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Baltimore usually isn't considered a technology mecca. But many people in Silicon Valley, and other high-tech centers, will be watching closely to see what happens after Sprint Nextel Corp. flips the switch on a new wireless network Monday.
The service is a milestone in the gestation of WiMax, a technology that chip giant Intel Corp. and its allies have spent six years developing. Baltimore residents will be the first in the U.S. to be offered a version of WiMax that both provides wireless Internet access to home users and allows laptop users with special modems to stay connected around town at speeds comparable with wired broadband services.
Sprint's Xohm unit and Clearwire Corp. -- the two are scheduled to merge by year end -- plan to offer similar services across the nation. But WiMax faces stiff competition and other big hurdles, making the rollout in Baltimore a crucial test of how consumers will react.
Sprint is expected to charge mobile users an introductory rate of $30 a month -- about half the rate of comparable cellular data services -- and offer a home-usage plan for $25. WiMax modems, which typically plug into USB slots in a laptop, will start at about $60.
"It's here and it's real," says Sean Maloney, the Intel executive vice president who has spearheaded its WiMax push.
Over time, Intel and other companies expect to make WiMax circuitry that will be built into laptops, cellphones and other portable devices for little additional cost -- just as the short-range Wi-Fi wireless technology is now.
The possibilities were attractive enough to prompt a $3.2 billion infusion that the Sprint-Clearwire combination is slated to receive from Intel, Google Inc., Time Warner Cable Inc. and Bright House Networks Inc. "This is not just the same old telco participants," says Benjamin Wolff, chief executive of Clearwire, which will manage the WiMax rollout once the merger closes.
But WiMax faces a series of chicken-and-egg problems. A Baltimore resident who purchases a WiMax modem, for the moment, can't use it outside the city. Conversely, a manufacturer of WiMax hardware faces a small potential market until other U.S. cities are switched on. Because of disparities in radio frequencies in different countries, WiMax users may have a hard time roaming internationally until multifrequency hardware is introduced.
Meanwhile, users have other choices without the same geographic limits. Carriers such as Sprint, AT&T Inc. and Verizon Wireless, which is owned by Verizon Communications Inc. and Vodafone Group PLC, offer data services in many cities based on third-generation cellular networks. Users that move beyond their coverage territory typically stay connected at the slower rates of older networks. A WiMax user in Baltimore who strays too far will simply be disconnected, says Jeffrey Belk, a former executive at cellular-chip supplier Qualcomm Inc. who is managing director of the San Diego investment firm Ict168 Capital LLC.
Some 27 million people world-wide subscribed to 3G data services this month, up from 11 million last September, according to Informa Telecoms & Media, a London-based research firm. There were just 2.4 million WiMax users, the firm estimates.
WiMax backers expect the picture to change quickly. Among other things, WiMax is designed to exploit broad chunks of radio spectrum -- which Sprint and Clearwire hold in most U.S. cities -- that are well-suited for applications such as running video.
People familiar with Sprint's plans say Baltimore residents will see average download speeds of two megabits to four megabits a second -- on the order of residential digital-subscriber-line, or DSL, service offered by phone companies -- and upload speeds of one to two megabits a second. Those figures, especially for uploading data, exceed what most 3G services now offer. ********Sprint plans to later offer a service that combines WiMax and 3G technologies, so users will be able to roam more broadly, these people say.*******
Companies with 3G services expect to add faster variants soon, but WiMax backers believe they have a sustainable edge in cost. Clearwire's Mr. Wolff estimates that his company will be able to transmit a bit of data for about a tenth the cost of 3G networks.
Others aren't so sure, since 3G services have a head start and can use larger volumes to drive costs down. The WiMax launch "is a good thing for the marketplace, but I think it's going to be a very challenging business model and AT&T and Verizon will be able to respond," Mr. Belk says.
Over the long term, many 3G backers plan to respond by moving to a technology called LTE, for long-term evolution, which relies on many of the advances that WiMax uses. "Sprint might have some sizzle but I think we really have the beef," says Mark Siegel, a spokesman for AT&T's wireless unit, which plans to adopt LTE in three years.
Write to Don Clark at don.clark@wsj.com
http://online.wsj.com/article/SB122264384582283847.html?mod=MKTW&ru=MKTW
I understand the Baxter issue is still open amd may get resolved favorably. Something about the allowance of shares to issue or whatever. No way this gets dropped without a quid pro quo solution. You can not have your cake and eat it too unless you are a Lehman executive.
Many want the Fed to step in and prop up Lehman. The "Credit Event" of bankruptcy is not going to happen. Watch the moves to happen under the hood of the Federal bailout programs. Saving Lehman will solve many issues that can not cascade into an avalanche.
http://www.reuters.com/article/blogBurst/investing?type=hotStocksNews&w1=B7ovpm21IaDoL40ZFnNfGe&w2=B7pJeHult9GszE37UXlSpmUm&src=blogBurst_investingNews&bbPostId=CzCHNAll71WB7Cz7kwB0XDKSIQBCZ3UBsqc9PfB2XK4tlvUKWp&bbParentWidgetId=B7gSUbux1hpbz8uOa7TWsLnV
Looks like the wheels are still on the tracks going forward.
I guess our meeting will be after later in the month.
Maybe the Lehman aid will be coming after all?!
Paulson to hold press conference at 3:00 pm eastern
WASHINGTON (MarketWatch) -- Treasury Secretary Henry Paulson will hold a press conference to discuss the Bush administration's response to the global financial meltdown. Paulson will first make some brief remarks and then take questions. a Treasury spokesman said on Wednesday. The press conference will take place at 3:00 p.m. eastern.
Nomura said to buy Lehman global back-office ops
http://www.reuters.com/article/marketsNews/idINN0229467220081002?rpc=44
NEW YORK, Oct 2 (Reuters) - Nomura Holdings Inc (8604.T: Quote, Profile, Research, Stock Buzz) has agreed to acquire for several billion (4 million?) yen Lehman Brothers Holdings Inc's (LEHMQ.PK: Quote, Profile, Research, Stock Buzz) Indian operations that have handled the bankrupt U.S. company's global back-office operations and information technology development, according to a report by Nikkei Business News.
The report on Nikkei's website said Lehman decided on Sept. 22 to sell its Asia-Pacific operations to Nomura, but did not include the three Indian subsidiaries that handled back-office duties, IT development and research as part of the deal. Lehman solicited buyers for these units separately.
Nomura has already bought Lehman's European, Middle Eastern and Asia-Pacific operations, the report added. (Editing by Andre Grenon)
Mobile maker Nokia (News - Alert) reportedly has entered into a license agreement with Huawei and its affiliates, covering patents for worldwide cellular standards, the companies said today.
