Re Conference Call
I was somewhat disappointed in the conference call. I do not personally feel the company is doing enough to attack the share price issue. This does not mean they are not making progress and good steps in the industry. I just feel they are not being aggressive enough marketing the company to the public.
The following are some of the other items of note relative to the call.
1. Great progress in sales, the company noted the Jamaica contract and multi contract nature of sales. eg. NCL135 for Jamaica with LMS170 slated for initial delivery in June/July
2. 6 VAR's are presently in Toronto for training.
3. New product installations are ongoing in the Carribean, Central and South America, and in the Asia/Pacific Market.
4. WaveRider went looking for a company to buy to increase the reach of their sales channels and most importantly the product lines. The Company attained and compared various products in their labs in order to determine which company would contribute the most to WaveRider.
WaveRider choose TTI based on the following (may be same or in addition to what they mentioned on their FAQ & NR.
* TTI currently has over 1500 installation of its products.
* TTI has equipment for both the licensed and the unlicensed frequencies.
* TTI has the fasted & best installation of technology platforms.
* TTI acquisition also gives WaveRider the accessory lines of TTI which was needed. (antenna's etc.)
The Company expects to finalize the acquisition by the end of the month. The company states the TTI acquisition will present no initial material impact on cash or share position.
Finally based on the TTI acquisition WaveRider expects to have the
"BEST PRODUCT LINE IN THE INDUSTRY IN THE WORLD"
5. WaveRider is in talks with a number of "carriers" and ISP's.
6. We will be seeing product roll outs in the next couple of months.
WaveRider expects to be rolling out a product in every quarter.
7. Company move to Calgary has started. Product groups will be transferred in phases. First product group is now moved and working in Calgary. The remainder of groups will be moved at product milestone achievements as to not disrupt the product development. Move is three phase, first is complete, next one happens this month.
WaveRider has also started to reap the benefits of the move to Calgary and had recruited new people for key positions because of it.
8. LMS170 - rolling out delivery to Jamaica this summer.
There are 4 elements to the LMS170 development.
1. The Radio - design is complete and the company will start manufacturing the units with Murandi next week.
2. Digital Board - design completed by end of next week. Manufacturing of the first prototype unit to be complete in 2 weeks.
3. Packaging - complete. (dies and screens are done)
4. Software - controls & operating systems completed and in testing. Company will begin working on the diagnostics.
9. The LMS170 point to point wireless non line of sight product is seeing alot of interest internationally.
Additionally to the above I get the impression that we can expect to see additions to the products or product lines. Currently we have 2 product families with 3 products, the NCL135, the LMS170 and the LMS270. The acquisition of TTI will mean that we will see additional products I believe.
10. LMS270 product should enter the market at the end of this year early next.
There are excellent things happening in this company, I would assume alot more than the company has said or surprised us with. Personally I wish to see a better effort on the part of Carl Thompson & Associates on spreading the WaveRider name. I invest in both point to point fixed as well as the mobile sectors of the wireless industry. In the hundreds and hundreds of hours of reading wireless news, conference information, searching technology /news /media sites I have yet to see any new significant or otherwise information or mention of WaveRider. When we see news releases similar to what we saw last week and there is no significant or otherwise positive impact on shareholder value it is disappointing to put it mildly. Yes, the company may be definately establishing its presence in the industry and yes I believe that by establishing strong and expansive sales and support channels early will be extremely beneficial in our penetration of this lucrative market. Yes I believe we will reap the benefits of this. Having a great product is one thing, having no established method of selling it is another. You can build a better mousetrap however nobody is going to buy it if you have no means to market it or sell it. This is one problem TTI had. They have a great product, but because they didn't have a fully defined and widespread sales strategy/channel they found themselves living month to month. WaveRider is establishing the sales/ marketing infrastructure, or what I refer to as the piping. They hit an oil well with their drilling, they are building a pipeline around the world for it, but they are still working a little bit on the refinery. The oil well is the wireless industry. The piping is their sales/ VAR infrastructure. The refinery is the product. TTI will add to the efficeincy / quality of the product as well as its grade. My hope is that they will offer the industry premium gasoline, while they see everyone else try to sell crude oil.
Iam LONG, LONG, LONG on this company. I like what they are doing, more so than I ever post or admit. I believe what they are doing is great. What I believe what they are not doing or being aggressive enough however is building share holder value that is reflected in the market price. Notice I did not say they are not building shareholder value. I believe they are. However there has been no evidence of this reflected in the value of the stock. I do not expect huge increases or significant movement upward until we see their products fully in the market, however with the advancements the company has made, the announcements they have made, and the direction they are heading, I would expect some increase in the stock price. The company has begun as we have seen to release more information and announcements. I would like to see them start doing other things to attract public and institutional awareness of the name WaveRider. I believe they are working on it, I believe they are moving forward. If we had a name like Cisco over our door I do not believe we would see the stock act like it has upon release of news. Cisco has a name, Cisco has a market presence. When they release news the market acts upon it because they have built a name and image to go with it. Most people know the wireless age is coming or have heard it is. Many have not become fully comfortable with investing in it because they have not done their research into it and dont know or understand its sectors, products, markets, and the direction it is heading. In the LONG term I feel that WaveRider will establish a similar reputation, perhaps not as commonly heard as Cisco in general, but definitely in the Wireless arena. Perhaps my frustration comes from knowing too much about where the industry is heading. Some analysts are hesitant to report on WaveRider because they want to see more figures/ projections from the company. It is not that they dont believe WaveRider has a good product, it is because analysts are inherently conservative, they operate on on figures and estimates in addition to the product and industry. Determining WaveRider's value is difficult because there are currently no such figures or numbers. So how do we attract more attention, more recognition of what the company is doing, where they are headed. Firstly I would like to see the product submitted for head to head testing against the competition. The company has drawn its line in the sand product wise, the goal is to be the best. Lets show them how good it is.
I'm sorry for the length of this post, perhaps I'm just thinking on paper here. My posts are not meant to be negative, more so they should reflect the fact that I am positive on the company, but frustrated at times with the lack of attention the company has gotten publicly in the industry. Perhaps its merely a fact that they rest of the investment community is sitting back waiting to pounce on this one once they are poised for full market penetration and full product roll out.
I want to see more information on the benefits of what Carl Thompson & Associates is doing for us. I want to see industry recognition in print from what they have arrange. I would like to see substantive feedback from their efforts. Im not saying they are not doing anything, but to date I have not seen the name WaveRider in print as a result of their exposing WaveRider to industry experts. I would like to hear more than "presentation in Toronto a success". Some reaction or excitement would be nice.
The fact is Im excited about our future, I just want everyone else to be. Read the post well and please take it in the context it has meant. If you have read this it is positive, because you know about the company. Do not assume its a negative post on the company, if you do think this, then you do not understand what I'm saying here.
Do your DD, do your research, and WaveRider thank-you, I know you understand what I am saying. I am hoping that this is merely the calm before before the storm, please help us do better forecasting.
Chip |
