CDRD is a development stage company. Much like Iridium and Globalstar, they are building infrastructure in the belief that there will be a viable commercial market.
I've read this thread, and I find very little to indicate that the product won't work technologically.
Equity financing is not an unreasonable approach to raising funds for satellite companies. Loral and Boeing are proven companies for producing and launching satellites. CDRD is, of course, a new idea, and so they won't have a history of revenues, but that's what "development stage" means.
They have all of the standard advantages of a satellite based company: Many more channels, higher quality signal, wide coverage area. With 300 million car radios in this country, I think its not unreasonable to expect that there may be a market of people who buy the cassete-tape reciever and will pay $10 a month for high quality programming. You can count on a lot of truckers right off the bat. Also mobile sales fleets and anyone who lives in an area underserved by radio stations. (That's a lot of the country)
This is the closes thing to cable for radio that anyone's ever made. Lots of people believed the cable concept would fail completely, and they were wrong.
I believe it is highly dangerous to short this stock, as any day now they will announce a number of agreements with manufacturers to incorporate their technology (think about it- that market is so mature and competitive that any advantage will be highly valued.)
I'm, personally, not in this stock... but once the manufacturer announcements occur, I'll buy in.
Dragonfly |
