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Sorry.. wrong board.. lol
I’m hearing they’re now up to 10 patients. Even at an average of $325 per day that’s $97K per month.. their overhead can’t be that high especially since they own the building.. this is shaping up to be a very good story in my opinion.
Now more than ever.. this is like watching a train wreck.. Kenny Dichter is a disaster as a CEO.. seems like Delta is taking over, that might sound good but airlines have over and over shown they have no clue how to run a private jet operation. I’d say chapter 11 in 12-18 months
Still feel that way about this one?
I see this is now wheels up… lol
Time to say goodnight to this stock as well. People that don’t understand private aviation should stay far away from this stock.. and people that do understand private aviation are already staying away..
As the pilot saying goes, any landing you can walk away from is a good one.. nobody is walking away from this landing.
Vacation of my dreams, time to get back to work!
By Thanksgiving, I will have all monies out of USD accounts. I will only have minimum monies in CAD accounts. All of my assetts will be held strictly by me with no 3rd party in between. Also note that I won't have any paper assetts!!! Have lots of food stocked up...
Hey Tack, John, Ed, Rocket. Hope you guys are doing great and make it through this mess OK.
What's happening with Regtech? Are they coming online?
http://regtech.com/
Majors interested in Fuel Efficient Rotary Engine Technology
Monday July 7, 9:00 am ET
VANCOUVER, July 7 /CNW/ - Reg Technologies Inc. (RRE:TSX.V, REGRF:OTCBB), is ready to license their Rand Cam(TM)/RadMax(TM) rotary technology to a worldwide market estimated to be worth $200 billion dollars. Designed to run more fuel efficiently, cleaner and quieter than rival piston engines gives the lightweight engine an overall economic advantage.
Reg Technologies Inc. owns the worldwide rights to the Rand Cam(TM)/RadMax(TM) rotary technology. Compared to 40 moving parts in a basic four-cylinder piston engine, the Rand Cam(TM)/RadMax(TM)s unique rotary engine has up to 24 power impulses using 12 vanes and a rotor with one pound of weight for every horsepower, giving it a revolutionary design making it fuel efficient, quiet and lightweight. Rand Cam(TM)/RadMax(TM) is set to run on a variety of fuels ranging from natural gas, hydrogen, propane, diesel and gasoline.
Stealth Energy receives Stillwater gas reserves report
2008-07-09 17:49 MT - News Release
Mr. John Campbell reports
GAS RESERVE REPORT
Jake Oil & Gas Consultants LLC has prepared a new report for Stealth Energy Inc. on the potential gas reserve of five drilled wells that were in production in the late 1980s and early 1990s, and that are located on Stealth's gas leases in Stillwater county, Montana. These wells are generally proximate to the two successfully drilled wells (Hailstone No. 23-1 and Hailstone No. 23-2) that have yet to be flow tested.
The purpose of the report is to determine if a connecting pipeline to the Saga gas line is justified at this stage of development. The report is with respect to only four sections (2,400 acres) within the 32,286 net acres of prime gas leases the company owns in Stillwater county. The report states, in part, "All together the structure held 6.7 billion cubic feet of recoverable gas and after early production it still holds 6.1 billion cubic feet of recoverable gas."
Accordingly, the company is currently negotiating rights of way to enable the construction of approximately nine miles of connecting pipeline to the main Saga gas line.
P. Greg Barnes - Advisor
An external Executive Director of The Galaxy Fund, is currently President and Chief Operating Officer of Hunter Resource Capital, LP.
Prior to joining Hunter Resource Capital, Greg was Chief Operating Officer of a European family office, managing their Bahamas office.
Greg brings 15 years of investment structuring and business experience to the organization having been involved in managing a portfolio of hedge funds and the structuring of private equity holdings in several natural-resource & industrial companies.
Prior to joining the family office Greg traded non-ferrous metals for an internationally recognized firm in Zug, Switzerland.
Greg received a Bachelors Degree in Geological Sciences from the University of Texas at Austin in 1987 and his Masters Degree in Economics from the London School of Economics in 1989.
Currently Greg resides with his wife and three children in Denver, Colorado.
Posted over on the elite board, big crosses by Canaccord today
V 2008-06-27 09:33:13 0.90 -0.10 2,000,000 33 Canaccord 33 Canaccord B
V 2008-06-27 09:33:00 0.90 -0.10 1,294,000 33 Canaccord 33 Canaccord K
Only a matter of time for the KABOOM
Gotta love fighters, these companies do what it takes to stay alive through the tough times.
Now we get to eat cake!
Get me a buck sixty and I am gone........
Actually what is that-16 cents pre roll back.
That works
So we touch the latest pp price of .80 and off we go. Vast market cap is over 60 million right now.
That market cap on Longford would translate to $1.60 share price :)
Not hard to imagine that they had more suitors than just Niko sniffing around for a piece of Kurdistan pie.
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FirstGrowth wins $15.6-million seismic contract
2008-06-05 06:18 MT - News Release
Mr. Gil Schneider reports
FIRSTGROWTH ANNOUNCES $15.6 MILLION SEISMIC CONTRACT WITH POTASH EXPLORATION COMPANY
FirstGrowth Exploration & Development Services Corp.'s subsidiary, Kinetex Inc., has been awarded a contract valued at over $15.6-million to provide seismic acquisition work in central Saskatchewan for a private company focused on potash exploration.
The initial contract involves the management, collection, processing and interpretation of a series of high-resolution 2-D profiles, over a number of regions with a combined area exceeding 500,000 acres. The client intends to then select certain lands to complete a Full Wave 3-D resource evaluation over targeted portions of the prospective lands upon completion of the initial interpretation of all compiled 2-D data.
