Reality Wireless Networks (fka RWNW)

[Tavycal]

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D06%2D004041%2Etxt&FilePath...

[Doubledownga]

Thanks I now remember reading Sterv's post a while ago. Sometimes these stock details seem to run together. (I got to learn to write my notes so I can read them LOL) 2+ is good I like 6+ better but will take anything better then .07 :)

Thanks, hangin tough DD

[osignal2001]

D - Here's a portion of a post by servc(below);

Could be a little high but a good example of what I am expecting.

IF they do a 1 for 50 at today's price we will would open at .07, if it goes higher, we are in the green, I'm looking for +2.0 myself.

But again, you never know with these things!

Have a great night and good luck,

O

Re-post;
"Let’s now apply some fundamentals from the facts from the revenues we know that have been and will be generated. From looking at the amount that was publicly given to us in previous PRs, it appears that RWNW will be generating $29 Million to $61 Million per year. It was mentioned that the company expects to clear at least $25 Million as profits which still could be on the low end. For our purposes, I will consider RWNW only making the low end of $25 Million per year as profits as a worse case scenario. This means that RWNW would net $25 Million as Income to be filed in their financials post-reverse merger/split. From this, observe below to get a feel of where RWNW should be trading at post-reverse merger given the post-reverse merger OS of 48,163,265 as we derived from above:

$25,000,000 ÷ 48,163,265 = .519 cents EPS (Earning Per Share)

Multiplying that .519 cent EPS with a conservative PE Ratio of 12 and you get:

.519 x 12 PE Ratio = $6.22 per share post reverse merger "

[Doubledownga]

"O" I am having a "senior moment" what would you think the share price would be any ideas??

DD

[osignal2001]

cor: I get my RS number this way:

500M - 98% = 10M shares

500M / 50 = 10M shares

I feel the NEW issued will be 57M, and in the float our 10M, this is made up of 47M recab right converted plus ours.

Sooooooooooo if you take 40M in sales dived by the 57M shares we should be sitting pretty good, just my thoughts only!

Good Luck,

O

[osignal2001]

I get my RS number this way:

500M - 2% = 10M shares

500M / 50 = 10M shares

I feel the NEW issued will be 57M, and in the float our 10M, this is made up of 47M recab right converted plus ours.

Sooooooooooo if you take 40M in sales dived by the 57M shares we should be sitting pretty good, just my thoughts only!

Good Luck,

O

[osignal2001]

FWIW My estimate for rev's is +40M per year and 4M profit, based on PR's!

I think we see a 1 for 50, and based on the rev's we should do great!

Good Luck,

O

[osignal2001]

I do have to admit, this defiantly has been a very interesting one!

AT worst, if we get a big reverse split…..I bet they come back with a forward down the road, but as normal, anything real good here is predicated on my bet that the revenues are in fact decent and growing!

The best of luck,

O

[Doubledownga]

I am hanging with you to the end......

DD

[osignal2001]

Yes, from Otto a few days ago!

"I can tell you that the merger is considered complete subject to a few administrative (but important ) steps. If you haven't followed the company on the Edgar database, the company has publicly disclosed those steps, and most recently filed a Form 8-K, detailing the financial statements of the company (Arabian Recab for Trading Co.) that has merged into Reality Wireless."

I hanging in here,

O

[Doubledownga]

O you still hanging in here??? What do you make of the "E" I thought there was a discussion a while back that they they would be late filing in order to mesh with the Recab filing dates. Or did I dream that in one of my "senoir moments"?