Financial details of the deal were not disclosed.
The license agreement covers the worldwide use of standards essential patents of all parties, including Global System of Mobile communications, Wireless Code Division Multiple Access, CDMA2000, optical networking, datacom and WiMax in mobile devices, infrastructure and services, the companies said.
The cross-license gives Huawei, a supplier of networking and telecom equipment in China, access to Nokia’s patent portfolio in all major wireless standards including GSM and WCDMA. The deal gives Nokia and Nokia Siemens Networks (News - Alert) the access to Huawei’s patents, including those required for third-generation operations in China.
According to Gottfried Weidel, head of Intellectual Property Rights at Nokia Siemens Networks, the new agreement will help the companies create a more predictable business environment and further support industry innovation.
“As a newer player in the telecoms IPR environment, Nokia Siemens Networks see this as our most significant licensing agreement to date,” Weidel said.
“We are very pleased to have entered into this agreement with Huawei,” said Ilkka Rahnasto, vice president of intellectual property rights at Nokia. “Huawei is the thirty-fifth company to license Nokia patents related to cellular standards and this agreement demonstrates how companies can license intellectual property in a way that encourages industry innovation and fosters a healthy IPR environment.”
Winning 17 new commercial WiMAX (News - Alert) 16e contracts in the first half of 2008, Huawei is the only solution provider to rank in the “top three” across mobile, fixed network and IP segments, according to industry analyst firms Dittberner, Ovum (News - Alert)-RHK and Gartner. To date, Huawei has secured 29 WiMAX 16e commercial contracts and accumulated more than 35 trials.
“This agreement is of great significance and benefit to Huawei, Nokia and Nokia Siemens Networks,” said Song Liuping, vice president and chief legal officer at Huawei. “It underscores our commitment to create a harmonious environment for the benefit and development of the telecom industry.”
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is The Compelling ROI Benefits of Contact Center Quality and Performance Management Technologies, brought to you by Voice Print International (News - Alert).
Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.
(If Nokia ever licenses our tech then China would be in the mix.)
Akshay K. Sharma
Research Director
Weston, FL USA
Professional Background
Calypso Wireless, CTO, 1 year
Siemens Mobile, Senior Manager - Chief Architect Core Switching, 1 year
Education
Completed course work toward Doctorate in Computer Engineering
B. Eng., Computer and Systems Engineering
http://www.gartner.com/AnalystBiography?authorId=28834
His papers for industry clients would show knowledge of patent infringement. Nortel and other Gartner Group clientel better be prepared for this non-compliance re Calypso's IT.
Maybe three million dollars for the patent fight? Hope the prior contact information is on file.
Wi-Fi's Future: Patent-Pending?
By Ed Sutherland
A flurry of patent claims causing concern in the high-flying Wi-Fi industry are grounded in old-fashion economics, says a Silicon Valley expert.
"Merely selling products" is not enough to stave off stiff competition, says Dennis Fernandez, a partner in a law firm dealing with high-tech patent issues. He points to pressure by venture capital firms funding many Wi-Fi companies.
"In Silicon Valley, many venture capital firms sitting on startup boards of directors require" that startups "devote serious attention to building -up their intellectual property (IP) position," says Fernandez.
One of the most publicly-visible aspects of Wi-Fi is the hotspot -- public locations where wireless users can connect to the Internet or office network while sipping coffee or waiting in an airport. Users often grouse about the difficulties in logging into different hostpot provider networks which many times require changes in settings.
Concern over Wi-Fi patents was ignited in January when Nomadix said gained patent on technology making it easier to redirect a wireless laptop or other portable computer to hotspots.
Covering "redirection to a portal for any user regardless of their settings," the Nomadix patent touched off questions about the company's intentions. While Nomadix co-founder Dr. Joel Short was quick to assure ISPs and others that the patent would not be used as a club, "we encourage people to license and not infringe."
Robert Leon, co-founder and CTO Calypso Wireless Using a carrot-and-stick approach, Calypso is asking major cell phone carriers to license its roaming technology both in order to stay out of court and to increase their profits by offering cell phone subscribers voice, video and broadband over Internet services available via Wi-Fi connections.
Boston-based Newbury Networks holds the patent to technology for managing and securing wireless networks. Used in its Wi-Fi Watchdog product, Newbury's patent says this technology "detects the real-time position and tracks the location of any 802.11 device over a wireless LAN."
The patents aren't preventing competitors from speaking out. Birdstep says its roaming technology uses the standards-based Mobile IP for 'seamless roaming.' In 2003, PCTEL agreed to add Birstep's technology to its Segue Roaming Roaming Client for Windows. Broadbeam is another vendor offering the ability to roam between cell and Wi-Fi networks.
Does this mean more courtroom battles? Fernandez doesn't think so, saying "Patent lawsuits are notoriously expensive to fight."
At up to $2 million per case, "it's unlikely that there will be many parties eager to test these litigation waters. The vast majority of cases will get settled early."
Via Licensing must have overheard Fernandez because it is hoping to do for Wi-Fi what it has done for consumer electronics. The company, a subsidiary of Dolby Laboratories, believes an "patent pool" would provide one-stop shopping for Wi-Fi license holders and licensees.
"There are a number of patent pools that are based around CD, DVD, and audio and video technologies," says Via's Ron Moore. Via has created such pools for the MPEG standard.
This "is much better than just building products based on a standard then one day having someone come to you with patents in hand asking you to write a big check," says Moore.
But can companies profit from patents? Calypso thinks so. It is hoping to increase revenue by following the Qualcomm model. The cell phone technology designer turns a profit partially from the royalties garnered by its CDMA patents.
It's not always so easy.
"The pure IP business model of collecting royalties based on technology development without actually building and shipping a product is more difficult than people commonly think," says Fernandez.
March 11, 2004
Short sellers see this trap!
The Paulson plan's defeat on Monday was not the end of the world, and may not even be lasting. But it does invite us to revisit the sideshow of mark-to-market accounting.
Even as this agnostic column was giving birth to itself, the SEC's chief accountant released a new "interpretation" late yesterday meant to relax these vexatious rules. The Dow jumped 485 points. Were investors reacting to the SEC announcement -- or hope of the Paulson plan being revived in Congress? Perhaps they concluded that the two are one in the same.
OK, get out your NoDoz and let's wade in. Under current interpretation of accounting rules, banks can be obliged to value loan holdings based on their liquidation or fire-sale value, even if (as now) the fire-sale values are lower than might be suggested by the cash flow and payoff prospects of the underlying assets.
Now recall that accounting is a language of abstraction. In the normal case of a public company, whatever method it uses to value its assets, it merely provides a benchmark for investors to make their own judgments. Nobody takes accounting values as the final word.
