Rapidly Growing Microcaps: Must read report on 4G play VELA.....Recall 25% turnaround/pickup last thurs-fri.....The China Motion acquisition turns the VELA stock from an already MASSIVELY undervalued stock ...
Newsletter sampling from www.greenbackers.com
Focus:
Well the turnaround that started latter last week with VELA expecting to be fueled further on new rpt.....Stock has been a letdown in March, but with increasing amount of bullish news, including the closing of acquisition earlier in month, this stands a good chance to channel back to upper end of intermediate term range .06 with a little patience......Lets not forget the explosion to .26 back in Dec when news first broke about the acquisition.......At this point going forward would have to say debate under .04 (vs under .03)........
5-10
PGNX jumped back up above 5....
1-2
GNIN
Green Innovations Subsidiary Forming Joint Venture with Leading Biosafety Laboratory to Develop the First EPA Approved 100% Natural Disinfectant Wipe PR Newswire07:16am EDT
PLSB continue to focus on steady trending back to it's 52wk high.....a hunch for stabbing this week...
Pulse Secures Cabana(TM) Product Placement in 440 Walgreens StoresMarketwire(Thu, Mar 14)
Pennies:
AMBS
Amarantus BioScience President & CEO, Gerald Commissiong Publishes New Blog Post Titled ''The Stage is Now Set for Growth: Focus on Parkinson's and Alzheimer's'' Accesswire08:44am EDT
SKTO never let up ...Congrats who bought at close/looking to sell at open.......Look for breaking .05.....
SKTO 0.0459 0.02 +108.64%
Today
PSID
PositiveID Corporation Publishes Report on Market Opportunities for M-BAND and Dragonfly GlobeNewswire08:35am EDT
New VELA rpt....Recall turnaround last thurs/fri....
http://www.nbtequitiesresearch.com/report/inv...redemption
Investor Alert: VelaTel Global Communications: After $300 Million Education…Redemption?
As many of your know NBT (and in my past life with ChangeWave Research) has followed and endorsed VelaTel Global Communications (VELA) as an undervalued pure play on the global move to 4G-LTE networks in emerging markets.
For much of this time VELA has been a work in progress…mostly with NO progress and lots of market capital destruction. Cumulatively, VELA has spent about $300 million to come up with a
· Business strategy that works
· Strategic acquisitions that are in fact strategic and accretive
· Positive cash flow positive operations
· 20-50% CAGR for its various 4G-LTE operations
Based on my lengthy interview and meeting with CEO George Alvarez, I can report the following:
1. The NOW have a business strategy that works—they are now an experienced and profitable Mobile Virtual Network operator (MVNO) that brings highly competitive 4G MVNO technology and operating success (via their China Motion acquisition) to both Honk Kong, Taiwan and the PRC (China). MVNO is a fancy term for buying bulk wholesale minutes from incumbent mobile carriers (like Virgin Mobile, Boost Mobile in the US) and reselling them in various consumer and business plans at a retail mark-up.
The MVNO strategy WORKS—it’s much less capital intensive and NOW they have the marketing and in-country marketing operation they can replicate in OTHER regions. For instance…NOW VELA will take their MVNO operating and marketing skills and create B2B and B2C MVNOs for their two 4G network development deals with $billion+ Chinese State Owned Enterprises (SOEs) NGSN and China Aerospace. THOSE MVNOs will be profitable and accretive to VELA from the get go—with little capital required.
In their old plan they would be spending tens of $millions on network equipment with ZTE…and cash flow would be years away.
MOST important—China Motion’s MVNO license is a country wide concession—most MVNOs are a carrier concession that puts the MVNO at mercy of the carrier. As a country concession, China Mobile is the only non-PRC carrier that has the right to negotiate with all the major carriers in Hong Kong/PRC and Taiwan—and issue dual number SIM cards to their users so they have both a Hong Kong and PRC mobile number.
With the PRC announcing 6 new MVNO licenses in order to bring real competition into the mobile wireless space, China Motion is in perfect position to win ONE of these national MVNO concessions. They have proven and tested MVNO customer service/back office systems and mobile carrier relations ALREADY in China…they have 10 years of successful MVNO operations and the unique ability to issue mobile numbers for users in both China and Hong Kong…a MASSIVE cost savings for business people who travel.
