Stockreporter gives Geotele.com Inc. (GEOL) a
strong buy recommendation with a conservative
price target of $23 per share
COMPANY OVERVIEW
Geotele.com was formed as a corporation in 1981 and entered the
telecom business in 1995. Geotele.com is an emerging multinational
carrier focused primarily on providing integrated and competitively
priced long distance telecommunications service and Internet telephony
services. Geotele.com operates a telecommunications network of
switches and leased lines with interconnections to other domestic and
foreign carriers. Geotele.com offers a broad range of discounted
international, national value-added wholesale, and enhanced
telecommunications services to small and medium-sized businesses,
as well as to wholesale customers. Geotele.com’s target market
includes carriers and businesses with sales or operations in the
Caribbean, South and Central America, Asia, Africa (referred to
collectively herein as the "Emerging Markets") and the rapidly growing
ethnic population in the United States.
In response to industry deregulation, increasing traffic volume, and its
base of international customers, Geotele.com is continuing to build and
expand its base of international telecommunications infrastructure of
switches but plans to replace its lease lines with VoIP. The company
operates a growing facilities-based telecommunications network
consisting of state of the art central office switches in Miami and New
York as well as points of presence (POPs) in Atlanta and London.
Geotele.com also has dedicated leased capacity between the United
States and London, UK, and interconnections with Interexchange
carriers (IXCs), local exchange carriers (LECs) and government-owned
postal, telegraph and telephone monopolies (PTTs) around the world.
Geotele.com plans to upgrade and convert its entire global
telecommunications infrastructure to Voice over IP (VoIP) in order to
reduce its operating costs and to broaden its potential customer base.
Therefore, Geotele.com will be carrying its voice traffic exclusively over
the internet and using its state of the art interactive web site
(www.geotele.com) to become the largest clearinghouse of VoIP
minutes and bandwidth for telecommunications companies, and its web
site (www.geotele.net) to become a major supplier of Internet services.
With seasoned executives leading the way, state-of-the-art equipment
providing the vehicle, and the fastest growing telecommunications
markets in the world, Geotele.com is poised to become a major player
in the trillion dollar global communications market.
Geotele.com's vision is to further expand over the next twelve months its
Internet based Virtual Private Network (VPN) telecommunication system
beyond North America and Europe to the emerging third world markets.
Consequently, Geotele.com is an international telecommunication
network provider dedicated to offering high quality international long
distance service to and from any country in the world. Since the
Company’s inception, Geotele.com has been dedicated to providing its
customers with:
A full array of telecommunications products and
services,
Unparalleled management expertise, and
Innovative design and engineering
Geotele.com is strategically located to handle a large volume of
international traffic throughout the world with its state-of-the-art switching
facilities. These facilities permit instant customer access to the
Geotele.com Virtual Network (GVN) 24 hours a day, 7 days a week in
reaching any other telephone or data terminal anywhere around the
world.
The rapidly changing international telecommunications market has
created a significant opportunity for Geotele.com, which can offer high
quality, low cost Internet based long distance service. To be successful,
international long distance companies must aggregate enough traffic to
maximize the use of both multiple routing options, invest in facilities, IP
gateways and switches, and remain flexible enough to locate and route
traffic through the most advantageous routes. The technological
advances of the last year have made the Internet the most cost-effective
method of transporting voice traffic, using the vastly improved IP
gateways that are now available.
COMPANY UNIQUENESS
Geotele.com has accomplished these critical success factors and is
ready to continue the expansion of the Geotele.com Virtual Network
(GVN) throughout the world. Unlike most VoIP start-ups, Geotele.com
has a proven track record as a facilities based wholesale carrier and the
experience needed to establish telecommunications ventures and
network deployment in foreign countries.
