I agree with you on your post as to the past of PICK. I guess that's why the stock was trading so low at that period. (Around 0.20cts.)
Now today is a different story:
The company has made a complete turn around in its activities. While continuing the Prepaid telephone cards, it leased those 2 SIEMENS switches.
Excerpt from press release, February 25, 98
"PICK has installed two Siemens Stromberg-Carlson Digital Central Office switches in New Jersey and Miami as international gateways, and will be deploying four additional "collection point" switches around the country over the next 18 months. PICK has also signed a contract for satellite communications and is actively negotiating with several providers for Earth Station facilities and transatlantic, as well as domestic, fiber optic cable systems."
These switches enable Pick to become an international provider.
Then there is that contract with a Middle East company (see Press release):
Feb. 25, 1998--PICK Communications Corp. (OTC BB:PICK), a provider of international and domestic long distance services, as well as prepaid telephone calling cards, today revealed its strategy for significant expansion in this calendar year.
During the past nine months, PICK has concentrated its energies on building a facilities-based network and augmenting its capacity to terminate international traffic by setting up direct connect agreements throughout the Middle East, Africa, Asia and Latin America. These agreements will strengthen PICK's ability to provide international service in these areas and will reduce processing costs for the voice, data, video and internet services.
PICK has installed two Siemens Stromberg-Carlson Digital Central Office switches in New Jersey and Miami as international gateways, and will be deploying four additional "collection point" switches around the country over the next 18 months. PICK has also signed a contract for satellite communications and is actively negotiating with several providers for Earth Station facilities and transatlantic, as well as domestic, fiber optic cable systems.
PICK has entered into an agreement with a major Middle Eastern communications company to provide reciprocal services. PICK's areas of primary responsibility vis a vis this agreement are North American, European and South American countries, while the Middle Eastern entity will primarily be responsible for Middle Eastern, African and Asian countries.
PICK has secured funding to establish the above described vital components and support its operations of the network throughout 1998 conditional upon satellite connections for the above described reciprocal agreement being implemented. Moreover, the board of directors has authorized the company to explore additional funding options, mergers and acquisitions via domestic and foreign investment bankers.
PICK is a facilities-based telecommunications carrier headquartered in Wayne. PICK has distributed prepaid telephone calling cards nationally since 1992, and provides other carriers and resellers with international long distance services to approximately 268 foreign countries.
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That contract includes a super speed internet access technology, the use of a satellite, etc...
Then as a result of its new activity as a provider, there is that signed contract for $60 million with upfront money.
Excerpt from press release, March 5, 98
"PICK Communications Corp. (OTCBB:PICK), a provider of international and domestic long distance services and prepaid telephone calling cards, announced today that the company has entered into a two-year contract with Blackstone Calling Card Inc.
This contract, with a minimum projected revenue to PICK of $60 million in the first year, represents a shift in direction for the company away from marketing its own prepaid calling cards.
"Diego Leiva, President of PICK, said, "It is my belief that our company can benefit most dramatically by continuing to build on our areas of greatest strength -- our network and direct connect agreements, rather than dilute our resources with design, marketing and distribution issues connected with prepaid calling cards."
The contract was structured so that PICK and Blackstone form a strategic partnership in the prepaid calling card market. PICK will provide the platform, the network, the tariffs and the time supporting the cards, while Blackstone provides the design, printing, marketing, distribution and sale of the cards.
Blackstone Calling Card Inc., headquartered in Miami, has built an impressive and comprehensive distribution network for prepaid calling cards during the past several years. Luis Arias, president, said that he chose PICK as his partner in this venture because he has known the company since 1995 and has carefully monitored its growth and integrity.
"When I put a prepaid calling card into my distribution channel" Arias said, "it is my reputation that is on the line. I have to be certain that the company providing the network and telephone services is stable, financially secure and will be around for the life of the cards."
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So today I am investing in a NEW company, that has the advantages and the disadvantages of existing for a few years and that has survived a critical development stage without too much damage except bad financials in 1997.
What I like is what they propose NOW, not what they have done until this year.
I think their story is sexy and that they are becoming a cash register machine.
Tell me if I'm wrong but most of us on these threads like picking up companies at a level Under $1. The opportunity on PICK is tremendous.IMHO.
Cheers.
H.
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