Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
What we need is for them to show a four fold increase in revenue. A four fold increase in BPOD is fine, but show me the money...? Then maybe the SP will go up.
The initial comment by another party regarding LG and the mention of a section 15 filing peaked my interest. If VELA were to be bought out then a section 15 filing might be happening. Just a thought...nothing I could hang my hat on.
The second thing is the stock is so low VELA may no longer have to report to the SEC. Don't know what exactly that boundary is but that may be a possibility as well.
It's sure taking a long time for the 10Q to come out.
Not pumping, not speculating. Just trying to understand what might be going on. Don't make too much of it.
It looks to me that there is no current activity on VELA stock. The chart on InvestorsHub is showing no movement. Big Charts shows the chart stopped at about 10 am Eastern Time. Sure signs that something is up.
Let's all hope it is something reasonably good. Based on Alverez's comments, it didn't appear he thought they were going out of business. So, all this quiet might mean they are going to be taken over. With all the litigation it would appear to be a way to bail out if VELA is taken over. IMO just speculation at this time.
So, is a reverse split coming??? or are they going out of business? or are they doing a deal with LG and this thing is going to leap out of sight?
It's hard to tell when there is no communication.
Investopedia explains 'SEC Form 15'
When a company files an SEC Form 15, it usually means one of two things. It may mean that a company is ceasing to exist in a publicly-traded form, either returning to privately-held status or going out of business altogether. Alternatively, it may mean that a company is simply canceling a certain class of securities, replacing them with another class.
Related Forms: SEC Forms 15-12B, 15-12D, 15-12G, and 15-12F.
Definition of 'SEC Form 15'
A filing with the Securities and Exchange Commission (SEC), also known as the Certification and Notice of Termination of Registration. It is used by publicly traded companies to revoke the registration of their securities. SEC Form 15 may also be used to notify the SEC and investors of a company's intent to cease filing various required forms because their securities no longer fall under certain filing requirements.
Here is link to ironridgeglobal portfolio...it contains VELA.
http://www.ironridgeglobal.com/portfolio/
Here is statement from ironridge, see third paragraph indicating they have never shorted a portfolio stock...interesting:
Ironridge Global Partners is an institutional investor in micro-cap public companies.
Ironridge Global has entered into more than 60 equity transactions since its inception over three years ago, ranging from a quarter million to $25 million each.
Ironridge Global’s investment portfolio includes exchange-listed companies on NASDAQ Global Select Market, NASDAQ Capital Market, NYSE MKT and ASX, as well as over the counter companies on OTCQB, OTC Bulletin Board and Pink Sheets.
Most of Ironridge Global’s transactions were for common stock with no warrants, rights of first refusal or onerous restrictive covenants. Ironridge Global has never shorted any company’s stock, and remains a shareholder of every portfolio company it has invested in since inception.
The principals of Ironridge Global Partner’s have handled several hundred billion dollars in public company financing transactions over more than two decades. The firm’s partners have extensive industry experience including but not limited to: life sciences, biotechnology, medical devices, clean technology, energy, oil & gas, mining, natural resources, consumer products, media and technology.
What in the world are you talking about?
I'm with you. It is puzzeling to see that rating. But, it seems to be hanging in there. The silence from George is deafening. It's like he's waiting to see if this thing develops into something so he can talk about it. Even if their subscriber base expands exponentially (which might be possible), it's hard to believe they could accomplish anything significant before the end of 2016. All we can do is wait and see what developes.
VelaTel Global Communications, Inc. Hold C
OTC:VELA
Market Capitalization Enterprise Value Dividend Yield Dividend Rate (TTM) 52-Week Range Price as of 6/24/2014
1.23 Million 10.49 Million -- -- $0.00 - $0.02 $0.00
Rating
Risk C Fair
Reward C Fair
Factor
Growth Weak
Total Return Weak
Efficiency Good
Price Volatility Fair
Solvency Fair
Dividend --
Performance 6/24/14 Q4-12
3 Months -60.00% 416.51%
1 Year -96.64% -98.44%
3 Years -100.00% -99.94%
Income Statement Q4-13 Q4-12
Sales 895.00 N/A
EBIT -253.00 N/A
Net Income -2.78M N/A
Balance Sheet Q4-13 Q4-12
Total Assets 4.56M 7.37M
Liabilities 53.16M 43.93M
Shareholders Equity -47.49M -35.29M
Profitability Q4-13 Q4-12
Gross Profit Margin -24.06%
Profit Margin -310.24%
Operating Margin -28.26%
Debt Q4-13 Q4-12
Current Ratio 0.06 0.15
Debt / Capital -0.30 -0.33
Interest Expense -0.86 N/A
Cash Flow Q4-13 Q4-12
Net Cash Flow -179.60 -72.20
Free Cash Flow -334.56% -358.74%
ST Debt Cove. Ratio -0.15 -0.77
Sector:Telecommunication Services
Sub-Industry:Telecommunication Services
VelaTel Global Communications, Inc., through its subsidiaries, operates as a telecommunications carrier primarily in the People’s Republic of China and Peru. It focuses on the deployment of telecommunications networks that utilize wireless broadband access (WBA) in international markets using 2. Period
End Price P/E P/B EPS ROE Revenue
per
Equity Debt
to
Equity Cash
and
Equiv.
