Hello everyone,
We saw HUGE gains from the Big Caps today as the markets rallied from even in pre-market this morning. It's about time & we hope to see a lot more
of that in the days ahead. The Nasdaq closed the day at 2889.80 UP 274.05 & the Dow closed the day at 10898.72 UP 338.62. The S & P closed the
day at 1376.54 UP 61.31.
KSA - I believe that this company is way undervalued & please do read the report on this page & see for yourself. Today was not a good day for KSA
but a good day for investors as some of us bought a few more shares under $1. KSA closed the day at .85 with 52,600 in volume. I am now looking to
load up if these prices continue to drop & it is a great opportunity knocking in my oppinion.
EPMO - Continued to trade in the .30's & .40's & I took advantage of adding to my total with an additional 10K shares at .375 today & tried for more
towards the close but to no avail. In the .30's this is in my oppinion FREE MONEY here so I will continue to add shares if they choose to keep selling
them to me.
AGPF - Closed the day off at $1 & the more the shorts carry this thing the more they're going to get hurt. If I were them I would have covered long ago
but then again I'm not them & I don't think they stand a chance on pulling this one off & believe me someone is going to get hurt a lot here & it isn't the
shareholders.
KSAT Satellite Technology, Inc. ("KSA" on CDNX)
High-speed Internet access became available to consumers in 1996 and the technology has proven to be extremely popular - at least among those
fortunate enough to live in an area where broadband service is available.
In the United States, for example, once you get outside of the major metropolitan areas, there are not many cable companies that have upgraded their
infrastructure and are offering broadband access. Similarly, when you get more than about three miles (as measured by the length of the cable) away
from a telephone switching station, the benefits of DSL are lost.
In America (a country that thinks of itself as a telecommunications leader), that translates into more than 50 million people who live in areas where
broadband Internet service is unavailable. Analysts believe that about half of these people are on-line, but have to make do with slow, land-based access
to the Internet through dial-up modems.
The problem in the People's Republic of China is even more acute.
China's Internet system is both extremely slow and very limited. Each day, millions of users attempt to log onto an already-overcrowded
telecommunications network.
At the same time as demand for Internet access in China is growing exponentially, the government is struggling to complete installation of Internet
infrastructure in China's major cities. The problem in rural areas of China is far worse, with much of the country still waiting to be wired and connected
to old-style, fixed-line telephone services.
On October 29th, Owen Brown of Dow Jones Newswire's Beijing office reported that, according to the official Xinhua News Agency, the Chinese
government had decided to ".spend millions of dollars to improve its Internet services using satellite communication technology from Israel's Gilat
Satellite Networks (NASDAQ: GILTF)." and that "Shanghai has also decided to set up a Very Small Aperture Terminal, or VSAT, application and
research center with Gilat Satellite Networks."
What's significant here is that a little-known, CDNX-listed company called KSAT Satellite Technology, Inc. (37% owned by GILTF) is the business that
will be manufacturing, selling and delivering GILTF's satellite communication technology that's going to be instrumental in improving China's Internet
services. By providing two-way, high-speed Internet access via satellites, KSAT can help China solve its acute shortage of high-speed
telecommunications equipment / infrastructure, and make broadband service available to millions of businesses and consumers.
KSA's Manufactures & Sells Two-Way, High-Speed Satellite Communication Equipment
KSAT is involved in the manufacture and sale of very small aperture terminals (VSAT's) satellite communications equipment and service networks in
China to corporate and government customers. The Company's products allow businesses to transmit huge amounts of data (up to 40 Mb) per second
using satellite and telecommunications technology developed by GILTF.
For more information about the company, visit www.ksat.net/company/ksat/default.htm.
KSA currently has nine major projects underway in China (www.ksat.net/company/ksat/projectnews.htm ), and is working with 12 local business
partners (www.ksat.net/company/ksat/business.htm).
However, KSAT's biggest deal is an agreement with GILTf to deliver Internet services to homes in China under the "Gilat-to-Home China" brand name.
KSAT and GILTF have exclusive rights to offer broadband Internet access via satellite in China !!
This is big news for any company, but to put this in perspective..
(1) GILTF owns 37% of KSAT (and can appoint the Chairman & CEO)
(2) The "Gilat-to-Home" concept just went public in the U.S. under the name "StarBand" in a $300 million IPO.
(3) Microsoft (NASDAQ: MSFT) & EchoStar (NASDAQ: DISH) hold major equity stakes in StarBand, the first company to offer consumers two-way,
always-on, high-speed Internet access service powered by broadband IP satellite technology
(4) GILTF has successfully been operating in China (and making money!) since 1994
The demand for Internet access in China is huge!
A report compiled by Beijing-based BDA (China) Limited and the Strategis Group predict an average annual Internet growth rate of 60% in China over
the next few years. To illustrate, China had about two million Internet users at the end of 1998. The BDA / Strategic Group expects that over 12 million
Chinese people will be on-line by the end of this year, increasing to 25+ million by the end of 2002. This projected growth in Internet usage is significant,
and we expect that Chinese-oriented web page production will soar in order to support the demand for native language information.
