URL : otcjournal.com
To OTC Journal Members:
[Image] The Wi-Fi Revolution- The Next Major Bubble
[Image] What the heck is Wi-Fi? It's in the news everyday, and is undoubtedly the
next major bubble in the stock market. I intend to get on this bubble
with money making ideas long before it bursts.
Wi-Fi networker iPass (NASDAQ: IPAS) came public last week. The deal was priced
at $14, but was originally expected to be priced between $11 and $13. IPAS closed
at $18.67 on its opening day. Does this bring back fond memories of the late 90's
for anyone else?
Wi-Fi is an acronym for "Wireless Fidelity". Fidelity alludes to a real [Image]
or true solution. Wi-Fi is the technology which allows us to have a broad
band wireless connection to the Internet or any broadband network. The Wi Fi
revolution is multi faceted, very fragmented, and is here now. Stocks of
companies moving into Wi-Fi market are going crazy.
DSL Net was a casualty of the dot com bubble. Recently the company obtained an
additional $30 million in financing, and established a "Hot Zone" (wireless
broadband internet access) in the harbor at Newport, Rhode Island. Since making
the announcement, DSL net has avoided losing its NASDAQ listing and exploded off
the screen, up 220% off the $.38 level it had traded for months. The stock, which
had been trading about 250,000 shares daily, hit 16 million shares one day and
now trades millions of shares everyday.
Several other stock symbols to look at include PCTI and WAVC.
[Image]Where Do You Find Wi-Fi?[Image]
[Image] The concept of Wi-Fi is highly fragmented. It reminds me of the early
days of cellular. As we all become increasingly dependent on the
Internet, we need to become more mobile in its use. Here are several examples of
Wi-Fi implementations:
By early next year 100 Boeing jet aircraft are expected to morph into flying
cyber cafés. For a $25 fee, passengers will be able to enjoy high speed wireless
internet access during their flight. Boeing intends to retrofit 4,000 jets by the
end of the decade.
"Hot Spots" are popping up at locations nationwide. T-Mobile has already
installed "Hot-Spots" at thousands of Starbucks locations nationwide. Verizon is
charging into the fray by converting payphones in busy metro areas into
"Hot-Spots".
Pronto is probably the biggest name in the Wi-Fi game today. Boingo, which
provides Hot-Spots in Hilton Hotels and several of the larger airports around the
country is not far behind.
However, Wi-Fi is not limited to busy metro areas. Because of the low
infrastructure costs, Wi-Fi is ideal for rural environments. Small Wi-Fi ISPs,
known as WISPS (Wireless Internet Service Providers) are popping up all over the
mid west.
It is estimated that 80% of people in rural areas are now using the internet.
Only about 22% have access to broadband, as neither cable or dsl has come to
their homes. Rural wireless operator Midwest Wireless, a Minnesota based regional
cellular carrier, has been installing Alvarion fixed wireless equipment for the
past 18 months. The system now has 60 sites and about 1,500 broadband
subscribers.
[Image]Big Boys Jump Into the Fray[Image]
Big boys with big bucks have been gearing up for the Wi-Fi revolution for [Image]
several years. Examples include:
* Intel is spending $300 million to market its Centrino computer chips, which
come equipped for Wi-Fi.
* Cisco Systems agreed to spend $500 million for Linksys, a Wi-Fi equipment
maker. That will put Cisco into head-to-head competition with
* Microsoft Corp. Microsoft is pushing XP, the new version of Windows with
Wi-Fi features built in.
* Cometa Networks, the new joint venture made up of Intel, IBM, and AT&T, is
building a nationwide network of 20,000 hot spots over the next three years.
* Verizon is building hot spots all over the country, converting phone booths
into hot spots.
* T-Mobile USA, already anchored in Starbucks, is following suit.
Is it any wonder the titans of technology are jumping into the Wi-Fi revolution?
The bar graph I have provided shows estimates for the growth of wireless demand
through 2004. Wireless users are expected to grow worldwide from 80 million in
2003 to 150 million in 2004. The North American market is the laggard, and just
beginning to gather steam. Wireless use is far ahead of us in Europe.
[Image]The Good News[Image]
For the latest on the Wi-Fi revolution, the best resource on the Internet is
80211-planet.com.
