOnlineLLC is seeking $1,000,000 for Live Hog/Live Cattle futures spread and option market making.
  • HogsonlineLLC will be a market maker In MEAT Products Stocks, primarily making markets in Smithfield Foods, Tyson and Hormel.

    SmithField Foods website T | O | 30 | Bloomberg| Clearstation| Brokers| VectorVest| MorningStar| Financial WEB| MarketEdge| Multex| Quicken| TSC| StockHouse| StockSelector| StockConsultant| Profile| Yahoo|

  • HogsOnlineLLC Initially will deploy 1 handheld terminal inLive Hogs and 1 Handheld terminal in Live Cattle.

    EuroBondonlineLLC/HogsOnline
    Jack Rhoades, CEO
    692 Bluff Street
    Glencoe, IL 60022
    (312)427-3616 Glencoe (847) 835-2159

    email EuroBondonline@HOTMAIL.com


    1.1 The Company EuroBondonline.com/HogsOnline is a newly formed company which is developing a AG Futures and Options and Stocks Online market information / trading vehicle.
    EurobondonlineLLC/HogsOnline needs trading capital and an IMM membership. EurobondonlineLLC is offering shares at $10,000 per share with a maximum of 100 shares outstanding. Barchart will provide unique charts/analytics on CME & CME Agriculture . Barchartdata will be available on Motorola V200 Handheld/phone . Having CBT/Eurex connectivity on CME floor will be a competitive advantage.

    1.2 Mission HogsOnline is seeking an investment of approximately $500,000 from a strategic partner which would allow us to DEPLOY PATSYSTEM HANDHELDs in the CME AG pit by September 1, 2002.
    Professional Strategic Plan
    HogsonlineLLC plans to be a market-Maker and intends to build a "Mastermind network" of market information partners, an AG Electronic Trader Network and a Euro$ network.
    EurobondonlineLLC intends to build CME trader training reference group, a business school reference group , a MIKE Bloomberg Network.


    Risk Factors Investments in HogsOndonlineLLC involves a degree of risk, including but not necessarily limited to the risks described below. Each recipient of this Business Plan should consider carefully the following risk factors. No guarantees are expressed or implied regarding the success of the venture described in this business plan.

    1.3 Products and Services
    CME/CBT Realtime AG Data
    HogsOnlineLLC Trading Strategies web site

    1.4 Marketing and Sales Strategy
    1.5 The Competetion The internet market is becoming intensely competitive and is subject to rapid advancement in technical production, modification and change. The company IS competing with entities which have greater financial resources and technical personnel.

    1.6 THE Target Market

    1.7 Management
    1.8 Operations

  • HogsonlineLLC will operate from a CME booth. Booth and communication costs of $1000 / month, GEM lease of $200 , clerk expense of $2000 per month are some initial expense items.
    1.9 Initial Funding This business plan has been prepared to obtain the necessary financing to complete development of a market information, online trading vehicle, cover start-up costs and operating expenses for the first 12 months of operations. EuroBondonlineLLC will seek permission from the Chicago Mercantile Exchange ("CME") to deploy a EuroBondOnline/Barchart handheld product as a mechanism to further enhance electronic order entry flow.
    1.10 Financial Performance
    1.11 Funds Sought and Utilization
    The cost of EuroBondonline software Euro$ execution will be substantially lower than the competitors not because of a superior design and not because of creative use of innovative technology, but EuroBondonline will offer handheld execution specializing in Euro$ futures and options vs CBT Swaps.

    2.0 Introduction
    2.1 Electronic Futures and Options Trading
    2.2 Meat Futures

    Hogs T | O | 30 | MA | Tradedata |
    SFD T | O | 30 | Meat SECTOR|

    Dairy T | O | 30 | Tradedata |

    Cattle T | O | 30 | MA. | Tradedata |

    Feeders T | O | 30 | Tradedata |

    Jeremy Perlow

    3. Organization and Staffing

    3.1 Organization

    3.2 Staffing

    3.3 Chief Executive Officer - Jack Rhoades
    Jack Rhoades currently owns 100% of EuroBondonlineLLC. Jack Rhoades graduated from the University of Virginia in 1971 and has 25 years experience in the Futures and Government securities markets.

  • Professional History
  • 1993-2002 IOM Member Chicago Mercantile Exchange:
  • 1992 - ED&F Man-Brokered Treasury basis trades using Cantor Fitzgerald.
  • 1989-1992 Transmarket Group - Chicago Board of Trade Member - Trading Cantor Treasury screen vs 5 Year and 2 Year.

  • 1988-1989 - Continental Bank - Trading a cash and futures fund.
  • 1987 - Financial Futures Data Lab - Editor/Partner of an interest rate and foreign exchange research product with 500 domestic and foreign banks, swap dealers and fixed income / FX investors.

