Discussion in 'Stocks' started by uptik2000, Feb 9, 2006.

  1. I hate AMEX stocks but this thing just popped.
    I heard a rumor that their deal with Russia is going to be alot bigger than expected.
    Anyone know anything about this stock?
  2. IN THE MONEY:pact Delay May Be Twice As Good For GlobeTel
    Feb 9 at 13:39
    Profile hits: QU5

    By Maxwell Murphy, A Dow Jones Newswires Column

    NEW YORK (Dow Jones)--GlobeTel Communications Corp. (GTE) may just turn
    "worse than expected" into "better than imagined" after all.
    Recently, a delay in a $150 million initial payment from a wireless deal
    with Russian investors sent shares sharply south. But the Russians told Dow
    Jones Newswires their commitment to GlobeTel could make the delay doubly
    lucrative for the Florida-based company.
    Displeasure with the hold-up, coupled with confidence in both GlobeTel and
    a swift resolution, has caused the Russian investors to bump the first scheduled
    payment to $300 million, or half the face value of the wireless-network pact
    GlobeTel announced in December, the company and one of the Russian investors
    told Dow Jones Newswires Thursday.
    An 'In The Money' column in January profiled the GlobeTel saga and
    highlighted the risks and potential rewards attached to it, its stock and the
    Russian wireless pact.
    GlobeTel was due to receive $150 million, the first of several payments
    totaling $600 million, by Jan. 31, but that same day the company instead told
    investors via a press release that receipt of the money would be delayed up to
    30 days. GlobeTel Chief Executive Timothy Huff blamed some technical regulatory
    issues regarding the transfer of funds.
    Maxim Chernizov, the only named principal of LLC Internafta, the Russian
    company set up to do business with GlobeTel, echoed Huff's view during the
    interview with Dow Jones Newswires Thursday, saying the delay was caused solely
    by the efforts of regulatory agencies to make sure the funds weren't being
    laundered and the transaction passes all the requisite international "sniff"
    The $300 million, along with the rest of necessary funds, are in banks
    like Banco Do Brasil waiting to be released to GlobeTel's European operations,
    Chernizov said from Moscow in a telephone interview. The interview was conducted
    using a third-party translator on a conference call set up by GlobeTel.
    Chernizov, who describes himself as a businessman who made his fortune in
    rare earth metals, declined to name the other Internafta principals until the
    wireless venture becomes official and begins commercial operations, but he says
    none of the money he and his partners bring to the table is in any way
    associated with oligarchs, politicians or anyone else who would raise flags.
    Chernizov says Internafta isn't worried about competition from established
    Russian players because GlobeTel's network will work with wireless networks
    already in place but also brings new technology to improve the depth and breadth
    of telephony and other wireless services, as well as increase the size of the
    regions blanketed by coverage.
    He says he has already received firm interest from affiliates of Russian
    oil giant Gazprom OAO - where Chernizov says he used to work - who would much
    prefer to use Internafta's WiMax services than the spotty satellite phones that
    are the standard in Russia's barren Northern regions. The fact that he and most
    of his partners have no background in telecommunications doesn't shake
    Chernizov's confidence in the least.
    Internafta's aggressive plans call for 10 million or more subscribers in
    the first three years of service, which would create an enormous recurring
    revenue stream which Internafta and GlobeTel would split down the middle.
    Spokesmen for established players in the Russian wireless arena, like Vimpel
    Communications ( VIMP.RS), couldn't immediately be reached for comment on the
    state of that industry in Russia or the competitive threat a newcomer like
    Internafta might pose.
    GlobeTel's highly speculative stock has done a yo-yo on the American Stock
    Exchange for months as the former Bulletin Board company has announced ambitious
    deals for its WiMax wireless networks and other emerging technologies, deals
    that have yet to pay dividends.
    It sports a huge shareholder base, many of whom are rabidly loyal. As you
    might guess, it also has its share of cynics among both investors and the fourth
    estate. A growing throng of short sellers is betting against the company, and
    almost 5.4 million of its more than 121 million fully diluted shares outstanding
    were sold short as of the middle of last month. Even though trading at $2.58 a
    share at last glance, some of its strength sapped by the delay announcement a
    couple of weeks ago, GlobeTel's market value tops $300 million; however, that
    is a number the Russian money would likely justify and then some.
    Critics point to a raft of glowing press releases about global deals that
    have yet to generate revenue. They poke fun at GlobeTel's vision of fleets of
    airships - blimp-like Stratellites - which the company claims will eventually
    eliminate the need for cellular phone towers and provide a cheaper, more
    effective and easier alternative to satellites.
    Critics also say GlobeTel's current business, growing rapidly though it
    is, is nothing more than an unprofitable attempt at the simple business of
    bundling and reselling wholesale overseas long-distance minutes to major
    telephone service carriers. Another business for which GlobeTel has high hopes
    is a sort-of Mastercard-phone card combo, being tried out in places like India,
    that allows secure international wire transfers of funds among individuals.
    But GlobeTel is also surrounded by respected people of pedigree, including
    engineers from the National Aeronautics and Space Administration and a decorated
    former astronaut. In September, it named as chairman Sir Christopher Meyer, the
    distinguished former U.K. ambassador to the U.S., and it counts among its
    supporters successful businessmen like J. Randolph Dumas, a Wharton business
    school graduate and former national briefing officer for the Central
    Intelligence Agency, and Leo A. Daly III, the third-generation head of the
    eponymous global architectural and engineering firm.
    Dumas, Daly and recently named GlobeTel director Dorian Klein helped form
    international venture capital group Rubikon Partners with noted American
    political figure Henry Kissinger.
    CEO Huff admits the company hasn't proven itself yet, and welcomes the
    skepticism. He says in the near future it will become obvious whether or not
    GlobeTel is for real. Major progress toward a bright and profitable future will
    be clear this quarter, he says, with "substantial gains" in all the company's
    By the third quarter, GlobeTel's success should be a "foregone
    conclusion", he said, and the fourth quarter will be "the cherry on top." If
    not, expect someone other than Huff to go down with the ship, because Huff says
    if GlobeTel "isn't being called a success by December 2006, [he] will no longer
    be its CEO".
    (Maxwell Murphy is one of four "In the Money" columnists who take a
    sophisticated look at the value of companies, and their securities, and explore
    unique trading strategies.)
    -By Maxwell Murphy, Dow Jones Newswires;
  4. Banjo


    tic, Trader5287 and his bud are in this.
  5. Thanks Banjo. I'm in also..a massive 300 shares :).
  6. Size!!!! :eek:

  7. GTE showing some life today.

    Anyone see any news about this Russian contract? Not to excited about the continued delay.