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Comments, please:
Here's why I invest (Part II)
by: f16falcon4me (37/M)
Long-Term Sentiment: Strong Buy 04/07/06 11:32 pm
Msg: 167737 of 167814
You'll need to view it through a PDF (adobe). Budget Appropriations for an Airship. Bashers, don't give the Lockheed Story BS. I'm sure this is SANSWIRE their referring to.
http://www.dtic.mil/descriptivesum/Y2005/OSD/0603750D8Z.pdf
Goto page 61 for the goods.
Read the prs, Bannister, 10K, and recent shareholders' letter. You can find a wealth of information re the recent test of the Hotzone system in Mexico, pilot installations in Germany, China, etc.
I agree, Mide, at least in part. Some thoughts: the acquisition of the Hotzone system is relatively recent AND did GTE have the kind of money it would take to get press coverage on this (and other things such as the stratellite) and, if not, were Tim and crew stretched to the max last year, implementing all that was accomplished (quite a lot IMO)?
Mide, have you emailed this sentiment to the new IR director, Rob Bleckman?
Stock - this explains why GTE did not test the stratellite in some foreign country (many of the questions you ask are available in the prs):
FORT LAUDERDALE, Fla.--June 13, 2005--GlobeTel Communications Corp. today announced that the company has signed a formal agreement with the National Aeronautics and Space Administration (NASA). The terms of the agreement with NASA's Dryden Flight Research Center at Edwards Air Force Base in California establish that NASA Dryden will provide assistance in GlobeTel's development and flight testing of the Stratellite, the company's high altitude Remotely Operated Airship (ROA).
Under the agreement, NASA Dryden will provide specialized technical support to GlobeTel's subsidiary, Sanswire Networks LLC, for the firm's development and flight testing of the Stratellite via a series of task agreements.
It is expected that the first task agreement will call for NASA Dryden to develop piloted and unpiloted simulations of the Stratellite airship. The simulations would incorporate the airship's aerodynamics, propulsion and control features based upon data provided to NASA Dryden by Sanswire.
GlobeTel plans to provide NASA and other agencies access to the Stratellite for the installation, integration, and deployment of NASA-sponsored sensors and other projects.
The agreement between NASA Dryden and GlobeTel is authorized under the Space Act of 1958 under which NASA was established.
"It is a great honor to be working with an organization such as NASA," said Timothy Huff, Chief Executive Officer of GlobeTel. "The NASA Space Act Agreement allows NASA's Dryden Flight Research Center to support GlobeTel Communications Corp. in the development and flight test of a High Altitude Remotely Operated Airship."
"The NASA agreement will give GlobeTel access to additional capable personnel and technology, accelerating the growth of both GlobeTel and our wholly-owned subsidiary, Sanswire Networks LLC, and take advantage of the opportunity that lies ahead of us," Huff stated. "The information gained from ROA development efforts will be of mutual benefit to both NASA and GlobeTel."
A Stratellite is similar to a satellite, but is stationed in the stratosphere rather than in orbit. At an altitude of 10 to 13 miles above the Earth, each Stratellite will have clear line-of-sight communications capability to an entire major metropolitan area as well as being able to provide coverage across major rural areas. Several Stratellites linked together could cover many hundreds of thousands of square miles. The Stratellite will allow subscribers to easily communicate in "both directions" using readily available wireless devices. In addition to voice and data, proposed telecommunications uses include cellular, 3G/4G mobile, MMDS, paging, fixed wireless telephony, HDTV, real-time surveillance and others.
For more information, please go to http://www.sanswire.com or http://www.globetel.net.
.
And look at MSFT. I invested in that co. when Gates and Allen and a group of twnty-somethings started the company, challenging IBM. Have you ever seen the group photo of the original MSFT founders and employees? - a small group of long-haired geeks who looked more like hippies than businessmen.
