# WAL - Wavenet International



## Antics (4 April 2007)

Hi all, this is my first post on ASF, so I thought I would contribute something useful.

Wavenet (WAL) is a former tech darling that is in the process of building a real business. It manufactures wireless modems and value add products, has been increasing sales and profits at a fast rate, and is looking very cheap at 22 cents. For the TA guys, it is in a medium-term uptrend.

I have accumulated a reasonable holding.

The company currently has a $13mill market cap compared to $10mill in the bank, and could earn $1.9mill this year (if we double the half year profit) - a potential forward PE of 6.84.

The downside risk is that revenues may be lumpy and it is by no means certain they will achieve the same success in the second half as in the first.

The company's focus seems to be on growing by acquisition, and they have a substantial warchest to play with. 

If they purchase a company that has recurring revenues, I would suggest a substantial re-rating of the stock is likely to take place. 

Say they purchase something at 8x earnings for $10mill. If that is re-rated to a fast-growing small company PE of around 16 then that alone would put Wavenet on a $20mill market cap without taking into account any performance from its current business. That translates to a share price of 34 cents. 

I don't generally like holding companies on the off chance that they'll make a good acquisition, but Wavenet is trading very close to cash backing and has a profitable core business. 

I'm going to continue to hold at current levels, and look for a re-rating upwards on a solid full year result, announcements of new contract wins, or an announcement of an acquisition. To me the company continues to look undervalued.


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## LifeisShort (4 April 2007)

Antics said:


> Hi all, this is my first post on ASF, so I thought I would contribute something useful.
> 
> Wavenet (WAL) is a former tech darling that is in the process of building a real business. It manufactures wireless modems and value add products, has been increasing sales and profits at a fast rate, and is looking very cheap at 22 cents. For the TA guys, it is in a medium-term uptrend.
> 
> ...




Its on my watchlist already. I like the business but like you said it needs steady recurring revenue.

What did you enter the market at with this one and how long ago?


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## Antics (5 April 2007)

I entered at average 23.5 a few weeks ago.


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## Bushman (3 July 2008)

Another techo-company recapping into a coal play alert. 

WAL is currently in a trading halt but it has just announced it has purchased a thermal coal EL in Queensland, just south of a MCC Monto JV that holds 518Mt thermal coal.  

See the ann: 
http://www.asx.com.au/asxpdf/20080703/pdf/319zsqrl944tj7.pdf

Shares are still suspended but they closed at 13 cps - this implies a low mkt cap of $7.8m (60m shares in issue). 

Another one to keep an eye on.


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## Bushman (31 July 2008)

Just an update on WAL - cash on hand after the first 1m paid to the vendor of the thermal coal deposits is $4m per the latest quarterly. Thus this has an enterprise value of $3.4m! 

Cheap coal exposure.


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## dubiousinfo (31 July 2008)

In addition to the current cash they will receive another $200k in september and $500k over the next 2 years for the sale of the technology business. So the coal interests are very cheap.  Not holding but have moved onto the watchlist.


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## dubiousinfo (25 September 2008)

WAL has pulled out of the coal acquisition deal citing misrepresentation by the vendors including that the historic drilling results were actually from the tenement next to the one being sold.

WAL has advanced the vendors $2 mil and is now seeking to recover the amount.

Unsurprisigly I have now moved this one off my watchlist.


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## bryos (18 January 2011)

looks to have turned it around, setting new 52week highs

another strong day today


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## bryos (20 January 2011)

this is why it is breaking new 52 week highs, everyday, as the market has it undervalued:

chris1983 (hc user) and my views:

Many coal licenses including 

The Dysart Coking Coal Project which is adjacent to the BHP Billiton Mitsubishi Alliance (BMA) Saraji open cut coal mine and proposed Lotus, Lotus South and
Campbell open cuts in the northern Bowen Basin. (Company announcement)

Shares on issue : 59,348,958
Current Market Cap : $28.5 million

Cash as per last quarterly : 4.273 million
CLR shares currently owned : 16,141,550

CLR currently closed at $1.90

CLR valued over $30 million.

Potential to gain an additional 7.4 million CLR shares upon granting of EPC 1175 to Carabella.

