TGIF
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Why do you like VIAD? TIA ou eom
Correspondingly, neither TSIX ..........
.... of course by then we may have a real rally that will change everything.
I sure hope you are right ------ even just partly right. I suppose long term, MTNT could go even much higher as by January 2002 they must begin to maintain their $1 a share value unless of course the NAZDAQ decides to prolong the waiving of the one dollar rule even longer.
Best of luck Plato!
ou
Holding my MTNT for the weekend after almost selling today at .12. Any predictions on how high it may go next week if we have financing news?
TIA
ou
Hope the one day extension is a sign that MTNT is going to receive financing and it will move on the news. Why would RRR grant a day extension if there ws no valid reason. Trading on MTNT seemed positive today, BWTHDIK.
I like MTNT so far .......... eom
COMTEX) B: Motient - Down But Not Out
B: Motient - Down But Not Out
Oct 08, 2001 (Wireless Insider/PBI Media via COMTEX) -- While the news that
Motient [MTNT] is currently experiencing financial telecommunications sector,
the company's unwavering optimism in the face of the current economic state may
surprise some.
Last week, the wireless and satellite services company announced that it reduced
its workforce in its Reston, Va., headquarters and its Ardis terrestrial network
offices in Lincolnshire, Ill., offices from approximately 450 to approximately
350.
Additionally, the company has canceled a proposed merger with Rare Medium [RRRR]
and a 1:10 reverse stock split.
The struggling company is actively looking to restructure its 12.25 percent
senior notes. Motient had a $20.5 million interest payment due at the beginning
of October and has a 30-day grace period to either make the interest payment or
restructure the debt, effectively postponing payment.
And while these developments could signify the first steps on the road to
bankruptcy, Motient is saying that is not even a consideration at this point.
"[Bankruptcy] is not in our immediate future," said Peter Belman, vice president
of marketing and brand management. "We don't plan to make any bankruptcy filings
for any of the popular chapters."
"We are taking aggressive steps, such as the reduction in force, in an effort to
take costs out of our business to achieve our very clear goal of cash- flow
break even by the middle of 2002," Belman said. "That is when we expect to make
the change from where we to becoming a profitable concern," he added.
Belman attributed the current financial difficulties to the fact that Motient
was suffering from a problem common in the industry - costs outpacing revenue
growth. He added that Motient is not expecting to lay off any more employees.
With its reduced work force, the company will be turning to its core businesses
- the operation of its nationwide wireless data network, as well as its
satellite services - to help make the company profitable.
As a network operator, the company defines its main core product as wireless
e-mail for the mobile professional, which is offered through the company's
alliance with device manufacturer Research In Motion [RIMM] through the
Blackberry and E-Link suite of products and services.
While product launches are typically the last thing on the minds of a struggling
company, Motient has plans to move ahead with new product launches.
"We are continuing on in the path to launch the new products that we think are
going to help position the business for more robust growth going forward,"
Belman said.
The next new product that will come to market is the MobileModem, a wireless
modem that attaches to Palm Computing's [PALM] Palm V series of personal digital
assistants (PDAs).
The modem is expected to be released in November, and should be instrumental in
Motient gaining the target of approximately 350,000 subscribers it needs to
achieve that cash flow break even by the middle of next year.
The company reported 250,000 subscribers as of the end of the second quarter
this year and Belman said the company is on target to meet the subscriber
target.
Unproven Technology
The struggles of Motient are being felt across the entire telecommunications
segment. However, for wireless data operators, the situation is a bit worse,
especially compared to the wireless voice markets.
While the voice market continues to experience growing subscribers, wireless
data has yet to prove itself.
"There is no question that there is a technology recession going on and broadly
wireless is struggling. You see it with the voice carriers and the
infrastructure providers as well," Belman observed.
"Wireless data may be particularly vulnerable to some of that downturn as a
consequence of its relative immaturity. Wireless data is an idea that has been
around for a long time, but no one has gotten enormous traction with it so no
one is operating profitably yet," he added. "You couple Wall Street's lack of
patience with companies that are not yet profitable with a realistic slowdown in
business spending on all sorts of IT solutions and you have a difficult time.
You have a time where Motient and all of our competitors and partners are
experiencing a slowdown and have to respond accordingly."
Probably the most glaring example of a high profile wireless data operator going
under in recent months was the bankruptcy filing of Metricom. But does that
spell doom for the wireless data-only network providers?
"Metricom had a lot of other problems," said Alan Reiter, president of Bethedsa,
Md.-based consultancy Wireless Internet & Mobile Computing. He noted
particularly the high cost of service to the end user as a main contributing
factor to the demise of Metricom.
"Motient has excellent nationwide coverage, a variety of devices, has been in
business for years and has its core markets down. You can't say that about
Metricom," he added.
But even if Motient is in a different category from the fallen Metricom, it
still faces the same question that Metricom did - can a data-only carrier
survive?