"This record single contract, equal to 2007's annual gross revenues, should give shareholders strong confidence in the growth and future success of the company," stated Gil Schneider, chief executive officer of FirstGrowth. "Two thousand eight looks to be a breakout year for FirstGrowth as the mining and resource industry fully realize the inherent potential provided by Full Wave high-resolution seismic data."
The objectives of the survey are to provide a detailed subsurface map of underlying stratigraphy, while identifying the faulted and fractured horizons, or "collapse zones." These zones can be an excellent conduit for groundwater and present a significant hazard to mining operations. Mining into one of these collapse zones can result in, at best, rehabilitation cost increases to the mining operation, and in some extreme instances may even result in uncontrolled flooding and loss of the mine. Digital, high-resolution seismic data, as provided by FirstGrowth, afford the best possible geological picture with significantly greater vertical resolution than standard analog seismic data. By capturing the full waveform (full component) of reflected data, it is possible to offer a path for the analysis of density and porosity changes, which result in the highlighting and delineation of groundwater tables and subsurface reservoirs. Being able to detect and pinpoint the exact location of such disturbances is of great value to mine engineering staff and plays a critical role in mine site planning.
Strong agricultural demand has forced prices for fertilizer skyward of which potassium chloride, or potash, is a key ingredient. This is due in part to rising consumption in China, India and other developing countries in Asia, and the transition toward biofuel production in the United States and Canada. Exploration for potash has largely centred on Saskatchewan, which reserves are massive -- by conservative estimates, Saskatchewan could supply world demand at current levels for several hundred years. Saskatchewan production currently accounts for over 25 per cent of world supply.
Might be a change in outlook for the poster :O)
I figured with the commodity market the way it was that was a good probability entry on my first go.. so a successful retest would be encouraging but I dunno if I'd wouldn't add before that low.. 10% yield (which could vanish of course) is enticing...
Kastel
This is interesting to see a penny stock addict posting charts of a trust?
Makes me ,a holder, somewhat nervous.
Nice bounce off that $4.25 resistance point, maybe test it again?
We need our bottom expert Ed to look at it :)
Debated adding on Friday. Too tied up so didn't decide.
Wrong chart ?
XSB - ISHARES CDN DEX SHORT TERM BOND ETF
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AGG - ISHARES LEHMAN AGGREGATE BOND ETF
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Dorex completes phase 1 drilling at Carmelita
2008-05-21 15:04 MT - News Release
Mr. Peter Walton reports
PHASE 1 DRILLING COMPLETED AT DOREX'S CARMELITA COPPER- GOLD PROJECT, CHILE
Dorex Minerals Inc. has completed phase 1 diamond drilling on its 100-per-cent-owned Carmelita property located within the iron oxide copper-gold belt of the Atacama Desert, Chile.
This exploratory drill program was designed to test for widespread porphyry or IOCG-style mineralization, as well as smaller, higher-grade structurally controlled shear-zone-hosted copper oxide mineralization.
Peter Walton, president and chief executive officer, states: "We are pleased with the completion of the phase 1 exploratory drilling on the company's Carmelita project. The professionals that worked on the property did an excellent job with meeting deadlines and schedules. We are all looking forward to the quick return of the assay results. The geological team and management are preparing for further exploration on the Carmelita property, and as well are examining other properties in the region. Assay results will be announced as soon they are received by the company."
A total of seven holes for a total of 996.8 metres were drilled on the property testing five different anomalous zones.
Hole CA-01 was drilled to a depth of 131.6 metres.
Hole CA-02 was drilled to a depth of 182.9 metres.
Hole CA-03 was drilled to a depth of 93.3 metres.
Hole CA-04 was drilled to a depth of 150 metres.
Hole CA-05 was drilled to a depth of 100.7 metres.
Hole CA-06 was drilled to a depth of 199.9 metres.
Hole CA-07 was drilled to a depth of 140 metres.
A total of 167.8 metres were drilled using a HQ-size drill core and 830.6 metres used an NQ-size drill core.
A total of 375 core samples were logged, split and sent for assaying, and will be tested for total copper, gold, silver, molybdenum, zinc and lead content.
All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to Act Labs Chile SA, in La Serena, Chile.
The information contained in this news release has been reviewed and approved by Stephen Kenwood, PGeo, a qualified person under the definitions established by the National Instrument 43-101.
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Ona appoints De Montigny, Perrault to advisory board
2008-04-04 09:40 MT - News Release
Mr. John Wong reports
ONA ENERGY WELCOMES TWO NEW MEMBERS TO ITS ADVISORY BOARD
Ona Energy Inc. has added two additional members to its advisory board. The company would like to welcome Jean-Pierre De Montigny and Nikolas Perrault. Mr. De Montigny will also serve as chairman of the advisory board. The board provides advice to the company on a broad spectrum of matters, which include financial and technical issues.
"We are pleased to welcome Jean-Pierre De Montigny and Nikolas Perrault to our advisory board," said John Wong, president and chief executive officer of Ona. "Both gentlemen bring many years of experience to us from the capital markets, as well as having international business experience. I expect that they will be able to make a significant contribution in matters relating to the company's finances, as we move forward with the development of our power plant in China."
Mr. De Montigny's career as an investment banker spanned over 25 years. During that period, he held various senior positions with major financial firms where he advised corporations and boards of directors on financings, financing strategy, mergers and acquisitions, as well as divestitures. He has played the senior role in several financing transactions including initial public offerings on Canadian and international financial markets. He was previously the president of Desjardins Securities, has acted as director of several public companies and non-profit organizations, and is a past member of the board of governors of the Montreal Exchange. He is currently chairman of D-BOX Technologies. Mr. Perrault is a chartered financial analyst who spent the first 15 years of his career working as an investment executive with some of the Canada's largest financial institutions. His focus has always been on small-capitalization companies. In 2007, he left Scotia Capital to start his own management-consulting company.
