Got this in my E-mail:
Hello everyone, hope you're having a nice weekend.
I would like you all to take a minute & read the Stone report that I've found on stockhouse. Also I want you to
think for a minute & ask yourself if you think that KSA will remain at this level...yeah right..hehe..this baby
is about to ignite with a little nitro & leave us all behind except those who have their shares obviously. We
will see you ALL at much higher levels. Now read the report.
The Mark Stone Report
Chinese Internet Expansion Could Connect Gilat to Success
By Mark Stone - Syndicated Columnist
Wednesday, January 30, 12:30 PM PST
Miami, FL, January 30 /SHfn/ -- It's the time of year when telecom-based companies strut their stuff
at trade shows and investment conferences. Gilat Satellite Networks [GILTF], an Israeli-based
telecom solution provider, may be one worth watching. It specializes in VSAT satellite network
technology, and may provide a strong trading opportunity this season.
Gilat offers enterprise networking, rural telephony solutions and markets-interactive broadband data
services. StarBand Communications [STRB] - Gilat's joint venture with Microsoft [MSFT], EchoStar
[DISH] and ING Furman Selz Investments - may play an integral role in the company's next project.
Gilat is expanding into China to offer broadband Internet service in conjunction with KSAT Satellite
Networks [V.KSA]. This is exciting news for investors.
There are several reasons to like this company.
Gilat carries a book value of $27, and its shares recently traded in the $38 to $40 range. Its price-to-book
ratio is 1.4.
Unlike others in the business, Gilat carries a 2 times price-to-sales ratio.
There are only 23 million shares outstanding.
About a year ago, during the telecom frenzy, Gilat traded at nearly five times its current price. Many investors
snapped up the depressed shares earlier this month, some hoping to cash in on the StarBand IPO, which was filed last
autumn, but hasn't materialized.
With the return of a Bush to the White House, it appears business relationships with China might heat
up. In late October, the official Chinese news service reported that the Chinese government will spend
several million dollars to improve its Internet services using Gilat's satellite communications
technology. It also said Shanghai will be establishing a VSAT application and research center with
Gilat. Gilat holds a 37% ownership in KSAT, which will be manufacturing, selling and delivering Gilat's
satellite communications technology. Gilat and KSAT will be providing two-way, high-speed Internet
access through satellites throughout targeted Chinese cities.
Dr. Steve Wan, Stanford University Masters and PhD, pioneered the first venture capital fund in China
in the 1980s and has worked closely with Gilat for the past eight years. He is also a major shareholder
in KSAT and CEO of a private company that is affiliated with China Telecom. Dr. Wan says part of the
major launch into China is likely to involve StarBand in an integral role. He is bullish about the Chinese
Internet expansion and how KSAT and Gilat would bring broadband IP services into a country where
even dial-up is out of the question. Wan says satellite dishes will be set up in apartment complexes
so residents can share broadband services for as little as $12 to $17 a month.
The KSAT/Gilat alliance may be off and running as early as this summer. Dr. Wan says discussions are underway with a
Beijing-based telecom company that has finished wiring 500,000 homes. Dr. Wan hinted that some of the nine scheduled
projects are beginning to look good. "In the first quarter of this year, we achieved increasing numbers and dollar
values in terms of sales."
Technically speaking, Gilat appears to be closing out the month on a strong note. Over the past four weeks, it has
nearly doubled in price and appears poised to rally higher in February. KSAT has put in a similar performance, having
tripled off a mid-December low. Both companies should perform well during the January to February telecom rush. If
KSAT reports Chinese expansion plans in the near future, the companies should reap the rewards in a much shorter time
frame.
You can also go here directly & read it on stockhouse: stockhouse.com
Till next time this is Chris - Netxman saying may all your stocks be good ones.
Chris & Marty canadiandaytraders.com |
