Jeff, from a relative valuation & growth standpoint, XNET would be compared to the IPO price of SINA, which will be quite inflated, judging by the firms involved in the discussions. When a company "goes public" thru the OTCBB route, the public can essentially get in at pre-IPO prices. Look at NetNations going public through the shell company CBET on the OTCBB & you'll see what I'm talking about. This is the number 1 Canadian Web Hosting Company & # 6 in the World (ahead of #8, Mindspring) and you can pick some up at under $5. (Market cap of 60 million, compared to Mindsping's 2.7 BILLION) They have demonstrated revenue growth of 1400% in 2 years.
See tophosts.com
& hotstocknews.com or check out the posts on that thread.
XNET has an established PORTAL on the Chinese Mainland, in the top 5 ISP's in the major Chinese cities, & with demonstrated subscriber growth of >200%. Already with licenses to expand to 2 new cities next month, and would be a great "takeover candidate" by a company such as SINA, which by the virtue of their market cap when they go public, will able to do so at a large premium to XNET's current price. To answer your other question, XNET is currently putting together a SEC 10 filing and an application to move to NASDAQ, just like CBET. The common link here is Ernest Cheung, who was the President of CBET & is now a director for both companies.
See Message 8734750
Good luck,
Frank |