I think IMHO WAL is a no brainer

Always DYOR


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## bryos (20 January 2011)

CLR looks to be heading for $2 by the end of today, not many sellers, drying up big time


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## High Tide (21 January 2012)

I note that CLR issued WAL 7,600,000 share on 19th Jan 2012, nice deal. WAL suspened trading in Nov 2011, does anyone know when they may resume trading?


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## springhill (19 June 2012)

Wavenet may be one worth reviewing with a host of new project acquisitions this year.

*Selaup Project*
● WAL signs a Share Purchase Agreement for acquisition of the Selaup Gold Project near Putussibau in West
Kalimantan, Indonesia
● The Selaup Gold Project is located immediately north of Rubicon Resources Ltd Kapuas Hulu Joint Venture
● The Agreement was signed on 10th May with PT Wavenet Westindo of Pontianak, West Kalimantan
● The area contains extensively altered sediments that are being intensively worked by artisanal miners by numerous shafts, adits and tunnels. Indications from reconnaissance work are that gold mineralization is extensive.
● All the elements of a classic mineralized epithermal setting are present. These include widespread hydrothermal alteration and silicification, fault breccias and quartz veins in a sedimentary sequence associated with diorite intrusions
● A mapping and soil/rock chip sampling program as well as testing by diamond drilling is planned for this concession
http://www.asx.com.au/asxpdf/20120511/pdf/4266mq1rxv6sy6.pdf

*Sintang Project*
● WAL acquired the Sintang Gold Project in West Kalimantan, Indonesia in February 2012
● The concession occupies 11,000 Ha known gold mining district where artisan miners have been
producing gold for the last century
● Preliminary mapping and reconnaissance has identified several gold workings, large areas of alteration and potential for mineralized structures
● Surface geochemical sampling has just been completed and over 500 samples have been tested for gold, silver, copper, lead and zinc.
● Results from the soil sampling confirm the abundance of gold, silver, lead and indicator minerals such as arsenic and barium. Values up to 1.68 ppm Au, 3.5 ppm Ag and 110.6 ppm Pb have been returned.
● Plots of the various geochemical elements show strong coincident and extensive anomalies for gold, silver and lead with more localised occurrences of copper
● WAL is currently completing follow anomaly areas to identify drill targets

http://www.asx.com.au/asxpdf/20120530/pdf/426k9srmm2q4d5.pdf

*Gayndah Coal Project
*
● WAL acquired the Sintang Gold Project in West Kalimantan, Indonesia in February 2012
● The concession occupies 11,000 Ha known gold mining district where artisan miners have been producing gold for the last century
● Preliminary mapping and reconnaissance has identified several gold workings, large areas of alteration and potential for mineralized structures
● Surface geochemical sampling has just been completed and over 500 samples have been tested for gold, silver, copper, lead and zinc.
● Results from the soil sampling confirm the abundance of gold, silver, lead and indicator minerals such as arsenic and barium. Values up to 1.68 ppm Au, 3.5 ppm Ag and 110.6 ppm Pb have been returned.
● Plots of the various geochemical elements show strong coincident and extensive anomalies for gold, silver and lead with more localised occurrences of copper
● WAL is currently completing follow anomaly areas to identify drill targets
http://www.asx.com.au/asxpdf/20120619/pdf/426xhxv4kd4nz0.pdf


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## springhill (19 June 2012)

My mistake the text for Gunydah should read.....

*Gayndah Coal Project

**WAL has purchased E2044 at Gayndah, Qld
*WAL acquired all rights to the tenement for a consideration of $150,000
* Exploration drilling by WAL intersected coal to the west of Gayndah township in a fault bound strip 1km x 3km long
*Other coal intercepts to the north of Gayndah validate the extent of Triassic coal seams in the area
*Coal seams intercepted to date range from 0.2m to 12m thick
*Follow up drilling show coal is sub-bitumous with calorific value 6000-6500 kcal/kg

Thanks burglar!


