Hubert, I am optimistic about TWTI because of the homework that I have done. I take the time to post when I can because I would like to share my opinions and sentiments with other shareholders.
I am all for contrarian points of view, but I do start having a problem when individuals that hide behind "I'm long the stock" but berate everything the company does. You look at the cast of characters that have come through this thread and you get the idea. Jason is doing his best to put his negative take on the reverse yet he says he is long. He also states that he is getting out Monday. If I were long the stock (he probably is not) and was a daytrader/TA player (which he has said that he is), I would keep my mouth shut on my opinions so I can get out before everyone "figures it out". Quoting Mr. Pink does not add credibility as well. Jason sounds awfully like David Luckie who has disappeared. He played the same game and castigated me for my MM manipulation theory that has proven accurate.
They state that the market is reflecting that something is wrong with these contracts ect., that there is something wrong with this transaction. I'll tell you whats wrong. Its the MM setup thats whats wrong. The reverse is whats going to change this stock from a penny stock to a fully marginable NMS security with real IB's. I have said til I'm blue in the face that this company has never had any IB support, they have a less than stellar history, and it has been a huge "cash cow" for daytrading, shortselling, bloodsucking, MM refuse. Casting a negative spin is of utmost importence because it creates the uncertainty and fear that induces panic selling. This is why I'm trying to point out the "logic" of the TWT/ISGI transaction that is more important than the hysterics of short term TA and trading patterns. IF you concentrate on the "real value" of this company based on valuation analysis that is associated with this telecom industry, you will see that post-split, this stock will have the ability to trade on its own with real IBanking support, small float, new name, new sic code, ect.
You asked what is going to attract these IB's to TWTI? I have confirmed via associates at JC Bradford (BRAD) that BRAD wanted to take TWT public via an IPO. The same with Robinson Humphrey (RHCO). Booth and company did not want to go through the long drawn out filing process that is reguired to do an IPO so he went public via the ISGI shell. As I mentioned in my earlier post, Booth is no dummy and his endorsement/blessing of this reverse IMO is the single most important variable to look at in regards to this transaction. He sold his company to ISGI for stock utilizing a $1.25+ number. The stock has been cut in HALF from that number so he has technically "lost" over $20 million in value in this transaction yet he went along with the reverse!?! Why would anyone in their right mind agree to such a thing if they were not HIGHLY confident that in the end they would get a return on their investment? It totally negates Booth's reason for going public if he does not get a return on the $1.25 pre-split number. I'd stay private and have a nice day. Unless of course Booth enjoys all the rules and regs and expenses of being public <g>. If this is some type of fraud that ISGI is pulling off on TWT, would not Booth have "rip corded" out of this transaction and refused the split and run back to BRAD? Of course this is not the case and once again the most important factor to look at. We can take it a step farther applying the same logic in regards to Arnold Salinas accepting a position at TWT. Why would Salinas agree to come work at TWT with the strength of his resume?
On some of the other fronts, I have been able to confirm IB interest. But being a penny stock, IB's unable to make a market in ISGI. This split allows Telecom IB's the abilty to get involved with the new NMS company TWTI. Why are they interested? Switch based re-seller that now owns 10 switches, has strong management, has doubled revs every year since inception, is tracking another double for this year, and $150 million+ for calender year '97 + profitability. The question should be why wouldn't an Big time IB be interested in this type of Telecom company? With the advent of the information age, telecom is in its infancy. It is a TREMENDOUS sector to gain market share. IMO consolidation will one day take place and could mean that TWTI gets absorbed by one of the Big Boys. Wouldn't a Telecom based IB be interested in facilitating that type of transaction on TWTI's behalf? Would not that IB make boo coo bucks on this type of transaction? Also there are plenty of examples of companies with much less than TWT that have these viable IB's behind them. The only thing that has kept them out of the stock has been the penny stock status.....until now.
In regards to being "squeezed out". Plenty of the multi-billion telecom pie to be spread around. Owning your own network (10 switches) is a BIG advantage because they can always sell the switchless reseller traffic. In talking with Arnold Salinas about a month ago, he confirmed that he is setting up an in-house marketing division so they are going down that rout. I'm sure margins will improve because they own there own network.... thus profitability.
In closing, I love what I see developing. I believe if people take the time to look beyond the price of the stock for a moment they might be able to see what I see. I believe it was Sir Templeton who stated that he is a Buyer when everyone else is a seller. With all of the selling that has been going on over the past week and a half, who has been buying these shares? I hope this post proves to be helpful for you and others. BTW, get that SEXI going will you! <g>
John |
