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I hope they can launch a Stratellite better then they can launch a website.
My strategy will be to sell on the rise in price when the strat reaches the stratsphere and not wait until it comes back down.
When and if it lands, I will buy back. Not taken any chances.
I tried calling 4 times and got the same response as Ken W, From the way I see it you (either in Brazil or the US) need an internet connection to get "Wireless GoTo" phone calls on your cell phone etc. But the CELL PHONE does not have to have an internet connection. I guess I will never find out for sure, as it stands right now you can't get any service no matter what you have. I just went to the VozBrasil website and they must have taken it down, as if I can remember the website never gave a phone number to call to sign up, it was only listed in the press release. Can anyone upload this site, or is it my ISP?
http://www.vozbrasil.com
I just called the toll free number and pushed the buttons and was told I was the next caller in line. Couple minutes later they told me no one was there to take the call and to leave a message they will get back to me. I have call block and they never asked for my phone number. I will call again tomorrow.
I will find out for sure as I think they all need an internet connection.
Wireless 2 Go Plans. What they mean is your cell phone does not have to have an internet connection. (NOTE AN ACTIVE INTERNET CONNECTION WITH YOU OR READILY AVAILABLE. also note:and online accounting included at no extra charge.)
FROM THE VOZBRASIL SITE:
Introducing "Talk Brasil 2 Go" plans - The Phone Line that Follows You Around Like a Little Puppy Dog. Only Better Trained!
You can still benefit from the miracle of VoIP technology, even if you do not have an active internet connection with you. This plan is perfect for those who are always on the go, using their cell phone, or for those who do not have high-speed internet access readily available.
Using "Follow me" technology, you can still make calls from your home, cell or business phone. No internet connection needed. Calls to your Brasilian phone number are forwarded to any US telephone number you choose! Log in to the VozBrasil web site member's area to set this feature up. Receive calls from Brasil on any phone, anywhere. To make calls to Brasil, first register your phone online just once. When you want to make a call, you simply dial your local access number (you will find your local access number on the web site www.VozBrasil.com). A voice will request you enter the phone number you wish to reach - no PIN number needed to make the call. You will also receive all the popular calling features such as caller id, and online accounting included at no extra charge. Imagine how convenient unlimited calls to and from Brasil from the US will be for you, your friend
dfmantx could you please point out to me where someone does not need an internet connection. I can't find it. If you go to the website and click on equipment and setup, you will see every plan needs a internet setup. Click on the view more information on the Linksys PAP2. In other words, if I set up my US internet connection with a Brazil number. The party in Brazil does not have to have an internet connection to call me. (https://secure.vozbrasil.com/vozbrasil/equipment.do)
If someone in Brazil has an internet connection and sets it up with a my US number I do not have to have an internet connection to call them.
If you check out all the links such as "learn more" and equipment needed you will find this. IMO
Don,read it again, I capitalized the important parts. Maybe I am missing something. Also go to Equipment and setup under view more information, you will see they all need an internet connection. On the 2 GO plan read the parts in capital letters.
Introducing "Talk Brasil 2 Go" plans - The Phone Line that Follows You Around Like a Little Puppy Dog. Only Better Trained!
You can still benefit from the miracle of VoIP technology, even if you do not have an ACTIVE INTERNET CONNECTION WITH YOU. This plan is perfect for those who are always on the go, using their cell phone, or for those who DO NOT HAVE HIGH SPEED INTERNET ACCESS READILY AVILABLE.
Using "Follow me" technology, you can still make calls from your home, cell or business phone. No internet connection needed. Calls to your Brasilian phone number are forwarded to any US telephone number you choose! LOG IN TO THE VOZBRASIL WEB SITE MEMBER'S AREA TO SET THIS FEATURE UP. (if you don't have an internet connection how do you set this up?) Receive calls from Brasil on any phone, anywhere. To make calls to Brasil, first register your phone online just once. When you want to make a call, you simply dial your local access number (you will find your local access number on the web site www.VozBrasil.com). A voice will request you enter the phone number you wish to reach - no PIN number needed to make the call. You will also receive all the popular calling features such as caller id, and online accounting included at no extra charge. Imagine how convenient unlimited calls to and from Brasil from the US will be for you, your friends, family and business associates!
