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OTC Journal Members:
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The Wi-Fi Revolution-
The Next Major Bubble |
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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 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.
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Where
Do You Find Wi-Fi? |
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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.
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Big
Boys Jump Into the Fray |
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Big boys with big bucks have been
gearing up for the Wi-Fi revolution for several years. Examples include:
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Intel is spending $300 million
to market its Centrino computer chips, which come equipped for Wi-Fi.
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Cisco Systems agreed to spend
$500 million for Linksys, a Wi-Fi equipment maker. That will put Cisco
into head-to-head competition with
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Microsoft Corp. Microsoft is
pushing XP, the new version of Windows with Wi-Fi features built in.
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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.
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Verizon is building hot spots
all over the country, converting phone booths into hot spots.
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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.
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The
Good News |
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For the latest on the Wi-Fi
revolution, the best resource on the Internet is http://www.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:
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Family
Room (OTC BB: FMLY) Producing Film Starring John Travolta |
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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.
Forward Looking Statement:
Safe Harbor: Statements
contained in this news release, which is not historical facts, are forward-looking
statements as that are defined in the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements are subject to risks and uncertainties,
which could cause results to differ materially from those projected.
This news release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "ACT"). In particular, when used in
the preceding discussion, the words "plan," "confident that," "believe,"
"expect," "intend to" and similar conditional expressions are intended
to identify forward- looking statements within the meaning of the ACT and
are subject to risks and uncertainties, and actual results could differ
materially from those expressed in any forward-looking statements. Such
risks and uncertainties include, but are not limited to, market conditions,
competitive factors, the ability to successfully complete additional financings
and other risks.
Contact:
Contact: Jason Sundar
Company: Sundar Communications
Title: Family Room Entertainment Contact
Voice: 604-893-7079
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Source: Family Room
Entertainment |
Charts Provided Courtesy Of TradePortal.com |