Banks, though, are subject to regulatory capital standards and therefore can be rendered insolvent overnight based on an accounting writedown. At the moment, many banks are clinging to "market" values for loans that are higher than probable fire-sale values, and doing so on tenuous grounds. In kibitzing over the Paulson plan, indeed, one knotty question was how Treasury could buy such loans at a price "fair to taxpayers" without propelling the sellers into federal receivership.
Because of all this, the regulatory state finds itself in a somewhat absurd position -- its own rules could render many financial institutions insolvent in a manner inconvenient to the state.
We choose the adjective advisedly. These institutions are guaranteed by the federal government, implicitly or explicitly, so questions of solvency are largely academic -- except as to the value of their equity. In fact, much of the ferocious argument over mark-to-market really is a political battle between CEOs and short sellers for control of the stock price. Washington wishes they'd just shut up before savers and lenders join the argument -- because, in present circumstances, we'd call that a "bank run."
Then there's a third group on the sidelines who attribute religious or ethical superiority to mark-to-market. Their sentiments are simply misplaced. Mark-to-market and its alternatives all have their uses -- a rose by any other name. A savvy analyst looks at them all with the same gimlet eye.
But usefulness is not what we're talking about here -- we're talking about a regulatory trap for equity, created as an unintended consequence of a well-meaning accounting rule. Short sellers see this trap and try to exploit it. Uninsured lenders and depositors see it and worry about not getting paid back. That fear is why banks have all but stopped lending to each other -- and why Henry Paulson launched his plan, and why the SEC made its move yesterday.
Accounting straddles the real and unreal, so it's hard to guess how much difference getting rid of mark-to-market might really make. The only way to find out is to try.
A mere accounting rule change won't reduce foreclosures or raise home prices -- then again, if spared drastic writedowns, banks might be more willing to lend, raising home prices and reducing foreclosures.
A mere accounting rule can't alter the underlying economics of a lending business -- then again, no longer worried about insolvency-by-accountant, investors might discover new confidence to inject capital and improve the underlying economics of a lending business.
No accounting rule is worth $700 billion. Then again, the essence of the Paulson plan was to raise the value of bank assets to help banks escape the regulatory equity trap. Does that mean we can change an accounting rule and save Congress from having to appropriate $700 billion?
Let's find out.
As I understand it the shorts did a Bear raid on Lehman. The bad debt is only like 8% of the total notes if that and because of the mentality of the buyers these notes did not trade anymore. The credit crisis spread and the shorts piled in causing a freeze. Now the entire financial market is like frozen and Lehman's situation has caused extreme burdens on many hedges and related businesses. This hint of bad loans was exagerated beyond reason and with the mark to market rule being impliments the markets were totally unprepared for the continued consequenses of the shorts on the financials and the new loan reserved requirements resulting from the accounting mark to market standard.
The dominoes fell perfectly for the shorts and now they want to run the book and keep the position under without any gasps of air to recover themselves. This is how the shorts behave and they want every PENNY of profit they can get.
They will never run scared as they have an enormous profit already and can tolerate a run to $8 without any fear. Remember they started shorting in the $50s so the recent shorts are meaningless to them. They now want LTCG status before they cover.
Lehman will find help in the bailout and will return to a reasonable profit based on today's close. The name and history of Lehman's will survive and the list of shorts will be public be the bann is lifted. Expect the ban to last until January as the World community is not happy with the situation and Washington has to show deference to its partners.
Cuomo Investigates Credit-Default Swaps Along With Short Sales
By Karen Freifeld and Shannon D. Harrington
Sept. 27 (Bloomberg) -- New York Attorney General Andrew Cuomo's investigation of short selling has been expanded to include trading in the $54.6 trillion credit-default swaps market, according to a person in his office.
Cuomo is probing whether credit-default swaps were manipulated by short sellers to spread false rumors about financial companies such as bankrupt securities firm Lehman Brothers Holdings Inc. to drive down stock prices, the person said, asking not to be identified by name.
Cuomo likely wants to know if the credit-default swaps are fueling the failures of financial institutions including Lehman Brothers and mortgage companies Fannie Mae and Freddie Mac, said Anthony J. Carfang, a partner at Treasury Strategies Inc., a Chicago-based consulting firm.
``You have a set of people doing this trade and they're targeting one company at a time,'' Carfang said yesterday in a phone interview. ``When Fannie Mae goes under, they move on to the next target, which was Lehman Brothers, and now you see them in Wachovia and Morgan Stanley.''
Credit-default swaps on both Wachovia Corp., the fourth- largest U.S. bank, and Morgan Stanley reached record highs yesterday, suggesting investors are betting on a failure or hedging against losses.
Regulating Swaps
Several regulators are focusing on credit-default swaps to see if the bets are fueling the global financial crisis. U.S. Securities and Exchange Commission Chairman Christopher Cox said Sept. 23 that Congress should immediately grant authority to regulate the swaps, which investors use as insurance against a drop in the value of investments, such as bonds.
Separately, New York State's insurance regulators began regulating part of the credit-default swaps market Sept. 22. Manhattan District Attorney Robert Morgenthau has opened an investigation of the swaps market too, his office said.
Cuomo on Sept. 25 subpoenaed three companies that provide price and trading data on the credit-default swaps market: Markit Group Ltd., Depository Trust & Clearing Corp. and Bloomberg LP, the parent of Bloomberg News, according to the person in his office. Cuomo also has subpoenaed hedge funds in New York, Texas and London as part of the probe, the person said.
Information Sought
The attorney general's office is seeking information on transactions since July 1 involving Lehman Brothers, Goldman Sachs Group Inc. and Morgan Stanley, the person said.
Cuomo may not find much evidence of collusion because of volatile swings in credit-default swap costs that would have made shorting the companies expensive, said Tim Backshall, chief strategist at Credit Derivatives Research LLC in Walnut Creek, California.
``I really don't think this was widespread, even if it was happening at all,'' Backshall said in a phone interview. ``Claiming CDS were the cause is just ridiculous.''
Lehman filed for bankruptcy protection Sept. 15. Goldman Sachs and Morgan Stanley said this week they are converting to bank holding companies.
Cuomo said last week he was also looking at short sales involving Merrill Lynch & Co., which agreed to sell itself to Bank of America; American International Group Inc., which averted collapse last week by agreeing to a federal takeover, and Washington Mutual Inc., whose assets were sold to JPMorgan after U.S. regulators seized it Sept. 25.
William Leone, former U.S. Attorney for Colorado, now a partner at Faegre & Benson LLP in Denver, doesn't think a probe of credit-default swaps is suited to a state regulator.
