Here is some DD from USA2525, look it up from Nov14.
Do you think for a minute I would believe the company Streetsweeper that is shorting Raystream? I smell BS here. Thank you for your time, I hope this lowers the share price so I can buy more. See if USA2525 kept any of his video compressed files.
From USA2525 11/14/11: I have been watching Raystream for the past month and have tried to learn as much as I can about them to determine if they are a legitimate and credible company and to evaluate if the claims about their technology are true.
First the company. Based on the SEC filings and some assumptions it appears that Roman Rumpf (Current Chief Technology Officer) developed this compression technology in Germany while working in the tech-security and mobile technology industries as a consultant and then when he co-founded the company Raystream Gmbh. Once he had developed this technology it seems that he believed that the US was the best market to be based in (since our bandwidth capacity and infrastructure lags behind Europe and especially Asia, and we use a large percentage of our bandwidth on streaming videos).
It appears he found a financing firm that had operations in the US to help him set up a company here. This company was Unlimited Trade, and they purchased a very small company in Nevada called Interdom Corp. I believe they chose this company because it was based in Nevada (low tax rate), was relatively cheap ($200,000), they could buy out a large percentage share of the company (87.3%), would not have to start a new publicly traded company from the ground-up (would take more time and money), and then could have a majority stake in the company and be able to choose new management and employees. The same day they purchased this company, they appointed Roman Rumpf as CEO.
Since, he is the one who co-founded the compression technology in Germany and does not have a lot of business/management experience, I believe Unlimited Trade and Roman Rumpf sought out an experienced CEO who has actually built a company from the ground up into a multi-million dollar company. A month later they found what they were looking for in Brian Petersen who had been the CEO of Petersen Hines LLC (a $35M home entertainment company in Texas). So, for him to leave this very successful company that he co-founded to become the CEO of Raystream says a lot about what he thought about the future of Raystream.
In addition to buying this company, Unlimited Trade also lent Raystream $2M to operate initially until they start bringing in revenue and turning a profit. But, instead of asking for the money back over time, they converted this debenture into 5M shares in the company (likely because they were very confident in the future prospects of the company). They are also restricted shares, so they are not a part of the 24.975M shares that are floating and publicly traded today. They also paid $3.5M for an advertising campaign to get the Raystream name out there, but it looks like they are unable and not trying to benefit from any short term positive impacts on the Raystream stock price. The shareholders of Raystream Gmbh (Roman Rumpf and the other co-founder) own the remaining 20M shares of the outstanding Raystream Inc stock (because they created this breakthrough technology they have this 40% share of the company, which was the payment to acquire Raystream Gmbh and gain access to all of its intellectual property).
Also, some have said there is a mistake in the SEC filings and they are not formally authorized 200M shares. This assessment appears to be incorrect, and the filings show that they are authorized 200M shares and that there are 49.975M shares outstanding (24.975M of those are floating or publicly traded). They have also added some impressive employees in the director they appointed as well as their new sales team. I have also been able to talk with employees from their offices in both Florida and Texas and with their investor relations firm in Texas (which is also the firm for Dave & Busters and almost 20 other companies). Also, the two contract wins they have achieved so far will help them test their revenue stream and help them price future contracts as effectively as possible.
Now the technology. There has been a lot of discussion about their breakthrough compression technology. I was skeptical at first, because this is a problem that is being researched a lot by the biggest names in industry and academia. So, on their website I requested a free trial of their compression technology and a day later I received this email below and a 5 day free trial with access to compress up to 3 videos.
"Your account has been activated! You can now use the Raystream Service!
Your trial phase is valid for five days and you can upload three movies.
Follow this link: *******************************************
Your username is: *****
Regards, Team Raystream"
Using their compression technique I was able to upload and compress 3 HD videos and it reduced the file size of these videos by an average of about 70%. The shorter video was not compressed by as great of a percentage as the longer videos. I looked very closely at the compressed and uncompressed files and could not find any differences to my naked eye. The one issue with this trial was that I had to upload the files to their server, and on my relatively slow connection speed it took a while to upload the files. Hopefully in the current and future contracts they will allow these companies to use the compression technology on their local servers/computers, so they can eliminate the time and money it takes to upload the files to Raystream’s servers. So, Raystream will likely simply sell licenses to their proprietary/protected compression technology/software for a specified time period. This will ensure a continued revenue stream for Raystream and will ensure companies don’t have to waste time and resources uploading uncompressed files and then downloading the compressed files over the internet.
Based on my initial research and experiences using their technology, it appears that Raystream really could revolutionize the way we stream videos across the internet and seems to have a very solid business model and team.
I also posted this message on the Yahoo Finance message board, because I have been following the discussions on both of these forums the past few weeks.
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