posted
Devil, just out of curiosity, do you have any DD on this company other than simply a chart play and providing, imho, somewhat weak L2s?
I got in cuz I too liked the chart, but can't really find much other than that to be real encouraged about...and hey, it's only a few hundred dollars at risk.
-------------------- "It's a dog-eat-dog world, and I'm wearing Milkbone underwear"...Norm (Cheers)
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GlobalNet Corp (OTC: GLBT) announced in an 8-K that on December 12, 2005 the Company entered into a Securities Purchase Agreement with New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC for the sale of $1,500,000 in callable secured convertible notes and stock purchase warrants to buy 1,500,000 shares of common stock. On December 12, 2005 the Investors purchased $350,000 in Notes and received Warrants to purchase 350,000 shares of the Company's common stock. In addition, on the final business day of each month, commencing in January 2006, the Company will issue to the Investors and the Investors will purchase an additional agreed upon amount of Notes and Warrants until the remaining $1,150,000 in Notes has been purchased. On January 19, 2006 the Investors purchased an additional $325,000 in Notes and received Warrants to purchase 325,000 shares of the Company's common stock.
Thats the most recent I can find.
-------------------- Well done is better than well said. Ben Franklin
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posted
right, I read that too...meaning they received some investment dollars for stock...probably to stay alive. I'd really like to see something substantial on their products/services in the marketplace...wouldn't you?
-------------------- "It's a dog-eat-dog world, and I'm wearing Milkbone underwear"...Norm (Cheers)
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posted
For those of you looking for something more substantial about Globalnet, here's something I recently posted in another thread (with some edits):
"Now, this warning may be early, but I have been in contact with GLBT's investor relations, and GLBT is still following the game plan they publicly announced some time ago, which is to get all financial filings up to date and then try to get back on the OTCBB. Their goal for up-to-date filings is still first quarter 2006; after that they admit it is up to the market makers as to when they get back on the OTCBB. So it might be another two months before the inside picture opens up to the public, but things are certainly developing at GLBT.
Furthermore, investor relations tell me that when the filings are up to date, GLBT will issue a public announcement about their financial situation and their future plans, and they will also hold an investor conference call to get stockholders up to date.
Again, it may be a little while before these things play out, a few months perhaps, but since the action was so interesting lately, I wanted to let people know what I have heard.
Remember, I am already heavy into GLBT, so take what I say with that in mind; I am not recommending anyone buy or sell. There are no guarantees, of course."
The company is emerging from a near-bankruptcy situation and has secured (dilutive!) financing to remain a going concern. They have been in multiple telecom services in the past but are now planning to concentrate on VIOP. Their flagship VIOP product, iDial-IP, has won an award at an Internet Telephony conference (March 2005). Globalnet was at the recent (January 24-27 2006) Internet telephony conference (the IT Expo) conference, and there is a picture online showing their booth and people doing business there; they are definitely still in business.
The iDial-IP product is not currently for sale, but the plan is for it to be selling soon. All of this information is publicly available, some through filings and others through Globalnet's investor relations.
So what does all that mean? Well, it means to me that GLBT is turning the company around, and that good news should start coming out soon (within a few months). So I'm ready to benefit. I don't expect to become rich off this stock, but I do feel that a double or two from this level is almost inevitable, and that there exists at least the possibility for a great deal more.
My predictions are all based on my highly non-professional, non-expert opinion.
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posted
OK, George, I have probably pumped enough, but let me reply to that: yes, QBID goes up a tick now and then. From what I have seen that stock goes back and forth, .0001-.0002 all the live-long day.
GLBT, on the other hand, hasn't seen .0004 since late last year. And right now, there is a .0002 bid with three market makers, and a .0003 ask with only one. When us GLBT stockholders see that, we get excited, because there is a real .0004-on-the-ask possibility.
That's not really anything like QBID.
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Vonage just filed their plans for a $250M IPO. When the tide rises, even the junky ships rise with the cruise ships.
I read an interesting article that pointed out Vonage, although revenues were up, was seeing increased competition from Cable and Teleco operators.