Geotele.com's capabilities are not solely in the formation of virtual
private networks, but in the Company’s ability to secure through proper
joint venture partners additional added value licenses. Geotele.com is
currently negotiating joint venture arrangements e.g. in the UK, France,
Mexico, China, Ecuador, Colombia, Costa Rica, Guatemala, Panama,
Vietnam, Cambodia, Peru, Chile, Argentina, El Salvador, Venezuela
and Germany which will allow the Company to operate inter-country long
distance telephone calls. Geotele.com's vision is to be a "one-stop"
worldwide VoIP telecommunication service provider using their highly
acclaimed interactive web site as a main marketing tool and the
deployment of IP gateways to expand the network and terminate voice
traffic.
Over the last year, the cost savings of carrying voice traffic over the
Internet have opened up tremendous opportunities for telecom
companies that have the infrastructure and know-how to enter the
business rapidly. Therefore, Geotele.com has been on the cutting edge
of developing new telecommunication products such as international
callback service, internet telephony, prepaid calling cards, and prepaid
cellular to ethnic markets. So why is Geotele.com poised to succeed
over most other company’s attempting to build VoIP networks?
www.GEOTELE.com and www.geotele.net are the most
innovative, state of the art virtual trading Web sites for Telecom
capacity worldwide.
Since 1995, as a wholesale carrier, Geotele.com has been
involved in carrying a large amount of traffic to international
destinations.
Through years of experience Geotele.com has developed the
necessary knowledge needed to satisfy both customer and vendor
needs.
As early as September 1999 Geotele.com will initiate VoiP
Services for various countries and thus will achieve significant
revenues in the current year. Numerous contracts for the above
mentioned countries have already been concluded. Stockreporter
expects the first influx of earnings from these operations to occur
in October of 1999 at the latest, ensuring a sufficient cash flow to
finance, internally Geotele.com growth in the year 2000.
BUSINESS AND MARKETING STRATEGY
Geotele.com’s objective is to become a leading provider of VoIP
telecommunications services and bandwidth. The Company’s business
strategy includes the following seven key elements:
1.Maximize Operating Efficiencies: Geotele.com is successfully
reducing its cost of providing telecommunications services by
upgrading and converting its network to VoIp, deploying additional
switching facilities, adding leased and owned fiber-optic capacity
and entering into additional markets, like leasing bandwidth both
to ISP and telecom companies. Geotele.com believes that through
least cost routing, its central office Siemens switches, IP network,
IP gateways, and its other facilities, Geotele.com will be able to
further reduce the overall cost of its services.
2.Expand Global Sales: Geotele.com believes that establishing
the first fully interactive virtual trading floor web site for Telecom
capacity such as minutes and bandwidth will provide it with a
strong competitive cost saving advantage. www.geotele.com will
allow companies as well as ISP’s to buy telecom capacity such as
international termination minutes, VoIP minutes and bandwidth.
Geotele.com will act both as principal and broker in facilitating
these transactions. The ever-tightening market for bandwidth will
create many opportunities for profits. Geotele.com intends to buy
"IRU’s" (Indefinite Rights of Use) and lease them to telecom
companies worldwide. Geotele.com's interactive web site not only
should help achieve great savings in the marketing of international
termination minutes compared to standard marketing techniques,
but will also allow it to reach telephone companies and PTT’s
worldwide more efficiently.
3.Virtual Trading Floor: www.geotele.com has a virtual trading
feature whereby carriers, CLEC’s, ILECs, will be able to connect
to any of its facilities or POPs and, with a click of a mouse, route
calls to any of the carriers offering telecom capacity. The
functionality of those transactions coupled with trading anonymity,
guaranteed payment and instant delivery assure to attract carriers
worldwide. This virtual marketplace and delivery mechanism will
greatly reduce cost for all involved. Everyone will experience
tremendous savings, since carriers can connect to one central
market place instead of 40 or 50 separate vendors.
4.Target Business Customers: Geotele.com believes that it can
serve small and medium-sized business, by providing low cost
Internet based telecom services either through its 10-10-936
access or on a 1+ basis. Through the deployment of the VoIP
network, the company will be able to address Telecommunication
needs of a wider base of business customers.