I have identified a totally undiscovered Wi-Fi idea which no one knows about, and
I mean no one. I'm not sure about the timing of the first release, but I hope to
kick off the idea in next weekend's edition. This is a true ground floor
opportunity in the hottest segment of the market. Right now, I have to run out to
my local Fry's and check out the latest Sony Notebook computers equipped with the
Centrino chip. I want Wi-Fi too. In the meantime, we you aware that:
[Image]Family Room (OTC BB: FMLY) Producing Film Starring John Travolta[Image]
Family Room snuck out a news release under everyone's nose Friday morning. It
seems they are now filming "Love Song for Bobby Long", starring John Travolta and
Scarlett Johansson. I spoke with management about the John Travolta movie. Family
Room has chosen not to make a big deal out of the film, as they don't have a
piece of the producer profits, and the film therefore has no chance to impact the
bottom line.
They will collect some small producer fees and get the prestige associated with
being executive producers on the film.
In the same press release it was also announced that Family Room has identified
Hollywood artist Crash McCreery to create "The Abominable Snowman." This movie
will be coproduced along with Ilya Salkind ("Superman" I, II and III) and
Vallhalla Motion Picture's Gale Anne Hurd ("The Hulk").
This project has the potential to be a huge money maker for shareholders of
Family Room. Look for news of a big budget with a big studio and a percentage of
the gross to send this stock charging up the charts. I still believe Family Room
has a shot at $.25 in the short term (60 days).
Here is the complete text of the press release for your review:
Press Release Source: Family Room Entertainment
Emmett/Furla "Crashes" Into the Abominable Snowman
Friday July 25, 6:45 am ET
LOS ANGELES, CA--(MARKET WIRE)--Jul 25, 2003 -- Emmett/Furla Films, a wholly
owned subsidiary of Family Room Entertainment Corporation (OTC BB: FMLY), is
pleased to announce that they have signed Hollywood artist Crash McCreery to
create "The Abominable Snowman."
The motion picture "The Abominable Snowman" will be produced by Emmett/Furla's
Randall Emmett and George Furla with Ilya Salkind ("Superman" I, II and III) and
Vallhalla Motion Picture's Gale Anne Hurd ("The Hulk").
Emmett and Furla stated: "We are excited about Crash's work and we look forward
to bringing this creature to life in a feature film. We believe that the
technology available now brings the realization of this creature within our
grasp."
Family Room is also excited to announce that filming has begun on the John
Travolta and Scarlett Johansson starring picture "Love Song for Bobby Long,"
which Emmett and Furla will executive produce with Brad Krevoy. Bob Yari and
Paul Miller will produce "Love Song for Bobby Long." Shaniee Gable will direct
the picture. "Love Song for Bobby Long" is currently filming in New Orleans.
Emmett and Furla added: "While 'Love Song for Bobby Long' will not dramatically
affect Family Room Entertainment's bottom line, we believe that our association
with John Travolta and the other creative elements associated with 'Love Song
for Bobby Long' will help to further our company's long-term goals in the
entertainment industry."
Emmett/Furla are currently in post-production with "Blind Horizon" from freshman
helmer Michael Haussman and starring Val Kilmer, Neve Campbell and Sam Shepard.
Emmett/Furla executive produced "Wonderland," which Lions Gate will release in
September. Emmett/Furla recently announced that they would be producing
"Micronauts," and "The Abominable Snowman" with Gale Anne Hurd. Ilya Salkind
will also produce "The Abominable Snowman." Emmett/Furla will next produce
"Control," which begins filming in August, starring Matt Dillon, Willem Dafoe
and Michelle Rodriguez for director Tim Hunter.
Family Room Entertainment Corporation, with its subsidiaries, Emmett Furla Films
Productions, Emmett Furla Films Distribution and EFF Independent, is a publicly
held company trading on the NASDAQ Bulletin Board under the symbol "FMLY."
Family Room Entertainment develops, produces and performs production related
services for the entertainment industry. Family Room Entertainment's aim is to
create and produce high quality motion pictures with high profile talent that
can be distributed to a worldwide audience. FMLY derives its income from
producer fees, consulting and service fees as well as its participation in the
profits of the various pictures it produces.
The FMLY co-founders, Randall Emmett and George Furla, believe that they have
the expertise and contacts within the entertainment industry, specifically in
the competitive production and distribution arenas, to profitably acquire
content, package product by adding value to the content with top-quality talent
and produce motion pictures which are in the moderate to higher-level budgets,
which can be distributed to a mass worldwide audience. However, there is no
assurance that any motion picture, which has not yet been released, will be
released, that a change in the scheduled release dates of any such films will
not occur or, if such motion picture is released, it will be successful. |
