***E-MAIL ALERT FROM MOBILEPRO CORP.
There was a good deal of activity in the stock of MOBL today. We received a number of calls asking about this. Someone sent us this email, which may
explain why the stock performed the way it did today.
Frank Hawkins
From: Tim Connolly (email address omitted)
Date: Mon, 7 Feb 2005 14:52:23 -0600
To: Frank Hawkins (email address omitted)
Subject: FW: ChangeWave Microcap Investing Alert (New Recommendation)
Tim Connolly
Corporate Strategies, Inc.
Merchant Bankers
1770 St. James Pl., Ste 116
Corporate Strategies, Inc.
Houston, TX 77056
Direct: 713-586-6677
Main: 713-621-2737
Fax: 713-586-6678
-----Original Message-----
From: Tobin Smith, (email address omitted)
Sent: Monday, February 07, 2005 1:57 PM
To: Tim Connolly; (email address omitted)
Subject: FW: ChangeWave Microcap Investing Alert (New Recommendation)
FYI
February 7, 2005
ACTION
EXTREME MICROCAP
Buy Mobilepro Corp. up to 20 cents
Mobilepro Corp. (OTC BB: MOBL)
Going Mobile to the Max
Dear MicroCap Investor subscribers,
Mobilepro is a full-spectrum microcap, embodying both the shiny and dark hues of a small company reaching for the sky. In more familiar terms, let's just say MOBL combines important characteristics of three other stocks in our microcap portfolio: NeoMedia (NEOM), NewMarket Technology (NMKT) and Vital Living (VTLV).
Operating at the nexus of the wireless and broadband telecom ChangeWaves,Mobilepro is strikingly similar to NeoMedia in its visionary management, its capital structure, and its potential to hit a five- or ten-bagger.
Like NewMarket's strategy for growth, Mobilepro has also focused on acquisitions (14 at last count) to grow the critical mass and build the
infrastructure for its national wireless telecommunications network.
Finally, echoing Vital Living's experiences in 2003-2004, Mobilepro recently underwent an influx of new management, directors and advisors. But there's one key difference from VTLV. MOBL's CEO has been with the company for a year and has led an impressive turnaround to position Mobilepro where it is today.
SEIZING THE OPPORTUNITY
In the new era of telecommunications services, cable, wireless, telecom
and ISP businesses are converging at a lightning pace. Notably, three major
trends have emerged on which Mobilepro has built its business strategy:
1) The movement toward broadband.
2) The movement toward wireless.
3) The movement toward IP-enabled networks -- breaking down any
distinction between voice, video and data.
In this competitive environment, bundled services have become the name of the game. As a small, undercapitalized player battling against more powerful telecom competitors, MOBL is betting on its wireless technology and network.
Because wireless is both modular and less expensive, this approach has obvious advantages over attempting to replicate big telecom's copper, the IXC's fiber (IXCs provide connections between local exchanges in different geographic areas) or the cable companies' cable.
The core of Mobilepro's strategy is twofold. First, the company is accumulating network assets which generate cash flow. Second, the company intends to become a leading provider of service -- billing, provisioning and customer support -- for the products customers desire over others' networks. Management believes this combination gives MOBL the best opportunity to survive and thrive long term.
To realize these aspirations, Mobilepro has put together an experienced management team -- as well as a solid group of directors and advisors -- who have the company running on all cylinders. We note that several of these folks joined MOBL in the past few months, so we'll need more time to assess their contributions.
At the beginning of 2004, Mobilepro was in a deep hole with zero revenue, negative book value, a stock price under 2 cents -- and a history of operational disappointments. Talk about a terrible outlook. Despite the bad situation, however, MOBL managed to regroup in a big way.
Over the past 12 months, Mobilepro has acquired 14 companies and reached a revenue run rate of $100 million with positive cash flow. This is a company with a market value under $70 million!
WEAVING THE PARTS TOGETHER
To overcome its lack of capital and resources, MOBL has successfully used its creativity to attract and retain capable and dedicated people. To build name recognition, MOBL has either acquired or aligned with established brands and/or local presence.
As such, the company's various acquisitions bring a range of complementary assets to the picture. Some notable additions include:
Davel Communications: Mobilepro's biggest acquisition to date provides cash flow and more than 40,000 access points for a nationwide wireless network. Founded in 1979, Davel is the largest independent provider of pay telephones and related services in the U.S. with operations in 45 states. Davel's customers include the shopping center, hospitality and health care industries.
CloseCall America: Provides a brand, a billing and customer support platform. Launched in 1999, CloseCall America is a full-service telecom company that provides long-distance, local, digital wireless and Internet service to residential and small business customers, primarily in Maryland, Delaware, New Jersey, Wisconsin, Indiana and Ohio.
Affinity Telecom: A socially aware and community-minded communications company providing telecom services in Michigan and northern Ohio, including local, long-distance, Internet and web hosting services. Affinity markets its products by partnering with various non-profit organizations including the American Red Cross and Special Olympics.
Several ISPs: Under the Mobilepro umbrella, the ISPs contribute local presence, cash flow, management talent and a large customer base. To get a better understanding of MOBL's business model and corporate structure, let's outline the company's three operating units:
MobilePro Technology Division: NeoReach
Branded as NeoReach, this division creates wireless technologies and applications. Mobilepro intends to leverage its expertise in wireless
technology to deliver wireless solutions for the enterprise markets. The company also has expertise in Zigbee, WiFi, Bluetooth and WiMAX.
Mobilepro's radio frequency (RF) semiconductor and other core technologies will provide the foundation to develop advanced 3G chip technology including 3G modem semiconductor chip sets for hand set telephones, pico-cell base stations, smart antenna technology and advanced RF design support. NeoReach owns five patents for its wideband-CDMA smart antenna processing technology and has additional patents in various chip modem design and Implementation areas.
MobilePro Internet Division: Nationwide
Branded as Nationwide, this division develops new Wireless Data Network Exchange Service products for wireless data applications and operational support services such as wireless network monitoring and testing. It also provides a full complement of Internet services including connectivity, hosting, VOIP and Internet security.
MobilePro Voice Division
Provides VOIP technology, wireless telecom services, local and long-distance services -- all directed to position MOBL at the vanguard of the IP revolution. These services are cross-sold to the ISP division customer base and provide the backbone for the Technology division's products and processes.
EXPANSION PLANS
At the end of 2004, CEO Jay Wright outlined his vision for Mobilepro. As you can see, the company is targeting some very heady goals two years down the road:
$500 million in revenue.
More than one million customers.
$80 million-plus in EBITDA.
A large nationwide wireless network.
A nationally known brand.
And that's only the prelude to the big picture. Wright says Mobilepro's long-term goals are even more ambitious. To fund its acquisition and
operational activities, Mobilepro has entered into a Standby Equity Distribution Agreement with investment banking firm Cornell Capital
Partners, which enables MOBL to raise additional capital whenever it's required.
If Mobilepro is able to even approach its goals within the next couple of years, then we're going to have a great ride.
BUY ACTION
We're starting Mobilepro in the Extreme Portfolio for reasons beyond its penny stock price and huge number of shares outstanding. With so many pieces of the puzzle -- companies and people -- newly added to MOBL, it's a virtual three-ring circus right now. And in 2005, we expect management will continue to face major challenges as Mobilepro grapples with inevitable growing pains.
We recommend initiating a one-third position up to 20 cents and another one-third if the stock pulls back below 16 cents. Depending on the pace of progress at MOBL, we'll be sure to alert you about any change in our buy strategy.
In the meantime, hang on to your hats -- we're going mobile!
****
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