  • 1979-1987 - Kleinwort Benson Government Securities, Chicago. Market maker in US Treasuries. Developed Tactician", a realtime and historical PC database.
  • 1977-1978 - Thomson McKinnon, Richmond, Va. - Commodity Broker
  • 1975-76 - MBA program, Darden School, University of Virginia
  • 1971-1975 - Merrill Lynch, Richmond, Va. - Commodity Broker
  • B.A. Economics, University of Virginia, Charlottesville, Va - 1971
  • Personal: December 4,2001, Nancy Rhoades died. She put up with me for 29 years. We have have lived in Glencoe, Il since 1979. Kids: Zack 19, Laura 14.

    TOBIN J. GLOVER, Chief Hog and Meat Stock Equity Trader

    1220 W. Lill Ave. Unit 1 Chicago, Illinois 60614 Work 312-427-3616 Home 773-868-6380 E-mail: glove22@hotmail.com EXPERIENCE Optima Investment Research Chicago, Illinois – May 1998 to Present Technical Analyst Develop daily technical analysis of futures contracts and other financial instruments delivered to approximately 350 institutional clients worldwide. Utilize finance and economic experience to determine how economic trends will affect the markets. Promoted to editor (3 years editing experience). Train and supervise technical staff. Quoted on Dow Jones and Reuters newswires. Equities Trader Chicago, Illinois – July 2000 to Present Merger Arbitrage Inter Industry Spreading (Pair Trading) Scalping Member, Chicago Mercantile Exchange Chicago, Illinois - April 1999 to June 2000 Floor Trader Actively made markets in the Lean Hog futures pit. Traded for specific profit and loss goals while staying within established risk limits. Acquired in-depth knowledge of the futures markets and the fundamental aspects of the US agriculture markets. John R. Taylor, Independent Options Trader Chicago, Illinois - June 1997 to April 1999 Assistant Trader Developed a working knowledge of options and position analysis to determine position risks and trading opportunities. Utilized technical analysis to identify trading opportunities. Hedged traders options position with futures. Reconciled statement against previous session’s trades and resolved discrepancies. Promoted to trader Advanced Technology Systems McLean, Virginia – January 1997 to March 1997 Assistant to Comptroller Prepared bank reconciliation for 10 accounts. Processed accounts payable. Analyzed Time and Material contract billing records. Licenses Series 7, 55, and 63 Education East Carolina University Greenville, North Carolina Bachelor of Science in Business Administration – Fall 1996 Major: Finance Computer Skills: Word, Excel, PowerPoint, Bloomberg, CQG, and Aspen Graphics.

    3.4 Chief Technology Officer - Barchart and Sri Sarankanth

    3.5 Vice President - Marketing

    3.6 Chief Financial Officer - Richard Asplund

    3.7 Accountant - Eddie Chez

    3.8 Business Development Manager - Jack Rhoades

    3.9 Client Support - Barchart

    4.0 Marketing PLAN The sales program for the first year will concentrate on developing a client base of Hog/Cattle Hedge Fundswho wish online trading services to their customers and individual trader accounts.

    4.1 Industry Analysis

    Chicago Mercantile Exchange Inc. (www.cme.com) is an international marketplace bringing together buyers and sellers on its trading floors and GLOBEX2, CME’s around the clock global electronic trading system. CME offers futures contracts and options on futures, primarily in four product areas: interest rates, stock indexes, foreign currencies and agricultural commodities. All over the world, pension funds and investment advisers, portfolio managers, corporate treasurers, commercial and investment banks, broker/dealers and individuals trade on CME as an integral part of the financial management strategy. In 2000, CME set a new annual volume record, trading more than 231 million contracts with an underlying value of $155 trillion. Electronic trading volume on GLOBEX2 rose 114 percent to 34.5 million contracts. The exchange moves about $1 billion per day in settlement payments, manages $30 billion in collateral deposits and administers more than $1 billion of letters of credit. On November 13, 2000, CME finalized its transformation into a for-profit, shareholder corporation as it became the first U.S. financial exchange to demutualize by converting its membership interests into shares of common stock that can trade separately from exchange trading privileges.

    4.4 Market Analysis

    EuroBondonline RESEARCH will focus on providing realtime analytics on all CBT/CME futures and options, with specific EURO$/CBT analytics. Euro$ | ED$/Bond Strategies | Euro$ | Bonds | OPTIONVOL | EUROEuribor | Euribor/Bund strategies$ | Euro$ | Equity Index | StockFutures | FX | user jackr pass jackr

    4.5 Expected Outcomes

  • How are we going to get our clients? personal phone calls and Barchart's web advertising.
  • How many clients and which volume is needed to reach the breakeven? EurobondonlineLLC believes there are 2000 potential Swap/Hedge Fund traders that could benefit from fast Data, fast Charts and customized Euro$/Bond analytics. 20 traders paying 1000 contracts * $ in giveups / permonth will cover the projected overhead.
  • EurobondonlineLLC anticipates that for each $1,000,000 Trading Capital for funding Market Making Euro$ Pack/Bundles and ED Option straddles , will generate $20,000 a month in fee business for Fortis, which will pay EurobondonlineLLC x% fees.
    4.6 Market Drivers EuroBondonlineLLC will market the concept of EuroBondonlineLLC/Barchart, market information products to Hedge Funds,Swap Dealers and large traders in exchange for Euro$ transactions.

