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So, last weekend the splashy new, english language, investor oriented JV website hit and made waves. The web site states revenues will start on Wednesday, April 11, 2007, three days ago (already it's out of date). Yesterday, Friday the 13th, Tim Huff gets his walking papers.
So far there has been no independant confirmation of the existence nor operation of the network in Pachuca, nada. (Can't one of our good friends from Texas drive over there this weekend and fire up their laptop to see?? TIA)
Some speculate that Tim helped build the (alleged) network in Pachuca and will be involved in some way in the future. Entertaining that idea for a moment; it could be suggested that he set it up and will now step down to cool the cash burn until the JV is self supporting, then phase back in. An admirable scenario.
On the other hand what if the network was partly delegated to him, he gave one of his infamous deadlines of April 11, 2007, they put it on the site, it came and went, something was disasterously wrong, and they canned him. Not as admirable.
Third possibility, he had nothing to do with anything since stepping down, they had a severence agreement, it expired, he's gone.
A statement from the Company would be appropriate about now.
rwehapi2003...my hunch?:
JoMo may be the new CEO.
BWDIK
serious1..you do have my heartfelt sympathies with respect to the loss of your faithful and loving companion.
On to a different topic:
"This stock will be down a lot today because of all the loyal Tim Huff followers that feel there is no hope left."
This is why the perception of Mr. Huff as still being around was allowed to continue. Letting him go now has a potential as a harbinger of good news. Something could be ready that will counterveil this loss to those shareholders.
So I agree there may still be hope.
Huff was fired back when they relieved him of duty. Creating a new position for an officer of a company and taking the position away is the corporate equivalent of the kiss of death. The only speculation about his continuing effort and activities came from this board alone. He has never been mentioned by Globetel until now. The mutual consent thing is simply code for no lawsuits at this time.
He has been gone since the day they made him CTO.
Nerd, you are an intelligent individual. Can you think of some way to verify the existence of the service in Pachuca?
nerd..not saying you're wrong but I have seen web and print ads for availability of wi-fi hotspots that are offered by a regional ISP and advertised as being available at local entertainment venues. So while it may be suicidal, it is done.
Nerd, oh I see, that's an eye opener. Just wait for them to hit on the cloud and go from there. Ok, that's good. They could still do print media stating where potential customers can access a cloud. At the soccer game or in a cantina for example.
PS...If there is anyone out there who is using a No Mas Cables hotzone at this time, will you please post on this board?
Thanks.
siriusly...whatever, I don't claim to be a marketing consultant, that's not the point. Whatever the strategy is, let's hear about it now, that's the point.
By the way, the soccer sheet reaches people in money and in business, college and otherwise.
I look at it this way. If this were ATT or Nextel, you'd see the ads in the local soccer sheet (where there are some big name American companies currently advertising in Pachuca, check this http://www.pachucaenlinea.com/tuzos/ including Office Depot and Gatorade).
Now I do understand that they need the capacity in advance that such advertising would hopefully generate, but that is where we better be headed, and there is no reason that with an active pay system on line there can not be a release that outlines the current status, marketing and scaling strategy. Whether VPN is handling it or not.
And by the way, who is on the No Mas Board and when did they meet?
If we are live in Pachuca, shouldn't there be at least one person on-line who reads this board?
How about one of the techs who installed it. Come on, stand up and take a bow for all your hard work down in Pachuca.
Pardona me a mis amigos,
Este es la chu cha Pachachuca?
glo..they take their time whether I give it to them or not.
If VPN is running it then where are they? If there is no new spanish language web site then how about an english language update marking the fateful day when xxx customers were signed up for xxxx per month in Pachuca? Sort of like an "Our first peso in a frame." kind of deal.
There are supposedly people in Pachuca paying to use Hotzone equipment today. Let's hear about it.
Is this the Pachachuca choo choo?
Or just more of the same ol' same ol'? hmmmm? What about it boys? Still no beef?
dfmantx..yes, very quiet. The proof for me will be a web site in Mexico with prices listed and an active cashier ready to take your money.
A new web site in Mexico should logically accompany this debut, which would tie right in with the other web site upgrades that we have seen delivered recently.