We believe everyone should be able to use our revolutionary phone service - even if you do not have high speed internet access. Choose the plan that serves you best below. Sign Up Brasil Small Business Unlimited Unlimited calls to and from Brasil for small business users.
Sign Up Brasil Total Unlimited Residential Unlimited calls to and from Brasil for residential users.
Sign Up Fala Brasil Lite 500 Minutes to Call Brasil, and 500 Minutes to Receive calls from Brasil.
Sign Up Brasil Facil Lite 200 Minutes to Call Brasil, and 500 Minutes to Receive calls from Brasil.
The way I read it one party has to have an internet connection.
Very deceiving add, but that is why they set it up as 2 seperate companies. If the iLegue has an internet connection then the VozBrasil don't need one and visa versa. IMO
https://secure.vozbrasil.com/vozbrasil/equipment.do#
"click on equipment needed and "view more information."
VozBrasil Hardware Information:Linksys PAP 2
The Linksys Phone Adapter enables high-quality feature-rich telephone service through your cable or DSL Internet connection. Just plug it into your home Router or Gateway and use the two standard telephone jacks to connect your existing phones or fax machines. Each phone jack operates independently, with separate phone service and phone numbers -- like having two phone lines. With an appropriate Internet telephone service provider, you'll get clear telephone reception and reliable fax connections, even while using the Internet at the same time for normal data operations.
With Internet telephony, along with low domestic and international phone rates, an impressive array of special phone features are available. Choose your preferred free local dialing US area code, regardless of where you live. Or add a virtual phone number in any area code, forwarded to your Internet phone. The Linksys Phone Adapter is compatible with these and all of the other special telephone features that are available from your telephone service provider, such as Caller ID, Call Waiting, Voicemail, Call Forwarding, Distinctive Ring, etc.
imawswami, thanks, two nice informative posts.
Mide & Low answers to a couple of questions and the link.
Division managers and Presidents:
GlobeTel Wireless Division. Ulrich Altvater
Magic Money Stored Value Division. Joseph Serrousi
GlobeTel VoIP Division, President, Dan Erdberg
Centerline Division, Joe Monterosso
Sanswire Bob Jones
Sanswire 111
Simultaneously, plans are currently underway to begin construction of Sanswire III, our first commercial variant, for expected delivery to a Latin American country for use in digital communications and border security. The completion, final testing and delivery of Sanswire III is targeted for early 2007. From there, we hope the world will be our oyster
http://www.globetel.net/about/letter033106.html
Low best post all year and all true facts. Lot of potential for inside investors and top management to make money. Some people invest looking at the best a company can do and not look at what could go wrong. I look at a company's potential with everything that could possibility go wrong. From the day GTE had a showing of Sanswire 1 for it's investors and showed a half assembled strat. I knew there was something wrong. What kind of a CEO would invite investors to see a completed Strat. and show this. GTE is a communications company and they could have communicated right then and there to the people who were traveling thousands of miles that the project was not ready with just a press release. NO CREDITABILITY. So why am I into this stock? Between GTE and Sonus (with 300 million and cash, profitable, and no creditability) are two of the best trading stock I have ever owned. I will take 5-20%, 20-25 times a year, no bank pays that percent interest. My trading goes back a long way to the day I bought United Brands and the Rabbi CEO leaped to his death the next day after I bought the stock. Figure out how long ago that was.
"There is no great honor these days in being a long (very long) long."
not alot of profit either it seems.
"There is no great honor these days in being a long (very long) long."
not alot of profit either it seems.
"I am assuming the GTE will file a counterclaim with their answer so that when the plaintiff's case is dismissed, we can still go forward and pursue damages."
Let's hope this don't happen. These cases take over a year, which would mean the share price is low in order to have damages. If there is any damages that would mean the Strat. was not sucessfully launched during that period. I would rather see no damages and a $10.00+ share price.
Email Reply from sales@wsg.co.za
My Question:
Could you tell me if your company is presently working with Globetel in Germany with setting up their WIMAN system.
Thank you in advance for your kind response.
JG
sales@wsg.co.za
Reply:
Dear Sir,
This is not our project.
Sales
I guess that should settle it.