In short…the China Motion acquisition turns the VELA stock from an already MASSIVELY undervalue stock (based on normal multiples for MVNOs for cash flow/revenues or simply subscribers) to a stock with a LOTTERY ticket like upside should they win one of the national PRC MVNO licenses.
We call that “optionality”—while getting a stock that should trade at .40-50 cents JUST on its private market value—with the PRC MVNO licenses up for grabs (and considering China Motion’s long term track record operating a licensed MVNO concession in Hong Kong) we get a lottery like 50-100X upside should they win a national MVNO license.
2. Their recent acquisitions are now in fact strategic and accretive—VELA purchased China Motion Inc. for $1.6M cash yet with $1 million of cash in its bank, $150-200K a month in free cash flow and a VERY re-financeable purchase note of $4.8M note which expires in six months. More importantly…China Motion has VERY real 25-50% revenue growth potential based on a $2M upgrade of its network operating center to 4G-LTE that their partner ZTE Corporation will finance 85%. The Zapna subsidiary…which is really just another form of MVNO with its SIM card overlays that add another number to your mobile phone or device to save up to 90% on voice and data roaming…is also cash flow positive this year as well.
3. VELA itself is now cash flow positive—and will provide investors an updated pro-forma of operations that will give us 2013-2018 cash flows and revenue projections reportedly this week.
a. ONE version is without sales of VN Tech fuel cells to ZTE in 2013…the other version will include sales. VN Tech is waiting for PRC financing terms for the PRC has mandated replacement upgrades to China’s 1.3 million cell towers to renewable fuel cell technology from the now ancient lead-acid battery technology or diesel the (similar to India’s mandate). All hydrogen fuel cell energy systems for the telecom industry has to be certified by the Hydrogen Fuel Cell Energy Committee before MIIT will approve it for use in the China market. VN Tech’s President Luo is a founding member and facilitator on this committee.
According to CEO Alvarez, 2013 pro-forma looks like $25 million in full consolidate revenue and $3-$4 million in positive cash flow/EBITDA. He also promises to make announcements on sales of OTHER VelaTel operations that don’t fit their new business model and strategy.
Bottom-line: The financial numbers we expect from the update VELA pro-formas based on already announced numbers from their acquisitions translate to a $40-$50 million private company market cap and at least 20-30 cents a share on 177 million shares outstanding.
THEN add in 25% CAGR from the MVNO and VN Tech operations and 40-50 cents per share makes sense in 2014 vs. comparable mobile telecom values.
At 4 cents today…VELA is the bargain of 2013.
b. We expect VN Tech to close 400-500 unit sales (at @$14,000 apiece) in 2013 based on the PRC mandates…that would add another $5-$6 million in sales at 35%ish net profit margins… or another 5-6 cents in valuation
VelaTel Has Re-Hired NBT Capital Markets for Shareholder Acquisition Services
We are proud to announce that NBT will again be retained to bring the VELA story to the retail and institutional investor world with our shareholder acquisition program. We are excited to re-join VELA and bring this story of “redemption” to a whole new generation of emerging growth investors JUST AS VELA hits the inflection point in revenues and cash flow.
We are working on new equity research report…and with the expected updates on pro-forma revenues and cash flow we will produce new “sum of the parts” valuation.
Needless to say…buying VELA shares under 5-6 cents represents the highest upside potential in the mobile 4G LTE space we know of…and hope you can buy shares down at the current valuation.
The World’s Safest Way to Make 10% a Year... EVERY Year
Friday, 22 March 2013
Aaron Gentzler, Editor, Unconventional Wealth
Hits: 77
Charles J. lives in San Jose, Calif. He works as a software developer.
But ever since November 2009 Charles has been collecting $332.67 in extra income each month. That's $3,992 a year. All Charles had to invest to set up that perpetual income was $40,000.
That works out to a net annualized yield on his investment of 10% -- or about five times what he could make investing in Treasury bonds.
And thanks to the power of compounding, at this rate a $25,000 investment will become $64,725 in 10 years. And a $50,000 investment will become $129,451.
This income -- and the potentially massive compounding returns it can create -- has nothing to do with Charles's job. It's not from rental income on a second home either. And it's not from stock market dividend yields... options premiums... or the bond market.
Latter breaking sunday:
4:34 p.m. EDT, March 24, 2013
NEW YORK (Reuters) - Apple has acquired a Silicon Valley startup, WiFiSlam, which makes mapping applications for smart phones.