5.Pursue Acquisitions, Joint Ventures and Strategic
Alliances: Geotele.com seeks to acquire controlling interests in
companies that have established marketing organizations,
existing customer bases, complementary network facilities, new
services or technologies and experienced management teams. In
addition, the Company intends to make selective acquisition of its
Country Partner’s operations, in order to lower its selling, general
and administrative expense and increase control over these
distribution channels. Geotele.com also expects to acquire the
operations of other agents and marketing groups. Geotele.com
also has entered into joint ventures and strategic alliances with
selected business partners to enable it to enter additional markets
and to complement the Company’s current operations and service
offerings. Geotele.com is continuously reviewing opportunities and
believes that such acquisitions, joint ventures and strategic
alliances are an important means of expanding its network and
increasing network traffic volume, both of which are expected to
lower its overall cost of telecommunications services.
6.Company’s Partnering Opportunities: In its quest for
expansion and future growth Geotele.com has operated joint
venture and/or strategic alliances with international business
partners.
7.Broaden Market Penetration through Enhanced Service
Offerings: Geotele.com believes that offering a broad array of
enhanced services is essential to retaining existing customers and
to attracting new customers. Geotele.com plans to offer a
comprehensive solution to its customers’ telecommunications
needs by providing enhanced services. Geotele.com believes that
its provision of such enhanced services will enable it to increase
its revenue from existing customers and to attract a broader base
of customers.
Geotele.com believes that the planned expansion of its international
telecommunications network and the integration of its networks through
combined voice data services will: allow the Company to realize certain
efficiencies; position itself among those global telecommunications
companies offering full services and employing leading edge
technologies; provide competitively priced international services.
EVALUATION AND OUTLOOK
Stockreporter’s experience indicates that Geotele.com will net at least
$0.06 per minute for traffic routed over the Company owned VoIP
network. That translates into a 15% margin business, which we think is a
conservative estimate for Geotele.com.
Guy Cohen, Chairman and Chief Executive Officer (CEO) of
Geotele.com states that all negotiated contracts "will be fully hooked up
for VoIP worldwide in the 2nd quarter of the year 2000 at the latest".
These should produce monthly revenues of $10-12 million. Because of
the meteoric business growth in 1999, about three-quarters of these
commitments will generate revenue flows this year and amount to about
$24 million in income for the 4th quarter.
Using our conservative profile of 15% profitability, Stockreporter
estimates 1999 Geotele.com earnings at $3.6 million, or $0.78 per
share. Applying a reasonable 30xEPS multiple for this type of business
prompts us to value the stock at $23.00 for 1999. Moving into next year,
even if we discount forecasted income by 25%, Stockreporter estimates
year 2000 revenues at $108 million. Our conservative valuation model
then takes the share price to $106.00 by year-end 2000. We have used
a 20% per year revenue growth assumption for the next two years. This
is an extremely modest view given everyone’s prediction of the
explosive growth potential of this business sector:
Gross Revenue Estimates:
Year 1999: $24,000,000
Year 2000: $108,000,000
Year 2001: $130,000,000
Year 2002: $160,000,000
Net Earnings Estimates (15%):
Year 1999: $3,600,000
Year 2000: $16,200,000
Year 2001: $19,500,000
Year 2002: $24,000,000
Earnings per Share Estimates:
Year 1999: $0.78
Year 2000: $3.52
Year 2001: $4.24
Year 2002: $5.22
Share Price Targets:
Year 1999: $23
Year 2000: $106
Year 2001: $127
Year 2002: $157
To reiterate, Stockreporter sees the above estimates as very
conservative given our view of the market, Geotele.com capability and
current positioning. We have not even taken into consideration the
following factors, which represent significant enhancements to the
Company’s potential and the share price:
Revenue estimates do not include income from the successful
Internet Division of Geotele.com that CEO Guy Cohen intends to
expand into a first-class Portal for business customers.