From the 10-Q should explain options for more funding. May 12th quarterly report:
As detailed in the financial statements, we have stock subscriptions receivable for preferred shares that will raise a total of approximately $500,000 in cash in 2006, primarily in the form of financing provided by Series D preferred shareholders. In addition, we anticipate increased cash flows from 2006 sales activities; however, additional cash will still be needed to support operations. Management believes it can continue to raise capital from various funding sources, which when added to budgeted sales and current working capital, will be sufficient to sustain operations at its current level through March 31, 2007. However, if budgeted sales levels are not achieved, or if significant unanticipated expenditures occur, or if the Company is unable to obtain the necessary funding, the Company may have to modify its business plan, reduce or discontinue some of its operations or seek a buyer for all or part of its assets to continue as a going concern through March 31, 2007.
Whoever wrote the information probably did a search on GTE and wrote the information about the former GTE (General Telephone & Electronics -Sylvania) now owned by Verizon. Site will probably be changed soon.
Nice! The most you can lose now is your commissions. You stand to gain as much as 75%. I usually do something like your doing with a 10-15% profit margin and hope I can catch news on a big spike and let it ride for a while. I like your system and your thoughts in general about GTE.
Logan, I don't know if I would go that far as to what you are saying. Who knows what the news will be on Monday. One could probably expect another MF post, and where would that take us?
Hopefully GTE will expect it and be ready to top that with a great announcement. That is what it will take to get this stock moving again, "a great no BS announcement.
Like everyone else on this board I am making a forward statement which may or may not happen. Opinions expressed are my personal opinions.
If you don't know what Craigs take is on GTE, I suggest you start doing some research.
Posted by: J563_NYY
In reply to: FORTUNE500 who wrote msg# 25872 Date:5/11/2006 5:42:48 PM
Post #of 25878
Fotune
What is Craigs take on GTE? You wouldn't be part of his Hedge fund operation?
Good Post. They need to say nothing more then they already said. The burden of proof beyond a reasonable doubt is up to the Plaintiffs.
Good Post, could this happen again, seems the stage is being set for the same thing to happen with Delta Aero Science, in which Tim Huff is a director and was set up to get government contracts through Bob Jones. This is an independent company set up and not a part of Sanswire. Sometimes you have to read between the lines, connect,the dots and come up with your own decision.
http://www.sunbiz.org/scripts/cordet.exe?a1=DETFIL&n1=P05000114237&n2=NAMFWD&n3=0000&...
Travelex Money Transfer being sold to Coinstar. The addition of money transfer enhances Coinstar's offerings and strengthens its e-payment services product line. Any thoughts if this will have an impact, good or bad on Globtel's Magic Money Card?
http://www.coinstar.co.uk/uk/(XMLDocsView)/E97B87B2EFE2CB96882571690049C117
LA_LT - There are thousands of people who never respond to this message board that feel the same way you do. And don't like to be attacked for saying something negitive. Has anyone even seen a Magic Money Card? Does anyone even know of anyone who has used Centerline Communications? If so how was your experience? They only read that it exists. Most of the same people post here in a cult like fashion, they never want to hear anything negitive about GTE and will twist everything to the good. I presently own this stock - have owned it off and on over 25 times in the last 2 years. This is the kind of company you buy with the expectation you will lose everything. If and when you can make a profit- sell and remember any profit you made is more then this company has yet to make. Simple as that, this is a lot for a little and a real fun stock to own. I do like this company and really hope they can pull it off. Even if they don't it is a real fun stock and an amusing board.
Buying call options can cover shorts. That would make it covered shorts.
For that matter, do you know if management really want's to win? Good question!
It is hard to think for a start up company like GTE never saw a class action lawsuit coming with so many broken promises. Could Huff and friends be behind this?
Beyond a doubt this class action lawsuit will never get into court. Where this will hurt is the need to raise capital to keep all projects running. Many companies have contracts canceled or taken away and put up for re-bid. Never caused a class action lawsuit. They never had a formal contract signed. No basis for a lawsuit. (I can think of other areas for a class action lawsuit, but not this one). As long as someone negotiated with Russia there no fraud.
What a terrific opportunity for Tim Huff to make a move and look good to shareholders at the same time. Its a chess game and I think Tim Huff has an ace up his sleeve.