The advisory board members will be invited to participate in commercial, technological and operational planning sessions, quarterly operational reviews, and lend their extensive expertise to the company's senior management. Individual advisory board members may also be engaged to address specific projects on a consulting basis. The company also announces that it has granted 50,000 incentive stock options to consultants under the terms of the company's stock option plan, at an exercise price of 75 cents per share, expiring on March 18, 2013.
Ona also wishes to announce that further to its news release reported in Stockwatch on Nov. 9, 2007, the engagement with Northern Securities has expired and that both parties have decided not to extend the agreement.
Buchanan Renewable Energies
Suite 1500, 220 Bay Street
Toronto, Ontario M5J 2W4
Attn: Joel Strickland
Tel: (416) 640-1301
Email: joel.strickland@buchananenergies.com
http://www.buchananenergies.com/
Come on at least its not rainbow films on the drill fluid.
Stealth Energy drills Hailstone No. 23-2 to 2,400 feet
2008-06-06 15:43 MT - News Release
Mr. John Campbell reports
SUCCESSFUL GAS WELL
Stealth Energy Inc. has drilled its second gas well (Hailstone No. 23-2) to a depth of 2,400 feet, and continuing to an approximate depth of 3,000 feet, in Stillwater county, Montana. A total gas monitor in the return fluid stream showed a significant gas increase peaking at approximately 600 units at a depth of 900 feet and again at approximately 100 units at a depth of 1,300 feet. These pay zones are classified geologically as the Frontier, a primary source for gas production in this area. Several commercial gas-producing wells in the region have reported similar comparable gas indicators at this stage.
Upon drill completion, the company will initiate a formal flow test for both Hailstone No. 23-1 and Hailstone No. 23-2, which will involve logging, perforating and intensive flow testing. The main SAGA gas pipeline runs approximately eight miles to the southwest and Stealth has now initiated a survey for multiple drill sites along this pipeline route over lease lands that the company owns.
whatever it is its got some people power :)
Now what POS are you pumping here?
Robert Gardner Q.C. - Chairman of the Board
Mr. Gardner has served on the boards of several public mining companies and specializes in acquisitions. He was educated at Cambridge University and is called to the Bars of British Columbia, England and Wales.
John Campbell – CEO / President
Has been involved in the O&G exploration in the private sector for the past 5 years with
particular emphasis in the states of Wyoming and Montana. He is a partner of Big
Snowy Res., an oil & gas exploration company based in Billings, Montana.
R. Stuart Angus - Director
Mr. Angus is an independent senior business adviser to the mining industry. He was most recently Managing Director - Mergers and Acquisitions for Endeavour Financial. Prior to joining Endeavour Financial, he was a partner at the Canadian law firm Fasken Martineau DuMoulin and headed that firm's global mining practice. For over 25 years, Mr. Angus has focused on significant international exploration, development and mining ventures, and all aspects of their structuring and finance. Mr. Angus is also presently a director of Nevsun Resources Ltd. and Plutonic Power Corp.
Brian Smith Q.C. – Director
Mr. Smith is a practicing lawyer with Gowlings, Lefleur, Henderson, LLP of Toronto, Ontario. He is the past Minister of Energy and Mines, past Education Minister and past Attorney General of the Province of British Columbia, Canada, and is also past Chairman of BY Hydro and past Chairman of Canadian National Railways.
Michael Farley Ph.D. - Director
Investment banker based out of Geneva, Switzerland and Montreal, Canada. Was a diplomat for the Canadian Government prior to involvement in both the private and public financial sectors.
Wayne Moorhouse – CFO / Secretary
Mr. Moorhouse graduated from the University of British Columbia in 1992 with a B.A., and then went on to complete the academic requirements for his Chartered Financial Analyst (CFA) designation in 1999. He possesses a variety of experience in project planning, administration, organizational finance, and management positions.
Yuling Zhou – Director
Ms. Zhou graduated with a Master of Economics degree in Wuhan University, China in 1999. After graduation, she worked at Hu Bei Securities Company as a security analyst and became a director in 2000. Between 2000 and 2004 she was a director of Yin He Securities Company in Shenzhen City, China, specializing in corporate finance. Since 2003 she has continued to work with senior financial institutions in cities in mainland China and Hong Kong.
David Yue – Director
Mr Yue is an international financier residing in Canada, specializing in funding start-up and junior companies in Hong Kong and North America. During the last 20 years in Canada, he has been active with his own private enterprises in sizeable real estate and infrastructure developments in China and Canada. In addition, he has been the founder and director of several TSE listed resource companies.
Niko Resources signs Kurdistan production sharing deal
2008-05-20 14:45 MT - News Release
Mr. Edward Sampson reports
NIKO SIGNS FIRST PRODUCTION SHARING CONTRACT IN KURDISTAN
Niko Resources Ltd., as operator for a consortium, has entered into its first production sharing contract (PSC) with the Kurdistan regional government (KRG) for the exploration, development and production of petroleum resources in the 846-square-kilometre Qara Dagh block in Sulaymaniyah governorate of the federal region of Kurdistan, Iraq.
One of the members of the consortium has been in advance negotiations with the KRG over the past eight months. Forming an acceptable consortium with a qualified operator was one of the terms to be finalized.
The PSC provides that Niko will operate and have a 27-per-cent participating interest. The block lies on trend with existing discoveries, a portion of which covers a large unexplored 65-kilometre-long by six-kilometre-wide surface structure with existing oil seeps. Of interest, Qara Dagh translates to Black Mountain.