Q4-13 $0.00 -- -0.03 0.00 -0.02 0.00 -0.24 898.00
Q3-13 $0.00 -- -0.06 0.00 -0.04 0.00 -0.37 1.08M
Q2-13 $0.01 -- -0.05 -0.04 -0.09 0.00 -0.36 84.60
Q1-13 $0.04 -- -0.14 -0.05 -0.10 0.00 -0.42 1.27M
Q4-12 $0.11 -- -0.33 N/A N/A N/A -0.26 207.90
Q3-12 $0.02 -- -0.11 -0.46 -1.49 0.02 -2.18 280.00
Q2-12 $1.09 -- -2.20 -0.41 -1.86 0.08 -2.59 451.70
Q1-12 $3.20 -- -4.42 -0.25 -2.09 0.02 -2.39 32.10
Ratings Definitions
C - Fair. In the trade-off between performance and risk, the prospects for the company’s stock are about average based on its track record and current valuation. Thus, we feel it is neither a significantly better or significantly worse investment than most other common stocks. In short, there is no particular advantage to investing in this stock unless you believe that its future risk or reward profile will change.
Performance Rating - Based on its total return to shareholders over the last trailing four years and its prospects for future returns based on sales, net income, earnings trends and economic factors.
Risk Rating - Based on the level of volatility in the stock’s daily and monthly returns and on the underlying company’s financial stability, as well as economic factors.
I am not sure but there was a difference between the two reporting charts. On Big Charts it did show about a 50% drop in the pps on the chart but it did not report the volume or price numbers on top that chart. The IH chart showed a value of .0005 and a volume of 200 mil shares. Maybe the volume is due to one of those convertible issues coming to a head. That's all I can think of.
BIG Charts is still showing .001+ for VELA value. Normally this is on a 15 minute delay. However, the chart on IH is showing a 200 mil + volume; big charts is showing 2 mil volume. There apears to be a discrepancy. Wonder what is going on??? Big Charts should have picked up the apparent downturn by now.
The Class B stock has 10 share voting rights per share of Class B. This means that out of 10 billion class A shares the class B shares would still control the company with up to something like 9 billion shares of Class A outstanding shares. Currently, we are slightly above 3 billion shares outstanding. This means they could further dilute the OS by selling up to 6 billion more class A shares without losing control.
My guess is they won't go too much further because it will reduce their flexibility to do business. That being said I am sure they will continue selling/distributing class A shares for some time until incoming revenue streams pick up...if they ever do.
Weiss Research has a stock rating division:
http://www.weisswatchdog.com/search#q=VELA&s=r
http://www.weissresearchissues.com/premium/twe
You have to be a subscriber to get the information but I have found a lot of useful information at this site. They have several levels of membership. Depends on how much money you want to spend.
I am having trouble believing this after reading the 10K: Weiss Research has just upgraded the financial rating for VELA from D to C. This just blows me away! They don't do these things unless something good is afoot! This is the equivalent of moving to a HOLD from a SELL, SELL, SELL. I wish I knew what was going on. This is weak evidence that something good may be brewing. It might also be the reason Alvarez and company are buying stock. Cross your fingers and look up.
I hate to say it, but I think you have the wrong company.
Controlling interest in the corporation. If he loses that then the ball game is over. Not likely to happen.
George is not likely to give out more than 5 billion shares else he would risk losing the company. IMO he will most likely be more careful in the near future about letting too much more stock out as that will begin to limit his flexibility. If the dilution approaches 2.5 billion shares then I think things will slow down a bit.
Wow! That's a pretty abrupt change. I wonder how long it will last?
It was rated D- at the low end of Poor. The rating can change month to month. For the month of February it was moved up to the middle of the poor range. What is it that triggered the upgrade? I'm still wondering what prompted the increase. The lack of information regarding this stock is frustrating to say the least.
