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Carlos Slim has just passed Warren Buffet as the second richest man in the world, and is within $3 billion of the first. Slim, among things, is in the communications business in Mexico.
Perhaps this board shares a diverse range of interests, including some who follow Mexican papers? Nilremerlin may not be the leader of the pack, only a member. Aren't we all entitled to express our opinions regarding GTEL (yes, GTEM is the ticker symbol; don't tell me) until they are deleted by the censor?
Hot: I don't think the government views Globetel in the same light we shareholders do.
Does the post office send your letter without charging up front? Do you have stamps lying about that you haven't purchased? If you sell a product that becomes evanescent as soon as the "send" button is pushed, a sure plan for for failure is to wait for payment after the service is provided. Check you cellphone statement. Years ago, a dry cleaner in town here tried to stimulate his business when wash and wear hit by offering a silver dollar to every customer who brought in 2 suits for cleaning. They brought in their suits; they took away their silver dollars; they never came back for the suits that wouldn't have made it on the racks of the Good Will store.
I believe the JV is immune from Globetel's legal problems, and if so, that would be an excellent reason for Globetel to create shielded and transferable streams of potential future revenue. VPN has probably also protected its investment in the JV with a contingency agreement that would permit VPN to acquire the remaning 49% for a nominal cost in the event of a catastrophobic misfortune to Globetel. Also, check out the statement that Globetel will receive 49% of the revenues of the JV. That's hard to believe. It's more likely that Globetel will receive 49% of the JV's distribution to the owners.
Look it up in Black's Law Dictionary.
Pardon me for picking at nits, but didn't Globetel produce one of seventy units to be installed in Mexico?
Are you sure that Cleary, Gottlieb were retained by Globetel before they announced the Internafta mess?
I'm betting that the funding came from Caterham loan secured by Globetel assets. Where else would it come from?
"Where I live (which is cheaper than Florida), this amount ($1480) would not be worth disputing."
You could have paid the bill if you owed it rather than get the publicity this little suit on account generated. Now, the bill must be paid or the sheriff will attach some assets of Globetel if they can be located. A colleague of mine sued a large drugstore chain for false arrest. The suit went into default, and after the required waiting period, after which the default could no longer be opened, deputy sheriffs showed up at all of the stores in the county and confiscated the cash in the registers. A settlement was quickly reached, the attorney for the defendant drugstore was sued for malpractice and his E&O carrier forced to pay a large undisclosed sum to the plaintiff. The attorney then went from doing a lousy job representing commercial accounts to handling DUI and appointed criminal cases. For want of a nail.....
Crazylegs: That's what I said, only not so fully as you did.
Okay. I should have said the earnings stay in Mexico. Obviously, the cost of sales goes to whomever and whereever the supplier happens to be.
Centerline is a wholly owned subsidiary of Globetel, and its earnings are consolidated with the parent. Globetel must own at least 80% of the entity to claim its earnings.
I am saying that the effect on Globetel's value will be reflected in "investments" on the balance sheet, and if the investment value is carried at cost, no it will not. If carried on the books at fair market value, the effect will be that. If the fair market value is greater than the cost, whopee; if less, that's the way it is. Globetel cannot impute to itself earnings of a minority interest in a foreign operation.
Nope. Try again. Globetel is, or is expected to be, a minority stakeholder in "no more cables". No more cables is not a subsidiary, but an investment. Unless cable-less pays a dividend to its owners or is a Mexican equivalent of a sub-chapter S corporation, the pesos stay in Mexico where they belong, and where they are controlled by the majority shareholder.
Quite so. And if the 60 mil ever materialises, it will belong to "no more cables", not Globetel.
It would appear that Globetel has decided that south of the border is friendlier than here, and quite properly elected to head that way. No SEC, no shareholders or creditors'lawsuits, and no rules to interfere with operations. Good, old-fashioned knock 'em sock 'em capitalism. The JV is not liable for the sins or debts of the father, and there is a new ballgame on a new field in non-hostile territory with different umpires and rules. When Globetel folds, and it will, the Mexican venture will make money for a few people whose names are not unknown to us. I'll bet you that the assets of the Globetel minority interest in the JV are pledged as collateral to the investors who put the money into it and are immune from attack by Globetel's creditors. At least, that's what I think.
You do realize any revenues coming into the JV will belong to the JV, don't you? Globetel will not see a return on their investment in the JV, if they ever make an investment, for some time. This is bread upon the waters. Not an immediate return. Is that so hard to see?
Nope. Three months of nothing probably means the check was never received to kickstart the audit.
The job of an auditor is to determine the significance of what is. An investor's job is to determine what is significant. In this case, there is not enough information to determine anything, and the prudent man walks.
"At this we are experiencing technical difficulties with some of our services."
I assume they meant "at this time" rather than "at this point". What we have here is a failure to communicate. I hope it's not permanent.
WIDD: As much as I try to make fun of the Globetel floundering about, the selection of Pachuca was probably made by VPN and not the minority-to-be stakeholder. However, that being the case, the selection was a stroke of genius. The demographics indicate that there is little or no potential for growth, the disposable income of the citizenry is low and tourists are not attracted to tours of tailings. Which means that the JV will not be taxed to deliver the services offered because it is very likely never to operate at near full capacity, which means that it is the perfect laboratory to study this paradigm shift in communications in a microcosm. Problems in the subsequent (and there will be, won't there) biggie can be foretold, corrections made and when the next pilot cranks up it will be bigger, better and clear as a bell. This is good news and I'm glad I'm only 13 1/2 cents away from breakeven. Bring 'em on! JMHO
Risk: Anywhere followed the others to nowhere.