"The fact that Motient does not have a relatively wealthy carrier to back it up
is the problem," Reiter said. "But I don't think it means that a data- only
network can't survive. It means that a data-only network has to have significant
continuous growth in its core markets or it needs to grow into other markets.
Motient has had a problem growing into other markets besides its key verticals."
"The question is: How do you expand business?" asked Reiter. "That has been a
tough problem for Motient for years. They have focused on key vertical markets,
and that is their strength. But then you have to see how to improve it, and
selling in a vertical market is typically a very slow process. The economy
hasn't helped."
But even with the slowing economy, Motient is forging on.
"We see a real growth opportunity extending mobile messaging from beyond the
dedicated platform of the RIM device," Belman said.
The first step will be the MobileModem for the Palm V, and then into other PDAs.
"Our vision is that the MobileModem starts with the Palm V and expands from
there," he added.
The events of Sept. 11 could actually be a help to Motient.
"It is possible that corporations, in the aftermath of the terrorist attacks,
will come to the conclusion that they need to get mobile communications or
alternatives to just a cellular phone," Reiter observed.
Reiter noted that the data networks were working well when congestion made it
difficult to get a voice call into New York or Washington, D.C., on Sept. 11.
Motient is looking beyond the PDA market.
"We have been very successful in passing a lot of different traffic over our
network, Belman said. "There are lots of non-mobile professional opportunities
in mobile data."
He noted the company's relationship with United Parcel Service [UPS]. The
overnight carrier has approximately 50,000 devices deployed that transmit
package-tracking data to a central server.
"That is a good example of ways that wireless data can be very useful for a
different type of end user," Belman said.
The XM Card
The one wild card in Motient's hand could be its equity investment in digital
audio radio services (DARS) provider XM Satellite Radio [XMSR].
The company holds 14.8 million shares of the DARS provider. And with many in the
satellite community predicting good things in the long term for satellite radio,
that investment could become a valuable asset for Motient.
"There is no question that our equity stake in XM is a very strategic asset in
that there are a number of parties that have demonstrated a great interest in
the satellite business," Belman said. "That asset will be an important part in
how we go about financing ourselves from now to that break even period."
And while Motient may leverage its shares in XM to gain some financing, don't
look for the company to sell its holdings as a means of generating cash.
C.E. Unterberg, Towbin analyst J. Patrick Fuhrman said Motient's troubles
probably won't lead the company to sell its holdings in XM.
But the company could still lose some of its shares. As part of the proposed
merger with Rare Medium, the company extended a $50 million loan to Motient,
which Motient secured with 5 million unregistered XM shares. Motient currently
has until Oct. 8 to repay it.
If Motient defaults on the loan, the XM shares eventually would come into the
hands of Rare Medium's controlling investor, Apollo Advisors of New York,
Fuhrman noted.
He said another block of 9.75 million unregistered XM shares that Motient holds
"is locked up as collateral for a $96.5 million bank facility [due 2003]
guaranteed by XM partners Hughes Electronics [GMH] and Barron Capital. Singapore
Telecom is also a guarantor of that facility and [is] viewed as a friendly
holder."
As a result, Fuhrman said, he sees no threat of large blocks of XM's stock
coming onto market as a result of Motient's financial condition.
Wireless Insider, Vol. 2, No. 38
By Gregory Twachtman
Copyright 2001 PBI Media, LLC. All rights reserved.
Totally agree that new lifting of that dollar rule presents interesting opps short term eom
TGL Live ........ eom
Any potential at all? eom
Best of luck with it!! I will start having a serious look at what baby Naz have potential and get back to you with it. eom
I would also get an opinion on this filing. Like you Plato I believe it is positive, but......eom
I have started looking at a few NAZ pennies also. Are you in for quick flips or short term? Do you have a list of your favorites yet? If so I would like to see it if possible.
Though they are on the NAZ they are very risky because they MAY not survive the meltdown. Then again if they do thye could be multiple baggers. Interest rates being down more and the NAZ lifting the dollar rule of listing till next January does help.
Regards,
OU
If it is acceptable to ArchAngel, I would like to pick for this week's UPTICK, PLRP. TIA ou
UP for the week: XCHC
OMG
ROFLMAO
Gawd!!!!! You must be kidding! Little ole OU rockin' da House!
Oops Sorry Bernard! I am a newbie here and obviously did not read the header carefully. I will withdraw all entries for now and study this board so I sort of know what I am doing. I must have suffered from irrational exuberance on my first outing on the boards here.
Sincerest apologies.
OU
UP: OGAM, CGYC, NHTC, ITET
I am keeping a close eye on this one as I have a stake in it. Spike should come on any suggestion of a settlement. eom
IBIZ up and down lately but no sure direction. Good trader I suppose ;-0 eom
Anybody still following ITET? Seems to be some interest at these prices?
Anybody still have any interest in SRGO? eom
Any interest in this stock by any board members here? Is the lawsuit going to affect stock price?