CAWS - Wireless Cable (New and Improved) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : CAWS - Wireless Cable (New and Improved)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bexar who wrote (74)	11/5/1996 10:25:00 AM
From: .com	of 5812

Hi Mark: Yes, CAWS got an investment from BANX into their company to have the rights to certain markets. But, CAWS does not get any real revenue until after BANX exercises an option for each market and that is after BANX accepts the operation of the system, agrees it meets specs, etc... Thus, they don't HAVE to accept any of the markets at all, and once they do they have 2 years to start selling services and thus generating new revenue. CAWS cannot offer service on their own in those markets unless BANX rejects them or after their current 5 year contract ends. CAWS has some markets that BANX has no interest in, but needs to have a program provider (such as JA's TeleQuest) to provide programming. BANX has to exercise a certain number of options in the $9-$15 range as they accept each maket which, in itself, will begin to raise share price. Once all markets have been optioned then BANX will have a significant share of CAWS stock (something like 40%, but that is a guess) and then would be in an easy position to buyout CAWS. Hope this helps.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next