If the JV comes alive, I expect you will see Monterosso running it, Sanswire will be sold to someone, Centerline will be taken over by a competitor, and the creditors will be looking for assets to attach. Order out your shares, laminate them onto a board and serve drinks to your friends on the resulting serving tray. By the end of the decade a blimp-like object known as a Super High Altitude Fixed Tactical (SHAFT) communications device owned, by Peralta Communicationnes SA will have effected a paradigm shift in communications. The United States Department of Defense will be its largest customer.
"Repopulate" I like that. Like reintroducing the wolves into Yellowstone Park.
The independents have left the building, leaving the spoils to the insiders to divvy up. "Send not for whom the bell tolls..." the implosion has begun. I can't find anything in the last two PRs that would indicate otherwise. It doesn't matter about Mexico because Globetel has not, as least as far as we know, paid into the proposed JV their share of the capital, and so VPN, if they wish to, will wind up with the whole works. That's the way it's done out there. If you are worried about your lunch, Globetel just ate it.
THE MOTLEY FOOL WAS RIGHT!!!
"Consultant" is MBA-speak for "looking for work". It doesn't mean you are unemployed; it means that you are willing to take on short-term jobs for pay. Like I said, 1099s, not W-2s. There are a whole lot of folks out there who fall under this category, and some of them do pretty well. Between taking the bar exam and hanging out my shingle, I packaged mortgage applications for residential and commercial borrowers. I made some money and had a very pleasant 6 months.
Maybe get a few free shares as a sign-on bonus, look around, find out what they can about the company, and "discover" the job would require more time than they were able to give. "Good-bye and good luck." Jolly old Sir Christopher set the standard for that routine. No mention of returning the shares that I found. This company may fly, or it may continue to auger in, but at this point, it isn't likely to entice world-beaters to join the board. There are, of course, many, if not most, herein who disagree with me. That's why they make Fords and Chevrolets. MVHO
Make more money as a consultant without the liability.
History does not bear out the accuracy of your prediction.
Mr. S: The press release did not throw the government or the military in your face. There was no indication that gov't or military people were present, just Raytheon. The attendees other than Raytheon were not made public. Read into the tea leaves whatever you wish, but at the end of the day, it's just a bunch of tea leaves in the bottom of the cup. Ms. Muntz has probably been a non-event because nothing has been reported of her activities since before the fall. I gather from her resume that she earns her living through consultation work. 1099s, not W-2s. Just, as they say, MHO.
Dave: If you've ever dealt with European parties, you have been referred to as Doctor. I have a J.D., and theoretically could call myself doctor, but my compatriots with LLBs would sneer at me. I represented a shipping line in a Chapter 11 and was secretly delighted to be addressed as "Doctor XXX" by a bunch of very highly compensated European lawyers, much to my friend the judge's amusement. I have seen juducial decisions delivered both instanter and after a long wait. If you're not present during oral argument, it's hard to have any reason to bet either way on the decision. Happily, I am well on my way to completing the 12-step program for recovering attorneys which I started 5 years ago, and hope to be fully cured of my illusion of central position by the end of the decade. Wittgenstein was not a gentleman.
Huff probably cannot afford to add to his already hefty load of shares. He probably needs his income to pay for his future living expenses. However, when the stock price exceeds one dollar, he will no doubt sell a few shares.
How many of you who are gung-ho about the future of Globetel have purchased shares recently?
I am 7 cents away from breakeven and if that ever arrives, I probably won't be smart enough to cash out, but will watch it fall again. Luckily, this is the only crapshot that I own.
Post only messages you would not mind rereading one year from now.
This month's issue of Popular Mechanics has a nice article on Predator type aircraft and the Border Patrol. No mention of Globetel, but maybe next time.
Surely, you wouldn't delay the test in order for potential viewers to attend church? I think the weather will postpone it anyway.
Game: I believe you are right. Mexico seems to be our only near-term hope to avoid failure. I don't think this investment will ever put the grandkids through medical school, but it might buy a shiny new car someday. Good luck.
Allow me to post a fact, followed by an opinion. Fact: The parties ahve agreed that ownership of the JV TO BE FORMED will be owned 51% VPN and 49% Globetel. This agreement is not binding on either party any more than the Internafta agreement was binding. Opinion: since there is no JV at present, there is no asset, merely an agreement to create an asset. Forty-nine percent of nothing is still nothing, at least that's my understanding of Aristotliean math. But you say, "Oh, they had an agreement before Globetel began work of this project." No, they had an agreement to make an agreement if the project was finished to VPN's satisfaction. The terms of the JV were not spelled out then, and they haven't been yet. The man with the gold can change those percentages during the negotiations before the JV is formed and the junior partner can take it or leave it. What do you think will happen if Peralta says he wants 80% of the deal? Globetel will take it because they can't walk on water.
The "our door" Rob refers to is the company. Not the home of Mr and Mrs Bleckman. He is, for whatever it's worth, the spokesman for Globetel.
Time for Globetel to relocate to Mexico if this works out.
GlobeTel Communications Corp. (Pink Sheets:GTEM) and VPN de Mexico S.A de C.V. today announced that they have signed an agreement pursuant to which they will form a joint venture, to be 51% owned by VPN and 49% owned by GlobeTel.
That's a beginning. Next, they will form a joint venture. More to come?