    4.7 Market Definitions

    4.8 Demographic Profile

    4.9 Size of Target Market

  • Bloomberg has 150,000 clients paying $1500/month. CQG has 20,000 clients?
  • We feel there are 2000 potential Swap/Hedge Fund traders that could benefit from fast Data, fast Charts and customized Euro$/Bond analytics.

    4.10 Marketing Plan Barchart is our primary web advertiser.

    4.11 Product Strategies - PatSystems Handhelds Eurobondonline/Barchart/Motorola V200 - Eurobondonline/Barchart will provide realtime CBT/CME data/analytics , provide the Billing/credit card service for Motorola/Verizon Wireless. EurobondonlineLLC employees, clients will be connected with the V200. Motorola's V200: Wireless the Hard Way A phone that's also an instant messager and Web browser sounds great in theory. In the hand, however, impracticality trumps inspiration Handheld devices for wireless-data communications are still in their infancy, so we're still seeing the sort of experimentation that has long been forgotten in the PC market. Is the killer application e-mail, instant messaging, or Web access? Is the ideal device a phone, a PDA with wireless capabilities, or a dedicated device, like Research in Motion's BlackBerry pager? None of those questions has yet been decided. The Motorola V200 Personal Communicator, available for $200 with service activation or as an add-on to an existing Verizon Wireless account, is the latest entry in the dedicated-device field. The V200 is basically a two-way pager that can handle short text messages, standard Internet e-mail, and limited Web browsing. You can also use it for voice calls with a headset or as a speakerphone, but I doubt that many people would choose it as a primary phone. The V200 has a 6.2-oz. clamshell design, like a tiny laptop, with a six line monochrome display and a keyboard a bit bigger than that of the BlackBerry or the Handspring Treo. Unfortunately, in this case, bigger does not mean better. For one thing, the buttons are about the same size as on the smaller keyboards but are spaced farther apart, which actually makes them harder to use. The spacebar is off to the left side of the keyboard instead of in the middle, and there's no backspace key -- instead, you have to use the left "soft key," inconveniently located at the very bottom of the unit. And there are no typing shortcuts or automatic capitalization as provided by Treo and BlackBerry. CLUMSY OPERATIONS. In fact, nearly every function of the V200 is crippled by a dreadful human interface. You would think that with a background in handheld communications that goes back to the World War II walkie-talkie, Motorola would have learned by now how to do it. But even the simplest things are problematic. Nearly all such devices use soft keys that change function depending on what you are doing, but you should always be able to count on pressing the same one to accept an option. On the V200, sometimes the left key accepts and sometimes the right. Ending many operations requires tediously backing out, one screen at a time. I could go on with complaints about the device's interface, but by now you get the point. Unfortunately, the V200's shortcomings don't end there. Its minibrowser uses the WAP protocol common to phone handsets. This means you are limited to Web sites specially formatted for the limited display. On the plus side, browsing is relatively quick, and the display is much better than on most phones. Another plus is that communications between Verizon subscribers are very nearly instantaneous. Messages can be sent to the V200 from e-mail accounts (long messages are broken into pieces), Verizon phones, or from the Web site www.vtext.com. Outgoing messages, whether sent to other Verizon customers or to outside e-mail addresses, use Verizon's short message service and are limited to 160 characters. Subscribers can also use the site to set up their choice of paging alerts on such subjects as stock prices, sports scores, and news headlines. PHONE HANGUPS. One thing Motorola does very well is voice communications. So it's no surprise that the V200 is a very good phone, either in speakerphone mode or used with a headset. But it lacks either a conventional dial-pad or the on-screen touch dialing offered by the Treo. Instead, you dial using the number keys on the right side of the keyboard, which can be clumsy. As a sort of instant-messaging pager for grownups, the V200 is a good idea. Unfortunately, there are just too many things wrong with its clunky controls for me to recommend it.

    4.11 Product Strategies - Wireless Handhelds on the CME floor: EuroBondonlineLLC intends to employ handhelds on the CME floor for market information and trade support

    5. OPERATIONS OVERVIEW web clients.
    5.1 Overview
    5.2 Members
    5.3 Member Services
    5.4 Potential Services

    6 Funds Management

    DEPANDANCE ON KEY PERSONNEL

    HogsOnline is dependent upon the services of its management team and technical team, the loss of whom could materially affect the Company's operations and development. EuroBondonline with provide Life, health and other insurance benefits to key employees.