I spoke to Bleckman today as well. I'm too tired to go into details, but the Russian deal is proceeding, bank's expert consultant is reviewing the Russian JV plans, etc., and Bleckman's awaiting information from Bob Jones to provide shareholders with an update on Sanswire II.
The outside consultant only began his review of the Russian JV in the last two weeks, folks. This deal is far from dead. To the contrary, banks do not waste their time hiring expensive consultants to review business plans they don't wish to pursue.
From other sources (business)and based on everything I have learned, these international JV high-technology loans take TIME and this is NORMAL. Two weeks for an expert review of a contract of this size is nothing and, if you recall from the 10K, based on the bank's formal acceptance, GTE and Internafta will revise the payment schedule of the contract after that acceptance. From personal experience, I guarantee you that such a revision will itself take several days minimum.
Do not expect news tomorrow, but don't leap to the conclusion that because you have not heard anything definitive, that this means the deal is finished - that is the exact opposite conclusion you should be reaching.
Of course it's not. Any further details? TIA
Don't know where you got that quote, but there appears to be more than one version of Sims' article. The following is the pertinent language from the latest verion of Sims' article which I saw posted and my response to it:
"Russia's a tough market for wireless. Late last year unknown Florida-based operator GlobeTel made an eyebrow-raising, out-of-nowhere announcement of a $600 million Wi-MAX deal in Russia. GlobeTel CEO Tim Huff has been publicly reticent ever since about the deal, which now appears to have collapsed."
Re: russia
by: siriuslyricher
Long-Term Sentiment: Strong Buy 04/06/06 01:57 pm
Msg: 165958 of 165965
Funny, in an earlier version of this same article I believe Sims' stated the Russian deal was "dead." His editors must have ordered him to revise the wording because, as usual, Sims provides no evidence to support his statement.
He doesn't claim to have spoken with bank officials who have approved the loan or the bank expert who is reviewing the plan. He quotes no one affiliated with the banks, Internafta, or GTE to support his assertion nor does he dispute anything contained in GTE's 10K, which clearly indicates that the Russian contract is proceeding.
While it may be Sims' most fervent wish that GTE's Russian contract fail, as he has so loudly predicted it would, his vitriol is rather muted in this latest rendition, perhaps because the SEC is taking a hard look at "business" journalists and their cozy relationships with hedge funds in attacking publicly listed companies.
Good try, Sims, but your wishes are not reality and conclusions based upon nothing but your opinion are worthless. I see you are keeping up to your usual standard, worthy of a paid basher on a public message board.
Both the main globetel website and the Sanswire website have been down since before the close. Very interesting. Any thoughts?
Aren't you special. The main webpage is down, and from the link you provided you cannot access the homepage - it is down. Worried?
Pit, a few weeks might be a very fast turn around for a bank on a deal of this size between two foreign businesses. The expert review began a little over two weeks ago, according to the pr. My friend once had a high-tech JV loan involving a measly $1 million from HIS bank, and between two U.S. companies, take three months for approval (and yes, the bank had an expert review the business plan).
Pit, you are not telling us anything we don't already know. Your source has no idea when the bank's expert will file his report and when the loan committee will review it. Banks take their sweet time and this is a $600 million deal. My source in the high-tech industry tells me that review of high-tech loans by an expert is standard practice. The bank does it for due diligence purposes, to show that they have followed all of the proper steps, to protect themselves from any future liability. If they can demonstrate they have followed their proper procedures, they will not be liable if they approve the loan and something goes wrong.
He has never seen the bank's expert nix one of these deals, although the expert may have suggestions. And, he says these things take time, too much time in his experience.
Starnes, the Russian deal is legitimate. After reviewing the 10K, and the test results from Mexico (among other things), the bank's expert will approve the loan. With high tech business loans, the banks usually have an expert review the business plan according to a friend of mine in the business, even when much smaller amounts than the $600 million involved here. And the banks take their sweet time.
