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NWT - Newsat Limited

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As to the WAM thing, it was interesting they sold out just before the convertiable note issue. As you will note with WAM it has shared the spoils and got shares as a result of the convertiable notes at a weighted average cost over the last month I see the WAM sales in December 2006 just recovering some money back above their entry cost. Remember funds are not like other investors, they need to perform against indexs etc. If for what ever reason they dont money moves out. So they need to show a profitable result all the time. They wouldnt be happy with NWT over the year given the performance. Even if something was happening in the next month or so, they cant just hold on. remember they will also get the convertiable shares and have not sold everything so they are still in the race.
 
NWT has been a huge disappointment over the years. I am a long term holder having bought in at around 8 cents in July 03 when the issued capital was 763 million shares. There was a temporary bit of excitement when the shares went to 13c intraday, but since then it has been all heading south. The shares on issue now are 3,156 million which equates to over 300% expansion of capital, so I find it difficult to project such a large quantity of units ever heading back into the high cents, let alone any further. It has seemed to me over the years that management has been content to merrily issue further shares whenever expenses need to be met or when the cash well is drying up. I think there is still a huge question mark over the credibility of management IMO.
 
Reefer,

Could not agree more. There are now 3.6 bill shares on issue, so I reckon 3c top, cant see any more unless takeover. They will consolidate back to 50c or $1 a share, but I dont want to be in the changeover. Usually it means a loss. But what the heck, weve lost enough already..
I agree re issue of shares, hope they keep their promise of not issuing any more

Hopefulone, convertible notes, please explain for me.
 
You guys are absolutely right that the share price range is in the 3c to 6c, with 10c very optimistic outcomes.

I just think of the share price as a factor of the total value of the company 1c is $35m, 2c is $70m and 3c is $105m with 10c giving $350m. To get $350m, NWT would need to making $35m a year, not immpossible, but not realistic. but you never know.

I do think that the share consolidation will be positive for exisiting shareholders as it gets rid of a real stink regaridng the number of shares. to get from 3.5b to say 350m would be a good thing.

As to covertiable notes, the appendix 3b refers to page 59 of AR, note 18(c). however, this was due on 26 October 2006 not in December. Also if you go page 60, it indicates that Cornell Partners got a covertiable note for US$1,250,000 after balance date.

so either they rolled over the october note for a new note due in December being the US$1.25m. not clear.

Never liked the Cornell Partners arrangement but beggars cant be choosers.

hopefully it is the rollover of the october note. Again Cornell must be either holding a huge number of shares which they cant as they have not issued a significant shareholder notice or the note has been onsold to other parties such as WAM etc and cornell only act as a broker, getting the commisison. this explains the WAM transactions and their entitlements to convertiable notes in the past.

Since the issue of the covertiable note, 3.00pm on friday 22/12 after market closed there have only been sales of less than 100m in shares at the .9c mark. could be the reason for the buying not pushing past 0.9c as there is off screen selling at that level. note that the shares issued had an effective price of 0.62c. Just wondering if the positve news was to help offload the shares at a profit from previos convertiable notes.

:banghead:
 
Re: NWT - Newsat - manangement

Reefer said:
I think there is still a huge question mark over the credibility of management IMO.
Click to expand...

This seems to be a common theme here and in Hotcopper. Can management change. They seem to have got the business up and running (from what others have said and NWT announcements). Can they stuff it up? What can they do to improve? What can we do to change things?

:banghead:
 
ASX.CODE said:
Whats this WAM C/L thing this time? Are they getting back in to it?
Click to expand...

WAM is quite a well known successful investment company.
I bought in today.
 
If you looked at the ceasing to be a significant shareholder notice by WAM it reported getting shares as a result of the covertiable notes through the year. I expected that they were to get some of the shares from the 22 December note. That is why they were selling - getting the shares for .06c and selling for 1c plus. Give the investment by WAM a good return or al least reduce the overall cost was achieved for their fund.

The only problem is whther they will continue to stay if there is another run up in price.

got past .9c over the break to get to 1c seemed strong today but some selling got rid of the strength at 1c. will see tomorrow.

:banghead:
 
Knobby22 said:
WAM is quite a well known successful investment company.
I bought in today.
Click to expand...

Friend bought at 0.9c during the break.

