.RE:RAYMOND DIRKS;A HUNDRED DOLLAR STOCK SECRETLY DOWNGRADED TO Underperform? NOPE A NEW CATEGORY "50 CENTS BY SUMMER"
SPITZER is not the only one with emails. Ray Dirks assistant analyst and conman message board con artist Thomas Heysek who according to the strong buy recommendation put out by Ray Dirks on New Tel (NWLL) tells the truth just as analyst Henrey Blodget did in his emails. "To Heysek a stock."
XXXXXXX...here is the first of 2 emails involving Tomas Heysek alias Meatloaf" on Ragingbull
>From: thomas heysek <meatloafJoe@netscape.net>
>To: "XXXXXXXXXXX
>Subject: Re: [NWLL Con?]
>Date: 29 Apr 00 15:03:32 PDT
>
>XXXXX wrote:
>Meatloaf-
>
>I have listened closely to your viewpoints on New Tel since late february.
>What makes you say that NWLL is now just a con now? Have you heard
>something we haven't? Thanks.
>
>
>
>
>Yes...something has happened. First, we are now in a market that does not
>reward picking winners but picking survivors. Second, how many news
>releases
>should a public company "warehouse" before the investing public begins to
>realize that "Hmmm, maybe there ain't no news". And finally, a Nomura New
>York spokesperson tells me "They never heard of New Tel".
>
>Look XXXXX, I could be all wrong here, but success in investing is playing
>the probabilities AND common sense...and in this regard, sonething is wrong
>with the New Tel picture. I expect the stock to be back at the 50 cent
>level
>by summer.
>
>
SEE END OF FIRST PR ......FOR E-MAIL
SECURITY CAPITAL TRADING, INC. INITIATES RESEARCH COVERAGE ON NEW TEL LTD WITH A STRONG BUY RECOMMENDATION
--------------------------------------------------------------------------------
Story Filed: Wednesday, November 24, 1999 11:42 AM EST
NEW YORK, Nov 24, 1999 /PRNewswire via COMTEX/ -- The following is being issued by Security Capital Trading, Inc., a member of the National Association of Securities Dealers, CRD Number 35909:
New Tel Ltd
(NASDAQ Symbol for ADR's: NWLL)
Australian Stock Exchange NASDAQ ADR's
in Austr. $in US$ in US$
Recent Price A$1.56 US$1.01 $9.625
52 Week High 1.65 1.05 10.00 (11/18/99)
52 Week Low 0.40 0.30 3.00 (9/1/99)
Shares Outstg (millions) 90 90 (see note)
Market Cap (millions) $140 $90
Note: New Tel is listed on the Australian Stock Exchange under the symbol NWL. The Company's ADR's are listed on NASDAQ under the symbol NWLL. There are 10 shares of New Tel common stock underlying each NASDAQ
ADR.
Mkt Cap to Earnings Book
Value
FY Ends Revenues Revenues Per Share P/E Per Share
June (MM)
2000 (e) A$ 20 mm 4 times A$ 0.02 70 x A$ 0.20
2001 (e) 50 mm 2 times 0.10 14 x 0.30
2002 (e) 100 mm 1 times 0.20 7 x 0.55
Summary & Investment Conclusion New Tel is one of several telecommunications companies to emerge in the aftermath of that industry's worldwide deregulation. The company is a technology spin-off from a non-telecommunications company (Transcon, symbol: TRIXY) to enable a clearer, unfettered commercial focus upon telecommunications and Internet applications of its proprietary technology.
In strategic alliance with China's Xinhua News Agency, New Tel has two primary business segments: (a) providing telecommunications services and equipment to Chinese-speaking people in Australia; and (b) by the end of fiscal 2000 (ending June), ISP/Internet Portal services in China. Xinhua recently announced that New Tel was acquiring 18 websites from the Chinese Government which collectively has 7 million daily users ... including China's Ministry of Foreign Trade website. Usage is projected to increase to 33 million users by 2003. Upon consummation of this transaction, Xinhua will hold a 49% equity interest in New Tel.
