News Details – Smallcapnetwork
The Titan Train Just Keeps On Rolling
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February 2, 2024

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Dow Jones 0.00 +0.00 9:47 am PST, February 17, 2007 NASDAQ 2496.31 -0.79 For info, visit access.smallcapnetwork.com S & P 500 0.00 +0.00 Change your subscription status here Russell 2000 818.15 +2.72 VOLUME 07: ISSUE 19 The Titan Train Just Keeps On Rolling  Hey investors, do you like high potential trading ideas? We introduced Titan Global Holdings (OTCBB: TTGL) to you on January 13th, but if you wanted to mull it over for a wile, we think today's news may proverbially clinch the deal for you.  Here's the deal - Titan just acquired Ready Mobile, which is a regional Mobile Virtual Network Operator (or MVNO). They're basically in the same business as Titan Global's communication division already is, so the two outfits should be able to integrate seamlessly and share a market footprint.  But is this a big deal for Titan and its shareholders? Yes, we think it is. Just for perspective, Ready Mobile generated $9 million in sales during 2006. Titan Global's communication division did $89.3 million in business last year, doing essentially the same thing - selling prepaid minutes and wireless services. So, assuming nothing changes in 2007, the combined units are likely to do just a hair under $100 million this year...a 10% increase in the top line. Not bad, but frankly, that's not the exciting part. I think to really get pumped, you have go back yet another year. While Titan's communication arm did $89.3 million in 2006, in 2005, they only posted $5.8 million in revenue. The difference? We have to attribute practically all of the 1453% improvement to Titan's efforts, as they bought the communications division (Oblio Telecom Inc.) right as their fiscal 2005 turned into fiscal 2006. To me, it verifies Titan knows how to market a telecom service. Fast forward to today. If the company can turn a $5.8 million business into an $89.3 million enterprise in one year, what can they do with a $9 million dollar business by the end of 2007? Based on history, we'd have to say they can do a heck of a lot.    Overlap? We Think Not.  Now, if you're thinking Ready Mobile's growth potential is going to be limited by overlap with current Titan offers, I don't think you're crazy - I wondered the same thing. Yes, these two companies are pretty much in the same spot - providing prepaid minutes, and prepaid wireless services. However, the two companies aren't necessarily competing head-to-head in all ways, or in all geographical markets. In our view, the two companies have more to collectively gain by working together than by working individually; both sides seem to be bringing something unique to the table. Two details convinced me there would be little to no cannibalization.  First, Ready Mobile appears to be very skilled at bringing on subscribers. Last year was Ready Mobile's first year of being in business...a close parallel to Oblio's 2005. During that first year though, 30,000 subscribers were brought on board, and according to the press release, the number of Titan's subscribers will double as part of the acquisition. Considering that Ready Mobile is only doing a tenth of the business Titan is - but has just as many subscribers - tells us Ready Mobile knows a thing or two about generating steady subscriber revenue streams. That's good for Titan, and its shareholders.  Second, Titan's communication division, Oblio Telecom Inc., already has a massive distribution network. Last year, 4000 retail outlets began carrying Ready Mobile's prepaid cards and wireless products. In comparison, Titan's communication division's (pre-acquisition) network is comprised of 60,000 distributors. Right off the bat, Ready Mobile potentially has fifteen times its current number of retail outlets.  While there will always be some potential overlap, the odds mostly seem to favor an either/or scenario. So, we're pretty confident any 'new' business will indeed be new business, as each side of the table can help the other party.  Better yet, while there may be very little overlap in terms of a customer base, we still expect to see a serious cost-savings from the reduction of any overlap of corporate expenses. WE THINK THIS IS HUGE FOR SHAREHOLDERS. As you may recall, Titan is getting closer and closer to profitability. A slightly higher top line and a relatively improved bottom line brings them one step closer to that end.  For what it's worth, we think one of the best times to own a stock is when the company finally turns the corner on bottom line earnings (the EBITDA improvement has already blown our socks off). So, if you like to give yourself at least a short at that kind of possibility, then you know what we think you ought to do. And speaking of the stock....    He Who Hesitates.....  Remember in the January 23rd edition ('Playing Titan Global After The Volatility') we talked about how TTGL was making a stair-step pattern to higher highs? We just meant the stock has found its bullish groove by surging for 3 or 4 days, then moving sideways for a month or so. No complaints though - it seems to work for TTGL, as the stock is up 88% over the last six months.  Well, as we were looking at the recent chart, we noticed it's been right at a month since our last surge....the one that took it from $1.00 to $1.35 in six trading days. The point we were making then - and the one we'll repeat today - is how we feel you have to already be in a position when the news hits, unless you're one of the folks who likes to chase stocks after the fact (which we're not).  The other thing we noticed....this stock responds well to good news. It could go without saying we think investors will respond to today's good news as well, though we don't necessarily think you've missed the boat if you're not yet in.  As for where we stand, we hope/think it's obvious - we think Titan Global is just an enormous opportunity. The company has seriously ramped up its publicity effort since July of last year, which is also when the stock really started to move. Maybe it's a function of better PR, or maybe it's a function of better news to work with (or both). We don't necessarily care either way. We just see the stock is moving now, and the company is delivering what they said they would.  As you'll also read in the press release, Titan is looking to acquire more MVNO enterprises in 2007. We think they will; we also think each acquisition will be well received by investors, as it could put the company one step closer to full profitability. Along the way, we suspect the market will 'reward' shareholders with substantial appreciation. So, do you want in now, or later? Our suggested target is still $3.00, 156% above current trading levels.    