also watching VELA..ran from .03 to .066 on very b
Post# of 144482
also watching VELA..ran from .03 to .066 on very bullish news this week...
earlier in week:
VelaTel Global Communications, Inc. (VELA)
-OTC Markets
0.06 0.01(9.43%) 10:52AM EST
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Prev Close: 0.05
Open: 0.05
Bid: N/A
Ask: N/A
1y Target Est: N/A
Beta: N/A
Next Earnings Date: N/A
Day's Range: 0.05 - 0.06
52wk Range: 0.01 - 0.24
Volume: 828,285
Avg Vol (3m): 3,443,290
Market Cap: 4.47M
P/E (ttm): N/A
EPS (ttm): -1.67
Div & Yield: N/A (N/A)
By Tobin Smith | February 15, 2013, 4:28am GMT 6 hours ago
2013 Could See The Rise Of VelaTel Global
Excerpts:
by Wes StullVelaTel isn't the only one who sees the value in China Motion. Just weeks after the transaction was announced, VelaTel entered into a stock purchase agreement with Ironridge Technology Inc. for $12 million in funding at .20 per share - a tranche of which will go toward the purchase of China Motion. And yes, that is .20 with no 0 in front of the 2, and yes, that is over 600% above where shares closed trading on Friday.
Where There Is Fear, There Can Also Be Opportunity
On February 4, an extension to close the China Motion deal was filed via 8-K. VelaTel's stock has since continued its slide to near-historical lows, most likely in part to the fear that the deal may not close. I would bet that some firms out there are looking to make a quick profit by shorting VELA, while other weak-handed investors may have just been scared off. Whatever the case, I am in the camp that says the deal will close (note the S-1 filed at the end of January for details on all operations) and that this will be the first of multiple good news items to hit for VelaTel in 2013.
The VN Wild Card
As if all of the recent developments were not enough to pique your interest, there is one last wild card that could end up being the biggest hit of all - VN Technologies. As I previously mentioned, VN Tech specializes in the R&D and production of hydrogen fuel cells and is led by co-founder of ZTE, CEO Luo Hongye.
This past September, leaders of the Chinese telecom industry met at an invite-only conference to exchange ideas on developing the framework for implementing a single detailed industry standard for hydrogen fuel cell power systems across the communications industry in China. Mr. Hongye was selected as one of the invitees.
Since then, China's Ministry of Industry and Information Technology [MIIT] initiated a formal organization to set the policies for future needs for green energy and back-up energy for the telecommunication sector. The "members list" of this formal organization reads like a "who's who" of Chinese telecommunications, featuring China Mobile (CHL), China Unicom (CHU), and China Telecom (CHA), as well as the MIIT and top Chinese universities. There is also another party on that list. You guessed it - VN Tech and Luo Hongye.
With China rapidly adopting green energy as an industry standard (see this PDF for more information on fuel cells and hydrogen in China), especially in the area of communications, VN Tech is in a very strong position (to say the least) to reap the rewards of this multi-billion dollar movement. As China continues its push to green energy (with subsidies for the carriers to convert to hydrogen fuel cells), I would expect orders to be placed once procedures are finalized. With connections to the three first tier carriers - not to mention the possibility of ZTE becoming a reseller of VN's batteries - I would not be surprised to see the first of multiple purchase orders placed to VN Tech in the coming months.
Tying All of the China Pieces Together
So to recap, VelaTel has two lucrative business-to-business agreements (NGSN & CASC) as well as MVNO operations through China Motion. Add to those one more key piece, and that is Sino Crossings - 34,000 km of fiber optic cable that VelaTel holds the rights to. With this piece of digital real estate, the potential is there for VelaTel to provide national transport for its wireless broadband access networks across China. Throw in VN Tech for good measure, and VelaTel is sitting on an impressive list of holdings in the PRC. Current or potential investors can begin to draw their own conclusions from this portfolio of Chinese assets, but I have a feeling that VelaTel CEO George Alvarez will begin to put these pieces together for us over the coming months.
Investing In VelaTel
....the stock was priced at .032. That, by the way, puts VelaTel at a current market cap that is less than what they could be owed by the Chinacomm lawsuit. Or, to look at it another way, it gives VelaTel zero credit for the spectrum they already have. What I also find very intriguing is that Friday was the highest volume trading day in over three years. With relatively little movement in the price, it appears that buyers could be accumulating the name in size.
With the close of the China Motion deal, shares should start to make a positive, extended turn. Add into that a possible purchase order to VN Tech, not to mention any naked shorts (that typically stalk these lower priced stocks) being forced to cover, and these prices could seem like a dream by this summer.
There are never guarantees in stock investing, but there are also risk/reward scenarios that only come along once every so often that offer a "ground floor" opportunity. Depending upon what the company delivers in 2013, VELA could be one of those stocks.
Full article:
http://nbtequitiesresearch.com/t/l/7vzCtQRL9izv7LF