With Sanswire being a strain on GTE expenses and Tim Huff being the wheeler dealer he is wouldn't it make since Delta Aero Science could form a group with Tim Huff and Robert Jones buying it out with cash or exchange of GTE shares and letters of intent. The possibilities of Tim Huff being compared to Bill Gates would be tremendous. Once developed an initial IPO would make them billionaires. The real big money is in products when an initial IPO is made. Tim Huff seems to be giving hints of him leaving, name another CEO who would say
"I believe that my team and I can increase shareholder value, but if not, I'll be the first to agree that it's time for me to pass the baton to someone who can move the ball down the field." The stage seems to be set in my logical opinion.
Like everyone else on this board I am making a forward statement which may or may not happen. Opinions expressed are my personal opinions.
Straightup, with Sanswire being a strain on GTE expenses and Tim Huff being the wheeler dealer he is wouldn't it make since Delta Aero Science could form a group with Tim Huff and Robert Jones buying it out with cash or exchange of GTE shares and letters of intent. The possibilities of Tim Huff being compaired to Bill Gates would be tremendous. Once developed an initial IPO would make them billionaires. The real big money is in products when an initial IPO is made. Tim Huff seems to be giving hints of him leaving, name another CEO who would say
"I believe that my team and I can increase shareholder value, but if not, I'll be the first to agree that it's time for me to pass the baton to someone who can move the ball down the field." The stage seems to be set in my logical opinion.
Like everyone else on this board I am making a forward statement which may or may not happen. Opinions expressed are my personal opinions.
Can't believe this is the same board as it was last week. When the price was $4.00+ I made some posts and was called a basher. Which I am not. I just bought in again today because at this price the risks to rewards are on my side. Nothing has changed over the last year except the share price is about 1/2 of what is was and the company actually knows it has to produce soon. To me this is as good an opportunity as it gets.
Glow beetle Haaa Haaaa the stock went up 10.11% today. Next week it will be worth more then GTE. Right now this de-listed stock is 23 cents less then gte and gte is not delisted yet.
Thank you, Sebass, I went in and out today for a small profit.
I am just going to swing trade this for awhile. If it goes down on my buy I will continue buying on the downside.
As far as the latest news goes that they paid off the loan.....what other alternative did they have? (Now real good news would have been the bond holders decided not to excercise thier option...it would show that they have faith in the success of the company).
As far as settling the class action law suit. That is always good news...but if they get delisted or don't meet the March 31, earnings report deadline that is not good. If they do report thier earnings before the deadline, that could be a reason for another class action lawsuit after they stated they do not believe they will be able to file the 10K by March 31. So that is a double edge sword so to speak.
Only my opinion. I am not into stocks to make a fortune only to make a few dollars here and there. This is a good stock running into some bad times and I am sure it will be over $4.00 before the end of the year, I just hope I can time things right. Good luck All!
OUT - Looks to me that it is slowly being taken down. I expect a bigger drop once everyone gets the news about not being able to make the March 31 deadline. Stock in being munipulated. Very hard to sell this stock at the ask price, you need to sell it by making your limit at the bid price. Good Luck All! Hope to be back in soon.
Here is a match made for each other Sonus and Teradyne. They could both merge perfect.
http://www.bankerandtradesman.com/pub/5_221/commercial/192574-1.html
Boston’s Northwest Suburban Submarket Begins to Pick Up
Equity Office Properties reportedly is putting the Crosby Corporate Center in Bedford up for sale.
By Joe Clements
Plenty of holes remain in suburban Boston’s Northwest commercial real estate market, but a couple of major blocks of space are being taken out of circulation via six-figure subleases to Sonus Networks and Raytheon Inc. Sonus will take all of 7 Technology Drive in Westford from Teradyne Inc., while defense giant Raytheon Co. reportedly is expanding to 185,000 square feet in Billerica in two buildings leased to Nortel Networks.
Seabass, I don't believe in being polite, one of the reasons I don't post much on any board. I have made 65 trades so far this year, but have never sold Terne. They have a great product and at the right time, when every TV is going digital within the next few years, The only thing they have yet to prove is do they know how to make money from a great product. I am bullish on this stock until $3.40 or March 21st. If the accounting problems are not solved by then I will sell. The $5.00 commission I pay sure helps, now I can sell if the stocks go up a nickel and buy back if it goes down.