Geotele.com plans the spin-off of this division in the 1st quarter of
the year 2000 to become a NASDAQ listed company. Talks with
interested investment banks are already underway. This division is
said to have a value of about $15 per GEOL share that has not
been factored into our projected values.
Geotele.com is also currently preparing to apply for NASDAQ
listing which should occur in the 1st quarter of the year 2000. CEO
Guy Cohen expects the Company to be fully compliant by year end
1999 and that this will spark considerable interest among
institutional buyers, resulting in a significant catalyst to share price
increases in the 1st quarter of 2000 the latest.
There are only 4.6 million issued shares of Geotele.com with a
mere 1.6 million shares in the float. CEO Guy Cohen assured
Stockreporter that, "no issuing of new shares is planned", since
that would be inconsistent with the Company’s firm commitment to
enhancing shareholder value.
Geotele.com’s current market capitalization of barely $5 million is
a fraction of the $100 million average for other VoIP companies
that are projecting about the same year 2000 income as is
Geotele.com.
Current revenue forecasts reflect business in geography that
represents about 35% of the world’s population. Not included is
probable income flowing from agreements currently being
negotiated in South America, Asia, Africa and Europe.
Geotele.com is said to be in negotiation with a large German
telephone company that is listed on the rapidly growing "Neuer
Markt", comparable to the NASDAQ in the U.S. The hint of deal
alone prompted intensive foreign buying of GEOL shares last
week. Some of the buyers were German banks.
Geotele.com has confirmed to Stockreporter, that it is going to file
an application for listing on one of the major European stock
exchanges. This is being done in co-operation with Schnigge Inc.
and OTC Europe Associates. This move is being made to
increase Geotele.com's international exposure and to establish
new relations with investors in Europe, "in anticipation of new
major contracts and operations within Europe", said Guy Cohen.
This listing will open the door to even more major institutional
investments by e.g. national European funds as well as investment
bankers, and will prompt a significant impetus to the share price.
strong buy recommendation with a conservative
price target of $23 per share
COMPANY OVERVIEW
Geotele.com was formed as a corporation in 1981 and entered the
telecom business in 1995. Geotele.com is an emerging multinational
carrier focused primarily on providing integrated and competitively
priced long distance telecommunications service and Internet telephony
services. Geotele.com operates a telecommunications network of
switches and leased lines with interconnections to other domestic and
foreign carriers. Geotele.com offers a broad range of discounted
international, national value-added wholesale, and enhanced
telecommunications services to small and medium-sized businesses,
as well as to wholesale customers. Geotele.com’s target market
includes carriers and businesses with sales or operations in the
Caribbean, South and Central America, Asia, Africa (referred to
collectively herein as the "Emerging Markets") and the rapidly growing
ethnic population in the United States.
In response to industry deregulation, increasing traffic volume, and its
base of international customers, Geotele.com is continuing to build and
expand its base of international telecommunications infrastructure of
switches but plans to replace its lease lines with VoIP. The company
operates a growing facilities-based telecommunications network
consisting of state of the art central office switches in Miami and New
York as well as points of presence (POPs) in Atlanta and London.
Geotele.com also has dedicated leased capacity between the United
States and London, UK, and interconnections with Interexchange
carriers (IXCs), local exchange carriers (LECs) and government-owned
postal, telegraph and telephone monopolies (PTTs) around the world.
Geotele.com plans to upgrade and convert its entire global
telecommunications infrastructure to Voice over IP (VoIP) in order to
reduce its operating costs and to broaden its potential customer base.
Therefore, Geotele.com will be carrying its voice traffic exclusively over
the internet and using its state of the art interactive web site
(www.geotele.com) to become the largest clearinghouse of VoIP
minutes and bandwidth for telecommunications companies, and its web
site (www.geotele.net) to become a major supplier of Internet services.
