Dow Jones 10649.92 -55.72 1:20 pm PST, December 17, 2004  NASDAQ 2135.20 -10.95 For info, visit access.smallcapnetwork.com S & P 500 1194.22 -8.99 Change your subscription status here Russell 2000 642.22 -0.01 VOLUME 04: ISSUE 100  Feature: Giant Motorsports - Red-Lining the Topline. I would wager that there are more folks who want a motorcycle than those who don't. It's simply a matter of demographics. That's great news for Giant Motorsports (OTCBB: GMOS) and its shareholders. As one of the leading national retailers of motorcycles, ATV's and other power sport products, the company has experienced some extremely compelling growth and Friday issued very impressive revenue and milestone guidance for FY 2005. (Release below). And with the recent oil price shocks, the demand for more fuel-efficient alternatives is not likely to slow down anytime soon.  Besides, bikes are just plain cool. There are around 11 million shares outstanding evidencing a market cap of $17 million. The shares have moved from under $1 in the fall to close to $1.60 currently. We believe that the current guidance as well as historic revenue growth should propel the shares nicely higher. Be advised that, with a small float, the shares will likely demonstrate some fairly robust volatility. In January 2004, Giant Motorsports acquired Andrews Cycles in Salem, Ohio and became a public company. In May last, GMOS snagged the Chicago Cycle Center. The resultant entity is now one of the largest dealers in the country of the four major Japanese brands. The market for the power sports industry in the US is estimated at $18 billion with an impressive annual growth rate of 15 percent. There are plans to make more strategic acquisitions to expand and grow the customer base and influence. With over 4000 dealerships in the US--a large number of which are owned by enthusiasts rather than business people--these operations represent a decent potential pool for GMOS to selectively acquire and morph into the corporate fold. This isn't rocket science. Giant Motorsports is about becoming the biggest, best and most profitable purveyor of power sports products in the country. So far, so good.  Besides making money on straight product sales, GMOS gets a decent piece of all financing as well, which has certainly been a major factor in the topline (revenue) growth to date as well as the significant potential growth noted in today's announcement.  Besides, as I said, bikes are way cool. As you can see, the guidance given by the company is backed up by historical revenue growth that is really quite outstanding. The company intends to achieve $100 million in revenue for 2005--22 percent higher than fiscal 2004-- exclusive of any acquisitions.  Some more nifty stats: Insiders own 77 percent of the shares. With a current market cap of $19 million and projected sales of $100 million for 2005, that evidences a price to sales ratio of .20-ish: 1. Haven't seen a number that low in quite a while. Yes, low is good. Below 1:1 connotes that there is good room and potential for the ratio to rise nicely, which, of course, should take the share price with it. As well, on a trailing 12-month basis the company made 8 cents a share, evidencing a P/E of a very reasonable 20 times; low price to sales and a low price earnings ratio. That should get investors' attention. As the economy improves and the boomers reach middle and later age, there are good dynamics for Giant Motorsports. The depth of management represented by President Greg Haehn--who's been in the power sport sector pretty much forever--gives the business plan the horsepower it needs to expand the brand and rapidly gain market share through savvy acquisitions and organic growth thereby expanding the 'big-box' concept for these products and offering extremely competitive financing options. In essence, being an end-to-end provider for the power sports enthusiast. We'll stay on GMOS like leather on chaps.  NOTE; Keep up with GMOS and other names on the SCBLOG. Subscribe through the RSS feed or just bookmark the site. Exclusive content, ideas and opinions as well as between-newsletter updates!     PRESS RELEASE Giant Motorsports Announces Revenue Guidance for 2005 ________ Forecast Estimates Revenues in Excess of $100 Million, for 2005 Representing Approximate 22% Increase over Current Year Salem, Ohio, Dec. 17, 2004 -- Giant Motorsports, Inc. (OTCBB: GMOS), implementing the destination retailer business model in the motorcycle and powersports industry, today announced revenue guidance for calendar year 2005.  The announcement was made by Greg Haehn, President of Giant Motorsports.  Giant Motorsports is projecting total revenues for the four quarters of 2005 in excess of $100 million, an approximate 22% increase over the estimated current year, based on organic growth.  The Company estimates 2004 revenues to be $78 million.  "We currently anticipate breaking the landmark $100 million revenue milestone in 2005 which is clearly a threshold event for us," said Mr. Haehn.  "We believe our past performance has represented a powerful proof of the strength of our organization and our business model. It's Management's opinion that achieving the $100 million revenue mark in 2005 will further demonstrate the success of our business strategy and our goal to generate continued revenue growth and increased shareholder value for our investors.  We feel we have attained a very real and very tangible level of critical mass in our business model and infrastructure that will ensure this continued growth." Giant Motorsports' believes that its "big-box" strategy has made the Company one of the nation's leading sellers of powersports products, including motorcycles, scooters and all terrain vehicles. The Company recently announced revenues for the first nine months of 2004 at $60.3 million.  Fourth-quarter revenues are projected at approximately $18 million. Giant Motorsports' third quarter 2004 financial results represented a 107% rise in revenues totaling to $26.3 million, with earnings up 166%.  Nine-month revenues for 2004 were $60.3 million, an increase of 62% over the comparable period for the previous year.  In May of 2004 Giant Motorsports acquired the Chicago, Ill.,-based Chicago Cycles. That location generated $40 million in revenues last year under its previous owners.  Last month, Giant Motorsports announced close of a lease on a new 93,000-square-foot commercial building, representing a three-fold expansion in size of the Chicago operation.  The Company expects it to become one of Giant Motorsports' flagship locations, and will serve as a model for potential future acquisitions.  Giant Motorsports also expects to benefit from continued growth of market demand for motorcycles and powersports products.  "Nationwide, the motorsports market has shown strong and regular expansion year over year for the last decade," said Mr. Haehn. "As part of this expansion, major motorsports manufacturers have significantly increased the size of their product lines. It is our belief that Giant Motorsports' big-box business model provides the advantages in capacity, distribution and financing that is best positioned for success in this quickly changing and expanding marketplace."  About Giant Motorsports, Inc. Giant Motorsports Inc., is a destination retailer for motorcycles, all-terrain-vehicles (ATVs) and motor scooters. Through implementation of a business strategy based on a regional "big-box" retailer model, Giant believes it has become a leading multi-brand motorsports retailer in the United States. The Company is attempting to leverage revenue and earnings growth through accretive acquisitions in new regions, through internal growth, and through utilization of rollup and consolidation strategies in the fragmented powersports national dealer environment. The Company has two wholly-owned subsidiaries, W.W. Cycles dba Andrews Cycles and Chicago Cycles. More information is located at http://www.andrewscycles.com , http://www.chicagocycle.com, http://www.giantcorporate.com  or http://www.trilogy-capital.com. Cautionary Statement Regarding Forward-Looking Statements Certain statements included in this press release may constitute forward- looking statements. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors including, but not limited to: sales of its motorcycle and power sports products; the implementation and expansion of Giant Motorsports business strategies; competition and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in Giant's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with Giant's periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of this press release, and Giant undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.   We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 3525 Del Mar Heights Rd #334 San Diego, CA 92130   Unsubscribe Here D I S C L A I M E R: The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest is not a licensed investment professional or broker-dealer. 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