The following is a good synopsis of where we are, from Rocky (you will see a link to his board in the GTE Ihub board info above, if you haven't noticed it yet):
Our R&D costs and our capital expenditures are behind us and, now, this is the year for ramping up our people resources and our operating profits. Our expanding management team has as its mantra: Deploy the technology. Generate the revenues. This, during the remainder of 2006, is our overwhelming focus. We are striving to make every Division in the company profitable by year-end.
The above pretty much says it all here folks. The 10K spells out that we have one division out of 5 carrying the load per revenues. The Carrier division has developed the base revenues over the last year that were badly needed, mission accomplished. The next phase for Centerline is to increase their margins. Dumas reported gross profit margins(see below)of $500,000 to $750,000 per month is possible. Using the low end of $500K/month times the next nine months would give us $4.5MM in gross profit margins from this one business sector. This would be nice to see. This business unit is seemingly in gear and Mr.Monterosso has what he needs in place to move forward.
The other 4 business units: We need to apply the Centerline progress to ALL BUSINESS UNITS. It is no secret these divisions are not up and running or contributing to revs or profits per the year end report. Implementing these units into functional rev producing business parts will determine the success of GTE in 2006. I have watched Huff take a corporate structure mess with no money and put us in a position with remarkable potential in about 3 years. 2006 will show whether it all starts to gel or not. Monies have been spent the technology is in place and the sectors of our business units are hot. That all makes for a great combination. Management themselves have stated on several occasions it is time to produce and that is exactly what I expect to see. The synergies of the business units and the overall business plan of GTE is second to none, imo. BUT, if these programs and cutting edge technologies are not implemented and producing by year end or before it will be my cue to move on. It is time to produce folks Globetel knows it, you know it and I know it. I look forward to a great year. Let's get'er done...rock
Contracts=Revenues Revenues with good Margins=Profitability
calculating gross profit margin
http://beginnersinvest.about.com/cs/investinglessons/l/blgrossmargin.htm
Techisbest, listen to Rhapsodyinbluze: the 10K filing is the source for solid, detailed information on the company and its business activities, reviewed by an audit committee, and subjecting GTE executives to liability for any false or misleading statements contained therein. GTE discussed the Russian deal in detail in the 10K, and from what I read, the deal is still on.
I think Dumas purposefully chose not mention the Russian JV in his shareholder letter, not only because it has been discussed ad nauseum, but also to have a little fun with the shorts, leave them dangling, wondering, and worrying when the shoe might drop.
The 10K covered the Russian JV in detail and Chairman Dumas noted the four countries in which Hotzone wireless is currently being installed. Note the word "currently" - to further address the Russian deal in the shareholder letter would have been overkill. Shareholders are well aware of the information contained in the 10K and Dumas is wise not to give any fodder to GTE's enemies, nor any early warning to the shorts, you can be taken off guard at any time by a surprise announcement regarding Russia. From the 10k:
GlobeTel Wireless, Russian Joint Venture Agreement
As of December 30, 2005, GlobeTel Wireless Corp. ("GTEW") had entered into a
binding agreement to install wireless communications networks in 30 cities
throughout the Russian Federation, providing broadband, VOIP and DECT
technologies. GTEW had entered into an agreement with LLC Internafta
("Internafta") of Moscow, Russia, whereby Internafta will pay to GTEW a series
of four construction payments totaling US$600 million for the installation of an
array of proprietary networks to be installed in Russia's 30 largest cities,
starting with Moscow and St. Petersburg. GTEW will both manage the completed
network and will retain an ongoing 50% interest in the operations of the
network, allowing the Company to enjoy the benefits of the recurring revenue
stream. GlobeTel plans to roll out the network in 3 stages, comprising 10 cities
each, over the next 27 months.
On March 2, 2006 the Company announced that Internafta had requested an
additional delay in the closing of the funding until the week of March 6, 2006.
