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Oh, what a difference a year makes.
So far, I love 2006. The first two weeks of 2006 has been as beautiful
as the last half of 2005 was ugly. Here what's happened in the last 3 months:
Callisto
(AMEX: KAL) hit $1.80 today- up 74% from $1.03 in Oct; Bad Toys
(OTC BB: BTYH) hit the $2.48 mark in two weeks- up 38% from the
$1.80 entry level; Teleplus (OTC BB: TLPE) hit $.41, up 78% from
$.23 entry level; HyperDynamics (AMEX: HDY) up 40% from $1.50 reentry
level; and even beaten down NeWave (OTC BB: NWWV) up 85% this year
from $.20 to $.33.
Current BLOG entries from
late last week include an overview of the big VirTra deal, a profit
alert on Teleplus where I suggested traders take some money off
the table in the $.41 to $.42 range, an update on the
Bad Toys dividend of Southland, and comments on the surging volume
in NeWave. If you are not checking the BLOG periodically,
you are missing some of the best content we put out. You missed a chance
to take some money off the table on TLPE at the surging high.
To use the BLOG, simply go
to the home page at www.otcjournal.com
- the BLOG will scroll down automatically on the right side of your
screen. The most current journal entries appear in the middle of your screen.
Check back frequently for updates particularly when stocks are moving to
overbought or oversold levels or in volatile markets. Your questions and
postings do not automatically appear, so don't bother posting the same
question multiple times. I personally go through to moderate and respond
to every reasonable question.
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TelePlus (OTC
BB: TLPE): $14 Million in Revs Forecast For Liberty Wireless |
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TLPE was out with additional
information this morning on the Liberty Wireless acquisition. As
it turns out, TLPE anticipates Liberty will add 22,000
new customers, $14 million in revenue, and about $1 million in positive
cash flow in 2006.
According to today's press release,
the Liberty Acquisition now brings the company up to an annual revenue
run rate of over $30 million. As important and perhaps overlooked
in today's press release is TLPE's intention to discontinue it's
operations in its only money losing division- the 23 retail stores it has
in Canada. Management expects to unwind its obligations and close the division
down by the end of the 1st quarter.
In the wireless arena, TLPE
plans to focus all of its energy on the MVNO (Mobile Virtual Network
Operator) business model which has been so successful in Europe. This eliminates
the costly overhead associated with having retail locations. Sales come
from advertising efforts instead of costly retail space. As previously
announced, TLPE has entered into an agreement with InPonic to provide
a minimum of 100,000 new leads monthly, 10% of which they believe can be
converted into monthly pre paid customers.
There are two major benchmarks to
look at when considering the longer term potential for TLPE- first,
the company's public forecast of $55 million in '06 and $4.6
million in EBITDA profits.
The second major benchmark: The $2.10
price forecast in 52 weeks by analyst Waheed Hasaan, predicated on $37
million in annual revenues and $2.3 million in EBITDA from his internal
forecast.
I don't know for certain if the company
can hit either of the benchmarks- the $37 million in annual revs
and $2.3 million in EBITDA profits certainly appears feasible. In
order for the stock to achieve the forecast $2.10 price target,
we are going to need a renewed enthusiasm for the telecom sector.
On a more short term note, here are
my technical thoughts on the way this stock is trading. For traders, I
published a profit alert in last week's BLOG as the stock spiked
to the $.41 to $.42 level. It looked like a short covering
spike to me, and those kinds of spikes are excellent selling opportunities
for those looking to take a quick profit.
Predictably, the stock has pulled
back from the spiking high- the pause that refreshes.
Here's a look back to the pre December
low- the time at which we introduced the company and the stock started
its current uptrend. If you sold at our suggestion, or are looking for
a good entry level, here's what the chart is telling us.
The first Fibonacci retracement level
of 38.2% of been reached. At this level, a streaking stock is once again
at a good level for accumulation. In the case of TLPE, there is
a pretty good chance that pullback was your best opportunity.
However, I would recommend only a
partial commitment at that level. If the $.34 level is breached, the next
level of support would be the $.29 level, at which point I would load up
the boat with the full amount you want to own.
The stock may choose to trade sideways
for a month or two, or could regain its form depending on market conditions
and what the company is able to deliver in the form of fundamental developments.
Another $.16 move could be in the future on the next break out. In light
of the stock's performance and the enormous increase in daily volume, one
would expect exaggerated moves in the future.
If you aren't paying attention to
this one, you are missing on whopping profit opportunity. Go to the BLOG
and
post your questions or comments.
Here's the complete text of today's
news.
| Press Release Source:
TelePlus Enterprises, Inc.
Liberty Acquisition
to Immediately Contribute in Excess of $14M to TelePlus' Annualized Revenues
Tuesday January 17, 7:30
am ET
MONTREAL--(MARKET WIRE)--Jan
17, 2006 -- TelePlus Enterprises, Inc. (OTC BB:TLPE.OB - News) (Frankfurt:YT3.F
- News) (http://www.teleplus.ca) ("TelePlus" or the "Company") announced
last week that its wholly owned subsidiary, TelePlus Wireless, Corp. ("TelePlus
Wireless"), signed a definitive agreement (the "Agreement") and completed
the acquisition of certain assets of Liberty Wireless ("Liberty"), which
is owned by StarNumber, Inc., a wholly owned subsidiary of InPhonic, Inc.
