Patrick,
It really looks like YOU are the one that is not informed... your
numbers and facts for TowerStream were completely false and over
exaggerated. They aren't even cash flow positive, and they aren't having
to buy expensive AP's and CPE. ;)
Travis
Microserv
Matt Liotta wrote:
Patrick Leary wrote:
Btw, Tower Stream is another good example. For years (and still today),
they have been deploying unlicensed gear in big cities for the T1+
capacity commercial customers (still a sweet spot for wireless
broadband). This past spring, even without licensed spectrum holdings,
they did an IPO and raised over $50 million. Their current valuation is
near $100 million. Tower Stream excelled at some things that other WISPs
neglect, which is getting their name out there and carefully groomed
their brand (all that stuff some techy-oriented WISPs might think is
useless fluff effort). But make no mistake, they are by definition a
WISP...JUST LIKE YOU: they use unlicensed frequencies to deploy and sell
Internet services. They have been cash flow positive for years. They
just chose to aim high and not be deterred by those who said it could
not be done.
People, what do YOU aspire to? What do YOU believe is possible?
I believe your information is not correct on TowerStream. First of
all, they didn't do an IPO. They did what is referred to as an APO
(acquisition public offering). Specifically, they did a reverse merger
into University Girls Calendar and were then traded on the OTBB. They
did raise several million dollars as part of the APO. In May, the
graduated from the OTBB to the regular Nasdaq market. The first thing
they did afterwards was to make a secondary offering for $40 million
dollars, which was a 32% discount at the time. This caused a huge
dilution among their shareholders and ultimately led to them losing
half of their market share. Nevertheless, they did raise a ton of money.
They are not cash flow positive and haven't been. In 2007Q1 they lost
$1.64 million, which is pretty close to what they lost in 2005 and
2006 put together. Unfortunately, their revenues are flat. If you look
at their revenues released 2007Q2 they increased gross revenue by
$46,000 year over year. Read it again... after spending millions they
only increased gross revenue by $46,000 in 12 months.
“We cannot anticipate when, if ever, our operations will become
profitable,” they state in their fillings, which seems honest enough.
But hey, more power to them if they can raise that kind of money. We'd
laugh all the way to the bank if someone offered us a similar valuation.
-Matt
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** FREE Exhibits and Events Pass available until August 31 **
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