Date Type Symbol Quantity Price Commission Amount
Have on hand
02/03/06 BOUGHT TERNE 2000 2.17 $5.00
02/02/06 BOUGHT TERNE 2000 2.29 $5.00
01/12/06 BOUGHT TERNE 2000 1.95 $5.00
01/10/06 BOUGHT TERNE 2000 2.06 $5.00
01/17/06 BOUGHT TERNE 2000 1.84 $5.00
Nice Volume, steady climb, Should be some news before the week is out. Be nice to see an announcement like accounting problems over, sales and earnings climbing and in talk with a takeover, all in one announcement. Just could happen----I hope.
Showmebill the messages from Mr Huff has about as much credit as this doctored up message you posted on the link I am responding to: bellwetherreport.com: The Bellwether Report continues to track GlobeTel Communications Corporation.
The actual article was dated Dec. 30, 2005
Click here: StockHouse USA -- News --
www.stockhouse.com/news/news.asp?tick=GTE&newsid=3055815
Dec 30, 2005 (M2 PRESSWIRE via COMTEX) --
Today the Bellwether Report has identified Globe Tel Communications Corp. (AMEX:GTE), a company that our analysts will be tracking over the ensuing weeks. They recently came out with a significant corporate development this month, causing a positive correction. For a full report on the below mentioned company, and many more, feel free to visit www.bellwetherreport.com for a free 30 day no obligation trial.
GlobeTel shares were 2 pennies short of doubling their opening price in early trading today. Shares quickly ran as high as $4 intraday on volume nearing 10 million just an hour after the announcement of a $600 million contract. etc. etc.
I realize many people bought this stock for pennies and have a lot of faith in this company and should rightly feel that way as their investment has grown. Without accomplishing much GTE sure propped up the price of this companies stock. As many of you have posted, "What has changed it is just a delay." Well you are all right nothing has changed same old story. It has been said, Everyone makes mistakes and this Russian deal requires a lot of red tape because of the Patriot Act. Have they not done business with International companies before? Maybe not, no real proof! Why so much fuss about Russia when they should complete and concentrate on the contract with Hotzone Wireless in Germany which was to be started in Dec. stated in the last 10Q and now out of the spotlight. This company is a glutten for punishment, next thing will be accounting problems. If Huff was on the Apprentice I can see Donald Trump saying "Your Fired" and rightly so.
From the Dec. 30 Press Release.
There can be no assurance that LLC Internafta will provide funding on a timely basis and there is {bold}substantial uncertainty{/b} with regard to the business and political climate when operating in the Russian Federation. Sanswire Networks and the launch of the Company's high-altitude airship are subject to various risk factors and {bold}investors should construe any such investment as speculative{/b}. The above are more fully discussed in the Company's SEC filings.
Bannister here is the translation. It looks to me that GTE did not get the jump start in Germany with thier Hotzone Wireless in Kaiserslautern which was to start in Dec. (On August 1, 2005, we announced that our new division (a subsidiary), GlobeTel Wireless, had been awarded a contract to install wireless networks in three German cities. The contract will provide high-speed wireless networks for internet connectivity starting with the town of Kaiserslautern, and continuing with nearby communities. Kaiserslautern is a city of 100,000 people, located 100 miles South West of Frankfurt. Construction of the project is to begin in December 2005. GlobeTel Wireless will install these first Wireless Networks in Germany as part of the roll out plan to deploy wireless communication networks to non-DSL communities, in identified geographic markets.)
Translation from your post in German:
We network successes.
The ARK CORP. is your partner for dependable and high-value network-solutions. As a learned IT-specialist, we offer our customer of network technology modern the entire spectrum - by individual system consultation to the complete philosophy and realization of complex radio installations and cable network installations.
Our comprehensive services in the areas IT-infrastructure and Wireless internet services include at the same time also the development and fabrication of special hardware for the mobile use. So we place certainly that our solutions are adapted into the detail to the needs of our customers - and therewith maximal functionality offer to them.
With product neutral and manufacturer independent consultation, we provide for smooth flows also in the realization of demanding projects - both Nationwide and international. As a middle-class business at the locations Bonn and Wilhelmshaven we put large value on the vicinity to our customers: we network your success - qualifies, competent and creatively.
Access without boundaries: radio network.