New Tel has established a recognizable corporate presence in Asian telephony in a relatively brief period of time. Though currently only in two markets, Australia and China, these are two of the fastest growing ... and we expect the Company to become a material factor in both markets within the next 12 months. While we project near breakeven operating results for FY2000, we forecast $0.10 in EPS in FY2001, then doubling again in 2002 to $0.20. With 400 million shares outstanding by the middle of next year, this translates in Net Income of A$40 million (Australian Dollars) in 2001, and A$ 80 million the year after.
Our near term target price (6-12 months) of A$2.50 is based on the valuation of comparable companies that have attracted industry attention. Indeed, the recently announced issuance of 200 million shares to acquire 18 Chinese Government-owned websites assigns a valuation to New Tel stock at A$2.00 per share. Longer term (12 months +), we believe New Tel has the potential to exceed A$5.00 per share in valuation reflecting its lock-up arrangements to provide ISP services to China, continuing penetration of the Australian telecommunications carrier market, and the likelihood of garnering of significant market share at an early stage.
In our opinion, New Tel has the potential to become the America Online of Asia ... an achievement in market share that has heretofore eluded AOL itself.
History, Nature of Business & Outlook New Tel Ltd is one of six telco's currently providing telecommunications services and equipment in Australia. New Tel is one of the new second tier telecommunications companies to emerge amidst the worldwide deregulation of telecommunications. The Company actually dates back to 1988 when it was a business unit of Transcon ... also a public company traded on the Australia Stock Exchange and NASDAQ in the USA (NASDAQ symbol was TRIXY). Transcon's R&D business included applications of imbedded software technology in mobile equipment, and in July 1998, these commercial applications were bundled together under one corporate entity: New Tel.
Last year, New Tel formed a strategic alliance with Xinhua News Telecommunications (Australia: XNTL), initially owning a 25% equity interest. XNTL, in turn, is a wholly-owned subsidiary of Xinhua Holdings of Hong Kong, the commercial arm of Xinhua News Agency in China and the fourth largest news agency in the world. XNTL's business focus is to provide telecommunications services to Chinese speaking people throughout Asia using its Australian telecommunications license as the operating base. New Tel currently owns a 75% equity interest in XNTL, providing telecommunications services, digital data communications and cellular systems in Australia.
More recently, Xinhua News Agency announced that it was selling 18 websites owned by the Chinese Government to New Tel for $400 million (Australian Dollars), via the issuance of 200 million New Tel shares valued at $2.00 per share. Following this investment, New Tel would become the leading Internet Service Provider and Internet Portal in China with 7 million daily users. Industry observers expect usage to ramp up five times within three years to 33 million users ... one of the faster worldwide growth rates amongst an already blistering pace of growth. Upon consummation of this investment, Xinhua Holdings will own a 49% interest in New Tel.
Australian alliances with non-Australian companies is not new. Nippon Telephone & Telegraph recently acquired a 49% interest in Australian-based Davnet (PWT) for A$118 million. This imputes a total valuation on Davnet (with annual revenues of A$3 million) of about A$240 million. A comparable market valuation for New Tel translates into a current share price of A$2.50 per share ($240 million / 90 million shares), prior to factoring in the added value from New Tel's China Internet Division, expected to contribute to EPS as early as March 2000 (4th quarter of fiscal 2000).
Following this A$400 million investment by Xinhua, New Tel will also raise an additional A$200 million in capital via the issuance of 100 million shares at A$2.00 per share. The balance sheet following illustrates the results of these investments: Balance Sheet Highlights (in millions of Australian Dollars)
June 1998 June 1999 Pro Forma
Cash $0.2 $7.6 $607.6
Accounts Receivable 0.4 0.4
Inventory/Deposits 1.8 1.6
OCA 2.0 1.1
Total Current Assets 4.4 10.7 $610.6
Total Current Liab's 3.9 4.1
Net Working Capital 0.5 6.6 $606.6
Fixed Assets 1.5 1.1
Goodwill 1.7 10.4
Other Assets 0.8 0.1
Total Net Assets 4.5 18.2 $618.2
Represented By:
Long Term Debt 1.6 1.1 1.1
Shareholders' Equity 2.9 17.1 617.1
Total Capitalization 4.5 18.2 $618.2
Book Value Per Share $0.20 $1.59
(Share Outstanding ... in millions) 90 390
SOURCE Security Capital Trading, Inc. (C) 1999 PR Newswire. All rights reserved. prnewswire.com
CONTACT: Raymond L. Dirks, or Contributing Analysts, Leo Murphy or Tom
Heysek for Security Capital Trading, Inc., 212-339-2000 or 888-305-0050, or fax, 212-339-2015 (NWLL)
GEOGRAPHY: New York
China Australia INDUSTRY CODE: FIN TLS SUBJECT CODE: RTG
Copyright © 1999, PR Newswire, all rights reserved.