`National Approach'
``This doesn't strike me as something a state attorney general's office is very well equipped to investigate,'' Leone said in a phone interview. ``What's needed is a national approach.''
Cuomo announced Sept. 18 he was also investigating short sales of Morgan Stanley, Goldman Sachs and other financial firms to see if the sellers spread false information to push down stock prices. He said his probe also would examine trades of Lehman and AIG. The probe would focus on financial companies whose shares suffered ``precipitous'' drops in mid-September as a result of predatory practices, Cuomo said.
The expansion of the probe to include credit-default swaps was first reported yesterday in the Wall Street Journal.
Morgenthau's Probe
Morgenthau's probe includes a focus on credit-default swaps as well as representations short sellers may have made to drive stocks down, according to Daniel Castleman, chief assistant Manhattan district attorney, who would not identify the companies involved.
``It's very preliminary,'' Castleman said.
Judith Czelusniak, a spokeswoman for Bloomberg LP in New York, said the company received a subpoena from Cuomo. She declined to comment further.
Caroline Lumley, a spokeswoman at Markit Group Ltd. in London and Depository Trust spokeswoman Judy Inosanto declined to comment.
Short sellers try to profit by betting stock prices will fall. In a short sale, traders borrow shares that they then sell. If the price drops, the brokers pocket the difference when they buy back the stock and return it.
In a practice called naked short selling, traders never borrow the shares, raising the risk that flooding the markets with sell orders will drive down prices.
Investors may buy credit-default swaps to bet that a company's financial condition will worsen. The contracts pay the holder face value for the underlying securities or the cash equivalent should a company fail to repay its debt. The instruments' value increases as investor perception of the company's stability deteriorates.
Fannie, Freddie shares jump as shorts book profits
Thu Sep 25, 2008 3:44pm EDT
By Lynn Adler and Doris Frankel
NEW YORK/CHICAGO (Reuters) - Fannie Mae and Freddie Mac shares jumped almost 50 percent on Thursday as Congress neared an agreement on a $700 billion bailout plan that would help the two mortgage finance companies, forcing some investors to reverse bets the stocks would fall.
The shares are trading at nearly 10 times the lows set after the U.S. government took control of the two companies in early September.
Investors faced with a short-selling ban are reversing bearish bets on Fannie (FNM.P: Quote, Profile, Research, Stock Buzz) and Freddie (FRE.P: Quote, Profile, Research, Stock Buzz) now that the two companies stand to benefit in the bailout agreement being hammered out in Congress, analysts and investors said.
"It's speculative in the sense that it's impossible to know at this point what the residual value might be for the shareholders, so people are trading on technical indicators. They are trading on what they suppose the shorts might have to do," said Marshall Front of Front Barnett Associates in Chicago. His firm owns 13,000 shares of Fannie Mae.
The shares of both companies were virtually wiped out earlier this month after the government takeover, trading at 35 cents or less. They are now around $2 per share.
The Securities and Exchange Commission had issued an emergency order to temporarily halt short-selling on more than 900 financial stocks, including Fannie Mae and Freddie Mac, in a move to protect investors and markets.
Under the SEC's emergency order, short selling is prohibited in these shares until October 2.
The practice has been blamed for exacerbating the financial crisis that compelled the government to intervene with an impending system wide bailout.
"Passing the (bailout) legislation presumably will relieve some pressure on the financial area and relieve some pressure on Fannie Mae," Front said.
The company's shares "were sold to a point where investors were saying there's no value in this at all, which is probably not true," he added. "Particularly if you take a time horizon of three or four years where many of the mortgages that they hold will come due at par, and right now people are giving them an enormous price haircut."
New York Stock Exchange figures released late Wednesday showed that Fannie and Freddie were among the five companies with the biggest drop in short positions, but sizable positions still exist.
"Six trading days after conservatorship took share values to minimal levels, large short positions were still being carried on the exchange," FTN Financial analyst Jim Vogel wrote in a client note.
"We knew the shorts hadn't all been covered by the recent price action, but both companies remain at ridiculously high short sale levels, just several percentage points lower than the August 29 peaks," he said. He expects much more short covering through the fall unless the share price moves toward $5.00.
In the options market, call activity in both Fannie and Freddie was active, reflecting expectations that the shares will continue moving higher.
An equity call allows an investor to buy the company's shares at a given price and time.
"People were buying Fannie Mae calls. This appears to be in reaction to the government bailout plan, which tentatively looks like it will be approved," said Joe Cusick," senior market analyst at online brokerage optionsXpress Holdings Inc in Chicago.
"The $2.50 and $3 October call strikes were the most active as investors speculate on a potential bullish move in Fannie Mae's stock price," he said.
Frederic Ruffy, options strategist at Web information site WhatsTrading.com, said heavy short-covering and hopes that the two companies could eventually move out of conservatorship were among reasons for the steep share rebound.
Some investors are betting that common shareholder rights will be fully restored, perhaps sooner than expected if the early results from the bailout plan prove to be working as policy-makers hope, he said on his website.
(Editing by Leslie Adler)
Must read for investors. S & P explains it's ratings.
http://www.reuters.com/article/marketsNews/idINN2446040820080924?rpc=44
Most likely will see the ban remain pass the Oct date. Extended out to January is my guess.
Short list ban grows!
REITs that have been beaten up recently, such as General Growth, are battling concerns they won't be able to refinance their debt at favorable terms or at all amid poor credit conditions. "They really could see a half-baked liquidity crunch."
Volkswagen ends day up more than 25%
By Steve Goldstein, MarketWatch
Last update: 12:46 p.m. EDT Sept. 18, 2008LONDON (MarketWatch) -- The world's financial system is in turmoil. Auto sales are down around the world, yet the stock price of Volkswagen is taking off.
Germany's Volkswagen (DE:766400: news, chart, profile) , the leading automaker in Europe by sales, ended with a one-day pop of nearly 27%, extending gains made Tuesday and Wednesday.
The appreciation doesn't appear to have anything to do with an improved outlook, and only partly seems related to the interest that Porsche has expressed in securing 50% control of the Wolfsburg-based automaker.
On Tuesday, Porsche said that it increased its stake to 35% -- which, given the typical attendance at shareholder meetings, gives it control of the automaker.
Porsche also clung to its view that it wants to eventually improve its stake to more than 50%.
But Porsche, and its second-leading shareholder, the Lower State of Saxony, both said Thursday that they didn't enter the open market to buy VW shares.
The Lower State of Saxony has an interest in buying up more VW shares as it wrestles with Porsche to make sure it still has a say in VW's decisions.
That means the gains in all likelihood have been driven by technical reasons. A popular trade in Germany was to short Volkswagen common shares and go long on the VW preferred stock (DE:766403: news, chart, profile) .
