I completely agree. The BONY 'error' happened in June as we were having a sustained rally in pps that may have completed the Caterham funding requirement and could not have been timed any better if goal was to kill that rally. The Russian fiasco could obviously have been prevented (and much of Seth's and byron's fire) if the deal was never announced (ie waited until money in hand). GTE really needs to fight fire with fire. As these lawsuits take a while to play out, perhaps GTE is waiting first to see what the Amex decision is regarding the delisting. I see they scheduled the hearing in late Sept. That does give more time than I thought GTE would have to test the strat, roll out magic money and get a contract or two signed. If after those succesful points and Amex still delisting GTE, I would think a lawsuit would have even more teeth against the Amex. Otherwise it may turn into he said/she said kind of court case IMO.

If GTE would win the Amex appeal, as that seems unprecedented, I would think the pps doubles on that news alone. Hopefully Huff et al are confident with that result so they are proceeding forward and have the things you mentioned lined up.

It would increase price, but not as much as if amex situation resolved IMO. My point is that I don't see any compamy ever succeeding with an Amex appeal, most don't even try. I can show you companies (most recently dhbt.pk) that didn't appeal and had significant contract news after the delisting with large sustained increases in share price. I guess we'll just have to sit back and see. Good luck to all.

I think it would take it up temporarily, but do you think we can see a sustained price increase without institutional buying that will shy away until after the Amex decision? Also don't you think the Amex uncertainty will 'cap' any rally?

I would like to see GTE withdraw the appeal (has any compaany ever won an Amex appeal, most don't even try). It seems inevitable anyway and with the late Sept hearing hanging over the stock price. Even money-in -hand contracts and a free flying strat won't be able to increase the pps much IMO. For the stock to trade freely we need the Amex overhang gone.

Strat news can be anytime before month end. With sanswire presenting mid week this week and next at conferences, I suspect they start tethered testing this weekend outside with a mon am PR. That way no investor in the area gets a head start on the news to invest on that info. Also Jones would probably be back at his home for the weekend and be available for the initial test.

That makes sense as The Paul issue predates the move to the Amex and would imply the Amex didn't do their DD before allowing GTE onto the exchange. personally I think if Huff has the goods (a working strat, a signed money-in-hand wimax deal, and a money card rollout in India) then GTE should goto the OTC BB temporarily as move to the nasdaq or NYSE would seem inevitable after those events transpire and the Amex cloud is lifted IMO.

Good points. If an Amex delisting affects future contracts, I would think that would be grounds to sue the Amex by the company or shareholders.

It's probably similar to the hotzone models. First a pilot test/ limited trial in selected areas then a finalized contract and all country launch thereafter as I understand it. Is that how others see the situation?

Hopefully it's buying during lunch break from the AFCEA conference attendees. Also a rise in share price with no news will at some time represent the tethered outdoor (in plain site from nearby locations) testing beginning in Palmdale. Which IMO leads me to believe a weekend first tethered test with Mon am PR.

It's probably good that right now their is no assocaition with GTE and Huff in these news articles as until the Amex mess, one way or the other, is cleared up Huff and GTE have no credability IMO.

Flying J from RB reported last night they have a "double booth" next to the google booth.

http://ragingbull.lycos.com/mboard/boards.cgi?board=GTE&read=205620

I suspect some short shares have sold on the delisting notice and new shorts established positions waiting for the pps dive below .50 if GTE is finally delisted. Other new shorts may be hedges of new long positions that have short shares as insurance of the apparently (as it's hard to find a successful Amex appeal)soon to be delisting. IMO don't read too much into the short numbers.

vern,
The press releases from the spring of this year on have only mentioned the 21,000 foot altitude with the s2 to prove the technology, and maybe attempt 45,000 ffet at most. My understanding of following this for 2 years now is the s2 will try and stay at altitude for a overnight or so period of time on station to show the idea works. If i recall correctly, they also want to break the rigid ship altitude record at like 21,000 feet or so. (maybe that has changed if the ship is semi-rigid as would that qualify?)

In your opinion, is the 135 foot design shown in the photos capable of reaching 21,000 feet or even a 45,000 foot level keeping in mind the 750 pound weight and amount of helium required?
thanks,
db

Nice summary. I am hoping the new shape is not similar to sans 1 and is similar to the disc shape in the depiction in the link below. If it is disc shaped and we get a picture, then we are off to the races never to look back at these levels IMO. I also like the fact there is a Disney film crew at the adjacent hangar as well. Seeing a sans 2 of any shape float testing will turn some necks around the site.
Good luck to all,


http://www.raytheon.com/feature/x-band_antenna06/

Any thoughts on the feasability of a disc shaped rigid HAA?