The Company has provided Internafta and its banks with a significantly expanded
business plan outlining, in detail, the company's program for equipment
manufacturing, delivery, installation, testing, monitoring, staffing, progress
payment requirements, and other pertinent information. Internafta advised the
Company that its funding has been approved by its bank syndicate, subject only
to the bank's final review and analysis of the business plan.
Internafta has informed GlobeTel that its bank recommends that smaller, more
frequent, progress payments be established so that the necessary staged payments
can be delivered to GlobeTel as and when the network is delivered and installed.
These smaller, more frequent, staged payments do not reduce the total capital
value of the agreement with GlobeTel Wireless or change any other terms of the
agreement. GlobeTel will still receive $600 million for deployment of the
network. The exact amount of the new proposed initial deposit, and the size and
timing of the new proposed progress payments, will be discussed and agreed with
GlobeTel once the bank has completed its due diligence and when the bank group
formally accepts the terms of Internafta's proposed banking instrument.
Can anyone explain why when you try to access the investor relations link at the Globetel site, you get a Thompson Financial message re temporary difficulty AND the same Thompson Financial message at the Mexico and Russia links at the globetel-europe website? What does Thompson Financial have to do with the globetel-europe site?
Let me guess - the European bank is going to fund Russia, Mexico & Germany . . . I wish. LOL
Agree with you. Please see the following post which explains my thinking.
Rocky on the one time charge:
The 18MM is 2 parts
1)non recurring charges
2)non-cash transactions
I remember having a one time charge but I do not have time to track it down right now. If you use the actual quarterly reports filed with the SEC you will note non-cash transactions posted as well as non-cash financing events in all 3 qtrs. It is my opinion that a large part of the 18MM is the conversion and sale of Pref. A&B in 2005. I will follow up on this and report back...thanks
The Outstanding Share Issue:
A big chunk was added since the 3rd qtr because of the conversion of the Pref. Shares to common. I think it is important for everyone to understand that we pay for our financing with shares, we pay for services with shares and some employees with shares as well as options which are common shares when exercised. This will not change until our revenues start turning some profit. Until we have dollars coming into the "kitty", GTE SHARES are what we use.
* * *
Many appreciate Rocky's knowledge and insights. Bottom line, GTE has quadrupled its revenues and spent a lot of money in 2005 to acquire and develop technology, including making major advancements, completing construction, and now testing of Sanswire II, major hiring of highly skilled and experience personnel, installation and testing of the Hotzone wireless system in multiple countries, and developing and enhancing the Magic Money, Stratevoip, and Centerline divisions. It takes money to make money and GTE spent money in 2005 to position itself for growth in 2006 and into the future. I respect and admire the talented people working at GTE, and like J. Randolph Dumas, I'm looking forward to a very good year because as noted in an earlier post:
Revenues exploded in 2006, up 179%.
Absent one-time, non-recurring charges, the 4Q was profitable.
It takes money to make money: you must either buy or acquire technology; it's not free.
Per J. Randolph Dumas, "Our R&D costs and our capital expenditures are behind us and, now, this is the year for ramping up our people resources and our operating profits. Our expanding management team has as its mantra: Deploy the technology. Generate the revenues."
income
Definition 1
For corporations, revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Income is the reason corporations exist, and are often the single most important determinant of a stock's price. Income is important to investors because they give an indication of the company's expected futuredividends and its potential for growth and capital appreciation. That does not necessarily mean that low or negative earnings always indicate a bad stock; for example, many young companies report negative income as they attempt to grow quickly enough to capture a new market, at which point they'll be even more profitable than they otherwise might have been. also called earnings.
For those who have followed this company over the past year and longer, there were some major changes made to the stratellite design last fall/summer including switching from an aluminum frame to composite material (thus increasing payload capabilities) among other things. I recall Tim Huff stating (in a video?) that some of the technology being incorporated into the strat was not even available a few years ago. I also read somewhere that Boeing engineers came on board last Fall to advise re the lifting gas technology. All of these changes really started to take off when Nasa came on board (see pr below - the formal agreement with Nasa was signed less than a year ago.)