VELA was just uprated by Weiss research to a financial rating of "D" this month. I am still puzzled as to why it has a rating at all, let alone a rating increase. This means whatever financial information they are basing this on must have improved. To re-iterate...Weiss does not normally rate penny stocks, so I am curious as to what might be happening. Either this thing explodes and takes off or, as has been commented, it will evaporate.
VELATEL GLOBAL COMMUNICATIONS, INC.
SYMBOL: VELA:OTC
View Report
View Analysis
UPGRADED to "D"
Feb 2014
Weiss Rating and Analysis of VELA(Not everything shows up):
VelaTel Global Communications, Inc. Sell D-
OTC:
VELA
Market Capitalization Enterprise Value Dividend Yield Dividend Rate (TTM) 52-Week Range Price as of 2/18/2014
1.34 Million 16.69 Million -- -- $0.00 - $0.06 $0.00
Rating
Risk D Weak
Reward E Very Weak
Factor
Growth Weak
Total Return Weak
Efficiency Very Weak
Price Volatility Fair
Solvency Fair
Dividend --
Performance 2/18/14 Q3-12
3 Months -20.00% -98.58%
1 Year -97.89% -99.87%
3 Years -99.99% -99.97%
Income Statement Q3-13 Q3-12
Sales 462.90 214.50
EBIT -2.52M -2.71M
Net Income 357.40 -4.03M
Balance Sheet Q3-13 Q3-12
Total Assets 2.57M 21.56M
Liabilities 51.69M 26.55M
Shareholders Equity -48.01M -6.16M
Profitability Q3-13 Q3-12
Gross Profit Margin 86.78% 82.98%
Profit Margin 77.20% -1,878.27%
Operating Margin -543.57% -1,261.21%
Debt Q3-13 Q3-12
Current Ratio 0.03 0.21
Debt / Capital -0.56 1.59
Interest Expense -0.68 -0.24
Cash Flow Q3-13 Q3-12
Net Cash Flow 992.90 -171.70
Free Cash Flow 935.56% -29.28%
ST Debt Cove. Ratio -0.03 0.44
Sector:Telecommunication Services
Sub-Industry:Telecommunication Services
VelaTel Global Communications, Inc., through its subsidiaries, operates as a telecommunications carrier primarily in the People’s Republic of China and Peru. It focuses on the deployment of telecommunications networks that utilize wireless broadband access (WBA) in international markets using 2.
Period
End Price P/E P/B EPS ROE Revenue
per
Equity Debt
to
Equity Cash
and
Equiv.
Q3-13 $0.00 -- -0.06 -0.01 -0.04 0.00 -0.37 1.08M
Q2-13 $0.01 -- -0.05 -0.04 -0.09 0.00 -0.36 84.60
Q1-13 $0.04 -- -0.14 -0.05 -0.10 0.00 -0.42 1.27M
Q4-12 $0.11 -- -0.33 N/A N/A N/A -0.42 207.90
Q3-12 $0.02 -- -0.11 -0.47 -1.49 0.02 -2.18 280.00
Q2-12 $1.09 -- -2.20 -0.35 -1.86 0.08 -2.59 451.70
Q1-12 $3.20 -- -4.42 -0.21 -2.09 0.02 -2.39 32.10
Q4-11 $7.00 -- -4.77 -0.58 -3.36 0.03 -0.81 183.50
Feb '12Jun '12Oct '12Feb '13Jun '13Oct '13Feb '14$0$1$2$3$4$5
VELAS&P 500
Sales and Profit Margin
09Q2Q3Q410Q2Q3Q411Q2Q3Q412Q2Q3Q413Q2Q30100200300400500600700800-16000%-14000%-12000%-10000%-8000%-6000%-4000%-2000%0%2000%
Ratings Definitions
D - Weak. The company’s stock is an underperformer relative to other common stocks with a similar amount of risk. While the risk-adjusted performance of any common stock is subject to change, we believe this stock represents a poor investment based on its current valuation and the company’s current financial position.
Performance Rating - Based on its total return to shareholders over the last trailing four years and its prospects for future returns based on sales, net income, earnings trends and economic factors.
Risk Rating - Based on the level of volatility in the stock’s daily and monthly returns and on the underlying company’s financial stability, as well as economic factors.
Something to think about: If VELA revenue picks up and say George decides to do a stock buy back, a 1 Mil $ purchase could potentially buy back about 1.1 billion shares at current valuation. If the OS is around 1.2 to 1.6 billion shares, it would light a fire under the price of the stock. Obviously, they wouldn't make it that far but it would definitely push the value of the stock in the right direction fast for not very much money. I think if CM Mobile is producing 12 mil a year, this could be a solid possibility.
