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[Gene-discuss] SCNWF Closes Private Equity


From: Small Cap Newsletter
Subject: [Gene-discuss] SCNWF Closes Private Equity
Date: Mon, 11 Apr 2005 17:33:38 -0400
Date: Mon, 11 Apr 2005 17:33:38 -0400

 

Our Picks Are Up Since Our Initial Trading Alert And All Within The Last 4 Months!

VIVI currently up over 500% and traded as high as 2000% where we issued a Profit Alert, locking in our readers a 1600% profit.
SPCK up almost 50% and reached a 52 week within 2 days of our Trading Alert.
SWEB currently up 25%, traded as high as 40% gain.
DRVW gained almost 100% within days of our Trading Alert.
SCNWF traded up 6% Monday morning on double the average volume after our Trading Alert.

Will we be congratulating our readers who acted on our Trading Alert on SCNWF with a similar return? Only time will tell but keep your eyes glued to SCNWF in the coming weeks, I know we are.
Announcement of Closing of Private Placement
VANCOUVER, British Columbia, April 11, 2005 /PRNewswire-FirstCall via COMTEX/

The Board of Directors of Stream Communications Network and Media Inc., (OTCBB: SCNWF) is pleased to report the private placement announced February 3, 2005, of 1,500,000 units at a price of $0.75 USD per unit is now complete.
Earlier today the Company announced that they have completed a previously announced Private Placement funding. If we read this release correct it means that they have raised an additional US $1.125 million for operating purposes at only a slight discount from the current share price. Hopefully we won't have to wait to long for the next announcement as it appears things are heating up.

This past week SCNWF broke through and then closed above the Pivot Point of $.78 signaling a precursor of strong move. With the 52 high marking secondary resistance at $1.45 and support at $.66, we are issuing a Trading Alert on SCNWF with a price target of $1.45 per share, or a potential gain of almost 100% from Thursday's close
About Stream: Stream is a broadband cable company and offers Cable TV, high-speed Internet and VoIP services in Poland. With 55,000 subscribers currently, Stream is one of the principal consolidators of the cable TV sector and is a leading Cable TV operator and Internet provider in the densely populated markets of Southern Poland. Established in 2000, Stream has offices in Krakow and Vancouver.
The latter point is pivotal. Stanislaw Lis, President of Stream Communications since 1994, has a resume that spans both sides of the Atlantic and includes an impressive business record in Poland. In addition to working with numerous public companies, he founded International UNP Holdings, an investment company engaged in the business of buying and financing Polish state-owned companies.

Stream Director Robert Wussler brings a wealth of world-class cable television experience as President and CEO of Ted Turner Pictures and Ted Turner Documentaries. Fellow director Adam Wójcik was a former executive with Polska Telewizja Kablowa S.A; and Stream VP- Corporate Affairs Iwona Kozak is the former publisher of the economics magazine “Partners with Poland” and an advisor to Canadian companies regarding investments in Polish markets.
More About The Man " Robert J. Wussler" A Legend In Commercial - Cable, Satellite And Television
 

In 21 years at CBS And Much, Much More:

Executive Producer of CBS News-overseeing special projects including election coverage and man-on-the-moon
President of CBS Sports he Invented the genre of pre-game telecasts with "NFL Today,"
President of the CBS Television Network at a record-setting young age.
In 1980 Mr. Wussler joined Ted Turner as a co-founder of CNN where he enfranchise Turner Broadcasting as a major power by acquiring high-profile sports and entertainment properties including the NBA, the NFL, the Goodwill Games, and exclusive movie packages.
From 1989 to 1992, Wussler was President and CEO of COMSAT Video Enterprises, which grew rapidly in the field of on-demand video in the hotel industry.
For almost 10 years he oversaw the growth of SuperStation TBS as its President.
1988, he was instrumental in the founding of TNT.
Presently, Mr. Wussler is President and Chief Executive Officer of Ted Turner Pictures
Wussler has served as Chairman of the Board of the National Academy of Television Arts and Sciences for three terms, in addition to serving as Treasurer to the Board of Governors of the National Cable Television Association and serving on the Board of Governors of the National Academy of Cable Programming. He is a past member of the Board of Directors of the Cousteau Society and the Washington Performing Arts Society. Mr. Wussler presently serves on the Boards of Directors of the following companies: Transaction Information Systems; Visual Data Corporation (NASDAQ: VDAT); Streamedia Communications (NASDAQ: SMIL); and MDI Entertainment (NASDAQ: LTRY).
Mr. Wussler has received four national Emmy awards, in addition to the prestigious NATAS Trustees Award,

Why is the former youngest President of the CBS Television Network and Co-Founder of CNN a Director at Stream Communications?
Robert J. Wussler is a man that knows a thing or two about the communications business. Throughout his career Mr. Wussler has revolutionized the communications industry and was responsible for groundbreaking changes in news production and presentation at CBS News, CNN, TNT, CBS Sports and WTBS Sports. During his twenty-one-year career at CBS Mr. Wussler progressed through the Company to become President of both CBS Sports and the CBS Television Network. In 1980 Mr. Wussler joined Ted Turner as a co-founder of CNN, TNT, and WTBS and was Senior Executive Vice President of Turner Broadcasting.