But such a trade hasn't always been successful. Düsseldorf-based bank WestLB has lost hundreds of millions of dollars doing precisely this.
Still, it's apparently popular. The preferred class of shares ended with a loss of more than 3% Thursday.
What that suggests is that investors facing margin calls amid the global crisis are closing out their short positions by buying the VW common shares. That's being accompanied, to a far lesser degree, by selling out of the preferred.
The move also could be related to the expiration of key options and futures contracts Friday.
"I've never seen in my 34 years seen such a stupid move," said Heino Ruland, a strategist at FrankfurtFinanz. "This has to be an enforced fulfillment."
Ruland posits that if hedging were done through Lehman Brothers Holdings Inc. perhaps by Porsche, which has actively traded VW shares -- then those assets would be unavailable because Lehman accounts are frozen in Germany.
"If Lehman is the indirect holder from Porsche, then someone needs to close the gap on those options," added Ruland. "It's extremely weird how that price was pushed up on heavy volume."
He suggests that someone, or some firm, is sitting on a loss of more than 1.5 billion euros, based on the moves over the last three days.
Collapse of Lehman leaves prime broker model in question
By James Mackintosh
Published: September 25 2008 03:00 | Last updated: September 25 2008 03:00
For the past year some of the smartest people in the hedge fund industry have been worrying about the safety of their prime brokers, the lucrative arms of investment banks which service hedge funds.
This month the dangers shot into the open, as the collapse of Lehman Brothers led to concerns about the survival of Morgan Stanley and Goldman Sachs, the investment banks which run the world's two biggest prime brokers. Among hedge funds this caused widespread panic. Funds that used Lehman - including GLG Partners, Amber Capital and Ramius - have found they cannot access a total of $40bn of assets held at the European arm of the bank.
Those that did not use Lehman raced to shift money out of Morgan and Goldman into the prime brokerages of commercial banks regarded as safer, including JPMorgan Chase, Credit Suisse, Citigroup, Deutsche Bank, Barclays Capital and UBS. A handful of jittery hedge funds cut their borrowing and moved assets to custodians such as Bank of New York Mellon and State Street, who guard trillions of dollars for mutual fund managers and institutions.
In the process hedge funds caused wild swings in shares such as Volkswagen, buying back stocks they had been betting against and trying to hedge positions stuck at Lehman. "Every minute that these assets are frozen and we are unable to trade on them is a minute of significant potential harm to our investors," Amber Capital said.
Many hedge funds are still buried in the rubble of Lehman, but others are pondering their future banking relationships. Their concerns go to the heart of the prime brokerage business model, which is built on a practice known as rehypothecation. A proportion of assets used to back loans can usually be "rehypothecated" into the prime broker's name, so the broker can use them to raise cash.
This cash is then used to fund lending to funds for leveraged purchases, and to support the borrowing of stock the prime broker can lend to funds wanting to go short.
The dangers for hedge funds of having their assets rehypothecated became painfully clear last week: $22bn of the $40bn held by Lehman's European prime brokerage had been rehypothecated.
Hedge funds trying to reclaim the rehypothecated assets have found themselves in the queue of general creditors, likely to get back only a proportion of their money.
Even those hedge funds which had insisted they did not want their assets rehypothecated - such as Amber and a small RAB Capital fund - face a long and potentially painful wait to get back securities held in segregated client accounts. PwC, administrators of Lehman's London business, have told hedge funds it is likely to take months to calculate how much is due to whom, and to offset this against debts.
But it is rehypothecation which poses the biggest threat to hedge funds, and could lead to the biggest changes in the prime brokerage industry.
The main prime brokers were almost completely self-funding, according to current and former executives, needing very little access to the balance sheet of their parent bank, thanks to hedge fund cash kept on deposit and the rehypothecation of assets.
Most of the cash has already gone, hedge fund managers say, shifted away from prime brokerages to banks regarded as safer
Take away rehypothecation, and banks will have to borrow at far more expensive rates in order to lend to hedge funds, pushing down their profitability and pushing up the cost of borrowing.
"Corrective action needed to take place because a rush of prime brokers into the market had caused aggressive margin pricing," said Nick Roe, head of prime finance at Citigroup. "Some hedge funds were getting extraordinarily cheap money.
"If hedge funds now say you cannot rehypothecate, the cost of finance may be more expensive than hedge funds are willing to pay."
Exactly how much more is hard to calculate, but brokers estimate the cost of internal financing across City and Wall Street banks is now 1.5-3 percentage points over Libor, against about 0.6 points for rehypothecated assets.
Some bankers argue that the prohibitive cost will make hedge funds stick with prime brokers and rehypothecation. Others, though, argue that big changes are on the way.
"What we have now is a great opportunity to reduce the structural and systemic risks from counterparties in hedge fund investing," said Rick Sopher, who oversees investments in hedge funds at LCF Rothschild Group.
For some of the biggest institutional investors in hedge funds, the small risk of a bank collapse taking out a series of funds is seen as much more dangerous than accepting lower returns.
Many of the biggest funds agree. Citadel, the $20bn hedge fund, has gone the furthest to protect itself from problems, raising debt from the private bond market. But others have taken term loans from big banks such as HSBC, or set up daily "sweeps" to remove from their prime brokers assets not being used as collateral.
For the highly profitable prime brokers, this loss of assets would be terrible news if extended across the industry, pushing up their funding costs and hurting what for many banks was the most profitable division in recent years.
Ideas being bandied about by hedge funds could be even worse news. Some are considering whether assets could be kept secure at custodians, with the broker given a charge over those it lends against - making the assets safe from a bank collapse by blocking rehypothecation altogether.
Others wonder whether prime brokers could set up a segregated custody division, something which appeals to managers who doubt the capability of established custodians, but trust their prime brokers.
Even if there is no dramatic change to the business model, prime brokers face a less profitable future and hedge funds will have to pay more for less generous leverage. If investors get their way, that cost will be even higher - but at least there will be less chance of funds being destroyed by a catastrophic bank collapse.
lol
You wish. Something like $1.25 is likely.
The brokerage business is gone and the risk dealing with the hedge funds assets will not be repeated. Many funds still stuck with rehypo assets locked in the rubble. They will have to cover like Volkswagon spike. Just wait.
The disclosure of the rehypo assets is being computed. May explain the increased short position released today.
If this is the cause then maybe a quicker bounce to the dollar range.
Those who bailed today will wish they had stayed.
The BK Protection will allow Lehman to find an answer. I think the bailout will provide the solution along with other newly open doors.
Just keep the shorts at bay!
As long as the shorts are afraid of the CROSS we will be fine.
Filing BK with more assets then liabilities was a smart move.
