$ EuNetworks   

High Volume, Strong Potential?

 

I've the feeling that this is a  discounted (and neglected) stock ready to reach for the sky, thus breaking previous highs along the way up...

think fibre optics and trans-oceonic cables... :)

 

Hi chinkiasu

Good that mkt reacted today, yet there were contra players who  took profit.  They will ultimately be burnt and be chased out of GV, which I believe is why GV has  been gyrating up and down for some time.. It's a  disgrace to  be "talked down" by the GV mgt. Not even  covered by any analyst.   Is GV  a junk share compared with second liner penny stocks whose biz  potential and biz  are limited?

Breaking out of 175cts resistance soon? Seem unlikely.   Only a total of 21 lots  were bought up today

Thanks focusy for the  "tip"  from "The Edge"  Your hard work is deeply appreciated by all GV investors.

 

From The Edge..
---
HEADLINE: Corporate: Global Voice mulls secondary listing in Europe

Noel Meaney, CEO of Global Voice, thinks investors in Singapore aren't giving his company enough credit for the progress it is making. And, to help improve its current featherweight market capitalisation of $350 million, he is contemplating a secondary listing for the company in London or Frankfurt as early as this year. "We're definitely not happy with the share price," says the 46-year-old Irishman. "It's undervalued compared with our 2 billion [$4.1 billion] worth of assets."

Formerly a struggling online education company called Horizon.com, Global Voice adopted its current corporate persona in a reverse takeover deal in 2004 that saw it acquire a high-capacity fibre-optic network in Europe used to provide communication infrastructure services to companies and telecoms carriers. The network covers metropolitan areas in 15 European cities including Frankfurt, Berlin, Amsterdam, London and Dublin. Last February, the company acquired 50% of Viatel Holdings, which owns a long-haul intercity fibre-optic network that connects cities in Germany, the Netherlands, the UK, France and Belgium, as well as two undersea cables linking Europe and the UK.

That acquisition enables Global Voice to offer its customers end-to-end connectivity without having to go through a leased line from an incumbent telecommunications carrier. In fact, the company managed to sign up some telcos as customers after the acquisition was sealed. Global Voice is also currently negotiating with two fibre-optic infrastructure companies in the US on trans-Atlantic connectivity.

With its expanded fibre-optic network, Global Voice managed to complete agreements with 47 new customers during the financial year to December 2006, representing an 80% increase over 2005. It also signed 42.5 million worth of new contracts, representing a 250% surge over the previous year. The full impact of these new deals will be felt in the current financial year, according to the company.

Last year, the company's revenue grew 48% to 24 million, but it still chalked up a loss of 3.9 million. Profitability was partly weighed down by additional provisions related to the disposal of Horizon.com's business operations as well as interest payable on its convertible bonds and the issue of shares to its senior staffers. "It's extremely frustrating that we have to make provisions [for a business] that we didn't originally own," says Meaney, referring to Horizon.com. "We should be on track to make a profit this year."

Shares in Global Voice aren't reflecting the significant improvement in its underlying business, though. During the bull market over the past year that lifted the benchmark Straits Times Index some 22%, shares in the fibre-optic network provider climbed just 9.4%, closing at 14.5 cents last Thursday. By launching a secondary listing in London or Frankfurt, where investors are more familiar with Global Voice's business, Meaney hopes the company will be accorded a higher market value. "We hope to get least 30 cents per share - the stock price of Horizon.com when we did the reverse takeover," he says.

Getting more attention

To be sure, Global Voice has been getting more interest from investors in Europe than anywhere else. That's largely due to the proximity of those investors to where the company conducts its business. Last year, Global Voice raised its profile in a re-branding exercise where it re-launched itself under the trade name euNetworks. It has also spent considerable time and effort to explain its business model to investors, correcting many misperceptions. "Many people thought that we are a Voice-over-Internet Protocol company," says Christopher Nightingale, chairman of Global Voice.

Among European investors that have been showing interest in Global Voice is ABN Amro Bank. According to filings with the Singapore Exchange, the London branch of ABN Amro Bank NV upped its stake from 5.18% to 6.08% in a series of open-market transactions last month.

Global Voice's secondary listing in Europe aside, interest in the stock could pick up in the months ahead as demand for high-capacity communication, driven by surging broadband usage and new Internet Protocol Television (IPTV) services, turns the spotlight on companies that own fibre-optic networks, some market watchers say. The popular user-generated video site YouTube already boasts some 500 million downloads per month, while IPTV subscribers alone are forecast to double in Europe this year.