“We are very excited about the addition of Mr. Wussler to our board as he brings extensive experience in the creation of innovative programming, managing the distribution of entertainment and information to millions of households, and a profound understanding of technologies including cable television, satellite communications and interactive media”, said Stan Lis, President & CEO Stream Communications.

Mr. Wussler is a man that has vision, a man with the skills and mindset to actualize a company plan, to help take a company to that next level. He also is a man that sees a strong future in Stream Communications. So much so that he joined Stream’s board of Directors to help shape and guide the company as it strengthens and firms its position as a leading Communications and Media force emerging in Poland’s rapidly exploding economy. I don’t think that Mr. Wussler is a man that comes aboard a company whose stock will stay trading for around $1. He must think Stream and its stock is preparing to explode!
The company continues to aggressively pursue growth opportunities in the cable TV market. As Stream has previously pointed out, the fragmented cable television market in Poland (with 500 small operators servicing regional areas), makes it a suitable location for growth through acquisition.

Furthermore, the Internet side of the equation gives Stream greater potential for profits by tapping into obvious synergies. Additional revenues with relatively low overhead can be achieved through bundling Internet services with cable via existing infrastructure.

Earlier this fall, the company announced a key addition to its stable: a cable television network in Southern Poland with 4,200 subscribers, which itself generated roughly $350,000 in 2004 alone. Another 6,000 homes are scheduled to be wired in the network’s neighborhood. More importantly, it means that Stream has now consolidated a total of 14 networks, reaching a “critical mass” of 55,000 subscribers.

“We are now in a position to continue increasing our market share by consolidating both small and large cable networks,” said Stream President Stan Lis at the time of the deal.

The move solidified Stream’s place as one of the top 10 companies providing broadband cable television and high-speed-internet access in the Southern Poland region. The company’s strengthening position in Poland, and its already existing connections, means that it is in an excellent position to continue acquiring cable and Internet networks in the country.

Investors with an eye on Europe’s emerging markets and international growth in the cable TV and broadband/Internet sectors should take note.
The Polish economy, with its burgeoning trade and investment connections, plus a growing consumer culture, is one of the strong performers on the global stage, and is expected to grow in the years to come. In the year 2000 alone, there was $10.6 billion of foreign direct investment (FDI) into the country.

A report published earlier this fall by the European Commission (EC) forecasted that Poland's GDP will grow 4.9 percent this year and 4.5 percent in 2006 -- on top of growth of 5.8 percent for 2004. That would make it one of the fastest growing EU economies.

During a recent visit to Warsaw, International Monetary Fund president Rodrigo de Rato echoed the sentiments of that forecast. "I perceive the growth of the Polish economy as being strong,” he said. “Inflation, despite its recent upsurge, should not pose a threat to economic stability. The external position is also strong.”

Poland still faces the challenges of an emerging market in a transitional phase, but as it moves closer to integration with the EU and global economies, the benefits of reform and restructuring are paying off huge dividends.

According to the country’s Ministry of Foreign Affairs, the difficult changes made in the 1990s were pivotal to Poland’s positioning today. “As a result the Polish economy stabilized and opened up to the world. Its banking system and monetary credit policy were reformed... Privatization, free market principles and a radical reduction of the budget deficit started bringing results.”
Stream is in an enviable position to capture this ground floor opportunity in Poland. Well funded and with a marketing plan in place to actively sign up new cable and internet subscribers, the company is forecasting excellent sales growth.

Currently Stream has a solid base of 53,000 cable subscribers using their services but marketing plans are in place to increase that number to over 200,000 by the end of 2005. Over the same time frame, Stream plans to capture the growing internet business in Poland by adding over 50,000 subscribers over 2005 with a targeted 6,000 new subscribers signing up for the Voice Over Internet Protocol.

The bottom line is, if these targets are met, revenue growth quarter over quarter will rise substantially.


Over the next four quarters the company foresees revenues of approximately $1.5 million, $2.3 million, $6.6 million, and over $7.4 million for the period ending December 31, 2005.

That’s very good sales growth and it’s attributable to having the right products at the right time at the right place. Right now is the time and place to reap the opportunity which Poland presents in this market.

Going forward over the next two years the company projects the market will expand rapidly. If Stream successfully executes their business plan they could see triple digit sales growth this year and over 2006. According the company’s figures, revenues could potentially hit over $17.7 million over this year and grow by over 110% in 2006 representing over $37 million in sales thus giving early investors the potential for rapid share appreciation.

We strongly believe that Stream Communications is strategically positioned to take advantage of a very rare opportunity that is unfolding in Eastern Europe. The timing is right, the Polish economy is beginning to swell, the management is world-class and the execution on a well thought out and strategic business plan is about to unfold.
 


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