The fire sales going on will not happen here. The current price is much too low considering the Fed rescue.
Shorts will stay away and the value will bounce back. The recent asset sales were too low and are being reviewed. Expect better terms in the future.
Remember the original value for Bear? Later revised up!
Looking at the FREDDY action and AIG you get the comps for a higher valuation for LEHMAN.
Considering the range of trading today many speculators will venture in to kick the tires and see if there is any value. The chance to make an easy profit with a liquid investment and a wide trading range will excite more frenzy.
The crowd mentality works both ways.
L. Matt WilsonGA Bar No: 768801THE WILSON LAW FIRM, PC950 East Paces Ferry RoadSuite 3250 - Atlanta PlazaAtlanta, Georgia 30326Telephone:(404)364-2240Facsimile:(404)266-7459IN THE UNITED STATES BANKRUPTCY COURTFOR THE SOUTHERN DISTRICT OF NEW YORKIN RE:))LEHMAN BROTHERS HOLDINGS, INC.)Case No. 08-13555-jmp)Debtor.)Chapter 11))OBJECTION TO SALE MOTIONComes now Greg Georgas, shareholder of the Debtor, by and through his undersignedcounsel, who files this his OBJECTION TO SALE MOTION, as follows:1.The Asset Purchase Agreement (“Purchase Agreement”) was dated on September 16,2008, a day when the public markets were under tremendous turmoil with so-called “naked shortsellers” specifically targeting the Debtor’s stock, causing widespread public market “panic”which evidently lead to panic among the Debtor’s Senior Management and its Board ofDirectors.2.The Assets subject to the Purchase Agreement are very well-established, valuableoperating assets, including the Debtor’s core business divisions which have consistently beenoperated profitably for many years. The price for these core business divisions is only$250,000,000, with additional amounts being paid for certain real estate, and with a priceadjustment at the end of the first year that can not exceed an additional $750,000,000. Theseamounts are not fair and adequate in consideration of the net income which has historically beenproduced, and may reasonably be expected to be produced in the future, by the subject Assets. 3.
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The Debtor’s September 10, 2008 Press Release announced Preliminary Third Quarter,2008, financial results, further indicated that absent Gross Mark-to-Market Adjustments of $5.3Billion on Residential Mortgage-Related Positions, the Debtor would have reported $1.4 Billionin Net Income. A substantial portion of this Net Income would be have been attributed to theAssets subject to the Purchase Agreement.4. The Federal Reserve and U.S. Treasury and various member of the US Congress haveannounced an intention to create a bailout designed to stem further losses in the ResidentialMortgage-Related Markets. There is every indication that the Debtor could and will be able toparticipate in this bailout fund, thereby providing further protections from losses related toResidential Mortgage-Related Investments, such that the Debtor’s best course of action may be topetition this Court to dismiss its Bankruptcy. 5. The Debtor’s September 10, 2008 Press Release announced Preliminary Third Quarter,2008, financial results, further indicated that the Debtor had “Estimated Liquidity Pool of $42Billion.”6.The Debtor’s September 10, 2008 Press Release announced Preliminary Third Quarter,2008, financial results, indicating that “Total Shareholder’s Equity of $28.4 Billion, Up from$26.3 Billion.” There has been no examination, explanation, or analysis as to the impact of theproposed Asset Sale on this very significant positive Shareholder’s Equity, which can not beadequately protected by Creditors acting in their own interests.7.More importantly, the market conditions in the real world have substantially improved, because of various events of government intervention, such as the SEC’s barring of “nakedshort” selling; the Federal Reserve’s extension of loans to AIG Insurance Company, and theFederal Reserve’s extension of approximately $200 Billion into the banking system, all of whichprovide for changed market conditions, such that the Debtor’s Senior Management, and its Boardof Directors, and this Honorable Court, should not proceed with any undue haste to approve thesubject Asset Sale.8.Therefore, at this time, contrary to Paragraph B of this Court’s September 17, 2008 Order,the Purchase Agreement does not appear to be in the best interest of the Debtor, and certainly notin the best interests of the Debtor’s shareholders. At best, there is no evidence to support thisconclusion, or the evidence in regard to this conclusion would have potentially changed, suchthat the Court should reconsider this issue, and require that the Debtor and its Creditors to satisfythe Court with record evidence in this regard. The hand-wringing of panicked executives shouldnot be accepted as evidence of best interests. 9.
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Similarly, at this time, contrary to Paragraph D of this Court’s September 17, 2008Order, there no longer appears to be any threat of immediate or irreparable harm if the approvalof the Sale is postponed to permit a more through, appropriate, and in-debt consideration of thesale and/or a public market auction of these assets, in a more calm manner free from panic.10.Similarly, at this time, contrary to Paragraph E of this Court’s September 17, 2008 Order,the Purchased Assets no longer appear to be wasting, and the exigent circumstances have waned,such that it appears appropriate for the approval to be addressed in a more thoughtful anddeliberate manner. For all of these reasons, the undersigned, on behalf of shareholder Greg Georgas, herebyobjects to the said sale, and particularly to the consideration of the sale on an emergency,expedite, or panicked basis. Respectfully submitted, this 19 day of September, 2008.thTHE WILSON LAW FIRM, P.C./s/ L. Matt WilsonL. Matt WilsonGeorgia Bar No. 768801THE WILSON LAW FIRM, P.C.950 East Paces Ferry RoadSuite 3250 - Atlanta PlazaAtlanta, Georgia 30326Telephone:(404)364-2240Facsimile:(404)266-7459Z:\WP\830\01\Objection to Sale.pld.wpd
AND, the Fed will cut the rate down so the banks can make money from the public and pay them next to nothing. This rate cut will really stimulate the financial sector.
The Financial sector slaughter is over and a recovery is perking with the bailout discussion. Can you feel the shifting sentiment?
When all others are selling, THEN is the time to BUY.
Buffett's show of support may bring others into the fray.
etc........
Additionally, the creditors have a market to sell their debts and avoid the bk ct wait. This move allows a consolidation of claims and helps in bk proceedings. Saves money for Lehman and offers relief to the creditors.
FBI investigations into the shorts will bring a public show and I suspect many shorts are moving fast to cover to escape exposure. Squeezed move today is not finished.
Some reasons why the stock bounced today.
The dispositions of the various assets may have raised some capital to negotiate in bk court.
The bailout will aid in the mortgage instruments.
The ban on shorting finanacials always helps.
The volume of shorts needing to cover and move on to other deals.
The threat of an extended 3 month shorting ban like European markets have.
The confidence that a firm with such a long history can wiggle enough to save itself is evident in the markets.