DD

[osignal2001]

From 8K: REALITY WIRELESS NETWORKS INC 0001088537 8-K 12/22/2005 8/19/2005

[osignal2001]

ARABIAN RECAB FOR TRADING CO. LTD.
(A Saudi limited Liability Company)


STATEMENT OF INCOME (UNAUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2005
(U.S Dollars)

From 1/1/2005
To 30/9/2005
---------------

Revenue (Notes 2h and 15) 13,063,234

Costs of revenue (10,017,391)

Gross income 3,045,843

Selling and marketing expenses (Notes 2i and 16) (1,096,025)

General and administrative expenses (Notes 2i and 17) (913,732)

Amortization of deferred installment (240,458)

Other income, net (Note 2h) 76,315
---------------

Net income for the period 871,943
===============

[osignal2001]

Who is this? "CCG has emerged as the largest consulting house in the Kingdom of Saudi Arabia"


http://www.ccfi.com.sa/e_default.htm

[osignal2001]

FYI - Third company from the bottom of the list!

http://www.ccfi.com.sa/english/recent.htm

Good Luck,

O

[Doubledownga]

And your info is from where??????

[HUONG]

The reverse merger ratio will be: 1 for 400.

[drbobc422]

finally 8k out. news!! RWNW merge with arabs done...price could mark .003 fast

[man20060]

Go RWNW ..... ready to 0.0050 cents

[man20060]

Dec 31 ////// New Company starts!!!!!!

[man20060]

Item 5.03 Change in Fiscal Year
In furtherance of the merger between the Registrant and Recab International (as referenced above), the Registrant has changed its fiscal year, from a fiscal year ending September 30 to a fiscal year ending December 31, consistent with the fiscal year of Recab International. The Registrant shall file a Form 10QSB for the period ending September 30, 2005 and a Form 10KSB for the period ending December 31, 2005.

[man20060]

0.0023! 5%

[man20060]

Form 8-K for REALITY WIRELESS NETWORKS INC


--------------------------------------------------------------------------------

20-Oct-2005

Change in FYE or Articles



Item 5.03 Change in Fiscal Year
In furtherance of the merger between the Registrant and Recab International (as referenced above), the Registrant has changed its fiscal year, from a fiscal year ending September 30 to a fiscal year ending December 31, consistent with the fiscal year of Recab International. The Registrant shall file a Form 10QSB for the period ending September 30, 2005 and a Form 10KSB for the period ending December 31, 2005.


EXHIBIT
NUMBER DESCRIPTION LOCATION
2.3 Fist Amendment to Agreement and Plan of Merger Filed Herewith

[man20060]

http://www.telematicsjournal.com/content/newsfeed/4009.html

[man20060]

LAST TIME TO BUY !!!!

[man20060]

VOLUME VERY STRONG !

[man20060]

LOOK UP 10 % ....

[man20060]

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[man20060]

Up or down the decision will come soon
Buy when the bulls finally go to the moon

[man20060]

MY 2 AAA ---- DIAAF & RWNW

[man20060]

People MERGER is ready ! Wait! EASY 0.01 cent

[ditch72]

Historically they were doing this and lately they have stopped doing it for the reason you mention.

[drbobc422]

i don`t think the same. it`s hard to enter. no sellers, they are waiting for merge news

[ditch72]

At least one person has told me privately that they have been trading this like that for quite some time.

Not a bad way to approach these stocks that seem to take a long time to go anywhere or go nowhere.

[garrett800ca]

I wonder how much money people are making when this stock goes up to 003 and back down again, and up again, and down again, and up again, and down again, and up again and down again.

I think that's where the real money in this stock is. Imagine buying something for $20,000 and selling it 10 times for $30,000. Better than the return on T Bills, thats for sure.

[drbobc422]

thanks rasica. time will tell us. we are going to make money here

[man20060]

No SELLERS!

[man20060]

Easy RASICA this Explode!

[Rasica]

The Merger

http://www.ottolaw.com/services/mergersandacquisitions.htm

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D05%2D022714%2Etxt&FilePath...


GLTA

[man20060]

No sellers here , if you like paid 0.0022

[Rasica]

For the year ended December 31, 2004, Recab International generated more than 111,750,000 Saudi Riyal (approx $29M USD).

Recab International anticipates generating $7 million of annual revenue from this acquisition.