From such a site we could get the subscription fees and start to run some numbers.
This is make or break for Globetel. They look like they may have some momentum going. Is it real or is it fluff? That is the question.
That is a good approach that seems sound and reasonable.
Mine was admitedly more conservative and focused on the first year only, which is where I see the most resisitance to a start-up; especially the first half of the year. That is what caused me to use a geometric progression that started from a low initial subscriber number but would still hit their first year target.
That said, it was all still just a guess and yours may very well prove out to be the more accurate model. Nice job.
If I'm not extending credit to people who have bad credit then what do I care if they have bad credit? If they want my services, they pay for it in advance, hence there is no bad debt from my point of view.
You couldn't derive that from what I wrote?
That doesn't sound right. You're saying that the year starts out with 250,000 subscribers, which in itself is not realistic since that is saying that there must be a sudden upsurge in January from the number of subscribers carrying over from the previous year.
Then you go on to say to add more on top of that, so you are exceeding the projection for year end. You're right in the sense that the more and sooner you add subscribers, the more the price comes down per subscriber, but you are double dipping and also making unrealistic predictions in order to get it as low as you can.
Now that you mention it, the discussion was more consistent with that of a phone contract. I believe my cable modem account is indeed paid in advance of the end of the month.
Even though the services described as being offered through the JV thus far are limited to broadband wireless, the hope of many (and perhaps a telling fear for some) is that there will eventually be a DECT telephony offering involved. That threat / potential could have been informing the discussion unconsciously for both of us.
DECT could be the baby that grows up to be a very disruptive force in the world.
lol... you guys are funny.
The nice part about it is that you can charge extra for the added value of no contract, yet by rights as a debit transaction (in a market of good credit customers) you would normally charge less than you would for a credit transaction, think of phone cards which have cheaper rates than you get on your phone bill (a credit transaction).
You make that sound so negative. So what? You're basically giving the market what it wants and doing it in a financially sound way. They may have bad credit, but who cares if there isn't any bad debt? It's just not a market you're familiar with trying to satisfy. A little flexibility in thinking is all that is needed.
From the FAQ on the new web site:
"On April 11, 2007 the entire network will be converted to a commercial pre-pay WiFi network."
It also states:
"Globetel is entitled to 49% of the revenues generated from No Mas Cables de Mexico."
Sooooo,
At the end of 12 months they expect to have 62,000 subscribers. If the number of subscribers at the end of the first month is assumed to be 100 and the number of subscribers is assumed to double every month except for the last three months and we then assume things flatten out a little, then the total subscriber months after 12 months can be estimated to be about 201,000 subscriber months. Revenues are expected to be $11,000,000 after 12 months. That comes out to an average of $54.70 per month, per subscriber for services.
So in one month from now our (theoretical) 100 new subscribers should be contributing 49% of $5,470 in revenues to Globetel. Doesn't sound like much to start out with, but 49% of $11,000,000 after 12 months is $5,390,000. That's a little better.
Of course if we have more than 100 new subscribers the first month then the subsciber rate comes down from $54.70, still using the $11,000,000 number for first year revenues.
After that it's clearly todamoon.
not so minor...they are infinately better than the old ones. I never liked the old ones at all.
If using GTEL was a typo, it's not the designer's fault it is GTEM's fault. If it is more incompetence from Globetel, then it is more of the same kind of thing that they have been trying to get rid of. I sincerely hope that is not the case.
So, the joint venture appears to be confirmed. The new web site strengthens that. So what if it comes from Globetel, it is on the record, I just can't believe they would do it again after Russia and Germany. Especially with that kind of promotional pizzaz. (but I suppose it's possible)
What do they really need now? Investment. Who will be looking at the site. Investors. How did they list their stock symbol on the web site? GTEL.
A 10Q would really hit the spot about now.
Revenues from Pachuca to start in three days.
I wonder if this will serve to place a value on the Hotzone acquisition and if that will serve to resolve matters for the SEC.
In the same vein, what if the now disbanded audit committee left behind a spreadsheet with everything in it except certain unresolved valuation numbers? Then it would just be a matter of plugging them in and showing the outputs to the SEC.
There are revenue projections with revenues per share given in the FAQ's! There's a first.