GlobalNet's niche is the VoIP paths to Latin America via Cable Operators in Latin American countries.
Throw in a 7-14x P/S multiple for being a pureplay VoIP provider, and we are definately worth more than the current market cap of $2.5M
The problem is they have convertible financing to the tune of 80B shares. Yes, the notes are callable, and yes, the CD holders can not convert and hold more than 5% of the O/S, but the company will need money to be able to pay off these debts. They are not longer a $130M revenue company. Just a fraction of that. They do have a product that is cutting edge, developed, and now proven. Time will tell if they can bring it fully to market to add shareholder value.
This is some things to look forward to:
"the Company now expects, although it cannot provide any guarantees, to be fully current with all filings, including the 2005 Annual Report on Form 10-K, by March 31, 2006"
"For the quarter ended September 30, 2005, the Company recorded gross revenues of approximately $3,200,000."
That is a trailing 12.8M revenue run rate.
You calculate the P/S by dividing the market cap of the stock by the total revenues of the company.
2.5M / 12.5M = 0.2 P/S ratio.
Wholesale VoIPs trade at 0.5x ratio's, whereas retail / pureplay VoIPs trade at 7-14x
so, take
0.2X = 7 or 02.Y = 14
and that is what you should calculate the market cap by to get a "true", ahem, "valuation".
X = 7 / 0.2 = 35 Y = 14 / 0.2 = 70
yes that is right, from here you *could* see a 35-75 bagger.
calculating target price:
$2.5M market cap * 35 = $85M Market Cap at 7x multiple $2.5M market cap * 70 = $175M Market Cap at 14x multiple
"The size of the losses and the trend lines of these losses are dependent upon the Company's success in rebuilding its wholesale business, as well as upon the success of the Company's Voice Over Internet Protocol ("VoIP") new product rollouts."
For those that have not followed the company, back in the day you had IDNW, a retail phone card company trading at .0016. They acquired GlobalNet from Titan in exchange for some money, and a whole lot of paper. How much? Billions of shares. It was effected via a reverse triangular merger with a holding company held by then parent company GEF. GlobalNet became GlobalNet International, and was a wholly owned subsidiary of GlobalNet Corporation (formerly IDNW). Over a period of time, the wholesale GlobalNet International bled too much, the company declared BK, and cleaned up their books and debts while reorganizing and scaling back (all the while developing their killer app in R&D). GEF got out. New investors came in, new business plan, etc. Eventually GlobalNet International ceased operations, and the company was back to their small scale, but with a whole lot more shares outstanding, and a new "Vonage for ISPs".
When GEF got out of GlobalNet, GLBT counsel went to the SEC and asked how to treat the cancellation of billions of shares of stock. The SEC told them they should treat the original merger as a straight merger, and not a reverse triangular merger. All the financials had to be redone, and that is where we are today as they have been catching up their books. They want to get back to the .ob.
Management's Accomplishments - 2005
1. Subsidiary dismissed from Bankruptcy and ceased operations. 2. MCI debt settled. 3. Cisco lease settled. 4. Former majority shareholder (GEF) no longer involved with Company. 5. Consolidated operations into Houston and San Antonio. 6. Reorganized sales organization. 7. Hired New CFO: On track to complete 2003 re-audit. 8. Instituted Real Time Profitability Reporting System 9. Received "Best of Show" for Internet Telephony Show, 2005
Here is the kicker...
Carrier Sales (Wholesale)
"If adequately funded can generate $2 M revenues per month within 2006"
Wholesale Business Supports Enhanced Services
Gross Profit Margins Expected To Exceed 25%
Monthly Revenue of $1 Million within 2006
That is a $36M run rate by the end of 2006. Take the previous numbers, and triple them to get an idea where this could be later this year.
uh, HELLLLOOOO
ISPs - Now 2 Customers: Multiple Current Prospects
Wireless Manufacturer - Now in Proposal Stage
CLECs - Next
Interconnect Companies - After Rollout of PBX/Centrex Service
There is a wealth of information to be found here:
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