Now, thanks to Bob Jones and his Sanswire team, GTE is testing an improved, refined stratellite. Per J. Randolph Dumas, "Our Stratellite airship - for the technically-minded among you - utilizes a state-of-the-art carbon composite frame integrated into an advanced envelope, with power generation from photo-voltaic panels attached to the envelope. Using the latest battery storage technology and electric engines to power the airship, we believe we have the ability to keep the airship aloft, and in position, for many months on end."
IMO, it's better to take the necessary time and get it right the first time(and one year is not that long). The shorts and swing traders may profit off of weak hands, but they won't get one share from me. And just watch them scramble for shares when the first high altitude flight takes place this summer.
GTEFORT LAUDERDALE, Fla.--June 13, 2005--GlobeTel Communications Corp. today announced that the company has signed a formal agreement with the National Aeronautics and Space Administration (NASA). The terms of the agreement with NASA's Dryden Flight Research Center at Edwards Air Force Base in California establish that NASA Dryden will provide assistance in GlobeTel's development and flight testing of the Stratellite, the company's high altitude Remotely Operated Airship (ROA).
Responses to this post from Yahoo, please, esp re the one-time charge comments.
This $18.7M one- time charge is.......
by: stonecoldfever1
Long-Term Sentiment: Hold 03/31/06 10:09 pm
Msg: 159656 of 159667
still wide open to interpretation. It could be anything including negative developments that won't ever bring anything to the net bottomline or positive developments such as associated with the Strat complying with new military requirements which should eventually bring something net to the bottomline.
We don't have the answers because GTE hasn't provided them for some reason or another. The fact that they haven't leads me to conjecture that the one-time charge is conceivably tied to a classified federal contract.
So, if you take away this one-time charge you're left with essentially the same degree of loss as in '04 but with 180% revenue growth. The point being is if indeed this one-time charge is just that, then today's PR would've looked pretty damn good overall considering revenue growth.
Conclusion: My take on today's PR is that in view of the military's involvement with the Strat and that a further detailed explanation would've been normally provided at the 10K level regarding a one-time charge of this magnitude, that most likely IMO a federally classified program is in place which specifically would preclude divulging anymore detailed financial data regarding the structure of this one-time charge much less the specific federal contract under which it was incurred.
With all this in mind and the fact that explosive revenue growth over '04 is already taking place, that the Russian deal is still in the works,that some internationally respected players are on the BOD, and that apparently other sizable contracts are still on the table, I conclude that without the one-time charge this company is on a reasonable path to profitability and therefore is also a reasonable speculative play to hold on to through '06 as well. IOW, there's not quite enough data in to throw in the towel on just what you read in today's PR but there's already enough data provided in the PR to show that significant growth as of '04 with assumably more to come will most likely expand market awareness of GTE's potential going forward. For a $2+ stock, this is about all you can ask for or let's face it, expect. You're certainly not getting MSFT stability; on the OTH you're also not getting the typical OTC company annual revenue growth of 2% with ever expanding losses either - much less the Sarbanes-Oxley level of scrutiny that being at least on the AMEX provides.
Place your bets boyz and girlz.
scf1
Design - when did you speak to IR re the Russian deal and was it Bleckman you conversed with?
One time charges increased the loss - without those one-time charges, pro forma loss about .18 cents/share:
The Company's operating loss of $31,442,798 for fiscal year 2005, compared with an operating loss of $13,041,451 for fiscal 2004, ***** was heavily impacted by one-time, non-recurring charges and non-cash transactions totaling $18,726,304.
Without such charges, the loss would have been $12,716,490.***** The Pro Forma loss would be about .18 cents a share.