The thought that the Government may still come to the aid of Lehman in allowing special access to new opportunities. Remember this firm is an institutional worker.
Why did it take so long to pickup on CT's position with Baxter?
Google made its debut as a cell phone software provider Tuesday at an event where wireless carrier T-Mobile said it will begin selling the G1 phone for $179 with a two-year contract. The device hits U.S. stores Oct. 22 and heads to Britain in November and other European countries early next year.
The phone will be sold in T-Mobile stores only in the U.S. cities where the company has rolled out its faster, third-generation wireless data network. By launch, that will be 21 cities, including New York, Los Angeles, Houston and Miami.
In other areas, people will be able to buy the phone from T-Mobile's Web site. The phone does work on T-Mobile's slower data network, but it's optimized for the faster networks. It can also connect at Wi-Fi hotspots.
The data plan for the phone will cost $25 per month on top of the calling service, at the low end of the range for data plans at U.S. wireless carriers. And at $179, the G1 is $20 less than the least expensive iPhone in the U.S.
*************
I wonder if Google will take advantage of Calypso's tech.
Wireless Companies Struggling with Data Demand
As consumers *snap* (lol) up smartphones, wireless industry experts see rising data rates as the first effort by providers to moderate consumer use
by Olga Kharif
Alexander Krasnitsky loves all the cool things he can do on the Web with his new Apple iPhone 3G. But he hates the 75% surge in the monthly bills he pays his wireless service provider. "I definitely have no love for AT&T," says Krasnitsky, a lawyer who resides in Philadelphia.
It shouldn't come as a surprise that consumers who do more with their phones—Krasnitsky has downloaded some 40 applications from Apple's (AAPL) online software store—will face higher monthly service fees.
But there's growing concern among analysts, lawmakers, and wireless industry experts that swiftly rising data rates are only the first drop of what may become a deluge of efforts by mobile-phone service providers to moderate data use by consumers and get ahead of the strain placed on their networks. "They are struggling to keep up," says John Celentano, president of Skyline Marketing Group, a research and analysis firm that tracks telecom spending. In some cases, mobile-phone service providers "didn't quite anticipate" how quickly data demand would skyrocket, he says.
Dream Come True?
For years, as the price of wireless voice calls plummeted, mobile-phone service providers longed for the day when consumers en masse would use their handsets for more than sending calls and the occasional text message. The industry is finally getting what it wished for.
Use of mobile e-mail, browsing, and downloads is on the rise as Americans snap up smartphones like the Apple iPhone 3G. An average owner of the new iPhone uses three times more data than a holder of even an older iPhone version, according to AT&T (T). And the phenomenon is much larger than Apple. People are buying Research In Motion's (RIMM) BlackBerry devices, snapping up special cards that connect laptops to the mobile Web, and purchasing specialized mobile data-only devices like the Kindle, an e-reader from Amazon (AMZN) that wirelessly downloads books.
In the 12 months through June 2008, the number of Americans who had access to media-rich social networking sites via a mobile phone rose 93%, according to a survey of more than 30,500 U.S. consumers by research firm comScore (SCOR). About 58% more people sent photos with a phone than in the year before, and the number of Americans with an unlimited data plan rose 58%. "We've seen a significant acceleration [in data use] in the past year," says Mark Donovan, a comScore senior analyst.
The question is whether the mobile-phone networks blanketing the country are up to the task of handling all that added data use. Wireless carriers deny capacity constraints. "Wireless data continue to grow quarter after quarter, year after year, and we continue to add capacity to stay ahead of that growth," says Mark Siegel, a spokesman for AT&T, the largest U.S. carrier. "We will continue to do so in the future." Verizon Wireless and Sprint Nextel (S), the second- and third-largest carriers, echo that sentiment.
Straining at the Seams
But regularly dropped signals and spotty Web connections paint a different picture of the reliability of data networks, analysts say. Celentano estimates that as much as one-quarter of some carriers' coverage is straining at the seams. And even if the equipment is capable of handling today's demand, what happens when customers are doing more and spending longer stretches on the mobile Web?
For one, the industry will need to step up capital spending, Celentano says
Unless the economy slides into a recession, overall wireless spending could rise by as much as 3% in 2009, to about $17.5 billion, the biggest jump in three years among the U.S.'s four national carriers, according to Skyline. A reputation for a lack of network reliability can be a growth killer. "End users are getting a taste of mobile data, and looking to get a similar experience as on the PC," says Danny Locklear, a vice-president at Nortel (NT), a maker of wireless network equipment.
Costs for network maintenance and upgrades are already being passed on to consumers. Some legislators say expenses are rising too quickly. Senator Herb Kohl, chairman of the Senate's antitrust panel, voiced his concerns in a Sept. 9 letter to AT&T, Verizon Wireless, Sprint Nextel, and T-Mobile USA. Kohl, a Democrat from Wisconsin, demanded an explanation for why rates for individual text messages have doubled to 20¢ a message since 2005, while costs of providing the data service have dropped. "This conduct is hardly consistent with the vigorous price competition we hope to see in a competitive marketplace," Kohl wrote.
Rising Data Charges
Revenue from data has more than doubled since 2005 and this year is expected to be $27.5 billion, according to CTIA–The Wireless Association. Craig Mathias, founder of consultancy Farpoint Group, believes that, in the coming months, data charges could rise by another $15 to $20 a month.
Beyond charging more, carriers are also placing limits on data use. In the past six months, the largest carriers have effectively begun capping monthly unlimited data plans at 5GB of data—roughly the same as watching 10 short YouTube videos a day. Currently, only about 2% to 5% of wireless users exceed that limit, but the number may double in the next year, Mathias reckons.
Carriers are also starting to encourage developers to create applications that use less bandwidth. T-Mobile USA, owned by Deutsche Telekom (DT), will demand a higher minimum payment from developers whose paid applications use up more of the carrier's network capacity. "We've aligned a set of incentives for our partners to do what we believe is right for the consumer while being mindful of constraints of the mobile world," says Ian McKerlich, director of mobile Web and content services at T-Mobile. The carrier will also prohibit developers from offering free applications that use up more than 15MB per user per month.
Some developers fret the policies may hamper mobile innovation. "All of the interesting mobile applications use a lot of bandwidth," says Craig Hockenberry, who develops applications for the iPhone.
That—along with higher fees—may be the price that wireless customers have to pay as they step up demand for mobile data.
http://www.businessweek.com/technology/content/sep2008/tc20080921_694796.htm
*********I think the ASNAP system saves money on the build out!********* Something about shifting the demand off of the towers and onto Voip.
Texting while driving impairs motorists more than being under the influence of drink or drugs, research suggests.
The RAC Foundation found average reaction times slowed by 35% when 17 to 24-year-olds drove in a simulator while writing or reading texts.