Seems WAM are in the good books with Cornell to get the convertable notes. Have to review WAM's, if I can, financial statements to see what else they are holding. :banghead:
 
ITP.net
Wednesday, 3 January 2007
Data star
by Christopher Reynolds
It was only a few years ago that the dramatic bankruptcy of global satellite operators Iridium, Globalstar and Astrolink heralded a downturn in the satellite communication industry, from which it has only recently recovered, for the most part.
Last year witnessed market growth the industry enjoyed in previous years continue, and the Middle Eastern region has seen increased demand for satellite communication services on the back of new technologies and the need for redundant enterprise systems.
Inmarsat’s estimates its BGAN satellites cover 98% of the world, and studies by National Sky Research (NSR), an industry consultancy, estimates that by 2010 revenues from mobile satellite services will reach US$9 billion.
As more and more companies utilise IP based systems, from voice to data, they need a system which is reliable and readily deployed. According to Paul Seaton, general manager of Newsat’s Middle East and North Africa operations, there have been two factors driving the market: the opening up of Iraq and more business-level awareness of satellite communication applications in Africa and the Middle East.
“People understand satellite now and are becoming comfortable with it. Satellite services have grown quickly throughout the region where demand is almost outstripping supply,” says Seaton.
Satellite service provider Lunasat has been working within Iraq and with the Iraqi government to provide very small aperture terminal (VSAT) solutions for government users. New developments in voice, data and video delivery through satellite systems are advancing the capabilities of operations in areas such as Iraq, where commercial satellite systems aided government communications and delivered the main bulk of bandwidth on the ground.
Peter Samaha, Lunasat marketing manager, claims that Lunasat’s technical teams are available on the ground for immediate support to clients, be it from the 24/7 NOCs or from the availability of on-site support, and that this is the type of support that clients are looking for in order to facilitate negligible down times.
“We can give a turnkey solution for any client. We can give installation and support, we have stock ready always and we can supply hardware and bandwidth. We work in challenging environments such as Iraq and Afghanistan. The client is always looking for the right support and long-term relations and this is our stance. It is usually not enough to have somebody providing you with satellite coverage, you need also on the ground someone to give you support and this is our forte,” comments Samaha.
Two years ago Inmarsat launched two new Inmarsat 4 series satellites as well as its Broadband Global Area Network (BGAN) service. BGAN offers both voice and IP capabilities as well as up to 492kbit/s uplink and downlink speeds, allowing IP streaming, teleconferencing, file transfer, and video and audio broadcasts.
Regional director of Inmarsat’s Middle East operations, Samer Halawi, believes that businesses are beginning to realise the benefits satellite offers over terrestrial communication technology.
When an enterprise operates in an area where it needs communicate and satellite connectivity is the only available option, businesses are left with the simple equation: not having any communications whatsoever versus the cost of using satellite. “So in those terms, and in those conditions, satellite communication is definitely cost effective,” says Halawi.
Oil companies in the region have put VSAT technology to good use in offshore rigs. Oil rigs require adaptable and dependable bandwidth to support an array of applications for use in remote areas that are not reliably served by line-of-sight microwave and high frequency radio. VSAT products are suitable for such operations, providing high bandwidth and IP-based services.
This permits business applications such as email, VoIP and video conferencing capabilities through constant bit rate single channel per carrier (SCPC) systems, or asymmetrical Time Division Multiple Access (TDMA) and symmetrical mesh TDMA VSAT architecture.
“So if an oil rig has a machine breakdown, they need to contact someone to get a flight to the oil rig and fix the problem; that means a lot of down time and loss of production, which could be very costly. However, with satellite technology they could conduct a five minute video conference, which say costs them $100. That is nothing compared to the value of the lost productivity,” says Halawi.
Newsat is also experiencing very strong demand for its teleport services according to Seaton. The Australian company owns a number of ground stations, media ports, in eastern and western Australia, which access satellites with coverage over the Middle East and Africa, as well as Western Europe, Australia and the US.
There are only around 100 communication satellites orbiting the planet and satellite operators sell their capacity to service providers, who effectively act as middlemen.
The majority of satellite connections to internet services entail a bi-directional link with VSAT through a geo stationary satellite, ground station and IP backbone. The use of IP has allowed the satellite industry to make use of VoIP and further shift emphasis away from purely voice-based services. Voice has now become increasingly reliable over the internet and that has been very much a part of recent consumer demand in the resurgent satellite market.
More and more communications companies, ranging from telecommunication providers, to government agencies and major corporations are hosting their own media communication equipment from media ports. There is constant demand from medium-sized enterprises that want an individual service, but more recently there has been a requirement for bigger dedicated communication channels.
“Newsat are playing a partnership role there, so as a company we have moved up the food chain. We are a supplier to them and we provide services to them at a wholesale level; there is very strong demand there,” Seaton says.
For enterprise users, the main concern with using satellite communications is the dependability and quality of the service provided, according to Milan Sallaba, director of Mercer Management Consulting’s Dubai office. Sallaba believes the key for enterprise users is simply the quality of the service they are given: how dependable it is, contention, and bandwidth.
“What about fair access policies? We could have 20 people accessing the same stream and you have one or two guys sucking all of the capacity. Depending on the application that I need you could argue that the service provider could provide higher bursts for my immediate needs. For example if I am in an army base and there are more people making VoIP calls at the same time without having the system break down then that would be a distinct advantage,” says Sallaba.
Recent natural disasters such as hurricane Katrina and 2004’s tsunami have encouraged a range of enterprises, from banks to hospitals, to rely on satellite connectivity for redundancy purposes, setting a demand level that almost surpassed supply. However, according to Sallaba the technology will only ever be used as an alternative to fixed line connectivity due to the intrinsic cost of launching and maintaining an orbiting satellite.
“I would not expect satellite communication to grow into a mass market. For instance I would always want to locate call centres in areas where I have alternative technology such as mobile or fixed line connectivity,” says Sallaba.
Satellite communications provider NSTT is looking at new and innovative ways to bring satellite technology to enterprise users. One avenue that is currently being explored is content streaming. Satellite enabled digital signage allows a business with multiple branches to stream digital content via satellite networks.
Users can send multimedia advertising via a single control centre through a multicast server, nodes can then pick up on any modifications to the content within one or two minutes, allowing one way speech broadcasts. Digital signage is especially suited to satellite technology as Mohammad Abu Hmaidan, MD of NSTT, explains.
“If you want to use fixed line internet then you would need an internet connection in each site, and you would pay monthly for this connection. There is no need to have internet access when you can pay on demand for the access. For example a company needs to modify an advertisement tomorrow at 12am, so we only charge them for this period and a very low cost subscription,” says Hmaidan.
Data prices for such services, while still relatively high, are decreasing according to Halawi with the steady advancement of technology. With Inmarsat’s BGAN system the per-minute pricing of data services has gone down due the increased capability and smaller size of the satellites themselves.
However, with the market expansion in data services, and the increasing pragmatism of satellite broadband, demand for voice services has stagnated.
“Because more people are demanding data and because the areas that people need voice connectivity in there is already good GSM growth, due to GSM increasing in coverage. But no matter how fast GSM expands it is always the voice service that is first offered, the other services such as 3G and WiMax are always going to be more limited in terms of geographical availability,” says Halawi.
As well as smaller and more powerful terminals and satellites, providers are looking toward a raft of new innovations to grow the market. Mobile television, video conferencing and e-learning are features already offered by terrestrial networks and offer further sectors that satellite providers can exploit.
Projects such as Emirates’ deployment of GSM services over aeroplanes, via Inmarsat’s satellites, are also growing the market.
 