If you click on the Russia icon on the bottom right of the website, just below the blue bar running along the bottom and which obscures the word "Russia" you get the following, which is new:
GlobeTel Russia (GTRUS) will be established to represent the interests of GlobeTel in Russia. GTRUS is utilized in connection with wireless, stored value and VoIP operations.
Over the past, GlobeTel has had a number of key meetings with officials at various levels of the Russian Government, including senior members of the Russian Parliament (the "Duma") and various branches of the Russian telecommunications and technology establishment. In early October, following months of preliminary discussions, GlobeTel demonstrated a working version of the HotZone 4010 equipment that will form the backbone of GlobeTel's wireless networks. At that demonstration, the HotZone 4010 system successfully provided internet and DECT phone connectivity inside the Duma Building, quickly establishing its capabilities and ease of use. Largely upon the strength of that presentation, GlobeTel has been urged to establish an office in Russia.
"It is beyond exciting to be able to bring this level of connectivity to Russia," said GlobeTel CEO Tim Huff. "Russia will, quickly and at a relatively modest cost, have a wireless infrastructure that will rival any in the industrialized world. This presents an amazing opportunity for us, for Russia and for our Russian friends. The Russian Internet market is severely limited by a lack of infrastructure and by the high cost to individual users of obtaining high speed internet access, even in those relatively rare cases where it is available. The GlobeTel network will provide city-wide high speed, wireless connectivity with the ability to provide voice-over IP telephony along with residential and business-based DECT service. DECT technology, particularly in conjunction with low-cost VoIP service, is the key to delivering highly affordable wireless telephone and broadband access to areas with limited or high cost service. This initial step - along with other very significant technology breakthroughs to follow - will prove to be significant for all of us."
Some facts about Russia:
As the world's largest country in terms of area - 1.8 times the size of the United States and spanning 11 time zones from Eastern Europe to Northern Asia - Russia's population of 144 million represents a huge telecommunications market with substantial potential for growth. Russia's teledensity is at 28 percent, meaning only 28 out of 100 people have access to a wire line phone. Approximately 70% of Russia’s population lives within the greater metropolitan area of the 30 cities where GlobeTel’s networks will be installed.
More about GlobeTel Russia
A friend who owns a software co. told me that in one loan between his firm and another co. (both U.S. firms) involving a loan of a measly $1 million (high-tech JV), it took the bank three months to approve the loan (and it was my friend's regular bank).
But if the CEO gave you a progress report on the 20 wireless projects, bashers and bomb-throwing hack journalists would start screaming: where's the beef? Why are you telling us about these projects if you don't have a contract yet?
The Russian deal is very real and I believe will be finalized shortly. Given the fact that financing came into it, the banks are following normal procedures for this type of multinational large loan and business venture (i.e. demanding a detailed business plan, submitting it to a loan committee, and having an expert review it) it has taken less time than usual so far, IMO.
As I have posted before, I have a friend who owns a software company, and he says the banks always take their sweet time, expert review of a high-tech plan is the norm, done for due diligence purposes; the bank will approve the deal, perhaps after some suggestions from the expert, but the bank has not gone this far with any intent to nix it, but is just following process and procedure for LEGAL reasons.
Bravo Mr. Best from RB:
By: MrBest7
21 Mar 2006, 12:25 PM EST
Msg. 161084 of 161085
Jump to msg. #
TIM HUFF.....
Why do you all continue to add pressure to our CEO?
Tim said himself that if the company doesn't improve this year he will quit! He's publicly indicated that he regrets increasing expectations and setting timelines.
It's time to move on and let him do his job.
Where this company has come from is incredible! Think of where we were 2 years ago! Two years ago you didn't even know what a STRATellite or Hotzone Wireless was! In fact, two years ago the company was millions of dollars in debt!
The position of our company from two years ago is incredible. We are bringing world class talent from all over the world.
I also want everyone to notice one last thing.
