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VOLUME 07: ISSUE 46
Phinder's
Ready to Drive Revenue
Though
Phinder Technologies (OTCBB:
PHDT) didn't really need any more credibility in my book, I was still
excited to see the final brush strokes applied to their masterpiece. Why
a big deal? I really think PHDT is way undervalued relative to where
the company appears to be going; yesterday's news is yet another reason
why I think they're going to get there.
What's
even more incredible to me is the entry opportunity still available to
investors - a mere 20 cents per share, as of yesterday. But what
do we think Phinder's stock is going to be worth a few months down the
road? How does a suggested target of $1.25 sound? That would be a modest
gain of 525% from the current level. And frankly, the math behind our
valuation was deliberately conservative.
In
the meantime, check out how Phinder's investors are seeing the company
turn 'concepts and plans' into 'real revenue capability' right before our
eyes.
The
News
The
'news' comes as no surprise to me, but it does validate their strategic
plans - Phinder is indeed establishing a presence in the underserved Latin
American telecom market, and then intends to use the infrastructure there
to make international connections to and from the region. The construction
and installations required to allow those international connections is
now complete, per the press release below.
Or,
to put it on simple terms, Phinder is ready to do some business.
I don't think the quote from CEO John 'Lex' van Arem could be any more
clear....."We have completed testing and expect to start running traffic
and realizing revenue within the next several weeks." Do you see any ambiguity
there?
The
first established market looks like it's going to be Argentina. I'm not
sure why Argentina, but on the other hand, I don't know that it matters
- Argentina is just the first. The part that matters is simply how Phinder
will build a working (revenue bearing) model there, and then go out and
build the same kind of service in other Latin/South American markets.
The
Point
What's
not quite as pronounced in the press release is the speed with which the
next deployments are likely to come.
Just
to clarify, the announcement on Friday wasn't news of Argentina's
infrastructure being in place - it was news of Zupintra Panama's (Phinder's
business name in the region) completion of its Latin American network.
I
don't think the market recognizes just how close an explosive expansion
may be here. The heavy lifting, so to speak, has been done.....Zupintra-Panama's
network is complete. The next step is simply connecting the individual
markets to the Zupintra network.
And
how quickly might the rest of the markets be set up? The press release
said Argentina's deployment took less than 60 days, though I'm guessing
the whole process from start to finish may have taken more time. So, should
we expect to see all these other countries fall into place within a few
months from now? Nope - I don't think the wait is going to be anywhere
near
that long.
Though
we've only been watching Phinder from less than a month, there's at least
one clear nuance I've already picked up on - they're good at keeping
secrets. The company has been tight-lipped about not only the other
Latin and South American countries they're working on, but also about the
local (domestic) carriers they're forging relationships with. And believe
me, I've tried to get these few extra data nuggets - no dice.
The thing is, they've been tight-lipped for many weeks, only painting a
picture with broad strokes. So, for them to come out and definitively
say the Argentina market was a reality actually speaks volumes about their
progress.
However,
that's not the point I'm trying to make. The months likely required
to start a similar pogrom in other countries seem to have already been
invested - Argentina was just the first unit to come to fruition. Like
van Arem said in the release, they expect to see revenues within
weeks. I personally have to wonder if it will even be that long.
Either way, I'd say investors are going to have a lot to be excited about
real soon - much sooner than they may realize.
The
Stock
You
know, some stocks make steady gains, reflecting the incremental progress
of the underlying company. Other stocks are more apt to begin climbing
by starting out with a huge jump. As it stands right now, I'm putting PHDT
in the second category. Don't interpret this as a guarantee, but
I just get the feeling we're all gonna' wake up one day and find that Phinder
is off to the races - not unlike a winning lottery ticket.
Why
do I think that? A couple of reasons.
First,
I don't know that the rest of the market knows or understands the story...they
usually just understand current revenues, and earnings growth. One of the
benefits of our newsletter is a deeper understanding of what's really going
on with a company. In Phinder's case, "what's really going on" is
a ground-floor opportunity. Once Phinder cashes that first big check, I
suspect the lemmings will take notice.
The
second reason I think PHDT could take off like a rocket - and this
is the real benefit of the Small Cap Network Newsletter - is the result
of putting all the recent news together, and being able to read between
the lines.
Remember
a couple of weeks ago Phinder announced they had secured
credit insurance that would allow them to bill up to $120 million worth
of revenue per year? Why do you think a company that was on track to
do just a little over $10 million by their year's end (of March 31st) would
be interested in $120 million worth of revenue capacity? That sort
of insurance is far from cheap, so to see them get it at all I feel is
a huge sign of management's confidence in the company's future. But then
again, that's the same management team putting together all those deals
that have so far been very hush-hush. Put two and two together here.
The
catalyst for the stock, I suspect, will be the announcement of a big contract
with a major carrier to connect phones 'here' with phones 'there'. Contracts
of that nature are probably going to be multi-million dollar deals, and
the company has at least said they're working on multiple carriers. If
they announce those contracts the same way they handled the Argentina news
- and I believe they will - then we're going to learn of it only
after
the papers are signed, sealed, and delivered. In fact, I have to wonder
if there aren't some deals in the bag already, and they're just waiting
to flip the 'on' switch before saying anything. It wouldn't surprise me.
