TRIDON ENTERPRISES (fka TEIM)

[TENNISSTUD]

Some DD on TEIM... TEIM was brought to my attention by Lance. I decided to make a few calls and here is what I found:
Shares O/S: 83M
Float: 36M... but, much of the stock has been accumulated by individuals close to the company. This according to Brian Brick (the CEO)... This may explain why it moves better than your typical 36M floater. Mr Brick also mentioned that 9M shares of stock from old management has been cancelled/retired. As of August there were 92M O/S, now there is 83M.

Business:

TEIM was essentially nothing until Brian Brick came in as CEO in May of this year... Since that time, Mr. Brick has pursued the acquisition (merger with) of Alpha Spacecom. On 2 Oct, they announced the intended acquisition of Alpha Spacecom. On Oct 15, they announced that the details of the deal have been finalized and, pending Due Diligence, the whole deal will be finalized by the end of November.

Alpha Spacecom is based in Hong Kong and is in the business of construction and launch of KA Band satellites. These satellites will be for the distribution of media, sports and entertainment programming to mainland China.

From the 2 Oct NR:

Alpha's team of Beijing based scientists and engineers have developed sophisticated KA Band technologies for platforms relevant to both receptive and interactive satellite signals enabling Chinese language programming to be
distributed via "spot" signals throughout both the major urban and rural areas of the country.

Alpha's Chinese partner in this venture is a major state owned satellite broadcasting group which has the government mandate to develop a coordinated means of satellite transmission of both domestically produced and foreign language programming in China. This cat was let out of the bag on Monday after the close with news at 4:06PM. China Broadcast Satellite Transmission Co. Ltd. is the Chinese partner.

From the 22 Oct NR:

China Broadcast Satellite Transmission Co. Ltd. (``CBSat''), a division of the Chinese Ministry of Film, Television and Radio (``SARFT''). CBSAT is the only satellite operations arm of SARFT. All necessary and required government approvals have been granted the project. A spokesperson for Alpha said that SARFT considers its KA Band satellite services program paramount in bringing the Communication Age to Mainland China.
``SARFT recently announced the granting of limited access to a consortium of AOL/TimeWarner and News Corporation for distribution of programming through its facilities, the first time any rights of this type have been granted to foreign entities.

``The Alpha SPPV services will be the only known system of its kind servicing mainland China utilizing an all broadband KA Band technology.''

He (Brick, the CEO) went on to explain: ``Once launched, the project will operate through receiving and encrypting all foreign and domestic media `feeds' at a specialized facility in Beijing prior to up-linking to the satellite for country wide distribution. China's recent entry into the World Trade Organization (WTO) greatly enhances our opportunities in China.''

Alpha and CBSat engineers are working together in Beijing on the KA Band system design to provide maximum efficiency and TV viewing clarity.

More...

To that end Alpha is working with one of the US's largest satellite and defense contracting groups to facilitate, design, construct and launch its first satellite.

Sources close to the transaction estimate that there are currently 320,000,000 television sets in operation throughout Mainland China, with over 90,000,000 household cable connections. And, current revenues with regard to TV advertising revenues related to this industry in China to grow from current levels of $2 billion to $7 billion in 2010.

The proposed Tridon/Alpha venture will effectively create an exclusive avenue for satellite feed of domestic and foreign programming nationwide.

More details from my phoncon with Mr. Brick:

He said the US partners in the Alpha Spacecom deal are household names that will be revealed in the next NR describing the completion of the merger. This is a merger, not an acquisition according to Brick. He said the Due Diligence is DONE and he is flying to Hong Kong next week to sign all the paperwork so the 30 Nov deadline will likely be beaten. Essentially, Alpha Spacecom will become the company (possible ticker/name change coming?). A web site has been built in Chinese for Alpha and will have an english version up next week under http://www.alphaspacecom.com

News, Quote etc for TEIM:

http://finance.yahoo.com/q?s=teim.ob&d=v1

Filings: http://www.freeedgar.com/search/BeginSearch.asp?UseFrame=1 (type in TEIM in the second block)

I have a position in TEIM (bought in the open market)... the above is not a rec to buy the stock. I do fully intend to sell the stock at some point in the future for a gain. My cost basis in the stock is around .12... it is cheaper than the now at this moment in time. Additionally, I have looked high and low and found no evidence of any paid promos on this stock. Not to say that paid promos are bad, but just that people should know if it is a paid promo or not.

Tom