Seth Jayson and Chris Byron are attacking what happened 3 to 5 years ago. Not once did they mention the company's improved balance sheet, zero debt, the highest technical products in the world, the top executives and engineers quitting their jobs to join GlobeTel, the high vision Tim Huff wants for our company. Let me tell you, a company without a vision is dead, and very few companies even have a vision.
What's AT&T's vision???? Buyout companies until you get it right!!!! Look at Hewlett Packard; let's pay billions of dollars to merge with struggling Compaq, so we can take on DELL Computer!?!?!
These writers sit in their offices in New York and Chicago throwing bombs at corporate America and refuse to even talk to Tim Huff and other representatives. They make their statements and then plug their ears! That's not journalism! That's corporate terrorism!
Tim Huff is pointing us in the right direction with his vision! It's the same vision as Southwest Airlines. Compete in the markets where the majors over look, and then get big enough to take them on in their own backyard.
Give Tim Huff the time he's requested, we owe him that much. -Matthew Best
I have a friend who owns a software company. Through the years, he has gone to the banks to fund many multimillion dollar technology ventures, and every time the bank has hired an expert to review the business plan. Not once did the expert nix the plan.
The banks do this because of process and procedure. They must show that they have done their due diligence to protect themselves and their shareholders. Banks do not waste time and money bringing in an expert on plans they do not intend to approve. The expert may offer suggestion(s) to improve the business plan, but he will not nix the deal, according to my friend.
And, besides, this stock is worth double the current pps right now.
A big picture view re Murdoch, his media empire, and the GTE threat.
Murdoch's holdings include satellite communications systems in Europe & Asia, and many newspapers and book publishing holdings as well. This past week I saw a very interesting review of current media trends. Everyone on the panel agreed that general circulation newspapers were a dying breed and needed to consolidate and specialize in order to survive. What was replacing the newspapers? The internet - more and more people everyday are getting their news from the internet.
GTE, with its Hotzone wireless system and stratellites, can bring broadband and the internet very cheaply to vast stretches of the world - replacing the need for more expensive satellites AND providing cheap internet access, accerating the switch from old media (Murdoch) to new media (GTE).
GTE is a huge threat to Murdoch's media empire.
GTE's stratellite and Hotzone wireless systems are a direct threat to Rupert Murdoch's communication empire (see excerpt from BBC article below) so it is no surprise he uses his NY Post to routinely savage GTE. Per the Columbia Journalism Review: 'Murdoch uses his diverse holdings . . . to promote his own financial interests at the expense of real news gathering, legal and regulatory rules, and journalistic ethics. He wields his media as instruments of influence with politicians who can aid him, and savages his competitors in his news columns. If ever someone demonstrated the dangers of mass power being concentrated in few hands, it would be Murdoch.'"
By Andrew Walker
BBC News profiles unit
To some he is little less than the devil incarnate, to others, the most progressive mover-and-shaker in the media business. Whatever the case, as head of a global broadcasting empire worth £30bn, Rupert Murdoch continues to provoke strong emotions . . .
. . .Global reach
But it is the United States which has proved Murdoch's happiest hunting ground. He even became a US citizen in 1985 to comply with the country's media ownership laws.
As owner of Twentieth Century Fox and the Fox television network, he has been responsible for both the Simpsons and the feature film, Titanic.
The Dirty Digger of popular repute now enjoys a global reach, using a sophisticated system of communications satellites to reach his audience, whether in Baltimore, Basingstoke or Beijing.
If you go to their website (the link is on Rocky's message board) GTE is listed as a client. Perhaps they are updating all of the GTE sites. Sanswire site was recently updated, per a message on Rocky's board.
Had dinner with a friend who owns a software company last night. He said his bank took 3 months to approve a one-million LOC between his U.S. company and another U.S. company, checking up on the other party, paperwork, etc.
Two thoughts: wouldn't we have to wait on several banks' loan committees meeting, and, of course, they probably meet on different days of the weed. Second, JMO, but why would any bank ever designate Friday as loan committee day? If I were on the loan committee, that would be a non-starter for many reasons.