The consortium has a 60-per-cent participating interest that is not subject to further dilution by the KRG. The government will have a direct 20-per-cent interest and will be carried exclusively by the consortium. The remaining 20 per cent will be assigned by the government to a third party or parties, within a period of eight months, with the requirement to pay back the share of costs incurred by the consortium.
The obligations under the PSC include a one-time signature bonus and capacity-building bonus paid to the government within 30 days from the execution date of the contract. Annual contributions to personnel, training and technological funds established by the government, as well as community support contributions, are to be paid over a period of 15 months to assist with infrastructure projects in the area. The consortium will also be responsible for paying its proportionate share of certain production bonuses in the case of commercial discovery. The remaining minimum work program obligations represent an exploration commitment, expected to commence in the near future, which includes the acquisition, processing and interpretation of a minimum of 300 kilometres of 2-D seismic data and drilling of one well during the first exploration period.
Edward Sampson, chief executive officer, and Bill Hornaday, chief operating officer, were both in Erbil for the signing and stated, "Niko is excited about the potential for the block and is planning to commence operations immediately."
Vast Exploration signs Iraq exploration deal
2008-05-20 16:01 MT - News Release
Mr. Stan Bharti reports
VAST COMPLETES PRODUCTION SHARING CONTRACT IN THE KURDISTAN REGION-IRAQ
Vast Exploration Inc., with its consortium partner Niko Resources Ltd., as operator, has entered into a production sharing contract (PSC) with the Kurdistan Regional Government -- Iraq (KRG), for the exploration, development and production of petroleum resources in the 846-square-kilometre Qara Dagh block in the Sulaymaniya governorate of the Federal Region of Kurdistan -- Iraq.
The Kurdistan licence map can be found on-line.
The company has been involved in a competitive bidding process and advanced negotiations with the KRG over the past eight months. The final terms were agreed in principle late last year, subject to KRG approving the operator. Under the final agreement reached with the KRG, Niko Resources Ltd. shall act as operator for the block. Niko Resources Ltd., with a market capitalization in excess of $4.5-billion, was selected by the company as the operating partner due to its considerable international experience, including activities in India, Thailand and Bangladesh.
According to the terms of the PSC, the consortium has a 60-per-cent net participating interest, not subject to further dilution by the KRG. Vast and Niko Resources Ltd. each hold a 27-per-cent net participation interest in the block, and Groundstar Resources Ltd., the third member of the consortium will have a minority net participation interest of 6 per cent. The government will have a direct 20-per-cent interest which will be carried exclusively by the consortium. The remaining 20 per cent is reserved by the government to be assigned to a third party or parties within a period of eight months, with the requirement to pay back their share of petroleum costs incurred by the consortium.
The obligations under the PSC include a one-time signature bonus and initial capacity building bonus paid to the government within a period of 30 days from the execution date of the contract. Annual contributions to personnel, training, environmental and technological funds established by the government, as well as further community support contributions, are to be paid over a period of 15 months to assist with infrastructure projects in the region. The consortium will also be responsible for paying its proportionate share of certain production bonuses in the case of commercial discovery. The remaining minimum work program obligation represents an exploration commitment, expected to commence in the near future, which includes the acquisition, processing and interpretation of a minimum of 300 kilometres of 2-D seismic data and drilling of one well during the first exploration period. The company expects to spend in excess of $40-million over the next three years on the block. During the next 90 days, the company intends to evaluate its financing options to raise approximately $30-million, of which, it anticipates approximately $10-million will be spent on capital expenditures in 2008.
Stan Bharti, chairman of the board of directors, commented: "This transaction is a significant milestone for our company and its shareholders. We have been evaluating opportunities globally for Vast, and we are delighted to get involved in a region with relatively low geological risk, reasonable commercial terms and clearly established transparent contractual model and legal framework. The Qara Dagh block offers excellent potential for a major oil discovery, and it strongly positions the company to pursue further opportunities in the region. We look forward to an aggressive exploration campaign."
Preliminary geological studies including surface mapping and subsurface stratigraphical analysis have been initiated by the company. An independent evaluator engaged by the company has reviewed neighbouring oil and gas accumulations with recoverable reserves in the range of 30 million to 600 million barrels oil equivalent based on previously released public information.
Edward Sampson, chairman of Niko Resources Ltd., commented, "We are very pleased to partner with Vast on this world-class opportunity."
Conference call
The company will host a conference call to update shareholders on Wednesday, May 21, at 11 a.m. ET. Mr. Bharti, Ahmed Said and General (retired) Jay Garner will moderate the call.
Date: Wednesday, May 21, 11 a.m. ET. Local callers: 416-695-6320, North American callers: 1-888-818-4097, international callers: +1-416-695-6320.
Kurdistan region
The Kurdistan region is a semi-autonomous area located in the Federal Republic of Iraq, adjacent to Turkey, Iran and Syria. The KRG is a secular, democratically elected body that exercises executive power within the region. Due to historical political issues, this area has had very limited petroleum exploration and exploitation, despite being located in a prolific basin with giant discoveries such as the Kirkuk field.
Try a little RDL here at 1.14 was 1.50 today
edit 1.20 also
Clearwire Corporation (NASDAQ: CLWR) and Sprint Nextel Corporation (NYSE: S) today announced that they have entered into a definitive agreement to combine their next-generation wireless broadband businesses to form a new wireless communications company.
The new company, which will be named Clearwire, will be focused on expediting the deployment of the first nationwide mobile WiMAX network to provide a true mobile broadband experience for consumers, small businesses, medium and large enterprises, public safety organizations and educational institutions. The new Clearwire expects to dramatically enhance the speed and manner in which customers access all that the Internet has to offer at home, in the office and on the road.