Titan Global Announces Agreement in Principle to Acquire Ready Mobile, a Regional Sprint MVNO Targeting Nationwide Retailers  Titan MVNO Acquisition Doubles Customer Base, Significantly Expands Sales Force, Operations and Veteran Senior Wireless Management  RICHARDSON, Texas--(BUSINESS WIRE)--Titan Global Holdings, Inc. (OTCBB:TTGL), a high-growth diversified holding company, announced today that Titan Wireless, a subsidiary of Titan Communications, consummated a letter of intent to acquire certain assets of Ready Mobile, LLC, www.readymobile.com, a national Sprint Mobile Virtual Network Operator ("MVNO").  This acquisition is consistent with Titan's stated strategic plan to opportunistically acquire and roll-up competitive MVNOs. Titan has and will target and pursue other MVNO's throughout 2007 for similarly structured acquisitions.  Ready Mobile distributes prepaid wireless communications solutions nationwide through a vast distribution network that includes more than 4,000 retailer locations. Ready Mobile generated over $9 million in revenue and accumulated over 30,000 subscribers in its first year of operations in 2006.  "We are very excited about our planned acquisition of Ready Mobile," said Kurt Jensen, President and Chief Executive Officer of Titan's Communications Division. "Our existing retail footprint will bolster Ready Mobile's retail sales channel and the addition of Ready Mobile's wireless customers will double our active subscriber base. Furthermore, we expect to achieve additional synergies and cost savings by leveraging Ready Mobile's distribution strength and Titan's operating capabilities."  Ready Mobile currently operates under two brand-name products, Ready Mobile PCS and Mojo Mobile. Additionally, Titan will retain Ready Mobile's proven leadership team comprised of well-known industry veterans.  "The Ready Mobile management team joins in my excitement to become part of Titan," said Dennis Henderson, Chief Executive Officer of Ready Mobile. "We believe the combined distribution channels and the synergies in operations give our new wireless company the ability to help our distribution partners create maximum profits in the fast-growing prepaid wireless market."  The acquisition is subject to negotiation and execution of a definitive agreement, satisfaction of certain conditions precedent, and other ordinary and customary closing conditions for a transaction of this type. It is anticipated to close by March 15, 2007.  "We are committed to growing our subsidiaries through organic efforts and the efficient deployment of capital to acquire assets that strengthen our market position," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "The planned acquisition of Ready Mobile will place our Titan Wireless subsidiary in a market leadership position in the dynamic prepaid wireless telecommunications market. Furthermore, we gain the tremendous leadership and experience of Dennis Henderson and his management team. We look forward to closing this transaction and creating tremendous shareholder value from our Titan Wireless Subsidiary."  About Titan Global Holdings  Titan Global Holdings, Inc. ("Titan") (OTCBB:TTGL) is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets and advanced technologies. In its last fiscal year Titan generated in excess of $109 million in revenues on a consolidated basis.  Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly-owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels estimated at more than 60,000 retail outlets.  Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels. Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including Homeland Security and high-tech clients.  For more information, please visit: www.titanglobalholdings.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.  Forward-Looking Statements  Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.  Contact:  Trilogy Capital Partners  Financial Communications:  Ryon Harms, Toll-free: 800-592-6067  ryon@trilogy-capital.com  Source: Titan Global Holdings, Inc.   We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 Hot Topics: On The Go & Execute Sports The blog's 'Comments' sections have been busy lately....seems like some of you really have some insightful thoughts about On The Go's (OTCBB: ONGO) bizarre market cap numbers, and how the stock can continue to deteriorate. Other readers have turned their focus on Execute Sports (OTCBB: EXCS), thinking the company may have finally gotten itself on track after divesting the snowboard division, and inking the deal with Kawasaki.  To jump into the mix for On The Go, click here and look for the "Got a question or comment?" link at the bottom of each blog entry. (The number in parenthesis is the number of comments submitted about that blog entry so far.)  If you want to read or post additional comments regarding Execute Sports, click here. Same drill...then click on the 'Comments' link.  Don't be shy though! If you've got something to say or ask about any of our companies, just post a message on the appropriate blog page. 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Unsubscribe Here D I S C L A I M E R: The Small Cap Network, its website and email newsletter (hereafter, cumulatively referred to as "SCN") , is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. SCN is owned and operated by TGR Group, LLC ("TGR"). TGR is not a registered investment advisor or broker-dealer. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible.  Moreover, as detailed below, TGR accepts compensation from third party consultants and/or companies, which it features in the publication and circulation of SCN. To the degrees enumerated herein, SCN should not be regarded as an independent publication.  Click Here or go to http://access.smallcapnetwork.com/compensation_disclosure.html to view our compensation on every company we have ever covered, or visit the following web address: http://access.smallcapnetwork.com/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts.  TGR Group LLC has been paid a fee of $30,000 cash by Titan General for coverage of the company. In addition, TGR Group LLC has been pledged a fee of 100,000 warrants convertible at $1 into restricted shares by Trilogy Capital for coverage of the company.  TGR Group, LLC has been paid a fee of $30,000 cash and 20,000 shares (reverse split adjusted 08/09/06) of newly issued, restricted stock by On the Go Technologies Group for coverage of the Company. 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