With seasoned executives leading the way, state-of-the-art equipment
providing the vehicle, and the fastest growing telecommunications
markets in the world, Geotele.com is poised to become a major player
in the trillion dollar global communications market.
Geotele.com's vision is to further expand over the next twelve months its
Internet based Virtual Private Network (VPN) telecommunication system
beyond North America and Europe to the emerging third world markets.
Consequently, Geotele.com is an international telecommunication
network provider dedicated to offering high quality international long
distance service to and from any country in the world. Since the
Company’s inception, Geotele.com has been dedicated to providing its
customers with:
A full array of telecommunications products and
services,
Unparalleled management expertise, and
Innovative design and engineering
Geotele.com is strategically located to handle a large volume of
international traffic throughout the world with its state-of-the-art switching
facilities. These facilities permit instant customer access to the
Geotele.com Virtual Network (GVN) 24 hours a day, 7 days a week in
reaching any other telephone or data terminal anywhere around the
world.
The rapidly changing international telecommunications market has
created a significant opportunity for Geotele.com, which can offer high
quality, low cost Internet based long distance service. To be successful,
international long distance companies must aggregate enough traffic to
maximize the use of both multiple routing options, invest in facilities, IP
gateways and switches, and remain flexible enough to locate and route
traffic through the most advantageous routes. The technological
advances of the last year have made the Internet the most cost-effective
method of transporting voice traffic, using the vastly improved IP
gateways that are now available.
COMPANY UNIQUENESS
Geotele.com has accomplished these critical success factors and is
ready to continue the expansion of the Geotele.com Virtual Network
(GVN) throughout the world. Unlike most VoIP start-ups, Geotele.com
has a proven track record as a facilities based wholesale carrier and the
experience needed to establish telecommunications ventures and
network deployment in foreign countries.
Geotele.com's capabilities are not solely in the formation of virtual
private networks, but in the Company’s ability to secure through proper
joint venture partners additional added value licenses. Geotele.com is
currently negotiating joint venture arrangements e.g. in the UK, France,
Mexico, China, Ecuador, Colombia, Costa Rica, Guatemala, Panama,
Vietnam, Cambodia, Peru, Chile, Argentina, El Salvador, Venezuela
and Germany which will allow the Company to operate inter-country long
distance telephone calls. Geotele.com's vision is to be a "one-stop"
worldwide VoIP telecommunication service provider using their highly
acclaimed interactive web site as a main marketing tool and the
deployment of IP gateways to expand the network and terminate voice
traffic.
Over the last year, the cost savings of carrying voice traffic over the
Internet have opened up tremendous opportunities for telecom
companies that have the infrastructure and know-how to enter the
business rapidly. Therefore, Geotele.com has been on the cutting edge
of developing new telecommunication products such as international
callback service, internet telephony, prepaid calling cards, and prepaid
cellular to ethnic markets. So why is Geotele.com poised to succeed
over most other company’s attempting to build VoIP networks?
www.GEOTELE.com and www.geotele.net are the most
innovative, state of the art virtual trading Web sites for Telecom
capacity worldwide.
Since 1995, as a wholesale carrier, Geotele.com has been
involved in carrying a large amount of traffic to international
destinations.
Through years of experience Geotele.com has developed the
necessary knowledge needed to satisfy both customer and vendor
needs.
As early as September 1999 Geotele.com will initiate VoiP
Services for various countries and thus will achieve significant
revenues in the current year. Numerous contracts for the above
mentioned countries have already been concluded. Stockreporter
expects the first influx of earnings from these operations to occur
in October of 1999 at the latest, ensuring a sufficient cash flow to
finance, internally Geotele.com growth in the year 2000.