Already since 1999 the ARK CORP. has provided for the successful construction and business of demanding radio network. Next to numerous individual customer projects, that we transferred since then, we are offer moreover for the business of two complete city networks responsible, the one simple and blanketing alternative to the wire-connected internet access. At the same time also the hardware-competence of the ARK CORP. comes full for carrying: that for the construction of the city networks as well as the settlement of authentication, statement, customer portal and Ticketing required „Access gateway“ was developed of our specialists – just as the modular radio device „WIMAN III base station“ for the network access.
In each case flexible: WIMAN.
The WIMAN-Produktlinie of the ARK CORP. enables it to construct almost everywhere quickly and simply distributed radio networks - for example in rural rooms, HotZone zones (parks etc.) or on campus-terrains. All WIMAN-products are there extremely multilaterally usable and offer flexible scalable solutions for a multitude of tasks.
So for example a multimedia project was realized the rampart CORP. on the Berliner elector dam in the spring 2005 with the help of WIMAN. In addition the arrangement of a blanketing W-LAN-network belonged on a total stretch of ca. 2 km: the ARK CORP. delivered and installed WIMAN-technology in order to equip the e-information-columns and intelligent waiting rooms the rampart CORP. completely with W-LAN.
We connect further: network.
Not only in the area radio, also in cable network installations you can trust on the competence and experience of the ARK CORP.: we are your specialist for the logical and physical philosophy and realization of copper and fiber-optic cable-network.
Achievement after measure: hardware-development.
The head task of our efficient hardware-department is the integration of standard components and special components in special housing technology adapted at the environment condition. At the same time current processor architectures become as well as z. B. Intel, alpha and Sparc in the server area and desktop area uses.
Know-how on call: studies and system drafts.
The development, maintenance and update of network and computer systems is one valuable and working intensive task for each business. We help our customer to minimize this expense and to use its resources optimally. It is our goal of creating at the same time always persistent solutions: we test both available and new technologies and products on its future compatibility and integrate only the respectively best suitable into our drafts.
Would result actively form: project management.
Qualitatively high-value project management requires a high measure at experience and survey. The large logistics-competence of the ARK CORP. is available our customer also in this area – of the analysis phase and draft phase up to the successful conversion of complete customer projects. Also for projektbezogene training as well as service and maintenance of networks and DDP-systems, we are your dependable partner – then good connections are our business.
Some important info posted by JimProfit seems to go unnoticed. Thanks for posting this. If Wiman products is not Globetel it is a problem, if it is Great News as Germany is set to go and will show it is a proven product in Hotzone Wireless. Can anyone verify if it is?
Jefferies & Company Maintains Buy Rating
Copy and Paste: http://www.knobias.com/research.pdf?id=3087
Event
Terayon, on Friday afternoon, announced that it has received a
60-day notice of default on its convertible debt from bondholders. The
news adds another wrinkle to Terayon's current accounting woes.
Key Points
VIOLATION OF DEBT COVENANTS ...Terayon, on Friday
afternoon, announced that it has received notice of default on its
convertible debt. As noted previously, Terayon is no longer in
compliance with its Indenture regarding its 5% convertible debt due in
2007 because it has not filed its Q3 10Q on time. On January 12th,
the company was given written notice from bondholders. It now has
60 days to remedy its Q3 10Q filing delinquency. If Terayon cannot
comply, the bondholders may accelerate the debt's maturity. The
debt currently totals $65 million versus current cash of $101 million
ending Q4.
DELISTING TIMELINE...ANOTHER TWO MONTHS? We expect that
Terayon will get one more extension from the NASDAQ for the filing
of Q3 10Q. We believe the organization may get as much as another
two months to complete this before it could get delisted. Our view is
based on our analysis of two precedents -- Sonus and Carrier
Access.
WE STILL LIKE THE COMPANY AND THE MARKETPLACE THEY
COMPETE IN. Accounting issues aside, our thesis on the Digital
Video business is unchanged. Cable Operators are moving towards
digital video simulcasting. Other drivers of Terayon's business
include: 1) penetration of Digital Video products into the broadcast
market; 2) incremental new sales into the telco marketplace; and 3)
development of the international market for Digital Video platforms. In
total, our view of Terayon's opportunity remains unchanged.
MAINTAINING BUY RATING... Since late Q3, Terayon has lost 51%
of its market cap. We continue to believe the stock may tread water
while investors wait for resolution on the accounting issue. The good
news is that we still like the company and the market it competes in.