The merging company anticipates that expansion of ARCO TEL will result in 24 sales outlets throughout Saudi Arabia and profits of $25 million per annum within a 12-16 month period.

$25,000,000 ÷ 48,163,265 = .519 cents EPS (Earning Per Share)

Multiplying that .519 cent EPS with a conservative PE Ratio of 12 and you get:

.519 x 12 PE Ratio = $6.22 per share post reverse merger

http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&board=CLB01219&read=269009&...


GLTA

[Rasica]

47,200,000 shares equates to 98% of 48,163,265 (according to the 8K ).

[fishingincea]

Stervc, Sterling,

I can't post in RB due (don't why). I read your post related to the Ratio of Reverse Merger of RWNW.ob. I think you made a mistake when you calculated the ratio.

Your result was derived from:

RWNW Pre-split OS = 497,960,212 shares
RWNW Post-split OS = 47,200,000 shares

RWNW Pre-split OS ÷ RWNW Post-split OS = RWNW Reverse Merger/Split Ratio

497,960,212 shares ÷ 47,200,000 shares = RWNW Reverse Merger/Split Ratio
10.55 = Reverse Merger/Split Ratio
Thus the ratio for RWNW could potentially be 1 for 10.55

Your thought all post-split OS( was 47,200,000 shares )from current RWNW. But where is the share of Arabian Recab common stock?

So, I think the ration should be derived as following

47,200,000-98%x47,200,200(number of Arabian Recab common stock)=944,000 Share

the ratio of RS IS
497,960,212 shares ÷ 944,000 share= around 500


any comments are welcome!!!

[allencarpenter]

Here is the link to the last SEC Filing.

http://www.sec.gov/Archives/edgar/data/1088537/000114420405035712/v029382_12b-25.txt

[Rasica]

The day before yesterday I tried to call to speak again with the CEO of RWNW. Unfortunately, I was not successful this time. Fortunately, I made a few more phone calls from furthering DD-ing some other phone numbers and had a very interesting conversation with one of the affiliated attorneys.

He was very very conservative in all of his responses he shared with me. Here are some key notes I gathered from our discussion.

* The company must file its 10Q before 14 Nov 05 to meet the filing deadline and to keep the SEC off of their backs for not meeting their reporting timelines and for completion of some kind of due diligence time frame. I did not ask for more details so I do not know more of those details.

* The numbers for revenues and profits are correct from what Recab is giving them to file in their upcoming audited financials. The numbers appear to be too good to be true to them too.

* The profits are still being discussed and further verified. He gave me a number higher than the $25 Million number for profit than what was in the PR that is supposed to be filed. He did tell me again that those numbers seem rather too good to be true. He told me that they have done mergers in the past that actually had generated the amazing numbers they were told and that they have done some mergers that when all was said and done, they did not have the amazing numbers that were initially given to them.

* There is a team of accountants and attorneys that are currently verifying the conversion of the Saudi Arabia Riyal into the American Dollar of financial information to be put in the 10Q, 8K, and/or etc. Once done, it will be immediately filed with the SEC.

* The attorney I spoke with on the legal team would rather like to see an 8K filed first to reflect the revenues and profits and then file the 10Q.

* Other attorneys and accountants want to file everything from all of the merging companies in one 10Q. Either way, all of it would be done before 14 Nov 05. So I guess it could still go either way until the audited financials come out before 14 Nov 05 for final confirmation.

* The 14c will be filed after the 10Q giving us the new name and the reverse split ratio.

* The attorney I spoke with first said that he believed that the reverse merger/split ratio was going to be about 1 to 200, but he was not sure just yet as they had not officially sat down to come up with the ratio.

* I asked if the ratio was going to be 1 to 10. He said that he felt that the ratio for some reason was going to be higher than 1 to 10, but that shareholders today still should do very well if they numbers that they are verifying turns out to be true from the merger. He said that he can’t say the same for those shareholders that had bought into RWNW many months ago back when it was at much much higher prices.