    7.2 1Year Financial Forecast
    EurobondonlineLLC Budget
    Euro$ Jan Feb Mar Apr May Jun Jly Aug Sep Oct Nov Dec
    Perlow 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
    Glover 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
    Rhoades 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000
    2 Euro Clerks  
    1CME lease   3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500
    GEM lease 500 200 200 200 200 200 200 200 200 200 200 200
    Globex 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
    ISV 500 500 500 500 500 500 500 500 500 500 500 500
    CQG 600 600 600 600 600 600 600 600 600 600 600 600
    1PC+Printer 1500
    3 Handhelds 4500
    Insurance 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
    Bandwidth 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
    Realtime data 500 500 500 500 500 500 500 500 500 500 500 500
    Optima   500 500 500 500 500 500 500 500 500 500 500
    Accounting 250 250 250 250 250 250 250 250 250 250 250 250
    CME Booth 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
    Total 18650 16350 16350 16350 16350 16350 16350 16350 16350 16350 16350 16350 198500
    Revenue
    Broking
    Trading
    Research 5000
    Capital Requirements
    Brokertec 100000
    CBT/CME 200000
    Treasuries 100000
    EurobondonlineLLC Funds Management
    Assets 1000000
    ManagementFee
    Assumptions
    Broking - Eurobondonline will charge clients $500/month or 1000 trades  at $1/month Electronic give up fee.
    Trading - Eurobondonline will be paid 50% return on profits
    Funds Management - EurobondonlineLLC will solicit funds for Funds Management/Hedge Fund Venture

    7.2 5Year Financial Forecast
    EurobondonlineLLC Budget
    Euro$ 2002 2003 2004 2005 2006
    Rhoades 85000 95000 105000 115000 125000
    1CME lease 42000 42000 42000 42000 42000
    2 GEM lease 5000 5000 5000 5000 5000 3500/mo per lease
    Euro Clerk 24000 30000 36000 42000 48000 $200/mo per lease
    Brokertec 6000 6000 6000 6000 6000
    ISV 6000 6000 6000 6000 6000
    CQG 9600 9600 9600 9600 9600
    1PC+Printer 1500 1500 1500 1500 1500
    3 Handhelds 4500 4500 4500 4500 4500
    Insurance 9600 9600 9600 9600 9600
    Bandwidth 12000 12000 12000 12000 12000
    Realtime data 6000 6000 6000 6000 6000
    Optima 6000 6000 6000 6000 6000
    Accounting 3000 3000 3000 3000 3000
    CME Booth 12000 12000 12000 12000 12000
    Total 232200 248200 264200 280200 296200
    Revenue
    Broking 87000 130000 200000 300000 450000
    Trading 530000 1000000 1500000 2000000 2500000
    Estimated P&L 617000 1130000 1700000 2300000 2950000
    EurobondonlineLLC Funds Management
    Trading Capital 2000000 4000000 6000000 8000000 10000000
     
    Assumptions
    Net Trading profits average 25% of capital
    Broking Revenue grows 50% per year as Euro$ trade Electronically

    7.3 Financial Analysis

    7.4 Equity Analysis

  • EuroBondonlineLLC is seeking $1,000,000 in Equity capital in return for a 25% share of ownership in EurobondonlineLLC
  • Investors may redeem shares in EurobondonlineLLC at the end of each quarter , with 5 days written notice, at the audited market value of EuroBondonlineLLC
  • 8. Sources and Uses of Funds

  • EuroBondonlineLLC will deposit invested funds with Fortis, a CBT/CME / Treasury Clearing firm.

    8.1 Sources of Funds

  • EuroBondonlineLLC will disclose names of investors

    8.2 Uses of Funds

  • EuroBondonlineLLC will use invested funds for margin on CME/CBT/Treasury / Euro$/futures and options positions. EuroBondonlineLLC will pay all expense and provide audited accounting for the venture.

    Members : $500/month
    This fee includes all of Optima Investment Research, Barchart and Realtime CBT/CME fees.
    Members may become 1% equity owners in EuroBondonlineLLC for $250 per month payable over 4 years = $12,000 or $10,000 one time payment.

    Checks payable to : EurobondonlineLLC, 692 Bluff Street, Glencoe, Il 60022
    (312)427-3616, ext 222 or (847)835-2159:

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    You will receive an Email within 24 hours advising you of your user name and password.

    Sample research
    Euro$/Bond Strategy | Euro$ | Bonds | EUROEuribor | Swapnotes | Equity Index | Stockfutures|

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    Company: Street Address:
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