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WAVC Forum: Expansion Potential, New VP's "Look Good Going Forward"
WaveRider Communications
Wireless Data Communications
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Over the past week, a number of WaveRider Communications [WAVC] posters have been speculating where the company can expand next. 'cryton' opened the discussion by suggesting Russia as a potential market. Other global markets included the Carribean, South and Central America, Africa, France and the Middle East.
"I'd like to open the discussion with the fact that we are overlooking something here and that is Russia and all those folk over there," said 'cryton'. "They aren't very wealthy, but they are consumers and very hot to get onto the Internet. We can surmise that hard-wired computing is very limited. Given that, it makes sense that wireless Internet access would be the most cost effective way to allow Joe citizen easy access to the Internet.
The majority cannot afford state-of-the-art wireless technology and this is where WaveRider enters the picture. Its technology works: it doesn't need a genius to set it up and operate it, it's cheaper than the high-end stuff, reliable, [and] available now. The expertise required to maintain it can be easily learnt. It doesn't require the installation at great capital cost of cable, which will soon be obsolete anyway.
So what does the average Russian do?? He or she sees an affordable product ready to go at a price Russians can afford. It's a Canadian company with a good management team; we are known in Russia as we train a lot of their university graduates here at business schools and law firms.
Let's get the discussion going. How many Russian consumers are there??? I'd like to hear what people think of this idea, pros and cons. You may think I'm completely off the wall, maybe not. China, Russia, India, what pleasant contract surprises await us???"
'rapturetime' answered with a re-posted quote from Bruce Sinclair, WAVC's CEO:
"From WAVC Conference Call, October 28, 1999 - Bruce Sinclair regarding Russia...
'BS: Okay. There's nothing new happening in Russia, certainly to my knowledge, so I think that's old news that's been distributed. I could tell you that things have cooled for us in Russia, as a result of a number of challenges in the Russian economy and the Russian marketplace, not the least of which was continued confusion around regulatory requirements that we would be legally able to operate within. Based on the confusion in the regulatory environment and the continued lack of stability there from an economic perspective, we decided to re-focus our energies into those global markets where there is so much opportunity and where we do understand the regulatory friendliness or compliance with our current product strategy'."
"I didn't know that," admitted 'cryton'. "I guess that toasts my post at least until the Russians get their act together?Would it not be far off the mark if I said South and Central America??? I know not to forget the Far East, but first target the aforementioned???"
On this point, 'rapturetime' confirmed 'cryton's' projected global markets:
"Yep...you're correct with those locations. WAVC is also bidding on projects in France and the Middle East. Oh, and Bruce indicated there are several 'things active in Africa'. I LOVE this company!"
According to most WAVC posters, among the things they love most about this company are its business model, products and management team. Posters gave enthusiastic "thumbs up" to the April 28 announcement that three new vice presidents would be joining the WAVC management team. Bruce Kay, a former senior executive at Dell Computer (Canada) [DELL] takes on the role of VP Customer Service. Stephen Roche's private and public sector experience in financial management makes him more than qualified for the VP Finance position. As the new VP Strategic Alliances, James Chapman brings 20+ years of high-tech management experience and is integral to expanding WAVC into the very areas 'cryton' and 'rapturetime' discussed.
"...I'm happy to hold though having seen their latest corporate moves, it looks good going forward," nodded 'cryton'.
'greenwave' added the following:
"The last 3 hirings [say] a lot about this company. Stephen Roche was hired to work under Scott Worthington in financing. Sounds like Scott won't be able to handle all the new growth WAVC is going to experience over the next few months. I really believe it won't be long until 6-dollar share price will just be a memory. Bruce S. says 20 million in revenue projections this year could be a little more or little less. He says meeting the 100 million projection by Groome Capital for 2001, he feels really good about that. That's going from 1.8 million in 1999 to over 100 million in 2001 and this guy is very conservative when he talks. This is world class management and they will deliver. If you already own, just hold on. If you don't, I would suggest doing your DD."
'fixedwireless' also liked the three VP appointments and listed the pluses:
"The appointment of three key executives [Friday] is worth more than a $10 million contract. If you could think of it for just a few seconds, then you should know what I mean. WaveRider is putting itself on the international map and in order to get that status, WAVC must have 'good guys' (announced [Friday]) that everyone knows in tech sector."
'cseacat' weighed in with his/her comments regarding WAVC's global expansion plans:
"Russia is kind of a sore subject with many of the old WAVC longs. Don't mention Russia too loudly on some of the other boards. LOL.
The Caribbean, Central and South America [are] a key part of the strategy. I think you will also see announcements, which may surprise you in North America in the next couple months. China, the rest of Asia, and certain select opportunities in Europe are also in the mix.
Another key is Bermuda IMO. This is not discussed much anymore, but Northrock Communication is a very aggressive client that is working on rolling out the LMS2000 for the island right now, closely followed by the 3000 the remainder of this year. How that goes will probably be a key indicator of early success. JMO."
In late March at the International Wireless Communications Expo (IWCE) in Las Vegas, WAVC unveiled its Last Mile Solution (LMS) product line. The LMS2000© is being touted as the "first complete turnkey broadband wireless system for Internet Service Providers (ISPs)". The LMS2000© product uses spread-spectrum radio technology to deliver speeds of up to 6 megabits (Mb) per second to the customer's computer. WAVC also has a LMS3000 line, which is due to be shipped at the end of the company's second quarter. By comparison, LMS3000 operates at 900MHz and delivers network speeds to individual customers of up to 1 Mb. As for news of a LMS4000, 'cseacat' attempted to set the record straight by doing the math - well, sort of:
"Just by way of a little clarification. There really isn't an LMS4000 'product' like there is a 2000 and 3000. The website is pretty confusing in that it leads one to believe that there is.
What the LMS4000 is basically is the combination of the 2000 and 3000. They are calling the combined network the LMS4000. The 2000 is deployed first for business customers and it pretty much defines the physical 'territory' of the network. Then the 3000 is deployed 'over the top' of the 2000 network to service residential an SO/HO customers within that territory. The resulting network is the LMS4000. I confirmed this at the booth in Vegas. Also mentioned that a 2000 and a 3000 = 5000, not 4000. But they said they had heard that one before. LOL. Hope this helps."
WAVC has had a quiet month in terms of announcements. 'careful' thinks despite the news release about beefing up management, "more is under the deck than meets the eye." In the meantime, WAVC is experiencing the ill side effects of a volatile market. Since Monday, the stock has slipped from $6.31 to its $5.44 close today; many posters are attributing the recent re-tracements to a weak NASDAQ and Dow, the latter of which lost 250.99 points Wednesday.
For more on WAVC's LMS product lines, visit the company website or for updates on the company's NASDAQ plans, click on the IR section.
If you have yet to read YMG Capital Management Malvin Spooner's recommendation of WAVC, check out Chaya Cooperberg's last StockHouse feature, in which WAVC is mentioned.
What potential contract news may be released this month? WAVC's AGM is scheduled for June 23 and at that time, posters and investors may learn when a NASDAQ listing can be expected. Meanwhile, post your comments to the WaveRider Communications forum.
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