The report above seems to indicate that so long as you provide a quality/dependable service you will capture market share. Newsat with its media ports seems to be able a more reliable service and is caputuring market share. This seems to be consistent with NWT announcements.

This is very positive. The only thing that bothers me is that in the past a real song and dance would have been done. There seems to be a change in stance.

The current share price level seems to be holding with out any real news. It seems that people are doing there own research and coming up that it is changed.

I hope so. Nothing to drastic just a slow and steady gain on share price to give the market confidence.
 
Nothing detailed, however.. in one of other blogs(forums) someone claims that there are some communication between Telstra and Newsat... I am hoping he is right and there is an up and coming deal between the two.
 
TLS announces in Oct that it waould spend 4 bill in this sector. I undertsnad NWT are only people in Aus with this capacity. Singtel recently mentioned the same thing.. The comment was a bidding war would be nice... NWt will be swallowed up some day.. Pity as they will probably be getting it together soon..
 
Easy to say there are talks between TLS and NWT. The only problem is that NWT is only worth $35m. TLS could slallow up even at 3c or $100m, so why would it do a JV. Worried that a takeover will not give true value if there is any to the long suffering shareholders.

Is the TLS/NWT connection valid and mean something tangible?

:banghead:
 
The way I see it, both Telstra and Singtel Need the same service form NWT. Knowing the latest Telstra strategy, is not to own "the PRODUCT (nwt)" of the Telecommunication, as it then become a wholesaler and a retailer of the services. Which puts them under goverment regulations and ACCC target. That is the very thing they are trying to get away from under thier current strategy.

So I think this would be the purchase of services and all the risk to be NWTs. I think, both Telstra and Singtel Well do deal with NWT.
 
Thanks for that info. I didn't think that NWT service was that unique that it would be in demand by both TLS and singtel.

This is the thing that i dont understand is that the MUL of old would be announcing that they had a phone call to TLS or anyone.

Is this reflecting a change in NWT to become more 'real' for the use of better words rather than trying to inflate with hot air. maybe management have realised that they dont need to bullsh*t any more to get NWT going.

If there is something real, it will shoot from the 1c to something never imagined that we could see very very quickly.

I believe that had NWT been any other company ie no MUL history and AB start fresh with NWT, it would be worth a lot more as an IPO. But the negativeness, bad karma from the MUL days has put a ceiling on the current value.

It seems to be a awiating game now.
:)
 
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