BUSINESS AND MARKETING STRATEGY
Geotele.com’s objective is to become a leading provider of VoIP
telecommunications services and bandwidth. The Company’s business
strategy includes the following seven key elements:
1.Maximize Operating Efficiencies: Geotele.com is successfully
reducing its cost of providing telecommunications services by
upgrading and converting its network to VoIp, deploying additional
switching facilities, adding leased and owned fiber-optic capacity
and entering into additional markets, like leasing bandwidth both
to ISP and telecom companies. Geotele.com believes that through
least cost routing, its central office Siemens switches, IP network,
IP gateways, and its other facilities, Geotele.com will be able to
further reduce the overall cost of its services.
2.Expand Global Sales: Geotele.com believes that establishing
the first fully interactive virtual trading floor web site for Telecom
capacity such as minutes and bandwidth will provide it with a
strong competitive cost saving advantage. www.geotele.com will
allow companies as well as ISP’s to buy telecom capacity such as
international termination minutes, VoIP minutes and bandwidth.
Geotele.com will act both as principal and broker in facilitating
these transactions. The ever-tightening market for bandwidth will
create many opportunities for profits. Geotele.com intends to buy
"IRU’s" (Indefinite Rights of Use) and lease them to telecom
companies worldwide. Geotele.com's interactive web site not only
should help achieve great savings in the marketing of international
termination minutes compared to standard marketing techniques,
but will also allow it to reach telephone companies and PTT’s
worldwide more efficiently.
3.Virtual Trading Floor: www.geotele.com has a virtual trading
feature whereby carriers, CLEC’s, ILECs, will be able to connect
to any of its facilities or POPs and, with a click of a mouse, route
calls to any of the carriers offering telecom capacity. The
functionality of those transactions coupled with trading anonymity,
guaranteed payment and instant delivery assure to attract carriers
worldwide. This virtual marketplace and delivery mechanism will
greatly reduce cost for all involved. Everyone will experience
tremendous savings, since carriers can connect to one central
market place instead of 40 or 50 separate vendors.
4.Target Business Customers: Geotele.com believes that it can
serve small and medium-sized business, by providing low cost
Internet based telecom services either through its 10-10-936
access or on a 1+ basis. Through the deployment of the VoIP
network, the company will be able to address Telecommunication
needs of a wider base of business customers.
5.Pursue Acquisitions, Joint Ventures and Strategic
Alliances: Geotele.com seeks to acquire controlling interests in
companies that have established marketing organizations,
existing customer bases, complementary network facilities, new
services or technologies and experienced management teams. In
addition, the Company intends to make selective acquisition of its
Country Partner’s operations, in order to lower its selling, general
and administrative expense and increase control over these
distribution channels. Geotele.com also expects to acquire the
operations of other agents and marketing groups. Geotele.com
also has entered into joint ventures and strategic alliances with
selected business partners to enable it to enter additional markets
and to complement the Company’s current operations and service
offerings. Geotele.com is continuously reviewing opportunities and
believes that such acquisitions, joint ventures and strategic
alliances are an important means of expanding its network and
increasing network traffic volume, both of which are expected to
lower its overall cost of telecommunications services.
6.Company’s Partnering Opportunities: In its quest for
expansion and future growth Geotele.com has operated joint
venture and/or strategic alliances with international business
partners.
7.Broaden Market Penetration through Enhanced Service
Offerings: Geotele.com believes that offering a broad array of
enhanced services is essential to retaining existing customers and
to attracting new customers. Geotele.com plans to offer a
comprehensive solution to its customers’ telecommunications
needs by providing enhanced services. Geotele.com believes that
its provision of such enhanced services will enable it to increase
its revenue from existing customers and to attract a broader base
of customers.
Geotele.com believes that the planned expansion of its international
telecommunications network and the integration of its networks through
combined voice data services will: allow the Company to realize certain
efficiencies; position itself among those global telecommunications
companies offering full services and employing leading edge
technologies; provide competitively priced international services.
EVALUATION AND OUTLOOK
Stockreporter’s experience indicates that Geotele.com will net at least
$0.06 per minute for traffic routed over the Company owned VoIP
network. That translates into a 15% margin business, which we think is a
conservative estimate for Geotele.com.