Meanwhile, increasing demand for secure communication and data management services, driven partly by regulation, is creating additional demand for Global Voice. According to Meaney, the main setback with most data storage services is the lack of easy connectivity and the cost of leased lines from telcos. The company has solved the problem by developing data storage solutions that leverage on its fibre-optic infrastructure, providing large corporations with speedier data transmission and instant data retrieval at comparatively low costs. Customers pay an amount every month for each terabyte of traffic, says Meaney, who once founded and ran General Systems Recovery, a company that specialises in mobile disaster recovery and contingency planning.

Last week, Global Voice sealed a deal with Endemol, a major television production company in Europe, providing the company with a private fibre-optic network that links its multiple production sites to Global Voice's data centre, establishing a twin facility data centre solution for assured business continui-ty. Global Voice also recently signed an agreement with Techem AG, one of Europe's largest energy services companies to transport and store data between its headquarters in Eschborn and its data centre in Frankfurt. Meaney declines to reveal the value of these contracts, citing confidentiality clauses in Global Voice's agreements with its clients. But he lets on that gross margins for these sorts of fibre-optic leasing deals are as high as 90%.

More growth ahead

Despite the slew of new business Global Voice has secured in the past year, the average utilisation rate of its fibre-optic network stands at a paltry 2%. But Meaney sees that as an opportunity to grow rather than an efficiency concern. One reason the network's utilisation rate is so low is that Global Voice's long-haul network has about 74 fibre strands, while its short-haul network has 24 strands, he explains. In contrast, most telco incumbents have only 24 fibre strands for short-haul networks and six strands for long-haul ones.

Looking ahead, Meaney is aiming for Global Voice to increase its utilisation rate, riding on a host of bandwidth-intensive services. While an average contract ranges from three to five years, some telco customers sign deals for as long as 10 years, he says. And, the renewal rates are running at about 90%. "We're getting larger contracts, and these are driving the revenues."

If Meaney delivers on those growth projections, Global Voice might not need a secondary listing in Europe to boost its market value.

 

hi Hikitty... folks!!!  Hoe sey liao!!!! this is called a big surge!!!

 

hahaha... :)

When Hikitty isn't arden about a stock, it shows...

Just like when he's super ardent about one, it shows too.

Pssst... are you sure you are not a Big Boy pushing down Global Voice to better prices? Just kidding... :)

 

Ipunter, ya loh... 

Hi hikitty, we shall see, either way I am covered -  when it goes down I buy some more.. and when up ho sei liao...  but I agree the shoot up not likely until GV shows good profits..

 

Hi chinkiasu

Unlikely to cheong all the way past its resistance between 16cts and 175cts. It has been seesawing between 14cts and 16cts for such a long long time.  It seems the BBs have abandoned this share for more than  one year (consolidating?).  Very smart of you to sell at 155cts coz it will DEFINITELY dip below that price (15 cts and below) within the next few days.  No sustained rally in sight -  agree?

 

 

ok, what ever it is, this stock is a solid 0.155 now...  I tried to buy at 0.15, but no luck... when I tried selling 0.155, it was immediately soaked up....   I think it should hit 0.16 next week if STI do not collapse...    "Cheong Ahhh!!!"

 

 

so by your defination, shoot up means a jet (small volume but high intensity...and measured..) which i suspect is the case... what's wrong with cheong then...? ke ke ...

 

hahaha...

"Surge" contains the qualities of volume and magnitude...

As well as a large measure of "uncontrollability "... :) 

 

 

alamak Ipunter, we just prefer more colorful language maH...surge however as it connotes "waves" may be more apt for this stock...

hi hikitty (just noticed the 2x hi)   I think the last shoot up was because of ABNRO buying some 6% of GV.. personally I think this stock need to show real profitability for it to rocket... to date they have shown that they have done the last mile connections to good clients .. next phase will be when they are paid their rents..and I am certain we are sitting on a solid winner here..we just have to be patient....

 

Hikitty...

I prefer to use the word "surge" rather than "shoot up" or "cheong (ah)", etc... :)

Stocks ocassionally surge for no other reason than some big guys wanting it to.  

 

 

GV has a proposed share buyback scheme also..should be good for theshareholders..

 

Hi iPunter

Waiting for  "shoot up" , just like chinkiasu , which shd happen in 2007. It  shd be profitable from 2007?  Any FA or TA specialist care to comment how long more  it would take to shoot up? 

 

Hikitty...

Will you buy this stock?

 

Hi chinkiasu

B4 GV can shoot up, all investors would have been shot down dead. GV has been shooting up and down for more than  a year between 145cts and 155cts, briefly shooting at 165cts. Any TA chartist or FA specialist care to comment how long more we have to wait for the "shoot up"?  

 

yes sir, and still waiting for the shoot up... are you too

 

Are you in this counter?