KSAT Will Be Offering a "StarBand" Type of Product to Consumers in China
To give you an idea of what kind of high-speed, two-way, always-on satellite-based Internet service KSAT will be offering to business and consumers in
China, you don't have to look any further than what StarBand ( www.StarBand.com ) is now offering in the United States.
The StarBand system uses a single satellite dish antenna for receiving and sending information - no telephone line is needed to access the Internet. In the
United States, StarBand says that customers can expect average download speeds of 500 Kbps and upload speeds of 150 Kbps - far, far faster than the
traditional dial-up modem connection!
For people in China, it's going to come down to a question of: "if you can see the southern sky, you can enjoy Gilat-to-Home China". For people living in
rural or isolated areas, KSAT / GILTF's products will be the logical solution for tens (if not hundreds) of millions of people in China who are unable to
get broadband Internet service (let alone a phone line!).
There's nothing new and unproven here.
The KSAT / Gilat-to-Home China technology is based on VSAT technology from GILTF that is currently used in over 200,000 business locations.
GILTF's technology has been the wide-area platform of choice for major businesses throughput the world for many years.
For people in China, accessing the Internet by using VAST technology should eventually increase connection speeds by up to 100x compared to using
computers w/dial up modems and the country antiquated phone lines.
So, How Does a High-Speed, Satellite-Based Internet Access Service Work ?
KSAT's system will be just like what StarBand is using (a graphical illustration can be viewed at: www.StarBand.com/howitworks/index.htm ).
Basically, there will be a 24" by 36" satellite dish mounted on a roof or wall, with two standard coaxial cables connect the dish to a PC or satellite
modem. The antenna sends / receives data to a satellite orbiting approximately 22,300 miles above the equator. The satellite, in turn, will communicate
with KSAT's hub facility, which will have a direct connection to the Internet.
Unlike its satellite Internet competitors, StarBand does not require consumers to tie up their phone lines or retain a separate ISP. And, unlike DSL and
cable modem services, which are limited in availability, StarBand is available virtually everywhere in the continental USA - even in remote areas. StarBand
gives consumers what they want: a high-speed, always-on connection to the Internet that does not require a telephone connection
KSAT / Gilat Will Be Bringing High-Speed, Two-Way Satellite-Based
Internet Service To China At Least One Year Ahead of Its Nearest Competitor
Currently, no one but GILTF / StarBand is offering true two-way, high-speed, satellite-based Internet access service. Hughes Electronics' DirectPC
system allows users to pull web pages down off of a satellite, but you have to use telephone lines for the return path.
Hughes Electronics (DirectPC) is probably KSAT / GILTF / StarBand's most significant competitor. The company plans to launch its own two-way
broadband service ("SpaceWay") in 2002, although the exact roll-out date depends on successful construction and launches of several new satellites.
There's also iSky, which plans to launch a high-speed Internet service in late 2001 that will target homes and small businesses. Like DirectPC, the iSky
system rollout is contingent upon successful launches of new, dedicated satellites.
In contrast, GILTF's satellites are already up and running. KSAT also has tapped into GILTF's proven expertise in offering two-way, satellite-based data
and voice service to businesses and consumers in under-served parts of the world such as rural areas of South America and Asia.
What Might The Future Hold For KSAT?
A logical question for investors is: "How big could KSAT become"?
With only a limited amount of information available, we really cannot give earnings or profit projections for the KSAT "Gilat-to-Home / China" venture.
However, the U.S. roll-out of StarBand (basically the same product / service) does offer some guidelines for the market KSAT is pursuing in China.
Near-term, we understand that StarBand projects one million U.S. subscribers (with a goal of reaching five million users in a few years). Right now,
Radio Shack is offering the satellite dish for $299, plus a $60/month access fee (there is an additional charge of about $750 for a Compaq CPU with the
special satellite-compatible modem installed).
One million (or more) registered users at $60/month is significant cash flow for any company. Ditto for the $299 one-time charge for the satellite dish
and installation.
Investors should also keep in mind that MSFT and DISH each invested US$50 million for approximately 19% stakes in StarBand, which is going public
in a US$300 million IPO, and that what StarBand is doing in the U.S is very, very similar to what KSAT will be offering in China. On this basis, we don't
think that it's unreasonable to expect that KSAT's market performance might closely follow that of StarBand once KSAT begins delivering
"Gilat-to-Home" units in China.
KSAT Share Structure & Recent Trading Range
Total Issued & Outstanding: 28,560,051 common shares
Public Float: Est'd @ 1,846,951
52-week Trading Range: Cdn$0.20 by Cdn$4.50
Last Trade (November 21, 2000): Cdn$1.45
Gilat Satellite Networks Limited and Global Space Investments Limited (Keppel Group - Singapore) each own 10,606,550 shares of KSAT
(approximately 75% combined).
Included in the issued and outstanding shares of KSAT are an additional 5.5 million escrow shares that will only be released once KSA has earned
cumulative US$0.244 per share of cash flow as defined by the rules and policies of the CDNX.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT Ora Capital Toll-Free: (877) 222-8701 E-Mail: ora-bay@home.com
Source: The Doppler Report
Chris & Marty
canadiandaytraders.com |