("InPhonic"). Liberty is the 3rd largest Sprint wireless reseller ("MVNO")
on the CDMA network (after Virgin Mobile and Qwest) and is in the top 10
prepaid wireless providers in the U.S. This acquisition represents excellent
news for TelePlus and its shareholders, as the financial impact of the
acquisition promises to be both far-reaching and long-lasting. TelePlus
Wireless will continue to operate this wireless reseller business under
the Liberty Wireless name. The Liberty business is expected to add $14M
of new revenue per annum to TelePlus and contribute in excess of $1M per
annum to the Company's EBITDA (defined as earnings before depreciation,
amortization, interest expenses and taxes). The Company's combined customer
base will increase by approximately 22,000 users, reaching in excess of
47,000 user lines for an increase of 88%. Liberty Wireless will also positively
impact the Company's cash flows. This acquisition represents an expansion
of the Company's business into the growing U.S. prepaid wireless market.
"Acquiring the assets
of Liberty Wireless marks a real turning point for TelePlus," stated Marius
Silvasan, CEO & Chairman of TelePlus. "With this strategic acquisition,
we solidify our presence as one of the top MVNOs in the U.S. and we are
poised to complete our transformation from an operator of retail stores
in Canada to a full telecom and wireless services provider across Canada
and the U.S. The Liberty Wireless brand is one of the best known and respected
MVNO brands in the U.S. marketplace and we intend to preserve and foster
that goodwill by continuing to operate under the Liberty Wireless name.
The Liberty acquisition, combined with the back office and logistics arrangement
we've put in place with InPhonic, provides us a robust infrastructure for
strong growth," added Silvasan.
With the acquisition
of Liberty, the Company has also decided to take immediate steps to complete
its transformation to a full telecom and wireless provider across North
America and to divest itself, by the end of the first quarter, of its Canadian
retail operation. TelePlus Retail Services, Inc. ("TelePlus Retail"), a
Canadian subsidiary of TelePlus, manages the Company's 23 retail stores
in Canada and for years the subsidiary has been negatively impacting the
Company's earnings and cash flows. This decision follows the culmination
of efforts made by TelePlus within the preceding twelve months to consolidate
and downsize its retail footprint in order to earn better returns from
that division. The continuing negative impact of the retail division on
the Company's earnings and cash flows, and the desire to focus on the highly
profitable, core reseller business of Teleplus were the major factors cited
for the divestiture decision. To expedite the divestiture, the Company
has directed TelePlus Retail to file in Canada a motion authorizing it
to make a proposal to its creditors within 30 days and complete the divestiture.
The Company's combined
revenue run rate, including Liberty Wireless, but excluding the retail
business, is now in excess of $30M per annum which is 50% higher than the
anticipated full year revenues for 2005. From an EBITDA perspective, with
the addition of Liberty Wireless and the removal of the negative impact
of the retail subsidiary, the Company anticipates that it will generate
a positive run rate of $2.5M-$3M per annum. The revenue and EBITDA run
rates do not account for either organic or acquisition driven growth.
"Operating retail stores
no longer fits our business model as the stores continued to be a drag
on our earnings. With the recent acquisition of Liberty Wireless and the
forthcoming divestiture of our retail division, we will achieve our stated
objective of transforming the Company into a highly profitable world-class
reseller of telecom and wireless services," stated Marius Silvasan, Company
CEO & Chairman. "Adding Liberty's revenues to our own puts our run
rate for 2006 at over $30M -- a 50% increase versus last year -- and this
without taking into account any future growth. I believe we are in a better
position than ever to outperform this year," added Silvasan.
About TelePlus (OTC BB:TLPE.OB
- News) http://www.TelePlus.ca
TelePlus Enterprises,
Inc. ("TelePlus") is a provider of Wireless and Telecom products and services
across North America. TelePlus Connect, Corp. -- is a reseller of a variety
of Telecom services including landline, long distance and internet services.
TelePlus Wireless, Corp. -- under the brand name "Liberty Wireless" --
operates a virtual wireless network selling cellular network access to
distributors in the United States. www.telepluswireless.com, www.libertywireless.com
and www.vivaliberty.com are among some of the websites operated by TelePlus.
The statements which
are not historical facts contained in this press release are forward-looking
statements that involve certain risks and uncertainties, including but
not limited to risks associated with the uncertainty of future financial
results, additional financing requirements, development and acquisition
of new product lines and services, government approval processes, the impact
of competitive products or pricing from technological changes, the effect
of economic conditions and other uncertainties, and the risk factors set
forth from time to time in the Company's SEC reports, including but not
limited to its annual report on Form 10-KSB; its quarterly reports on Forms
10-QSB; and any reports on Form 8-K. TelePlus Enterprises, Inc. takes no
obligation to update or correct forward-looking statements.
Contact:
CONTACT:
To hear more about TelePlus Enterprises Inc. from
CEO Marius Silvasan, please visit:
http://www.publiccoreport.net/featured/TLPE/company.asp
Retail and Institutional IR Inquiries
Investor Relations
866-699-3388
investorrelation@teleplus.ca
http://www.TelePlus.ca
Source: TelePlus Enterprises,
Inc. |
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