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Electronic Hog and Cattle Trading / Broking / Market Information / Funds' Management Business Plans |
1. EXECUTIVE SUMMARY
SmithField Foods website T | O | 30 | Bloomberg| Clearstation| Brokers| VectorVest| MorningStar| Financial WEB| MarketEdge| Multex| Quicken| TSC| StockHouse| StockSelector| StockConsultant| Profile| Yahoo|
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
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.
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
4.7 Market Definitions
4.8 Demographic Profile
4.9 Size of Target Market
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
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 | $200/mo per lease | |||
| Brokertec | 6000 | 6000 | 6000 | 6000 | 6000 | ||||
| ISV | 6000 | 6000 | 6000 | 6000 | 6000 | ||||
| CQG | 9600 | 9600 | 9600 | 9600 | 9600 | ||||
| 1PC+Printer | 1500 | 1500 | 1500 | 1500 | 1500 | ||||
| 3 Handhelds | 4500 | 4500 | 4500 | 4500 | 4500 | ||||
| Insurance | 9600 | 9600 | 9600 | 9600 | 9600 | ||||
| Bandwidth | 12000 | 12000 | 12000 | 12000 | 12000 | ||||
| Realtime data | 6000 | 6000 | 6000 | 6000 | 6000 | ||||
| Optima | 6000 | 6000 | 6000 | 6000 | 6000 | ||||
| Accounting | 3000 | 3000 | 3000 | 3000 | 3000 | ||||
| CME Booth | 12000 | 12000 | 12000 | 12000 | 12000 | ||||
| Total | 232200 | 248200 | 264200 | 280200 | 296200 | ||||
| Revenue | |||||||||
| Broking | 87000 | 130000 | 200000 | 300000 | 450000 | ||||
| Trading | 530000 | 1000000 | 1500000 | 2000000 | 2500000 | ||||
| Estimated | 617000 | 1130000 | 1700000 | 2300000 | 2950000 | ||||
| EurobondonlineLLC Funds Management | |||||||||
| Trading Capital | 2000000 | 4000000 | 6000000 | 8000000 | 10000000 | ||||
| Assumptions | |||||||||
| Net Trading profits average 25% of capital | |||||||||
| Broking Revenue grows 50% per year as Euro$ trade Electronically | |||||||||
7.3 Financial Analysis
7.4 Equity Analysis
8. Sources and Uses of Funds
8.1 Sources of Funds
8.2 Uses of Funds
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