In
any case, the 'Phinder plan' is appearing to be the 'Phinder reality' more
and more every day. As excited as I was a month ago, I'm even more
excited about the upside potential of PHDT now - there's just too much
potential good news in store for me to ignore. And, I think it merits
repeating....I just think this stock is going to get rolling with an unannounced
big bang, leaving any interested investors behind the eight ball if they
don't yet have a position. We shall see.
Zupintra
Panama, S.A. Announces Wholesale Telecommunications Products
MIAMI, May 4 /
- Zupintra Panama, S.A., a subsidiary of Phinder Technologies Inc. (OTCBB:
PHDT) is pleased to announce it has completed the initial construction
phase of its Latin America network. With this network Zupintra Panama will
expand its wholesale telecommunications products to leading international
telephone companies worldwide.
"With Zupintra
Panama as our launch pad, this first stage of deployment in Argentina has
happened in less than 60 days and reflects our rapid growth strategy,"
stated John Alexander (Lex) van Arem, CEO of Phinder Technologies Inc.
"We have completed testing and expect to start running traffic and realizing
revenues within the next several weeks. Deployment of network infrastructure,
having a customer acquisition team and the financial tools we have already
put into place are all key elements of our overall plan."
"This phase is
merely the start," stated Gustavo Alberelli, Managing Director of Zupintra
Panama. "We are continuing to expand in other Latin American markets and
are going to grow our presence in Argentina and Uruguay with initiatives
in consumer telecommunications services, especially in the WiMax arena."
"With this milestone
behind us, we look forward to building quickly into a Pan American telecom
leader by constructing similar projects in other Latin and South American
countries," stated Christopher G. Hall, Chief Operating Officer of Zupintra
Communications Inc.
Phinder Technologies'
core business runs through its wholly owned subsidiary, Zupintra Communications
Inc. Zupintra is a facilities based retailer and wholesaler of international
voice traffic within the carrier to carrier network. As a wholesale VoIP
provider, Zupintra Communications Inc. holds both origination and termination
contracts with PTT's and next generation carriers.
In compliance
with the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, PHDT notes that statements contained in this announcement
that are not historical facts may be forward-looking statements that are
subject to a variety of risks and uncertainties. Accordingly, PHDT wishes
to caution readers of this announcement that its future actual results
may differ materially from those that any forward-looking statements may
imply. There is no assurance the above-described events will be completed.
There can be no assurance of the ability of the company to achieve sales
goals, obtain contracts or financing, consummate acquisitions or achieve
profitability in the future. The above and additional factors are discussed
in detail in the company's filings with the U.S. Securities and Exchange
Commission. These may be viewed at www.sec.gov and many other Web sites
without charge.
Source: Phinder
Technologies Inc.
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CEL-SCI's
Getting Traction Now
I
think CEL-SCI (AMEX: CVM)
could be a lot of fun real soon. Over the last couple of weeks we've been
preaching the need to get and stay above 90 cents to really have a shot
at a major upward move. But as of Friday, I really have to say I think
it's in the cards. Momentum is good, and there's plenty of depth.
Though
we haven't broken past the 90 cent line as decisively as I'd like (we're
currently at 90 cents after reaching a high of 97 cents on Tuesday), the
higher lows and new highs are clear.
What
I really like is the volume behind all this buying. This week's volume
was the most we'd seen in nearly a year...and it was almost all from the
buying side of the table. CVM closed higher for this week, after gaining
12% last week, and gaining 6.7% the week before that. The volume has been
successively better each week as well.
I believe
this kind of thing could have a snowball effect, meaning as each milestone
is passed, more buying could be inspired and increase the pace of this
run. Things are getting real interesting now - in a good way.
New
'Market Wise' Posted
Just
in case some of you only have the blog bookmarked (or only get the RSS
feed), there's a new 'Market
Wise' article now posted on the home page. Written by yours truly,
it's sort of a reality check for traders. Take a look and see what you
think.
By
the way, if there are any topics you'd like discussed in those four columns
you'll exclusively find on our home
page, feel free to let us know via e-mail. That link is below.
CCBEF's
Chart: The Pressure is Building
Clearly
Canadian's (OTCBB: CCBEF)
been fun to watch from a student's perspective recently, because there
are so many classic technical analysis theories materializing here. The
one I most readily notice is a wedge shape. That just means there's a falling
resistance line, and a rising support line...and they're on a collision
course.
Most
technicians (chart watchers) would see the wedge shape and recognize that
CCBEF will eventually have to move outside of those converging lines -
and pretty soon. The 'tip' of the wedge is around $2.69, but odds are we'll
get a break - one direction or another - before we actually move that far
to the right.
And
which direction might that be? I still have to think there's more upside
than downside here, making the last few months a consolidation phase.
I suspect
the catalyst will be the underlying performance. A study of Clearly's timeline
reveals their acquisition and growth initiatives aren't just rhetoric.
And here's the kicker....I don't think the company is anywhere near done
gathering all of its intended acquisitions.
Check
out the history (just the headlines) of everything Clearly Canadian
has done over the last several weeks. I think you'll see a very common
theme - growth!
To
me, Clearly could be on track to pretty much double the $7.4 million they
did in sales last year. If that's the case, I sure wouldn't mind being
around if this wedge breaks in a bullish way.
Click
here for more (and a chart).
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