question, page-5

Well lets have a look and think

some excerpts from the answers


1. As the market is aware, the Company has established and is continuing to expand China’s
largest gaming retail network in Shanghai. The development of this significant business
has resulted in negative operating cash flows. Nevertheless, SSI has achieved continuing
growth in gaming sales since the establishment of the gaming business in China. Please
refer to the announcement released on 2 February 2007 for the latest record weekly sales
and the performance chart.


(SSI is still in a massive start up .. In that even more massive place called China . Jim Rogers article in the SMH is suggesting in My opinion That anything at all has to have China, China & China as part of investment theme... SSI is on the ground floor of a whole New growth industry IN China.. Of course this involves negative cash flow... New premises , new staff everything involves start up costs before revenue.
But The biggest Gaming retail network in Shanghai I think is worth spending the money on to build.. And the fruit is being seen in the deals with Playtech and Dynasty already...market access is an asset on its own.)

The Board also reasonably
believes that the Company should be able to access new capital as and when required.

(The placement of 1 million shares to Dynasty
and another offshore company requesting to obtain a 15% holding would seem to give much credence to SSI's belief and to the value of the operations.)


2. The Company has been able to achieve continuing growth in gaming sales. This trend is
expected to continue. Accordingly, the Company expects to reduce its negative operating
cash flows in the coming quarters.

(Start up costs usually have significant one offs
But ongoing revenue growth.. The same network can deliver more product at greater growth rates
again deals with Playtech and dynasty)


3. The Company’s actual expenses and revenues from operation in the quarter ended 31
December 2006 were in line with expectations.

( Interesting , I would like some forward guidance from the company as to those next qtrs expectations...
I think the Criterion article suggested We might get some. The half year should tell us more )

5. As well as continuing the gaming network expansion in Shanghai, the Company will
generate additional revenue by adding new gaming products to the existing network. This
is evidenced by the agreement entered into with Playtech Software Ltd (“Playtech”) to
introduce the Texas Hold’em Poker game to our retail network via a Virtual Private
Network to be fully financed by Playtech.

(Network fully funded by Playtech
What position is SSI negotiating from
To get the product and have the provider fund the Network as well to deliver it to the customers ?)

To develop an additional source of revenue, the Company is in discussion with a number of
Australian and international companies to establish a partnership to secure sports betting
opportunities in China.

(Sports betting ,more product more partnerships means
more revenues at the end of the day if deals are done.
So far the strike rate there seems impressive.)

OK
I have been a SSI shareholder ( and GCN ) for sometime
see No reasons not to continue..

SSI is like an exploration company that just discovered a huge gold resource.. It now has to devolpe the infrastructure to turn it in to $$..

But it should be a resource with no visible exhaustion
and with extent for our purposes as investors, unlimited.

Given a huge mkt , with distribution and marketing falling into place...Content providers who want access for their products signing deals.. There would appear to be a lot of things to do and for a long time..

Share price will No doubt fluctuate
As investors with different time frames
act on their views..
It is My view the more patient ( and I don't think in My opinion We will have to be very patient)
Will be rewarded

It will be informative to watch
and that is where the opportunity comes from.

My views and opinions
and DYOR

mkts are about the Buying and selling of risk and opportunity...It is up to each of Us to weigh and judge .


motorway