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## springhill (29 June 2012)

Director buying on market for WAL
http://www.asx.com.au/asxpdf/20120629/pdf/42746cg70p39hc.pdf


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## springhill (3 July 2012)

Further director buying on market.
http://www.asx.com.au/asxpdf/20120703/pdf/4276mcf75sqxy1.pdf


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## springhill (10 July 2012)

Stroud picks up his 3rd lot of 50,000 shares in the last 3 weeks.
http://www.asx.com.au/asxpdf/20120710/pdf/427bjrxlysfq53.pdf


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## springhill (12 July 2012)

WAL have sold down 2.8m shares in CLR for a sum of $2.1m. Cashing up for some reason?
http://www.asx.com.au/asxpdf/20120712/pdf/427cvgxp1cq1bn.pdf


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## springhill (18 July 2012)

*APPOINTMENT OF DIRECTOR*

The Board of Wavenet announce that Mr. Gregg Freemantle has been appointed as a non executive director of the Company.
Mr. Freemantle has comprehensive experience in the mining, construction and resource industries, particularly in geophysical drilling, infrastructure construction, including pumping, piping and loading facilities and road, earthworks and tunnel construction.
His key achievements include completion of the Jimblebar road and rail project, the Nhamcuarra gold project, designing and development of a mobile crushing plant and facilitating the listing of Mamba Minerals Limited on the Australian Stock Exchange.
Mr. Freemantle’s appointment provides the Company with particular and timely technical expertise as it progresses its mining tenements in Queensland and Indonesia.


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## springhill (22 August 2012)

*UPDATE ON SELAUP GOLD PROJECT*
Wavenet announce the completion of its soil sampling program at Selaup, West Kalimantan and the discovery of several anomalies that are planned to be tested by drilling.

Selaup Project
● The Selaup Gold Project is located immediately north of Rubicon Resources Ltd Kapuas Hulu Joint Venture
● The area contains extensively altered sediments that are being intensively worked by artisanal miners by numerous shafts, adits and tunnels. Indications from reconnaissance work are that gold mineralization is extensive.
● A mapping and soil/rock chip sampling program has been completed on this concession and 480 samples were assayed
● Soil assay values for gold ranged from 0.01 ppm to 8.73 ppm Au, for silver from 0.5 ppm to 6.30 ppm Ag, for copper from 5 to 31 ppm Cu, for lead from 5 ppm to 56 ppm Pb and for zinc from 5 ppm to 966 ppm Zn
● Geochemical results indicate that there are several gold, silver, copper and lead/zinc anomalies on the concession
● To test some of the identified soil anomalies a preliminary diamond drilling campaign of approximately 3000 metres is planned
● A BMP250 diamond drill rig is currently being shipped from Jakarta to Pontianak in order to conduct the proposed exploration drilling program


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## springhill (7 September 2012)

*MAIDEN DRILLING PROGRAM AT SELAUP GOLD PROJECT*

Wavenet announce that it is preparing a maiden diamond drilling program to test soil anomalies located at the Selaup concession, West Kalimantan .

● The Selaup Gold Project is located in West Kalimantan in the Kapuas Hulu Province, Putussibau District and contains extensively altered sediments that are being worked by artisanal miners. Indications from reconnaissance work are that gold mineralization is extensive.
● A mapping and soil/rock chip sampling program has been completed on this concession and 480 samples were assayed
● Soil assay values for gold ranged from 0.01 ppm to 8.73 ppm Au, for silver from 0.5 ppm to 6.30 ppm Ag, for copper from 5 to 31 ppm Cu, for lead from 5 ppm to 56 ppm Pb and for zinc from 5 ppm to 966 ppm Zn
● 23 rock chip assays ranged from 0.01 to 61.18 ppm Au, 0.5 to 26.1 ppm Ag, 5 to 319 ppm Cu, 5 to 8791 ppm Pb (0.8% Pb) and 8 to 2790 ppm Zn (0.2% Zn).
● Geochemical results indicate that there are several gold, silver, copper and lead/zinc anomalies on the concession
● To test some of the identified soil anomalies a preliminary diamond drilling campaign of approximately 2,050 metres is planned
● A BMP250 diamond drill rig is currently in Pontianak en route to Selaup in order to conduct the proposed exploration drilling program. A second drill rig is due to follow in about one month.


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## burglar (8 September 2012)

springhill said:


> *MAIDEN DRILLING PROGRAM AT SELAUP GOLD PROJECT* ...




I see that price of gold (POG) is on the up. $US1736.60 ish at time of writing!


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