Thank you for your informative postings over the years. My only regret is not picking up on the LO-Q discussions on this board in 2003 when it was at 7p!

Do you know how many water parks are out there? We don't have that many in the sunny North of England but I do know from my trips to the US that there are water parks everywhere. Do you have an estimate of the revenues LO-Q makes per transaction? (DoctorV)


DoctorV,

Thank you and Yes it is difficult to believe but I was very involved researching and helping other investors to understand what LO-Q actually did in the early years. My first purchase was at 7p and there are tens of shareholders in LOQ who came on board after the presentations that the directors did at Mello, the the Hilton hotel next to the Master Investor show in Islington and also at the old financial PR teams offices in London. This really has been a success story for so many and a good example where the institutions get involved at a very late stage.

Until last year institutions actually held less than 10% of the shares and more than half were held by private investors. We have regularly had large turnouts at the Agms and lunches beforehand. These are the sort of investments that make all the hard work worthwhile and proud that a British inventor and product has been so successful. This is exactly what the country needs going forward.

Anyway to the present and your question. Another positive announcement this morning and contract win.

http://www.investegate.co.uk/Article.aspx?id=201203010700504...


In the words of LOQ and Tom Burnet the CEO...

Commenting on the contract award Tom Burnet, Chief Executive Officer of Lo-Q plc, said:

"Today's news is yet another example of the enthusiastic response our recently launched water park product has received from the operator community. Both large-scale groups and individual park operators such as Zoombezi Bay have been quick to realise the revenue enhancing and experience enhancing qualities of the product and its ease of use. Zoombezi Bay is a great family attraction and we are thrilled to be working alongside the team there."

This website may help on water parks...

http://www.waterparks.com/

It is a bit out of date but the fun facts page gives a good indication

http://www.waterparks.com/funfacts.asp

There are over a thousand in the US alone. I suspect by size LOQ will be targeting about 25% of those as they will be the most profitable by scale. They have a huge first mover advantage. You simply cannot use paper passes in water parks which have been the cheap option for theme parks. The Qbands are cool....kids love them !

Here is the wiki entry for water parks...

http://en.wikipedia.org/wiki/Water_park


My own research suggests that the true market for LOQ in water parks is about three times larger than the one for theme parks and that the add on benefits for a Qband are huge if you study the MasterCard partnership and how funds can be loaded onto a Qband effectively using it just like a debit card whilst enjoying your day in the water park ! If ice cream and drinks sales double due to the ease of paying for them rather than going back to the locker room you can imagine how pleased the water park operator will be with his high margin in park spend figures. Qbands are good for everyone involved...win, win, win.

Revenues could double and even triple within the next two years or so if just fifty water parks sign up in my estimations so it becomes a very large number if that 25% came on board. I am keeping it really simple and allowing just half a million dollars in revenues per water park but just look at the theme park average revenues and see how that has escalated in second and third year useage as park attendees get hooked on using them and the advantages of not queuing ever again on thos hot days in the parks !

Have any other holders done any projections ?


David