Apple confirmed the acquisition, but declined to give details. The news was earlier reported by The Wall Street Journal, which quoted a person familiar with the matter as saying that Apple paid around $20 million for the company.
"Apple acquires smaller technology companies from time to time, and we generally do not discuss our purpose or plans," an Apple spokesman told Reuters.
WiFiSlam develops technology that provides indoor tracking and similar services. Big tech companies such as Apple and Google have been racing to provide more and better map applications for users. Google's application, Google Maps, is widely accessed on Google's Android platform and rival Apple's rival iOS platform.
LAKE FOREST, Calif.—Jeff Pintar had buyer's remorse as he purchased 12 foreclosed homes in five Southern California counties on a single day. His regret: that he didn't buy more homes a year earlier.
"Things have turned around faster than anyone anticipated," said Mr. Pintar, who first began buying properties here four years ago and now owns or manages 1,700 homes, which he rents out for between $1,000 and $3,800 a month. Here in Orange County, nearly every home listed for less than $400,000 "is being pursued by institutional investor capital," he said.
[See Mortgage Rates in Your Area]
U.S. housing recoveries almost always have been ignited by rising demand from families and individuals looking for a place to live. This recovery is different. Investors—including some big Wall Street players—are leading the way, say industry executives and analysts. Their role is noteworthy given that flippers and speculators were blamed for helping to inflate the housing bubble of the past decade.
Today's investors are mostly buying with the intention of holding on to the homes and renting them out. As they pile into the housing market, they have set off a chain reaction that has stabilized prices and changed market psychology, industry executives and analysts say. Fear of buying homes when prices are dropping has been replaced by the fear of missing out on cheap homes.
"Whether they knew it or not, investors helped set a floor. They warmed up the market, and it brought buyers back," said Lanny Baker, chief executive of real-estate brokerage ZipRealty.
Investors have always played a role in the housing market, but their presence was often small. Currently, cash buyers—largely investors—make up about 32% of sales nationally, according to the National Association of Realtors. In Southern California, a favorite target for investors, absentee buyers accounted for 31.4% of purchases last month, up from an average of less than 17% between 2000 and 2010, according to DataQuick MDA, a real-estate research firm.
While some firms have focused only on Sunbelt markets with newer housing stock, others are branching out. American Residential Properties Inc., which began amassing hundreds of homes in Phoenix four years ago, earlier this month bought 93 homes in Chicago's southern suburbs, bringing its total there to around 300. On Friday, the company said it planned to raise $300 million in an initial public offering, according to a regulatory filing.
The rush of investors into the housing market follows a long push by federal policy makers to foster the American dream of homeownership that unraveled for some people in the housing crash. The homeownership rate fell to around 65% last year from 69% in 2005. "We're clearly at the beginning of a rental boom," says Christopher Thornberg of Beacon Economics. "We all saw there had to be a shift towards renting single-family units that owners could no longer afford. Investors played a critical role in that transformation."
Their arrival will further transform some communities already hit hard by foreclosures and falling home prices. Renters have less of a stake than do homeowners. But deep-pocketed investors can still be good news for neighborhoods that otherwise would be at risk because so many homes had been neglected.
Where investors are scooping up homes, "you're no longer seeing shabby homes that have grass growing up to the doorknob," said Ivy Zelman, who owns a real-estate advisory firm.
The house-rental market long has been dominated by mom-and-pop outfits, including retirees, real-estate brokers, doctors and other professionals, and they still account for most investor purchases. Over the past year, large private-equity firms such as Blackstone Group and Colony Capital have spent billions of dollars buying up single-family homes. Blackstone says it has purchased 20,000 homes since early last year. It is buying more than $100 million worth of homes a week and has spent $3.5 billion so far.
Executives in these companies say the rental market for single-family homes is fertile turf because home prices are relatively low and rental rates are healthy. They expect the number of families locked out of homeownership—because they don't have strong enough credit or savings to qualify for a mortgage—will continue to grow.
Around 12% of all U.S. households—more than 14 million people—rented a single-family home in 2011, up from 9% in 2004, according to the most recent U.S. Census figures. Three-fifths of people who lost their homes to foreclosure in the past five years ended up renting a house, said Ms. Zelman.
"It's a very attractive time to buy a home if you can," said Justin Chang, president of Colony American Homes, a subsidiary of Colony Capital
(0)
(0)