From a valuation perspective, the company now trades at 1.2x EV /
2006 Digital Video revenue. We continue to believe this represents
an attractive valuation for a business that should generate attractive
operating margins and has significant growth potential.
Valuation/Risks
Risks: 1) New Digital Video competition; 2) Financial restatement risk;
and 3) Lumpiness / customer concentration
Impact on Other Companies
NA
Communications Equipment
United States of America
Company Update
Terayon Comm. Sys. (NASDAQ: TERNE)
When it Rains it Pours, Maintain Buy Rating
Investment Summary
We're maintaining our Buy rating on Terayon shares in spite of
current accounting problems. Fundamentally, we still like the
business as we believe the Digital Video market will grow over time
with Terayon executing to capture its fair share of the market.
Rating: BUY
Price: $1.91
Price Target: $4.00
Bloomberg: NASDAQ: TERNE
Market Data
52-Week Range: $4.10-$1.83
Insider Ownership: 10%
Institutional Ownership: 45%
Shares Out. (MM): 77.1
Market Cap. (MM): $147.2
Float (%): NA
Avg. Daily Vol.: 937,000
Financial Summary
Net Debt (MM): NM
Net Debt/Capital: NM
USD 2003A 2004A 2005E 2006E
Rev. (MM) 133.50 150.50 114.00 128.40
EV/Rev. NM NM NM NM
EPS
Mar (0.31) (0.09) 0.03A 0.03
Jun (0.21) (0.02) 0.01A 0.05
Sep (0.11) (0.06) 0.01 0.06
Dec (0.08) (0.03) 0.01 0.06
FY Dec (0.70) (0.19) 0.00 0.20
FY P/E NM NM NM 9.5x
Consensus — — (0.02) 0.16
George C. Notter
(415) 229-1522, gnotter@Jefferies.com
Rajiv Jenveja
(415) 229-1528, rjenveja@Jefferies.com
Buying opportunities should be good in the upcoming days. I see no major problems as the stock (if it should become delisted from NASDAQ) will trade on the BB (pink sheets) where there is no time restraints for filing a 10Q report. If they get it done within 60 days even with a notice from the trustee declaring they are in default, there will be no problems and no payment needed. The worst that could happen is they make the payment and become dept free. Once they are in compliance they apply to the NASDAQ and be reinstated if they meet the guidelines.
Terayon Provides Update on Accounting Review:
If holders of at least 25% in aggregate principal amount of the Notes outstanding provide written notice to the Trustee or to Terayon and the Trustee of a default based on Terayon's failure to file its Form 10-Q Report for the quarterly period ended September 30, 2005 and such default is not cured within 60 days of such notice, an event of default will occur and the Trustee or holders of at least 25% in aggregate principal amount of the Notes then outstanding may accelerate the maturity of the Notes and declare the entire principal amount of the Notes, together with all accrued and unpaid interest thereon, to be due and payable immediately. The Notes currently outstanding have an aggregate principal amount of $65 million. The company ended 2005 with $101 million of Cash and cash equivalents plus Short-term investments.
Decided to jump in on this stock. The risk to rewards are in my favor at this price. I've had companies (Sonus as an example another good trading stock) who had accounting problems and once they are in complience you get a nice pop, couple that with some nice earnings progress you'll get an explosion. It shouldn't be long before that happens.
I also like your pull no punches attitude. The only thing I know about stocks is that that they do fluctuate, don't need to know anymore. Timing is everything and I feel this is the right time for this one. Still do like the other stock, Traded it profitable every day so far this year. Too shady to go long.
Some clarification on warrants please!
From the 8K below does it mean they excercised the warrants and got 1.9 million shares of GTE stock and new warrants for 1.9 million shares at $4.00 per share? What a deal that would be for the investors. If that is the case it would explain the stock price dropping.
From the 8K:
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
The Company has entered into agreements with the investors in its August 2005 Convertible Note placement for them to exercise their warrants that had an exercise price of $2.50 per share. The investors will exercise their warrants and the Company will issue to the investors a total of 1,935,606 new warrants with an exercise price of $4.00 per share.
The investors were given "piggy-back" registration rights for the warrants. If the warrants have not been registered after one year, then the investors have a demand registration right.
The warrants expire on August 31, 2008.