World Surveillance Group Inc (fka WSGI)

[Caradoc]

New to GTEL? (personal opinion)

There's little doubt that the multiple advantages of Stratellite are enough to get people excited and that excitement is the "sizzle" that has people buying the GTEL steak. Specificly, Stratellite advantages over satellite are these:
(For telephony, broadband internet)
1. Thirteen Strats can cover the 48 contiguous states of the US and single Strat can blanket an area the size of Texas. If you've ever driven across Texas, just take a guess at what it would cost to do the same with either cell towers or telephone poles and copper wire. Then think about being able to wander the desert between Ft. Stockton and El Paso with your laptop and never leave the wi-fi hotspot connecting you to the internet.
2. Strats automatically solve the so-called "last mile" problem of the telephone companies. For example, my house is about 1/2 mile uphill from the nearest DSL connectivity. When GTEL offers me DSL, I'll have no reason not to switch my basic and long distance service at the same time and neither will anybody else. (Think "market share" here!!)
3. Where the geography features mountains or islands (Peru, the Phillipines), the "last mile" problem is more like 150 or 175 miles. Lots of customers out there and no coincidence that many of GTEL's press releases relate to such geographic areas.

(For military, NASA, NOAA [former Weather Bureau])
1. Floating up to 65,000 feet is tens of millions of dollars cheaper than paying for launch to Low Earth Orbit (LEO).
2. Much bigger dollar advantage (>factor of ten) is that payloads can be maintained every 18 months and so need not be designed/ engineered/ built for the four or five nines reliability required by on-orbit assets.
3. Compared to LEO, being at 65,000 feet amounts to a front row seat. Much less expensive optics will do the job whether observing weather fronts, spying, or checking to see whether you succeeded in taking out a bridge.
4. Ditto, communicating from 65,000 feet cuts latency (lagtime) to almost nothing. Great for communicating with troops on the ground and a huge advantage in controlling an Unmanned Aerial Vehicle (UAV).
5. "Persistance" (ability to "loiter" over one spot) http://www.peterson.af.mil/hqafspc/News/News_Asp/nws_tmp.asp?storyid=05-069

No wonder Space Command's four star General Lord wants to be in near space: " We are very excited about exploring capabilities in the area known as “Near Space” at an altitude between 65,000 to 325,000 feet. From our preliminary analysis, we believe there’s substantial military utility in augmenting our current aerospace capabilities with fielded capabilities in Near Space. These Near Space platforms are not intended to replace air or space assets, but rather to help augment and integrate additional capabilities.
We have already demonstrated military utility in expanding the range of Army radios used for contact between ground forces and to conduct Close Air Support operations. By using affordable platforms like weather balloons, blimps or air ships, we can help provide much needed persistence and direct support to our theater commanders and their joint warfighters. "
http://www.peterson.af.mil/hqafspc/Library/Speeches/Speeches.asp?YearList=2005&SpeechChoice=109

A word of caution:
Given all the above, it's easy to think of GTEL in terms of the Stratellite (either a longterm buy into the multiple revenue streams of Stratellite or a quick penny flip based on pending news). The thing not to forget is that -- unlike other "story stocks" with an innovative product that might do well -- GTEL is already in business with revenues approximating $1 million per week. At Monday's PPS, the stock was selling for mcap of four times revenue. As of yesterday, it's more like five times revenue. Since many GTEL investors bought in based on expected growth of those revenues and/or the company's approach to VOIP and/or the personal credibility and track record of CEO Huff, be aware that much of the float is held by those who see Stratellite and its prospective revenue streams as icing on the cake. Result is that much of the float isn't floating; retracements tend to be quicker and not as deep as with other penny stocks trading on OTC:BB. If you're a penny flipper, congratulations on finding what amounts to an easy bet between now and next Tuesday. Just don't expect to get back in at the level you'd normally hope for. Two reasons:
1. From a TA point of view, check the GTEL TA board's posts from the last day or so for indications that this will be more than a typical 3-day surge.
http://www.investorshub.com/boards/board.asp?board_id=3694
2. Looking at the various news items that are pending regarding the company's telephony efforts, consider that we may see the stock reacting to a one-two punch. Or a one-two-three punch. On top of that, calculate what happens if/when the company announces it's leaving OTC:BB behind and being listed on AMEX.

Just how I see it...

Caradoc