* He did inform me that the team has not sat down to officially derive what the exact ratio for the reverse split would be, but that they will soon. However, after I explained to him logically as to how I derived the ratio to be 1 to 10, he did tell me that my math was correct from how he now sees it. Heck, hopefully he explains it to his team the way I explained it to him.

Majordan44, please understand. By all means I am not saying that RWNW is legit or not because please, I do not know as it appears that the ones that are making this happen legally are still completing their due diligence along the way while they are generating the filings to come out. If you need phone numbers to the CEO in Saudi Arabia and to the attorney that I had spoken to here in the US, email me. I will give it to you after I talk with them again to see if it is ok for me to do so. Heck, then you can call and see what they tell you.

I expect a regular increase in price daily as we near 14 Nov 05. Maybe even a huge increase and price stabilization if someone internal knows for the profits reporting to be true. Or maybe they have already bought in from judging from some of the previous volume considering they wouldn’t want to raise any red flags during this current due diligence period that they are going through with the SEC. The volume must not look like any kind of insider manipulation has been transpiring. Maybe that’s really why the S-8 was issued to mask such. To help to keep the price suppressed from any kind of major spikes. That’s another theory though that I don’t have all of my thoughts organized for explaining.

To answer a question from someone who called me, keep in mind too that in one of their previous PRs they stated $25 Million in “profits” which is the same as Income. Know too that “Revenue – Expenses = Income” so when they stated the $25 Million as “profits” and not “revenues” I would have to assume that they know the difference because of the lawyers and accountants they have involved and because of how in some of their other PRs they stated “revenues” when they deemed appropriate.

Majordan44, again, please I recommend that everyone do their own DD and to not rely solely upon everything that I am posting because I have no idea what is fact or fiction. I say this because I have been through this many times and when things turn out to be good, everyone is happy. When things turn out to be bad, then all of a sudden I was part of the bad guys. As with any stock that I post on, I am simply a shareholder just like you who is sharing and looking for DD.

I personally do believe that RWNW is real and the merger will be something awesome for us little guys, but it’s up to the company to prove me to be correct.

All is well!
http://www.sterlingsclass.com/

Sterling
From another board.

[fishingincea]

the following is my understanding

right now:
shrs outstanding RWNW ......497,685,321
Authorized Shrs RWNW .......500 million

recab rights or shrs of Arabian Recab.....47,200,000

according to the agreement, recab rights or shrs of Arabian Recab will be converted to RWNW (1 to 1 converted?), which represent no more than 98% of the newly mergered entity. That means if the new mergered company issues 100 shrs, 98 shrs will be given to the current shareholders of Arabian Recab, 2 shrs will be given to the current shareholders of RWNW.

after merger, the shares of the current shareholders of RWNW will be:

(47.2 mill /98)X2 = 0.964 mill

So, the ratio of RS will be 1 to 500 (497,685,321/0.964 = 500)

after merger, the EPS(Earning per Share) is
$29million/(47.2+0.964)million=$0.61

if we take 10 as PE ratio, after merger, the PPS(Price per share) should be $0.61x10=$6.1

If you buy 1 million shrs of current RWNW with $2400, after merger, you will own 2000 shrs of new stock, which will worth

2000shrs X $6.1 = $12,000.

Still a great deal, isn't it?

[maximus27]

another 500,000 in my bag!

[maximus27]

I called ---- He said MERGER Completed!!!!!!

[maximus27]

Steve Careaga can be reached at 928-537-7147 call him he is there now answering questions !

(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)

[Doubledownga]

Rover, This is strictly my "Vagas" stock. I bought in for what I felt was an interesting possibility because of the merger. After that we will see. I DD'd the Recab and found that it looks solid and I think this was a way for them to be in the US and possibly the wireless experience for Saudi... So we will see.

I am also in PBLS with you, but don't post too much there is enough being said as it is.

DD