Sprint and Clearwire also announced today that five innovative technology, content and communications leaders – Intel Corporation (NASDAQ: INTC) through Intel Capital, Google Inc. (NASDAQ: GOOG), Comcast Corporation (NASDAQ: CMSCA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), and Bright House Networks – have collectively agreed to invest $3.2 billion into the new company. The investment by the five strategic investors will be based on a target price of $20.00 per share of Clearwire’s common stock, subject to a post-closing adjustment. This adjustment is based upon the trading prices of new Clearwire common stock on the NASDAQ Market over 15 randomly selected trading days during the 30-trading day period ending on the 90th day after the closing date. The price per share will be based upon the volume weighted average price on such days and is subject to a cap of $23.00 per share and a floor of $17.00 per share. In addition, Trilogy Equity Partners, led by wireless veteran John Stanton, will invest directly in the new Clearwire’s common stock.
Upon completion of the proposed transaction, Sprint will own the largest stake in the new company with approximately 51 percent equity ownership on a fully diluted basis assuming an investment price of $20.00 per share. The existing Clearwire shareholders will own approximately 27 percent and the new strategic investors, as a group, will be acquiring approximately 22 percent for their investment of $3.2 billion, both on a fully diluted basis assuming an investment price of $20.00 per share.
Sprint and Clearwire also announced a series of commercial agreements with the strategic investors, including 3G and 4G wholesale agreements.
“For Sprint shareholders, this is an opportunity to unlock and bring visibility to the value of our significant spectrum assets, technology and expertise, by leveraging the technology, applications and distribution strengths of our investors, who together command nearly a half- trillion dollars in market capitalization,” said Dan Hesse, president and chief executive officer of Sprint. “We’ve made an excellent start developing XOHM WiMAX services. Contributing those advances to a strongly backed new company – in which we’ll hold the largest interest – provides Sprint with additional financial flexibility and allows Sprint management to leverage and focus on our core business.
“Additionally, the agreements allowing the new company and our cable company investors to bundle and resell Sprint’s third-generation wireless services strengthen the distribution of our current services while reducing the complexity and enhancing Sprint’s cable relationships,” Hesse added.
Clearwire Chairman Craig O. McCaw, said, “The power of the mobile Internet, which offers speed and mobility, home and away, on any device or screen, will fundamentally transform the communications landscape in our country. We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the U.S. to a leadership position in the global wireless industry.
Benjamin G. Wolff, chief executive officer of Clearwire, said, “The combination of robust next-generation mobile WiMAX technology and nationwide spectrum that we believe is optimal for delivering mobile broadband services – coupled with substantial new financial resources, a team of experienced wireless industry veterans, and distribution and technology agreements with some of our nation’s leading communications, technology and content companies – creates what I believe to be a once-in-a-lifetime opportunity.
"Given the complexity of this transaction, we have taken the time and effort to do it right, by thoughtfully leveraging the resources and opportunities that we and our investors are bringing to the table. This transaction is tremendous news for the entire Clearwire team – our shareholders, our customers and our employee-partners, and we look forward to partnering with the talented team from XOHM to achieve our shared vision,” Wolff added.
The strategic investors are among the nation’s leaders in communications technology, chipset development and Internet advertising, content and distribution. It is expected that the new Clearwire will have a time-to-market advantage over competitors in fourth-generation services, supported by strong spectrum holdings and a national footprint. Further, it will build on the strong foundation of Clearwire’s rapidly growing subscriber base of nearly 400,000 wireless broadband customers as of year-end 2007, as well as Sprint’s continued XOHM WiMAX network build-out in certain markets throughout this year.
“This agreement is a historic step forward for WiMAX as it represents the first nationwide deployment of a next-generation mobile broadband Internet in the U.S.,” said Paul Otellini, Intel president and CEO. “The agreement also signifies growing industry support for WiMAX. Given its flexibility, coverage and speed, WiMAX will enable the mobile Internet and is already opening doors to a host of new and exciting applications, devices and business models around the world.”
“Google is a firm believer in supporting new ways for people to access the Internet," said Eric Schmidt, chief executive officer and chairman of Google. "We are proud to invest in the new Clearwire alongside several leading technology and communications companies, and we believe that its planned WiMAX network will increase the ability for users to get high-speed broadband anytime, anywhere.”
“This is a great coalition of innovative companies that have joined together to create the next generation of mobile wireless products. It is exciting to be on the ground floor of this new venture that we believe will create unprecedented high-speed wireless products and make them available across the nation,” said Brian L. Roberts, chairman and chief executive officer of Comcast Corporation. “This transaction is attractive to us strategically and financially and puts in place very attractive wholesale relationships for access to Sprint’s existing 3G and Clearwire’s 4G networks, giving us complete flexibility to introduce wireless mobility in terms of product innovation and deployment.”
“This exciting new venture enables Time Warner Cable to help shape the next generation of wireless services in ways that will complement and enhance our products and services," said Glenn Britt, Time Warner Cable’s president and chief executive officer. “We're committed to giving our customers more control over how and where they can easily connect to what's important to them - entertainment, information, and each other. The agreements we're announcing today are a financially prudent way for us to add mobility to our offerings when our customers demand it."
“We are pleased to join our fellow cable operators as well as the new technology and wireless investors in this strategic venture. This broadband wireless relationship will help us to continue to provide the best possible competitive services for our customers, today and in the future. It is consistent with our commitment to delivering customers the products and services that they desire, whenever and wherever they want,” said Robert J. Miron, chairman and chief executive officer of Bright House Networks.
