This might help your speculation on that:
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THE INNER CIRCLE NEWSLETTER
IC Update #115 December 3, 1999
HEADLINES:
INFOWAVE'S CFO HAS HIS SIGHTS SET ON NASDAQ
This week I interviewed Todd Carter, the CFO of Infowave Software
who revealed that the first half of next year would be a reasonable
time frame for their entry on to NASDAQ. This will be welcome
news for the many Infowave investors who have been curious
about the timing of a possible listing move south of the border.
Another hot topic of interest with Infowave investors this week
is the rumor regarding an alliance with phone.com. Apparently
the phone.com's web site had posted that Infowave was one of
their alliance partners. Whether this was real or imagined I don't
know though I can tell you there is no reference to Infowave
on phone.com's web site at this point in time.
When I questioned Carter on this alliance rumor he stated ' I don't
know what the rumor was exactly so I would rather not comment on
it other than to say, it would be reasonable to expect that if there
was
an alliance between phone.com and Infowave that we would issue a
news release and that's how we would handle disclosure of something
like that.'
To find out more about Infowave's dealings with Glenayre, Mi8,
Wireless Knowledge, CDMA, Nasdaq, projected revenues for fiscal
2000 and more, tune into www.viavid.com
on Tuesday.
______________________________________________________
CONTENTS:
1. PCS Takeovers: Rumors or Reality?
2. Infowave Software Soars
3. The Wireless Industry Takes Baby Steps
__________________________________________________________
PCS Takeovers: Rumors or Reality?
by Derek Moscato
There continues to be speculation over the imminent takeovers of two
highly successful Canadian wireless firms, Clearnet Communications
(NASDAQ: CLNTF) and Microcell Telecommunications (NASDAQ: MICT).
Shares in both companies reflect investor enthusiasm over potential
deals with some of the bigger fish in the telecommunications game.
Clearnet has been on a steady and impressive ascent since January
(shares now trade at about 26, near its 52-week high of 29), while
Microcell shares have followed the same path,
trading close to their year-high of 30.
Clearnet continues to make great strides in the wireless sector,
given the widespread growth of its personal communications systems
technology, which is compatible with some of the large-scale players
in the business, including BCE and Telus Communications. Because of
this, most analysts agree that Clearnet is a credible short-term
acquisition target. But be warned: the same can't be said of
Microcell. While Canadian ownership regulation doesn't apply to the
Clearnet situation (as its suitors are also from Canada), much of the
interest in Microcell stems from outside of the country, especially
from the United States. Microcell uses a wireless platform -- Global
Services for Mobile Communications (GSM) -- that is more
common in Europe, and is also used by Washington-based wireless
outfit VoiceStream Wireless. While VoiceStream would love access to
the GSM network north of the border, any present takeover ambitions
would be stymied by the Canadian government -- foreign firms are
capped at a one-third voting stake in Canadian telecommunications
companies. The regulation came into play in 1995 to allow newcomers
time to gain a foothold in the market. But many investors --
especially those in the United States -- believe the rules may be
discarded by the feds in due time.
So while a Voicestream investment in Microcell, as opposed to an
outright takeover, seems likely, investors continue to place a
premium on the company's stock. According to wireless analyst Dvai
Ghose of CIBC World Markets, Microcell's rise has as much to do with
the fortunes of U.S.-based telecommunications players Voicestream,
Aerial Communication and Omnipoint, and the whispers of takeovers and
mergers surrounding those companies.
But Ghose points to one other interesting facet of Microcell: a 27-
percent stake in a wireless Internet portal called Saraide.com.
The 'portable portal' aims to be the ultimate gateway to the wireless
world. And to its credit, the site is ambitious and presents quite
nicely. If demand for Internet service to wireless devices heats up,
this could be an interesting play for the company. The Web angle is
just another reason why Microcell has become such an intriguing
investment in recent months.
__________________________________________________________
Infowave Software Soars
Infowave Software (IW,T), which is covered by this newsletter, had an
interesting couple of days this past week. On Tuesday, shares soared
thanks to some high-volume message board rumor activity, which pointed
to a possible deal in the works between the developer of wireless
messaging technology and Phone.com (PHCM:Nasdaq), the U.S. based
software developer for wireless products. Just the mention of
Phone.com is enough to give most investors reason to take notice --
the company's stock has been red hot in recent months, surging more
than 700 percent since January. But neither Infowave nor Phone.com
have yet to substantiate the speculation.
Infowave shares were buoyed on once again Wednesday, thanks to mention
of the company in the National Post. A story about the hot demand for
wireless stocks by Sonita Horvitch, included buy recommendations for
Infowave, Cell-Loc and Wi-Lan from Francis Roche, president of
Edmonton-based brokerage firm Roche Securities. --DM
__________________________________________________________
The Wireless Industry Takes Baby Steps
If you build it, will they come? That's the question being asked in
tech circles lately as industry observers watch the wireless Internet
business take what amounts to baby steps. The wireless Web is still
in its infancy, with only about 100 American sites offering the type
of content that can actually be seen on the tiny screen of a cell
phone. But like the Internet itself, the steady growth of this
product is inevitable. A recent story at News.com by Jeff Borland
news.com brings home the point -- alluding to the fact
that America Online has already made its move to provide customized
content for the new medium. In fact, by 2002, some analysts believe
that over 100 million mobile phone users should be able to access the
Internet in some fashion. Still, troubles abound, from concerns over
the small screen to disappointing download times. But if the growth
of the wireless Web in countries like Japan (which already lays claim
to over 400 sites) is any indicator, the sector could enjoy high
times down the road. It also helps to explain the intense interest in
Internet/wireless portal plays such as Saraide.com and
Phone.com.
This is a sector to keep an eye out for, folks. --DM
**********************************************************************
THE GROWTH STOCKS SHOW:
To access taped interviews go to www.viavid.com and click on 'The
Growth Stocks Show.' A copy of Windows MediaPlayer will be needed
which is available at the ViaVid site by clicking on settings.
If you go to Microsoft's www.windowsmedia.com site right now
you will see my recent interview with one of Canada's hottest
technology analysts, David Wong. Wong will reveal his latest
two hot picks, investment.com and Alcanta Int. Ltd.
Next week, watch for my interview with Infowave Software's CFO
Todd Carter.
______________________________________________________
1999 STOCK HIGHLIGHTS
The price when reviewed to the most recent high:
Actfit.com Inc (LaserMedia) 07/20/99 up 1111%
Microforum 04/22/99 up 938%
Infowave 11/19/99 up 725%
Ziasun 03/31/99 up 692%
Ceco Environmental 05/03/99 up 205%
Verena Minerals 09/30/99 up 100%
Chartwell Technologies 09/09/99 up 54%
______________________________________________________
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