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.
I just got the white paper from Xila Telecom Group.. apparently our favorite tuna fish was correct is terms of the start up costs for private label.. $475 plus 25 per month.. plus $175 for each of the carriers.. or $1500 for the professional series..
so would you care to make a wager on whether or not I could do the same thing Val has done for less than $1500?
that was just a joke because the screen said 1.5k when you wrote the note.. nothing more Ortco!
Think about it Gregg, Vals whole strategy originally was to market the product to underserved areas.. that is why it made a lot of sense to me to expand in the carribean with the DR as a starting point as the service was very weak there and he could steal some customers.. that is not the case in the US.. i think you are oversimplifying the ability for Val to steal customers away from At&T, T-Mobile, Verizon, and even Sprint.. Im very sure Sprint will not cannibalize their ouwn customers so Val can offer a discount service using their towers!!! And everyone hear already has a cell phone.. but you say oh he will get them by offering a lower rate.. but that will take time and trust.. many people will have to fork over money to exit their existing plans and then to go where? an untested service? It will be a great challenge for Val to gain that trust and a great deal of effort.. it seems like he is trying to go in too many directions.. I would rather he stuck to his original plan and even diluted the stock some to raise the money to build one tower at a time.. this makes perfect sense to me as he needs to build a tower man.. as soon as he builds one then the stock is worth exporing heavily.. until then it is just a heavily manipulated stock that is risky IMO
you are above because of a $58.50 investment
or they tick it up so the next person buys at the higher price
let me guess 1.5k
like hin or not the man is speaking the truth
it all crap until you take your profit.. then its back to being the truth..
it doesn't bother me at all.. my only point is potential.. what is the potential of being a vendor as opposed to a company with its own ballgame i.e. DR or areas where the bigs are not.. if the point is to generate revenue to serve as a base for the latter then I'm all for it.. if it is the result of a railure to get funding then it is a dissapointment to say the least
I've worked for and with several.. cash strapped with a dream.. wearing a lot of hats and running soley on optimism and effort.. what is your point..
nothing wrong with revenue.. especially when you have none currently
if what you are saying is true then he is either a deparate man trying to buy time or a complete fraud.. not sure what to think now..
O2USA is nothing more than a vendor utilizing the Sprint PCS Network.. which is fine but there is not very big margins in that and there are a lot of people doing it
you are right.. it does say O2USA in the testimonials.. a clear stretch of the truth
it is testimonials for Sprint not O2.. perhaps Val has become resigned to becoming a vendor instead of an industry shaper
its not a fabrication.. it is what it is.. they have become a reseller selling sprint products of which they will give approximately 8% to sprint.. there is nothing wrong with them doing this .. its just not the same as building towers and owning their own network..
not at all.. my point is to be careful and listen with an open mind when people point out facts.. not everyone has an agenda..
that is what is says on all of the resellers sites
the truth.. displayed on boards and in art.. has a way of cutting directly to the bone.. dimissal of the truth is folly and will certainly lead to harm..
the truth.. displayed on boards and in art.. has a way of cutting directly to the bone.. dimissal of the truth is folly and will certainly lead to harm..
The website is a cookie cutter template multiple resellers use.. the testimonials are the same for every resellar using the sprint PCS network..
i agree.. some people kill the giant with a sword others would use a slingshot.. cant switch it around you have to stick to who you are.. BTW great story last night .. thanks for sharing.. i enjoyed part 1 the most..
EMZ.. I think dml's approach is more of a controlled gamble instead of chasing potential positive PR's which has a limited success rate.. dml's using his method to get to the 33% success rate that you achieve by playing your gut instincts.. I appreciate both approaches and probably lean more towards your approach as the technicals always seem to lag with these pennies..
agree.. just trying to keep it real.. i was excited about the site at first because it made me think Val was working on it the whole time but it was something already put together.. but to be honest I think it is a good step for O2 and Im sure some cash flow will help with investments needed in DR and elsewhere..
you don't see that the O2 website is nothing more than a cookie cutter website probably owned by Sprint?
good find.. so what do we need Val for.. we could make up a logo and plug in some numbers and we are in business..
you already have access as it uses the sprint pcs network
That's hilarious! Can't stop laughing.. you do come out with some good ones.. once and awhile..
Love you man.. not a rich man and I just can't tie up money waiting for more news.. too many other opportunities to pursue.. I rode this stock a long time.. the news came and to me it was a dissapointment.. others think it is good news.. that is why we play the game as EMZ wrote.. I always trust my gut and for me it was time to go.. I sincerely wish you the best of luck Gregg and all the OTOWers out there..
the more i think about it the more i feel this is not a good sign.. the news we were waiting for was Ark.. now what.. wait for news about the bonds.. no thanks.. IMO Val had to come up with this bond pr so he wouldn't have to say the Ark deal fell apart.. IMO that is why he used the language seeking parallel financing to sneakily explain the situation.. EMZ i think is smarter than Val LOL.. therefore.. pulling out boys.. Hope I'm wrong.. good luck guys..
you make good sense EMZ... thank you
thanks for the info..
looks like Val has been trying to start a business for awhile..
glad to know the telecommunications genius isn't still working on his lawn care business or writing a book on Pruning Tips, while trying to raise 100 million to build up the DR with LTE towers..
One good sign is that Scott T. Conley remains the largest shareholder of O2(according to Scotts website), this was his baby originally.. later Craig Sellars CEO of O2 bought Val's paper company (who has his Digame vision)in the DR and somehow made him President of O2 as part of the deal. If O2 or Scott was scamming anyone he would have taken the money and run and would not have kept such a large share in the company..