The new Clearwire expects to offer mobile wireless Internet services on a broad array of new devices that will be made possible by integrated WiMAX chipsets, scalable operating expenses and a commitment to an open architecture.
Mobile WiMAX is a standards-based wireless broadband technology designed to operate multiple times faster than today’s 3G wireless networks. With embedded WiMAX chipsets in laptops, phones, PDAs, mobile Internet devices and consumer electronic equipment, mobile WiMAX technology is expected to allow users to wirelessly access a range of multimedia applications, such as live videoconferencing, recorded video, games, large data files and more – anywhere in the network coverage area.
The transaction has been approved by all of the parties’ boards of directors, and is expected to be completed during the fourth quarter of 2008. The transaction is subject to various closing conditions including, but not limited to, the approval of Clearwire’s stockholders, and receipt of regulatory approvals, including the approval of the Federal Communications Commission and clearance under the Hart-Scott-Rodino Act.
Governance
The new Clearwire’s board of directors will be comprised initially of 13 members, including seven directors to be named by Sprint of whom at least one will be independent; four named by the strategic investors of whom at least one will be independent; one named by Eagle River, the private investment company controlled by wireless pioneer Craig O. McCaw; and one independent member to be nominated by the new company’s Nominating Committee.
The parties currently expect Craig McCaw to serve as non-executive chairman of the board. Along with McCaw, other directors expected to serve for an initial one-year term as new Clearwire board members are Dan Hesse, Sprint’s president and CEO, Brian Roberts, Comcast’s chairman and CEO, and Glenn Britt, Time Warner Cable’s president and CEO. In addition, John Stanton, chairman and CEO of Trilogy Equity Partners and former chairman and CEO of VoiceStream and Western Wireless, is expected to serve on the board.
Overview of the New Clearwire
The new Clearwire will apply for listing of its common stock on the NASDAQ under the ticker “CLWR.” The management team will be led by Benjamin G. Wolff, currently CEO of Clearwire, as the new company’s CEO and Barry West, currently Sprint’s Chief Technology Officer and XOHM business unit leader, as president of the new Clearwire. Staffing for the new Clearwire will include the talent from both Clearwire and Sprint’s XOHM business unit. The headquarters of the new Clearwire will be located in Kirkland, Wash. The new company will continue to have a significant employee presence, including research and development, in Herndon, Va.
The investment by Intel Capital, Google, Comcast, Time Warner Cable and Bright House Networks will be used to advance the development of the new Clearwire’s mobile WiMAX network. This nationwide footprint is underpinned by the substantial next-generation wireless broadband spectrum portfolio that Sprint and Clearwire collectively hold in the United States. The combined wireless spectrum should allow the new Clearwire to achieve greater coverage, cost and operational efficiencies, and bandwidth-utilization than either company could by operating alone. The new Clearwire is targeting a network deployment that will cover between 120 million and 140 million people in the U.S. by the end of 2010.
In addition to spectrum, Sprint will contribute to the new Clearwire certain hardware, software and all of its WiMAX-based trademarks and other WiMAX-related intellectual property. The new Clearwire expects to materially reduce capital and operating expenditures by leveraging Sprint’s existing infrastructure, reducing the cost of building out the mobile WiMAX network nationwide. The new Clearwire expects to utilize Sprint’s towers, fiber network and IT support at favorable bulk rates. Sprint also will realize cost savings for its core business by sharing certain costs of towers and other infrastructure.
The agreements with the strategic investor group define significant new commercial relationships, including:
* Intel will work with manufacturers to embed WiMAX chips into Intel® Centrino® 2 processor technology-based laptops and other Intel-based mobile Internet devices, and will market the new company’s service in association with Intel’s performance notebook PC brand.
* Google will partner with the new Clearwire in the development of Internet services, advertising services and applications for mobile WiMAX devices. In addition, Google will be the search provider and a preferred provider of other applications for the new Clearwire’s retail product.
* Google will partner with the new Clearwire on an open Internet business protocol for mobile broadband devices. The new Clearwire will support Google’s Android operating system software in its future voice and data devices that it provides to its retail customers.
* Sprint, Comcast, Time Warner Cable, and Bright House Networks will enter into wholesale agreements with the new Clearwire, becoming 4G providers of new Clearwire’s mobile WiMAX service.
* Comcast, Time Warner Cable, and Bright House Networks and, after completion of the transactions, the new Clearwire, will enter into 3G wholesale agreements with Sprint, becoming bundled providers of Sprint’s wireless voice and data services, expanding the reach of Sprint’s network to more customers, while providing the cable companies a simpler, more effective vehicle to bundle wireless services.
* Sprint and Google have also entered into an agreement related to Sprint's mobile services, whereby Google will become the default provider of web and local search services, both of which will be enabled with location information, for Sprint. Sprint will also preload several Google services - including Google Maps for mobile, Gmail and YouTube - on select mobile phones and provide easier access to other Google services.
* Google and Intel have options to enter into 3G and 4G wholesale agreements with Clearwire and Sprint respectively and have no current plans to do so.
Terms of the Transaction
Under the terms of the agreement, Clearwire will merge into a newly created indirect subsidiary. In the merger, shares of Clearwire’s Class A Common Stock, together with all outstanding options and warrants to purchase shares of Clearwire stock, will be converted into an equivalent number of new shares, options or warrants, respectively, in the new Clearwire. Additionally, all of Clearwire’s outstanding shares of Class B common stock, which are held by Eagle River and Intel, will convert into shares of Clearwire’s Class A Common Stock prior to the merger. Going forward, the shares of the new Clearwire will each have one vote per share. The target price of $20.00 per share implies a total equity value of approximately $3.9 billion for the existing Clearwire business.