Nearly 50% of drivers aged between 18 and 24 texted while driving, it said.
Previous studies had found reactions were 21% slower among those who had taken cannabis and 12% slower among those who had drunk to the legal limit.
The texters also drifted out of lanes more and had poorer steering control.
The overall driving performance was poor among those tested by the Transport Research Laboratory, which also carried out the previous studies, the RAC Foundation said.
Steering control among drivers in the text test was 91% worse, compared with 35% worse for those under the influence of cannabis.
'Hazardous'
The TRL study followed a poll of 3000 drivers conducted by the RAC Foundation on facebook earlier in 2008.
It found that 48% of 18 to 24-year-olds admitted to texting while driving.
Dr Nick Reed, senior human factors researcher at TRL, said: "When texting, drivers are distracted by taking their hand off the wheel to use their phone, by trying to read small text on the phone display and by thinking about how to write their message.
"This combination of factors resulted in the impairments to reaction time and vehicle control that place the driver at a greater risk than having consumed alcohol to the legal limit for driving."
Drivers face a £60 fine and three penalty points on their licence for using hand-held mobile phones. In 2006, 164,900 people were issued with fixed penalty notices.
Deputy chief constable Adam Briggs Association, from the Association of Chief Police Officers (Acpo), said the fact that police had issued nearly 165,000 fixed penalty notices to motorists for using mobile phones in 2006 showed how seriously police took the matter.
He said: " Any use of a mobile phone while driving is totally unacceptable and we will continue to target drivers who do so."
A new offence of causing death by careless driving came into force in August 2008.
Jail sentences
Motorists who kill after allowing themselves to lose concentration by avoidable distractions - such as reading a text message, glancing at a map, eating and putting on make up - can be imprisoned for up to five years.
Christine Wickington's 19 year-old son was killed by a motorist who was texting on her mobile phone. She told the BBC there needed to be a campaign aimed specifically at people who texted while driving.
"I think it needs to be on the television more, on adverts, it needs to be up in road signs," she said.
RAC Foundation director Professor Stephen Glaister said the participants in the study had been almost unanimous in their view that drink-driving was the most dangerous action on the road.
"Yet this research clearly shows that a motorist who is texting is significantly more impaired than a motorist at the legal limit for alcohol," he said.
"No responsible motorist would drink and drive. We need to ensure that text devotees understand that texting is one of the most hazardous things that can be done while in charge of a motor car."
Baxter appears to not know much about business procedures. Granted this is not his specialty as he is a software engineer. He is reluctant to use an attorney to resolve this matter and has taken some basic steps to press his claim.
From the little information I can gather he may have stepped into a deal and sold his patents and is trying to wiggle out of the deal. His lack of legal knowledge is leading him to add additional blunders. Why no legal action by him to date?
Why was the deal held up by Calypso is a good question?
New management may have stepped into the prior management's shoes. Prior management did not want to complete the deal as they brought suit against CT et al for improper action. (later dismissed in the settlement deal)
Calypso appears to be confident in its position and is still marketing the patents as their own. They must feel they can defend the deal in court. I would side with Calypso as they do have a relationship with a respected law firm. This issue must have been discussed with them so Baxter must be in a losing position.
If he has shares waiting for him then he should pick them up or they may be abandoned property!
I guess he would have to sign a waiver in order to obtain the last shares considering the situation. If he does not take pocession of the shares and starts legal action he may lose them under a breach clause and end up owing money to Calypso.
What a quandry.
I give Calypso 85% and Baxter 15% for the limited facts revealed.
What, are you an expert? My understanding is that the original payment was made in good faith and that the stock was most likely sold. With a delayed payment being stopped due to the management lawsuit.
Is there any news by Baxter attesting to the patents being in his control?
Is there any news from Calypso stating the patents were lost for lack of final payment?
Please understand that business is not so simple. I am sure a return of the patents may occur in order to avoid a legal battle.
When I spoke with RP he stated he was busy preparing for the storm. Moving the computers away from the windows in case the windows were blown out.
I think the office's important systems are safe.
You are not certain this has occurred and I have serious doubts that this did occur.
The original transfer of stock was 3 million shares with one million being left.
The structure of this deal is unique and odd to say the least.
Why the deferred payment?
Why the uncertainty of the patents ownership?
Why the lack of clarity on this issue?
Too many unknowns for me to say.
I guess you may some source that confirmed the patents were lost.
With the new management team and the past misdeeds of the old management and the delayed conclusion of this deal while the metamorphosis occurred is odd.
Let's wait till we know something for certain.
Mobile internet will rule the market. Desktop plugins will be limited and diminished going forward.
Baltimore will be the first city with the Wi-Max service very soon.
This industry is ready to move fast. Load up while you can.
25th Anniversary of the first commercial wireless phone this October 13th.
Where was this call made from.
10/13/1983 Soldier's Field parking lot in Chicago!
How many text messages are sent each month? 75 Billion! This service is growing 160%!!
The Baxter patents may have some value at a minimum.
Sure glad the meeting is not in September! All the weather troubles would have made a mess of the meeting.
Detroit is playing at Houston on Oct. 19
Maybe the meeting could be around this date. Get two for one.
Calypso is a very different company today than it was last year. Our new management has a vision for the company, both near term and longer term.
Being a new company with world class patents can be misleading. The exceptionally valuable assets are not shown on the balance sheet. Therefore, analysis of the balance sheet without an understanding of the patented technology and its potential for revenues and profits can lead one to completely misjudge the Company and its potential.
RP started with a broken company. He has gotten the financials in order and in SEC compliance. He has expanded the patents global reach and is awaiting additional patent applications. RP has relocated the offices to Houston and is actually having a shareholder's meeting! RP is fixing the company one task at a time.
The result of his actions have not been baked into the shareprice. All investors can see the value RP has restored to Calypso and his reward is waiting. Eventually, the market will understand the importance of RP's work and his leadership value. He is fighting hard to keep the company afloat and is aware of the lack of revenues. With the recent announcement of the lawyers and the nature and the type of litigation, expectations are mounting for a revenue stream. The waiting time is unknown but the announcement of a filing will have a dramatic impact on the shareprice.
The days are limited till the announcement of the filing. The meeting is in October. Will the news come before the meeting? MAYBE?! Sure would make for a happy gathering. Will an infringer avoid the legal battle and sign with us!!! MAYBE!! Our first licensee; what a turnaround that would be.
One thing is for sure, the company is not broken anymore and the leadership is resolve in steering this company to profits. Go tell your friends to buy a few shares before the little chics are gone. Todays prices are soo CHEAP that it is really absurd.
Not a Magoo story but a Make Good one.