It is a little confusing at first glance. I went back to look at the Proxy Statement from the Fall. Greg had 57,718 Preferred shares. Tony Issac and that dude Juan Yunis still have the bulk of the shares. So they took back half, now we need to find out the reason(s) for the Termination. We should do some side bets on how fast he leaves Las Vegas.
And Geotraq still has a way to go to be a success with what they have. There are a number of systems that are required for complete End2End Solutions. The most problematic being the Form Factor, you can't readily put this into existing systems. Geotraq makes it sound simple in reality it isnt that easy. If you play in this game, you have to have a Form Factor that easily fits into a wide range of Embedded Computer Products (such as Mini-PCIe). The other major issue I have seen time and time again is Corporate Buyers do not buy products from "Untrusted" Sources. This is the part I mentioned before on Telecom being built on Relationships. They have Pierre now running the show, so that is a moderate good sign. Now it is going to come down to deals and they are going to need a lot them. Not to mention they will need repeat business. It is too bad Geotraq didnt get a piece of those two huge deals Sequans announced with that International Pallet Company nor that Asian Fleet Management for Asset Tracking. Sequans Partnership with PoLTE closed those deals. However this demonstrates what will happen on all future deals. Companies will not be interested in going to a Reseller if they require large volume shipments. So they will more than likely have to find Niche untapped Markets where they will have to bust ass in helping companies succeed with this solution. And even on the chip side, you have a dozen players. Qualcomm being the leader.
Since they essentually are now just a Reseller of Sequans IOT Monarch, a Corporate Buyer will no doubt go direct vs buying from them. They have to play on the "Services" End besides selling hardware for this to be a true Success. Margins on these Cellular Modems are slim. So they are not out of the deep water just yet.
As well, lets see how fast Pierre gets rid of the COO and that video chick. If you are going to clean house, you do it right. I say they are gone before the end of the month.
As well, they are talking on using this new Device for Sensors. Well I have news for them, that market is totally saturated. This was the area I originally was targeting a Solution for Unattended Automated Car Wash Locations. Just my small market filled up fast with over a dozen suppliers when I was originally talking to Gregg. And that was over a year ago. The thing I found was all these sensors end up more for the Industrial Side. And with that, you have several huge System Integrator Players, such as Dell, HP, IBM, etc. Also the bulk of the Industrial Sensors are in the 12, 24 and 48 Volt range. There are only a small subset of sensors in the 5Volt range that wire direct to these Cellular Modules. As with my car wash design, i had to deal with dozens of Fluid Sensors that were 24 Volt. So for my Cellular side... i put a simple USB Modem on a small form factor computer and then ran this as a Gateway to all the Sensors that were hooked up to all the Fluid Tanks and stuff like Air Pumps and Vacuum Cleaners and Garage Door Opener Relays. So for a lot of sites, you wont do a One to One Solution. It ends up being a One to Many as far as Cellular Connectivity. And this is where the Celluar Carriers like AT&T and Verizon will make the bulk of the money here. It is all about Access.