I checked the Weiss financial rating yesterday for VELA and it shows a rating of "D". Two things about this: first I was surprised that it even had a rating, and second I was surprised that it was even rated at a "D" level, considering VELA's financial statement per the last 10Q. Weiss usually does not rate penny stocks...so why this one?
A rating of "D" is poor, however it would imply that as bad as things look for VELA, there must be substantial financial backing for VELA to survive as long as it has, and to be rated a "D". Assuming the business is in the beginning months of taking off, we can hope that revenues begin to pick up and some of their debt problems are mitigated soon. Only time will tell.
The bid on TDA at 3:48 EST shows .001, ask is .0011.
Elbert, how would you see something like that on your account but I don't see it on TDA? It would imply a RS but none has been announced.
It appears to me that there were trades as late as 1:45 EST (2 mil shares, ~$1600). So, I don't think trading has stopped. I hope these guys aren't in the mode of bankrupting out and are just putting everyone on hold until they can get as much as they can out of what's left. A better note than "is coming soon" would be a bit more optimistic I think.
Thanks TJeff, I was wondering what was going on.
TJeff, in plain English what exactly is going on? The MVNO guarantor is listed as VELATEL. What is being sold or bought, and Who is buying or Selling? and for how much in what countries dollars? What does VELA have to do with "China Motion Telecom International Limited" since they are clearly mentioned in these documents?...We need a lawyer to understand what most of this says.
Take a look at their website. I think it may be a better part of valor if they live to fight another day. Keeping their debt under control may be necessary to make that happen. Go to Edgar on line and see their July financial statement. It's pretty scary. They've recently sold Peru Go Movil and now China Motion. These were necessary to consolidate their finances.
Price for China Motion Mobile will free up some capital for VELA to clear some debt that is coming due or is past due. I think with the exchange rate at .13 USD to 1 HKD and taking into account the sale price in USD, The gross will be approximately 25 million or about twice what Alvarez paid for it. That's not a bad investment profit for less than a years time.
I think VELA needs to pay off some debt they are behind on. In addition, VELA has had a lot of difficulty dealing with the Chinese. It makes sense to let this one go, clear their debt and continue to expand the remainder of their portfolio. This may be coming from their recent association with a financial aide organization to help get their finances under control.
You are correct:
“MVNO Guarantor” VelaTel Global Communications, Inc., a corporation incorporated
in the State of Nevada, the United States of America
Reading through some more of this it looks like maybe 25 Million USD. I think VELA bought the company for 12 million. So, 25 mil would make more sense.
Here is the current exchange rate:
Hong Kong 1 HKD to .128985 USD
If there are approximately 1.5 billion shares on the HCX for China Motion Mobile and the offer is for 1.15 HKD/share then:
1.15 x 1.5 billion = 1.73 billion HKD
1.73 billion HKD x .128985 USD = .22 billion USD = 220 million USD
My apologies if I'm off on the number of shares.
Elbert, if China Motion is a subsidiary of VELA, what exactly do you think the impact will be on VELA stock if Alvarez sells China Motion? I read some of the documentation and I think it said there were about 1.5 billion shares outstanding in China Motion on the Hong Kong exchange. An offer at $1.15/share (which currency?) sounds like a lot. That could be a real game changer for VELA even with their outstanding debt.
Something must be going on. I can't believe buying out a note would make that big of a difference...$2 per share?...maybe in a decade or two.
When I first heard him speak, I commented to some friends that he needed a "Man Friday/Girl Friday" to provide a communication base, at least, in a more outgoing or charismatic way. Corporate PR is important when it comes to supporting the overall price of the stock. No offense intended, but it would be great if someone were putting things in a spreadsheet and creating better presentation materials to sell his case in a positive and upbeat way. George just isn't there. In fact, he is more likely to put you to sleep.
This companies financial statement looks like a disaster area. See Edgar online. My guess is George is running out of options. If he can secure financing to get his known projects off the ground, it will take considerable time (years) before the massive debt he's run up will be neutralized. A long shot at best.
Litigation has also begun to run up costs and may present more problems in the near future. That being said, I like his business model and the future potential it has. However, I think if cash flow FCF doesn't pick up soon, the end of this company is near. His financial backers appear to be hanging in there but may be doing so only because they are up to their necks in quicksand and are hoping a miracle will happen to save them. Dates for the convertible notes are listed in Edgar online. One is due in November, two are due in December 2013, one in January 2014. It seems to me that things will be coming to a head in the not to distant future.