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Microcap & Penny Stocks : The Chadmoore Wireless Group (MOOR) -- Ignore unavailable to you. Want to Upgrade?


To: Jay D. who wrote (676)1/8/1998 12:15:00 PM
From: William E. Harriot  Read Replies (2) | Respond to of 1651
 
Jay,

You are right in that digital wireless will (does already) dominate and will no doubt be cheaper in the future. There have been recent breakthroughs in analog, however, which promise to make analog clarity on par with digital through control of radio frequency spurious emissions (which now creat the static interference and limit the subscriber base per bandwidth). The analog systems of the future will be able to load up to many times the current limits of usage.

Having said that, it doesn't matter. Chadmoore is well aware of the benefits of digital and, in fact, had planned to go digital until the FCC stepped in and told the bandwith auction winners that there would be no time extensions for buildout. Chadmore had to make a quick corporate decision and went with the cheaper, more accessable analog equipment to expedite buildout (where they could) and circumvent return of their license rights to the FCC.

Chadmoore serves local populations in 48 states (so they have told me) who are neither in need of international call capability nor absolute clarity. SMR, or trunk radio, is primarily a dispatch service, the customers of which would prefer economy to gadget capability - at this point. Chadmoore is now preparing to augment its subscriber base for earliest revenue generation, after which, a gradual phasing in of digital is expected.

This will all take time. If you have time, the stock price appears to have considerably more upside potential than loss of its present cost - and with good chances.

You must judge for yourself. I hope this has been helpful.

Bill



To: Jay D. who wrote (676)1/8/1998 9:30:00 PM
From: Dan Thomas  Read Replies (1) | Respond to of 1651
 
Jay,

You are correct that digital is "better" than analog FOR THE MOMENT. As Bill pointed out in the post following yours, enhancements to analog will upgrade it to more of a parity with
digital.

Chadmoore did not choose analog --- the FCC mandate drove that. Analog is less expensive to install and maintain. BUT remember who Chadmoore is targetting as customers: secondary and tertiary companies who simply cannot afford the expensive "bells and whistles" digital service. Analog for these folks works fine, and will continue to do so with enhancements to analog. So not so bad after all to be in analog.

It is my understanding that Chadmoore is already "saturated" in several of their existing markets. That is a good sign.

Also, Chadmoore is looking at value-added service contracts such as vehicle tracking that would work very well under analog as opposed to digital AND FOR A LOT LESS. This puts Chadmoore in a very competitive position. Hope they can sign some contracts soon.

Chadmoore WILL take time to evolve --- but look at how far they have developed since this time in 1997. One year has seen a lot of growth. Given an equal amount of growth this year, the company is well-poised. 1998 is a crucial year --- patience will be rewarded.
I firmly believe that we will see much higher prices and will be moaning/groaning in 9-12 months over why didn't we have the guts to buy MOOR below $ 3 - 5 when it was a little penny stock !!!

Best regards,
Dan