Sprint will contribute all of its 2.5 GHz spectrum and its WiMAX-related assets into a subsidiary of the new company. The implied equity valuation of Sprint’s contribution is approximately $7.4 billion which will result in approximately 51 percent ownership, based on the target price of $20.00 per share.
Comcast will invest $1.05 billion, Intel Capital will invest $1.0 billion in addition to its previous investments made in Clearwire, Time Warner Cable will invest $550 million, Google will invest $500 million, and Bright House Networks will invest $100 million, for an aggregate total of $3.2 billion. The investments by Intel Capital, Comcast, Time Warner Cable and Bright House Networks and the contributions from Sprint will be made into a limited liability company subsidiary of the new company. Google will invest directly in the new Clearwire’s Class A common stock. In a separate transaction to occur 90 days after closing, Trilogy Equity Partners will invest $10 million in the purchase of shares of Class A common stock on the same pricing terms as the other investors.
The total transaction value will be approximately $14.5 billion, assuming an investment price of $20.00 per share.
Financial and Legal Advisors
Clearwire was advised by financial advisors Morgan Stanley and JPMorgan, and by legal counsel Davis Wright Tremaine LLP and Kirkland & Ellis LLP. Sprint was advised by financial advisors Citigroup and Lehman Brothers, and by legal counsel King & Spalding LLP, as well as by Jones Day on certain matters.
Conference Call Information
Executives of Clearwire and Sprint will discuss this announcement during a conference call at 8:30 a.m. EDT. The call in numbers are: U.S./Canada: 866-297-0891 or International/Local: 706-679-8981. The conference call passcode is 46844209. The call will be available for replay shortly after it concludes. The replay call number is 800-642-1687 or 706-645-9291 and the replay ID number is 46844209. Slides for the call will be simultaneously webcasted and can be accessed via the Internet at http://investors.clearwire.com or http://www.sprint.com/investors. The conference call will be archived and available for two weeks after the call.
About Clearwire
Clearwire, founded in October 2003 by wireless pioneer Craig O. McCaw, is a provider of simple, fast, portable and reliable wireless high-speed Internet service. Clearwire customers connect to the Internet using licensed spectrum, thus eliminating the confines of traditional cable or phone lines. Headquartered in Kirkland, Wash., the company launched its first market in August 2004 and now offers service in 50 markets across the U.S. as well as in Europe. For more information, visit www.clearwire.com.
About Sprint
Sprint offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint is widely recognized for developing, engineering and deploying innovative technologies, including two wireless networks serving approximately 54 million customers at the end of 2007; industry-leading mobile data services; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. For more information, visit www.sprint.com.
About Intel Capital and Intel
Intel Capital, Intel's global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing and cleantech. Since 1991, Intel Capital has invested more than US$7.5 billion in approximately 1,000 companies in 45 countries. In that timeframe, 168 portfolio companies have gone public on various exchanges around the world and 212 were acquired or participated in a merger. In 2007, Intel Capital invested about US$639 million in 166 deals with approximately 37 percent of funds invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.
Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom.
About Google Inc.
Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com.
About Comcast Corporation
Comcast Corporation (NASDAQ: CMCSA, CMCSK) (http://www.comcast.com) is the nation's leading provider of entertainment, information and communications products and services. With 24.7 million cable customers, 14.1 million high-speed Internet customers, and 5.2 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable systems and in the delivery of programming content.
Comcast's content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, VERSUS, G4, PBS KIDS Sprout, TV One, ten Comcast SportsNet networks and Comcast Interactive Media, which develops and operates Comcast's Internet business. Comcast also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.
About Time Warner Cable
Time Warner Cable is the second-largest cable operator in the U.S., with technologically advanced, well-clustered systems located mainly in five geographic areas — New York state (including New York City), the Carolinas, Ohio, southern California (including Los Angeles) and Texas. As of March 31, 2008, Time Warner Cable served approximately 14.7 million customers who subscribed to one or more of its video, high-speed data and voice services, representing approximately 33 million revenue generating units.
About Bright House Networks (BHN)
Bright House Networks is the nation’s 6th largest MSO with 2.4 million customers in several large markets including Bakersfield, California; Birmingham, Alabama; Detroit, Michigan; Indianapolis, Indiana; Orlando, Florida (Central Florida Division) and Tampa Bay, Florida along with several other smaller systems in Alabama and the Florida Panhandle. The high-growth Tampa/Central Florida markets are contiguous and form one of the country’s largest cable clusters. BHN’s corporate locations are in Syracuse, New York and Orlando, Florida.
SAFE HARBOR
This news release includes “forward-looking statements” within the meaning of the securities laws. The statements in this news release regarding agreements between Sprint and Clearwire and the investors and the benefits to Sprint and Clearwire of the arrangements contemplated by the agreements; plans for the development and deployment of a broadband network based on WiMAX technology; the timing, availability, capabilities, coverage, and costs of the WiMAX network; products and services to be offered on the WiMAX network; the expected closing date of the transaction; and other statements that are not historical facts are forward-looking statements. The words “will,”“would,”“may,”“should,” "estimate," "project," ”forecast,” "intend," "expect," "believe," "target," “designed” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are projections reflecting management's judgment and assumptions based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.
Future performance cannot be assured. Actual results may differ materially from those in the forward-looking statements due to a variety of factors, including, but not limited to:
* the ability of Sprint and Clearwire to complete the merger and other transactions contemplated by the definitive agreements and satisfy the conditions thereunder, including obtaining Clearwire stockholder, FCC and Department of Justice approvals;
* the uncertainties related to the implementation of each company’s respective WiMAX business strategies;
* the costs and business risks associated with deploying a WiMAX network and offering products and services utilizing WiMAX technology;
* the inability of third-party suppliers, software developers and other vendors to perform requirements and satisfy obligations necessary to create products and software designed to support WiMAX features and functionality, under agreements with one or both of Sprint and Clearwire;
* the impact of adverse network performance;
* other risks referenced from time to time in each company’s respective filings with the Securities and Exchange Commission, including in the Forms 10-K for the year ended December 31, 2007, in Part I, Item 1A, “Risk Factors.”