Good to see you back Vern with your experitse and experience. The Raytheon website as someone pointed out and linked below has a picture of a HAA for their x-band antenna. It looks like a disc shape or UFO shape. It was posted here on IHUB a discussion with a arytheon contact where Raytheon said they are not developing their own airship for this project. In your opinion, is the Sans2 possibly disc shaped? Also is it possible for a disc shaped airship to be a HAA and be stable at 65,000 feet even with a rigid design?

http://www.raytheon.com/feature/x-band_antenna06/

If about to have a tethered flight test of sans 2 out in the open next to a disney movie set and about to tow the tethered sans 2 to edwards for further testing, then it is a great time to get this 'housekeeping' done IMO. Just think of the free media publicity GTE will get in the next few weeks with an outdoor public viewed tehered test and subsequent towing the 12-15 miles to Edwards base. Let's hope Huff has finally learned how to play his hand. I personally think he has. He has his repuation at stake and for a relatively young man who has basically been called a con artist by the Amex and the media, I suspect Huff wants to get the last laugh by year end.

"The letter also states that the termination does not preclude the parties from working together in the future."


"The termination of the agreement does not affect NASA's provision of meteorological services to the Air Force Flight Test Center in support of the flight test efforts involving Sanswire 2, which are to be conducted at Edwards Air Force Base pursuant to the Statement of Capabilities entered into between Sanswire and the Air Force in July 2006."

Above from today's news release. How does this make it seem we don't have NASA's support anymore?

How does this change anything other than providing fuel for bashers? Hopefully the halt isn't a delist right before flight testing as a way for the rally to be stopped.

This shouldn't be a surprise. I believe in the SHM or else somewhere recently it was stated nothing ever came about from the previous NASA agreement. The NR also states NASA will still provide weather reports in support of flight tests at Edwards. Unfortunately I suspect it will provide fuel for the bashers and likely another MF article IMO..

You forget GTE was transporting engineers to install hotzone pilots in germany, China, and Mexico during this time. The engineers were likely there for extended periods of time which is not cheap. Hopefully we get a ROI this Q with some signed cash in hand hotzone contracts, then the travel expenses will look like money well spent IMO.

Look at the next part where they pay 5 million to expand network if conditions met. Also looks like the Caterham deal was finalized on different terms as the PPS wasn't met to satisfy old requirement, but it still went througha t just under a dollar a share. Caterham has now bought millions of shares well above current market. 10Q IMO is neutral with some good and bad as i suspect. Now we need contract news to help us out and hopefully a positive amex decision.

Don't they use a sphere shape? If so I think they reached 20,000 feet a few years ago. I also recall Vern criticizing their design and pointing out flaws why it wouldn't get to 65,000 feet.

Rocky pointed that out as well. I wrote successful strat test , not operational commercial vehicle and strat revenue. I really think some Hotzone, staregic partnerships (to help cut expenses and posibly infuse some cash into GTE)and ? voip contracts are waiting on a successful strat test. I just think a succesful test will generate more interest and contracts. I therefore think we are 12-15 months behind Tim's original revenue ramp. Hopefully we find out soon if a successful strat test will lead to contracts and partnerships and the revenue ramp up. I hope I'm wrong and the ramp starts earlier with the Q2 numbers but i doubt we see any revenue growth yet.

They give out shares to suppliers instead of cash. The lower the stock price the greater the dilution. Look at how the OS increases every Q based on these payment shares. That's my understanding of it.

Thanks. I still think GTE is 12-15 months behind those numbers and with money cards and voip hopefully kicking in soon we start the ramp Q3. Where do you think GTE is on the revenue ramp?

I agree with your logic, but suspect an afterhours release so the info can be digested over the weekend as it will likely be similar to Q1 and a non-event to move the stock either way IMO. Would also be nice to have a contract announced early next week to get things going. Regarding the revenue projection of 100 million for 2005 and 250 million for 2006 you need to remember that anticipated a successful strat last year. I think GTE is tracking on those projections but 12-15 months behind the revenue curve you mentioned. I think 2006 we will see 100 million and 2007 250 million in revenue.

Overall volume for the day not bad. Hopefully the congressional hearings HMSG involved in this week will raise more investors' awareness before any contracts awarded.

IMO the right set of circumstances including what you posted would get us back to that level. The delisting situation is not that we won't be able to trade in the future, look at DHB (now dbht.pk after recent amex delisting). Look at valuations based on revenue which we will know more about from the upcoming 10Q and throw in new revenue and more important profit from money cards, a Hotzone contract or two with money in hand (or with the US Forestry service), a stategic partner puttin gup money, or a successful strat test (hopefully with some media coverage with a representative from GTE other than Huff) and I think people will realize the potential and likelihood of moving to the NYSE or Nasdaq at some point even if delisted from Amex. The pps now is absurdly low IMO based on the revenue and profitability of Centerline alone (which I highly doubt have been fabricated in SEC documents in this psot-enron era). IMO we can reach the 52 week high pps even during the delisting process if Huff can deliver 2 or more of the above (especially if we would get some analyst coverage which would seem more likely with 2 or more of above). But don't be surprised if we get into the 40 cent range first though.