Think Huff meant the end of the business week, i.e. Friday. No one expects these European bankers to give up their precious weekends!
One more point: another reason for using the banks funds for financing is that perhaps the Russians don't want to comply with our Patriot Act and disclose the various sources of their assets.
Suleiman Kerimov owns Nafta Moscow and he is one of the Internafta partners (this all from various Russian news sources). He is worth 7.1 billion, according to Forbes. The spokesman for Internafta (forget his name) has made his fortune in rare metals. These guys just want to use the banks' money as much as possible so they can put their own money in as many places as possible.
Bleckman told one of the posters on this board that the banks were uncomfortable dealing in rubles and wanted hard assets as collateral - and that's mentioned in the pr or Murphy's latest article (i.e. that the loan is guaranteed by Internafta's hard assets). Perhaps Internafta is increasing the amount of assets available for collateral at this very moment in order to close the deal. Wouldn't that be sweet?
I think the "drop dead" date was for the banks' to give their final approval re funding, and IMO to give the Russians a bargaining chip to pressure the banks currently involved. The Russians still evidently want the deal and they can take their business elsewhere if this group of banks doesn't want to work it out.
You need to look at the whole contract and intent of the parties when determining such issues. Look at some of the following paragraphs from the contract. In paragraph 2.4, the contract explains that the non-compete involves products or activities engaged in by the JV, and in 2.5 and 3.1, the contract describes the scope of the project and the JV.
2.4 NON-COMPETE. During the term of this Agreement and for two years
following its termination, RP shall not, and shall ensure that none of its
affiliates, directly or indirectly, offers any product or services or engages
in any activity that competes in whole or part with the products offered or
the activities engaged in by the JV Entities currently or in the future.
2.5 SCOPE OF PROJECT. GlobeTel may deploy networks in other parts of the
world, and this Agreement only applies to the deployment of the networks in
the Project Cities. Nothing herein shall be construed to be giving RP rights
to deploy any products of GlobeTel or its affiliates.
3. JOINT VENTURE ARRANGEMENTS.
3.1 JOINT VENTURE COMPANY. (a) The parties expect to structure the
Joint Venture as follows. GlobeTel shall establish a company (the "JVCo") in
a jurisdiction outside Russia currently expected to be Luxembourg. The
jurisdiction and corporate form of JVCo is subject to further review by the
parties (including review by their tax and legal advisors). Upon both the
Initial Payment being made and the initial funding being made under Clause
2.2(b)(ii) (the "Funding Date"), GlobeTel shall promptly procure that RP
receive 50% of the share capital of JVCo entitling it to 50% of any dividends
declared by JVCo from time to time, which may take the form of non-voting
preferred shares of JVCo. RP shall pay as the purchase price or subscription
price of such shares the par value of such shares.
I think you may be right that he will work out a new contract IF the banks don't come through on this one, but I think the non-compete clause is in place as long as the old contract is terminated (for whatever reason) and while the new contract is being written. I doubt our high-priced international lawyers would let Huff give up his rights under that non-compete clause - it gives him leverage and without it, the Russians could be approached by other wireless co's (not that they have GTE's triple play system, but why take that risk?).
The Russians have not gone to all of this trouble for nothing. Remember, they did a state-of-the art wireless system for their businesses and because they want to make money from it in recurring and growing revenues. If they are precluded from going to a competitor or engaging in the wireless business for two years after this deal fails, it is hardly in their best interests to let it die.
Incentive to keep the contract alive. This is from the 8K
2.4 NON-COMPETE. During the term of this Agreement and for two years
following its termination, RP shall not, and shall ensure that none of its
affiliates, directly or indirectly, offers any product or services or engages
in any activity that competes in whole or part with the products offered or
the activities engaged in by the JV Entities currently or in the future.