Cellpoint
The following press release recently was issued by an investor newsletter located in Stockholm about a Swedish company named CellPoint.
----------
cellpt.com
Wednesday December 8, 9:00 am Eastern Time
Company Press Release
Leading Analyst Rates CellPoint 'BUY' and Estimates Share Price Target of $100
STOCKHOLM, Sweden--(BUSINESS WIRE)--Dec. 8, 1999--The latest issue of the Borsinsikt Stock Newsletter states: ``The conclusion of our analysis of CellPoint (NASD:CLPT - news) is that the stock is worth buying, in spite of the fact that its value has increased almost tenfold during this year. The business has started to generate income and the company has received enough financial resources to last until the day the cash flow is positive.'
Analyst David Lindstrom predicts a possible range in stock price of $100 to $300 by 2003, depending on a number of variables, but concludes: ``A fairly cautious share price target during the next year can be estimated at $100.'
In its December 6, 1999 issue, the Sweden-based Borsinsikt Stock Newsletter publishes its analysis of CellPoint, discussing the market for CellPoint products and services; the growing influence and profitability of WAP, which had not been considered in previous market analyses and which should lead to a substantially increased market; and the status and effect of competition. The report notes that CellPoint has a significant cost and time advantage over competitors, stating that in addition to being much less expensive than other position-location systems, the ``biggest advantage for CellPoint is that its system is the only GSM-based positioning system in commercial operation today.'
The Borsinsikt report notes that investing in the stock involves risk and that competition always poses a threat. It notes that earlier this year, when CellPoint was trading between $2 and $4 USD, Borsinsikt ``set a target price of $30 for 1999 and about $300 in a few years' time... we still believe in the price level of $300, but in the future the shareholders of CellPoint must also be aware of the dangers on the road to success.' Copies of the entire report are available in Swedish and English at the CellPoint website (www.cellpt.com).
CellPoint Inc. is a US company whose CellPoint System(TM) technology uses the Internet and cellular networks to determine physical locations of cellular phones. The positioning technology is similar to satellite-based Global Positioning Systems (GPS) but with the additional capability of determining location inside buildings, parking garages and other shielded areas such as inside a pocket or briefcase that are inaccessible to GPS systems. The CellPoint System is currently the world's only commercially operational digital cellular position-location technology; it is fully scalable, works with standard GSM phones and WAP phones in unmodified digital networks requiring no costly overlays, and can be coordinated worldwide from a remote central location. According to The Wall Street Journal, GSM is the world's leading standard in cellular phone technology with more than 50 percent of the world cellular market and more than 230 million subscribers worldwide. In addition to Tele2's deployment of CellPoint's services in Sweden, CellPoint recently announced a contract with France Telecom Mobiles, a division of France Telecom (NYSE:FTE - news; www.francetelecom.fr), one of the world's largest telecommunications companies, with operations in over 50 countries, and 24.6 billion euros in 1998 revenues.
CellPoint(TM) and CellPoint Systems(TM) are trademarks of CellPoint Inc. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties which may cause actual results to differ from those described.
--------------------------------------------------------------------------------
Contact:
CellPoint Inc.
+46 8 5449 0000
www@cellpt.com
info@cellpt.com
or
CellPoint Systems
+46 8 5947 4900
or
North American Inquiries
The Rowe Group
877-880-1195
ajc@rowe-group.com
-----------
For those unfamiliar, CellPoint is the first company I'm aware of that offers a wireless network based positioning service. By utilizing information transmitted from wireless network base stations, the service provides a subscriber with the positioning data for the users wireless handset. This service is quite new and appears to be of value to companies involved in logistics where tracking a mobile users geographic position is of value. GPS is the most well known positioning service but only the holder of the device receives the positioning data; but with CellPoint's service, remote observers receive the positioning information and can thus use it to direct monitor traffic. I agree with Tero's previously stated belief that the next wave of growth in the wireless industry will be from the advent of new valua-added services that leverage the existing technology. My understanding is that the Swedish and Finnish telecom's industries are the cutting edge of these new services and that, in fact, American telecom's executives now make regular trips to these country's to glimpse into the future of their own American industry, salivating to think that in a few years the people of the world's last remaining superpower may enjoy the technological advances their Scandinavian cousins are gorging themselves on even now.
As for the Cellpoint report, I am naturally suspicous about any investment report that recommends a company and estimates its potential future stock value at 10x its current price. I also have questions about the company. Why is it incorporated in the U.S. while headquartered in Stockholm. My guess would be that access to capital for expansion is much better here in the U.S. than in Sweden, hence the U.S. listing; but I don't know if I'm right. I do appreciate that the company has brought a new, economically efficient product to the world. I'm on the lookout for other new wireless services companies. |