Interestingly enough Scott is developing other companies and you can learn more about what he is up to at
http://www.advantageatlanta.com/about.html
Here is a must read..500 employees in DR over the next 5 years
O2/earthcom website.. http://digame.com.do/index.html
I'm relieved to hear that.. all i could picture was some poor bastard bleeding to death while you were writing a post to Gregg on Ihub
I agree.. there comes a time when you have to get off the fence and make a choice one way or the other.. I like to trust my gut instincts.. if my gut tells me to walk away .. I walk away and shake the dust off my feet and never look back.. if my gut tells me this has good potential then i belive in it and make a firm committment..
there is no worse feeling in the world though when i go against my own instincts and then watch as the thing takes off and i'm out of it.. when this happens you're then riddled with the temptation to think the shoulda..coulda..woulda's and that sucks..
so lets make this thing happen.. I know we are waiting for news.. and I know we are looking for something to nuetralize the anticlimatic PR about how Val set up a booth at his aunts pig roast after dropping a 100 million dollar bomb on us March 24.. but the man knows his business.. and the investment group he is working with is a powerful group..
instead of waiting for news.. why don't we grab the bull by the horns and make some news and get this puppy off the ground.. that is the best way to protect our investment..
IMO
that's my speech for the day..
when Val builds just one flippin tower the stock will be over 0.25 IMO
almost worth it for me to build the tower myself and give it to him..
Thank you Gregg
Even under a ultra conservative approach the project remains attractive..
This is why I believe in Vals plan and am a firm supporter of OTOW
Lets do the math..as we know it..
Domincan Republic Facts
Population is approx 10 million
Average Per Capita Income $5464
5.5 Million Cell Phone Users in Dominican Republic
3.0 Million Internet Users
Sources of Information: CIA World Factbook; InternetWorldfFacts.com;
Cell Tower Information
GSM Tower can support between 2000 and 3500 users
SDMA Tower can support nearly 3 times as much up to 9000 users
Cost to Build approx $200k per tower plus ancillary equipment and lease arrangements.
450 Towers needed in DR; Plans to capture 10% of Market, which would be 300- 500k users
Total capacity of 450 towers would be appox. 4 million users
OTOW plans 450 towers over 5 year, which is 90 towers per year or 7 towers per month.
Per the 10% of market goal, that would mean adding 1100 customers per tower per year, or 91 customer per tower per month
Installation time 1 months per site (Assumption) 7 sites at a time aggressive for a new company like Vertical (founded June 2010) but possible with enough money and new hires.
Sources: AT&T; Steelintheair.com; per Val PR
Internet/Cell Price to Per Capita Income Comparison (Mexico to Dominican Republic)
In order to estimate how much money people will spend on Cell/internet I've elected to use Mexico for the following reasons:
Both have a relative substantial population within the US that sends money back to family members
Per Capita Income can be easily extrapolated.
Mexico per capita income is $14000
Average price paide for both Cell and internet monthly $50 USD, or roughly 4% of annual income
If we use this as a basis for the Dominican Republic then we have; 4% of $5465, or $218 per year, $18 per month
I know Val has thrown out $100 per month but I belive that is reasonable only for the US market not DR. This is a poor country.
Therefore, if the assumption is correct that the annual revenue per user in the DR will be the ultra conservative $218, and if Val can execute his customer growth strategy as noted in his PR's, then we can project the number of customers, annual Gross revenue, and tower costs (excluding Florida) during the build up:
Customers needed to meet Vals goals:
Year 1 42500
Year 2 143000
Year 3 242000
Year 4 343000
Year 5 445000
Gross Revenues based on $218 per DR Customer (4% per capita income)
Year 1 $ 9.2 Million
Year 2 $31.1 Million
Year 3 $52.8 Million
Year 4 $74.7 Million
Year 5 $97.0 Million
Accumulative Tower Costs:
Year 1 $18,000,000
Year 2 $36,000,000
Year 3 $54,000,000
Year 4 $72,000,000
Year 5 $90,000,000
While the gross revenue of this model is significant, the ratios are concerning for years one and two, especially considering his goals are agressive in terms of the number of new customers he must add on a monthly basis during start-up, learning curves to be expected, operational challenges, and the percentage of annual income someone in DR is willing to pay for the service (definitely a fraction of what we pay in the US), and type of customer (pay as you go.. inconsistent spending patterns)is also a concern.
My opinion is this is why Florida was added to the equation, it could possibly improve the ratios and mitigate risk, thus making it more attractive to potential investors.
IMO
This is not Google or Apple stock you own.. this is a penny stock.. which means this is all about a man and his dream.. we buy the stock knowing that he has no money.. we buy the stock knowing that he is seeking money.. we buy the stock based upon his experience and intellect.. my guess is he is working 20 hours a day out of his house trying to make his dream work.. I for one believe in his dream.. just look at the details he has considered and the people he has selected to help him.. He has considered the signal strength relative to the architecture and terrain, he has devised a plan for strategic placement of towers because he knows he can ill afford to build more towers than absolutely necessary until a revenue stream is developed, he has acquired the capability for credit card processing to support the pay as you go.. he has a first rate marketing agency to help him launch.. and he has developed the domestic and foreign relationships needed to make this work.. and above all else he has demonstrated his leadership and knowledge of the subject matter.. This is not about florida or the DR.. this is about if he has made his business case to the point where he can convince someone to finance the development.. and it will either work or not.. this is why we wait for news...