Sprint and Clearwire believe the forward-looking statements in this press release are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Sprint and Clearwire are not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release.
Important Additional Information will be Filed with the SEC
In connection with the proposed transaction, a registration statement on Form S-4 will be filed with the Securities and Exchange Commission. CLEARWIRE SHAREHOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, INCLUDING THE PROXY STATEMENT/PROSPECTUS THAT WILL BE PART OF THE REGISTRATION STATEMENT, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND RELATED TRANSACTIONS. The final proxy statement/prospectus will be mailed to shareholders of Clearwire. Investors and security holders will be able to obtain the documents free of charge at the SEC’s web site, www.sec.gov, or by directing a request to Clearwire Investor Relations at investorrelations@clearwire.com or (425) 216-4735. In addition, investors and security holders may access copies of the documents filed with the SEC by Clearwire on Clearwire’s website at www.clearwire.com, when they become available.
Participants in Solicitation
Sprint, Clearwire and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transactions. Information concerning Sprint’s participants is set forth in the proxy statement dated March 27, 2008 for Sprint’s 2008 annual meeting of shareholders as filed with the SEC on Schedule 14A. Information concerning Clearwire’s participants is set forth in the proxy statement dated April 29, 2008 for Clearwire’s annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the interests of participants of Sprint and Clearwire in the solicitation of proxies in respect of the proposed transactions will be included in the registration statement and proxy statement/prospectus contained therein, to be filed with the SEC. Once filed, those documents will be available free of charge at the websites of the SEC and Clearwire.
The trend seems to me that it is up. Untill the election anyway. But could change on a moments notice. I still wouldn't buy a bank stock with someone elses money.
Sold did ok but should have paid $90 not $94
I am so confused, I thought you were bearish?
The Dow closed above 13000, confirming the breakout, after a short retracement respected the new support level at 12800 — signaling buying pressure. Twiggs Money Flow holding above zero confirms the buying pressure signal. Reversal below 12800 is now unlikely and would warn of another test of 12000/11750.
Long Term: Dow purists may disagree (the January reaction only lasted 8 days but retraced roughly half of the previous decline) but the breakout should be treated as a reversal of the primary trend. The signal has now been confirmed by the S&P 500.
The Volume Oscillator (63,5) highlights unusual activity levels. A large spike in January shows strong support at 12000. The March spike, on the other hand, shows resistance. However, the index continued to rise, indicating that sellers were overwhelmed by buyers. We would normally see a similar pattern at the April breakout, but low levels indicate an absence of sellers, who would normally be expected to recoup some of their earlier losses as prices recovered. These potential sellers remain in the wings and could strengthen resistance at the previous high of 14000.
Buffett says he bought $4-billion of auction-rate debt
Joan Gralla and Jonathan Stempel
Saturday, May 03, 2008
OMAHA, Neb. — Warren Buffett Saturday said his Berkshire Hathaway holding company bought $4-billion (U.S.) of auction-rate securities during the market's recent distress.
Speaking at Berkshire's annual shareholder meeting, Mr. Buffett also said his new municipal bond insurer, Berkshire Hathaway Assurance Corp., is becoming a major force, capturing higher premiums than rivals that have been strained by exposure to subprime mortgages.
The $330-billion market for auction-rate securities, which are long-term bonds whose rates are reset periodically, froze this winter.
Investors flooded dealers with paper backed by bond insurers whom they feared would lose their “triple-A” credit ratings. As a result, many municipal bond issuers were for several weeks forced to pay uncommonly high interest rates.
Mr. Buffett spoke of how debt issued by the Los Angeles County Museum of Art fetched a 3.15 per cent interest rate on Jan. 24, and 8 per cent just three weeks later.
He also said Berkshire has bought auction-rate debt with an 11.3 per cent rate from one broker, at the exact time another broker was offering a 6 per cent rate.
“Those are huge dislocations in the market. That's crazy,” Mr. Buffett said. “Those are great times to make unusual amounts of money.” He said, nonetheless, that Berkshire, whose market value is more than $200-billion, is so large that such investments won't have a big impact on results.
Mr. Buffett also confirmed that the bond insurer he created in December was rapidly increasing market share, having won some $400-million of business in the first quarter.
Berkshire Hathaway Assurance has won “triple-A” ratings from Standard & Poor's and Moody's Investors Service.
While some rivals such as MBIA Inc. and Ambac Financial Group Inc. have also carried those ratings, Mr. Buffett said some market participants are willing to pay premiums above 2 per cent. That's well above the 1 per cent to 1.5 per cent that those other insurers typically charge.
He also said almost all of the secondary business came from issuers that already had insurance from rivals.
“It tells you something about the meaning of ‘triple-A' in the bond insurance field in the first quarter,” Mr. Buffett said.
Mr. Buffett also confirmed that in the primary market, Berkshire has insured nearly $400-million of Detroit sewer and water disposal system bonds.
In addition, he praised Ajit Jain, the Berkshire insurance executive who has overseen the development of the bond insurer. Many analysts and investors have said Mr. Jain is a top candidate to eventually succeed Mr. Buffett as Berkshire's chief executive.
“Ajit has done a remarkable job in this area,” Mr. Buffett said. “It's pretty remarkable, and I congratulate him for it.”
SDS does look a little over sold
on vacation
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