That might be the plan as it would be a nice mantra for the paid message baord bashers to point out. I personally think a dip into the mid to high forties will be their plan for trading. It maximizes their short share profit as well. Hopefully the big players then decide to go long as their would be more room for profit in that direction now. If able by SEC guidelines sure would be nice for Dumas and/or Huff to buy a million shares, exercise options but not sell, or take stock instead of cash as comp until cash flow breakeven (end of Q4?) as a sign the stock price is grossly undervalued. A money in hand contract would also help, LOL.

Based on trading the last few days, it appears the .50 psychological barrier is the target of the stock manipulators IMO. I would look for at least one punch below this level in the next week.

I think they did. See below link.

http://www.investorshub.com/boards/read_msg.asp?message_id=9493775

Regarding tin hat foil theories. I would add one more (which I hope is the correct one). The 'shorts' IMO generally seem to have better and earlier information than the average long investor (particularly retail). The declining legal reported short interest of 31% down from previous month as recently reported suggests to me they are covering for some reason. Many think because they knew of the Amex delisting, another possibility though may be an impending huge news event(s) (strat testing, finalized 100 million dollar hotzone contract, air dragon gov. contract, etc)and their risk reward wasn't worth it. What if they were unable to cover as much as they wanted and the Amex 'helped' them out thanks to influence from the tabloid journalists. This delisting threat and cap it will place on any good news will help them cover and establish huge long positions (provided it is all based on huge news soon) to profit going down and now going up (hopefully soon) as the higher profits are obviously potentially on the long side now. This would be a reason for the appeal to Amex to be successful. Have you or anyone thought of this posssibility?

I don't see how GTE could go 'totally under'. They have no debt and assets to sell. Centerline, for example, is profitable per SHM and an earlier PR. Centerline is likely to do about 100 million in revenue this year. As an asset to sell to a global crossing or other communication company it would be reasonable to be able to sell for 1.5-2 times revenue. That would equate to 150-200 million in cash for the company or about $1.40-$1.90 per share in cash. Our current market cap and pps is around half that. So if GTE sold Centerline, for example, it would still have the other 4 divisions and 150 million in cash to last at least 3 years while the other divisions became profitable or were sold out for more cash. I don't believe the doom and gloom people at this PPS level. We'll know more form the upcoming 10Q, but from a valuation standpoint based on Centerline alone this PPS is absurd IMO.

That was due to them completing a filing that was late. The subjective complaint of not in public interest will be harder IMO to overcome.

Looks like it was an extension more than a complete win. IMO our best bet is an extension until year end to let the q3 numbers come in, the BOD timeline be completed, strike a deal with a strategic partner, sign a few large hot wire deals and move to the nasdaq. The timing of all this delisitng garbage just stinks. On a positive possible note. The two Sanswire presentations on the GTE website under upcoming events at the end of August would be a nice time to show everyone the strat and our strategic partner. Wouldn't that be sweet!!

Maybe Delta Aero is a shell created to spin-off Sanswire into with a strategic partner. This would probably be under the NDA we keep hearing about and explain why questions regarding delta aero are 'dodged'. Spinning off Sanwire into this I believe would help keep DOD aspects more secret as contract terms and such wouldn't need to be public record, just the money to/from GTE for the JV spin-off. If I were Huff, after a successful strat test i would partner with a strategic partner(s) like Raytheon, world wide aeros, LMT, Boeing and/or BAE systems by spinning off Sanswire into this shell. GTE would get future revenues to its bottom line (therefore rewarding shareholders) without having to give competitive or security sensitive details to the public. The current shareholders would also benefit as a condition to be part of the JV the strategic partners would either have to put up tens of millions in cash or buy a percentage of the company in a PP by say acquiring 25 million of the AS not part of the OS at say 2 dollars a share. Something like this would keep everyone happy IMO and force the Amex to back off. The Amex may be trying to get info on things like this, but the company due to NDA may not be able to provide them with currently. All the above is IMO and has been discussed over the last several years in parts on this and other forums. Any thoughts?

The author of the BONY article at Motley Fool is not Seth, but it is still an interesting connection non-the-less. Perhaps a coincidence, perhaps not.

very interesting. The Fool makes a buy rec on BONY and author discloses ownership in BONY. BONY's 'error' that knocked 60% of GTE's market cap in minutes and killed the rally leading to a funding arrangement didn't seem to have any affect on their bottom line. That's fair, LOL.