Guy Cohen, Chairman and Chief Executive Officer (CEO) of
Geotele.com states that all negotiated contracts "will be fully hooked up
for VoIP worldwide in the 2nd quarter of the year 2000 at the latest".
These should produce monthly revenues of $10-12 million. Because of
the meteoric business growth in 1999, about three-quarters of these
commitments will generate revenue flows this year and amount to about
$24 million in income for the 4th quarter.
Using our conservative profile of 15% profitability, Stockreporter
estimates 1999 Geotele.com earnings at $3.6 million, or $0.78 per
share. Applying a reasonable 30xEPS multiple for this type of business
prompts us to value the stock at $23.00 for 1999. Moving into next year,
even if we discount forecasted income by 25%, Stockreporter estimates
year 2000 revenues at $108 million. Our conservative valuation model
then takes the share price to $106.00 by year-end 2000. We have used
a 20% per year revenue growth assumption for the next two years. This
is an extremely modest view given everyone’s prediction of the
explosive growth potential of this business sector:
Gross Revenue Estimates:
Year 1999: $24,000,000
Year 2000: $108,000,000
Year 2001: $130,000,000
Year 2002: $160,000,000
Net Earnings Estimates (15%):
Year 1999: $3,600,000
Year 2000: $16,200,000
Year 2001: $19,500,000
Year 2002: $24,000,000
Earnings per Share Estimates:
Year 1999: $0.78
Year 2000: $3.52
Year 2001: $4.24
Year 2002: $5.22
Share Price Targets:
Year 1999: $23
Year 2000: $106
Year 2001: $127
Year 2002: $157
To reiterate, Stockreporter sees the above estimates as very
conservative given our view of the market, Geotele.com capability and
current positioning. We have not even taken into consideration the
following factors, which represent significant enhancements to the
Company’s potential and the share price:
Revenue estimates do not include income from the successful
Internet Division of Geotele.com that CEO Guy Cohen intends to
expand into a first-class Portal for business customers.
Geotele.com plans the spin-off of this division in the 1st quarter of
the year 2000 to become a NASDAQ listed company. Talks with
interested investment banks are already underway. This division is
said to have a value of about $15 per GEOL share that has not
been factored into our projected values.
Geotele.com is also currently preparing to apply for NASDAQ
listing which should occur in the 1st quarter of the year 2000. CEO
Guy Cohen expects the Company to be fully compliant by year end
1999 and that this will spark considerable interest among
institutional buyers, resulting in a significant catalyst to share price
increases in the 1st quarter of 2000 the latest.
There are only 4.6 million issued shares of Geotele.com with a
mere 1.6 million shares in the float. CEO Guy Cohen assured
Stockreporter that, "no issuing of new shares is planned", since
that would be inconsistent with the Company’s firm commitment to
enhancing shareholder value.
Geotele.com’s current market capitalization of barely $5 million is
a fraction of the $100 million average for other VoIP companies
that are projecting about the same year 2000 income as is
Geotele.com.
Current revenue forecasts reflect business in geography that
represents about 35% of the world’s population. Not included is
probable income flowing from agreements currently being
negotiated in South America, Asia, Africa and Europe.
Geotele.com is said to be in negotiation with a large German
telephone company that is listed on the rapidly growing "Neuer
Markt", comparable to the NASDAQ in the U.S. The hint of deal
alone prompted intensive foreign buying of GEOL shares last
week. Some of the buyers were German banks.
Geotele.com has confirmed to Stockreporter, that it is going to file
an application for listing on one of the major European stock
exchanges. This is being done in co-operation with Schnigge Inc.
and OTC Europe Associates. This move is being made to
increase Geotele.com's international exposure and to establish
new relations with investors in Europe, "in anticipation of new
major contracts and operations within Europe", said Guy Cohen.
This listing will open the door to even more major institutional
investments by e.g. national European funds as well as investment
bankers, and will prompt a significant impetus to the share price.