I see..that makes sense of course since you had left after March 15. Accepting that, I'm curious to know if you think that you could have accomplished what he had in his pr's in those time frames, if you had continued working on it at your full capabilities.
With regard to your comments describing what you say he accomplished on the Mexican deal, then it sounds like you are making it up if he did not tell you. Here's what I think is happening, since we're making things up: Joe Monterosso is doing everything except hooking up the boxes and Tim is running the crew that is doing that.
I want to believe that because it makes me feel so much better about my investment. Sorry, I know he's your friend but, he may be able to focus an eighteen things at once, however he doesn't know how to get one of them done right.
Vern..two questions:
One, if he was so very closely monitoring what was going on, why was he so far off between his pr statements in '05 regarding stratellite progress and the reality of what we actually saw? There were enormous discrepancies between the two.
Two, if Huff is the architect of the Mexico deal, why is his name never mentioned in any of the pr's about it? Where are you getting all this detail about what he has done since he was ejected?
Sincerely hoping that you are correct about all this.
The lawsuit seemed to be a way to take the price down fast for the benefit of shorts. I guess these lawyers are going to try to squeeze some extra juice out of it and go for a settlement.
I don't think they could ever prove what they are saying, even if it is true. And of course if it wasn't a scam, then it should not be possible to prove it was. So I don't think anybody expects it to actually go to trial.
When you speak of insurance would that be in the event fraud is proven if it did go to trial? If so, I find it amazing that insurance covers fraud, but I don't know the facts. It just seems like a standard of performance that an insurance company would consider beyond their ability to underwrite.
I agree it is a distraction and the real focus is No Mas Cables.
Does this mean that you think Globetel is going to go bankrupt or perhaps there is a different strategy given the current state of affairs?
Saw the timeline on the Mirant bankruptcy. Looks discouragingly long. Impressive that you contributed ideas.
"In the mean time lets sharpen our pencils and begin to fight back."
Curious to know your thinking in terms of a strategy for fighting back. Do you mean by shareholders or perhaps by Globetel via the No Mas JV?
It seems that it will be a long time before this ever goes to trial, if at all.
Was very surprised to see the new Stratevoip web site, as you posted. Don't recall any reaction to that on this board. What's your take on that development? Seems to me like it is quite significant that resources were expended on that update during this time of cutting costs.
Thanks for the clarifications. I never felt I fully understood the stated terms of the 'sale' except to say that it could and very likely did mean that they were getting nothing for it except burn relief.
Certainly hope that something is coming from it now, if that is possible. Would also like to hear others' interpretations.
Are you saying that is what is actually happening (somehow) or that it is not, but it should have been if they hadn't sold it?
Dumping Magic Money was the last straw for me. After all that was said, as shown in your post, Huff and Co's last shred of credibility went with it, from my point of view. Glad they're gone, just hope it's not more of the same. Apparently not, but maybe.
Also not clear what you meant by "sold again". (are you saying it was sold twice or are you looking for the reason that it was sold to be stated again for you)
VPN is not paying for the equipment, No Mas is paying (or going to pay).
Where is your proof that Globetel / Sanswire is behind in the rent?
mr_schnizzle...that is the key at this time, I agree. The street is not buying Globetel's story because they are out to sea without a paddle as long as the investigation is open.
Here's something to hope for though. Wasn't the valuation of assets a key question? Some suggested that Hotzone may not have been worth what was claimed. Couldn't this JV prove Hotzone's (substantial) value and perhaps give impetous to closing the investigation if that issue is settled as a result? Then the numbers could come out and we'd see some action if they're good.
Nerd, I believe the guy's a chameleon who said whatever he thought was necessary to say at that given moment to escape immanent predation.
Business is business. In a well managed operation, the time held open for one client who is not paying would be better filled by one who does. Sure you could sign them both up, but then which one gets shafted when they both need work? Or would you rather work your staff all night so they will want to quit?
The SEC investigation has forestalled work by an independent auditor, has it not? (just going by what I have seen discussed here)
Might it be that the auditing firm could not continue to hold a place for Globetel on their client list without some work / revenues to show for it? So they had to walk?
Sounds like maybe axel got axed.