----- Original Message -----
From:XXXXXX
To: XXXXXXX
Sent: Tuesday, January 02, 2001 9:25 PM
Subject: Fwd: Re: [NWLL Con?]
XXXXXXX...here is the first of 2 emails involving Meatloaf
>From: thomas heysek <meatloafJoe@netscape.net>
>To: "XXXXXXXXXXX
>Subject: Re: [NWLL Con?]
>Date: 29 Apr 00 15:03:32 PDT
>
>XXXXX wrote:
>Meatloaf-
>
>I have listened closely to your viewpoints on New Tel since late february.
>What makes you say that NWLL is now just a con now? Have you heard
>something we haven't? Thanks.
>
>
>
>
>Yes...something has happened. First, we are now in a market that does not
>reward picking winners but picking survivors. Second, how many news
>releases
>should a public company "warehouse" before the investing public begins to
>realize that "Hmmm, maybe there ain't no news". And finally, a Nomura New
>York spokesperson tells me "They never heard of New Tel".
>
>Look XXXXX, I could be all wrong here, but success in investing is playing
>the probabilities AND common sense...and in this regard, sonething is wrong
>with the New Tel picture. I expect the stock to be back at the 50 cent
>level
>by summer.
>
>
YET on JUNE 2000
New Tel Announces 'Strong Buy' Recommendation by Dirks & Company
84% - Press releases: NEW YORK, Jun 16, 2000 /PRNewswire via COMTEX/ -- New Tel announced today that, Leo Murphy of Dirks & Company recently updated their recommendation on New Tel ... 06/16/2000
New Tel Announces 'Strong Buy' Recommendation by Dirks & Company
--------------------------------------------------------------------------------
Story Filed: Friday, June 16, 2000 12:19 PM EST
NEW YORK, Jun 16, 2000 /PRNewswire via COMTEX/ -- New Tel announced today that, Leo Murphy of Dirks & Company recently updated their recommendation on New Tel Limited (Nasdaq: NWLL) to "strong buy" with a six-month target price of US$30 for the ADRs, and a long term target of US$100 in 100 weeks.
The research report stated: "As of April 2000, industry observers estimate that 10% of the Chinese population had telephone (and by extension, Internet access,) or about 130 million people. This is 45 million more than the December 1998 number (85 million) from the World Book of Facts, implying that in those 16 months approximately 88,000 new people in China became tele-connected everyday, representing a 40% annualized growth rate."
The report summarized, "However ubiquitous e-commerce, Internet access and ISP services become in the Chinese marketplace over the next three years, New Tel is now poised to be at the center of that market if not leading it."
About New Tel: New Tel Limited is a rapidly growing Australian telecommunications company listed on the Australian and NASDAQ stock exchanges. New Tel launched operations July 1, 1999 and provides national, international and mobile telephony and data services with emphasis on serving Asia, particularly China. New Tel is currently involved in establishing a Chinese Internet Service Provider (ISP) and Chinese/English language Portal.
This announcement contains certain forward-looking statements that are subject to risks and uncertainties, including in particular the statement regarding the Internet Project. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties pertaining to business operations in China.
SOURCE New Tel Limited
CONTACT: Peter Malone of New Tel Limited, 618-9244-1166; or Investors -
Anne McBride of The Anne McBride Co., 212-983-1702, for New Tel Limited
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