Velatel Global Comm. (fka VELA)

[One Man Army]

Important Part of that post....

Here is what we know on the new PIPE (private investment in public equity)deals CHTL announced in their latest SEC 8K

#1 CHTL management in Asia right now closing final term sheets--confirmed.

#2 The size of the PIPE will undoubtedly be larger and at higher value than the $3.20 Olotoa deal. CHTL's announcments in the last few weeks on $500M+ of new private network business ALONE from PRC mininstries adds $1 a share (or more) to the $3.20 book value that Olotoa was paying for 49% of CHTL. Our analysis: $600M+ PIPE and $4+ Class A share valuation. Today Class A shares closed at .74.

#3 CHTL just closed STOCK only consulting contracts with their key employees on Dec 1. NOBODY takes that deal (.60 stock) in lieu of CASH unless they know a lot about the near future of the PIPE transaction. Nobody.

Based on our analysis, PIPE deal offers disclosed in Oct 8K are from Asian telco/high tech firms itching to capitalize on the China Internet miracle--they are the only market other than India with less than 40% wirless/fixed broadband penetration.

Those are the "dots"--we have advised clients to be positioned NOW ahead of what we consider to be imminent PIPE deal.

Tobin Smith: disclosure I personally own shares in CHTL