VELA best strength from prior newsletter mentions....Momentum accelerating.10:44am EST 0.0619 0.0059 10.54% 354,450 ...Secured 12mil funding...Also reminding VELA ran to .27 back in Dec.

Recently @ www.greenbackers.com we reported on VELA funding yesterday sparking a pickup......8k notice may be bland and not seem like much, but confirms on the 12mil funding pr back in Dec which sparked the runup to .27.....Recall the conversion price of that funding was 20cents a share......

 

Under the Ironridge funding contract, VelaTel will sell Ironridge preferred shares valued at $10,000 per share, which is convertible into VelaTel’s publicly traded Series A Common Stock at a fixed conversion price of $0.20 per share. 

 

 

 

Many seem to feel the stock is once again attractive back at .05/.06

 

 

Disptie gains think the turnaround will continue into Feb, especially with the pickups we're seeing in China stocks in general....For the moment focus on dips under .06...

 

VELA

10:44am EST

0.0619

0.0059

10.54%

354,450

 

 

Recall Last month the stock ran to .27 following that 12mil Ironbridge funding ...and on the major acquisition of China Motion last month @ an extremely advantageous price....NBT expanded in interesting detail on that acquisition: 

 

...The acquisition of China Motion Inc. from its publicly traded (HK Exchange) parent at an extremely advantageous price. I met with CEO George Alvarez in LA last week to discuss why the acquisition is so important and how they planned on paying the $5.5 million price is cash.

I’ll post a full report next week, but the short version is this:

1)      China Motion’s MVNO (Mobile Virtual Network Operator) business and longtime relationship with China Mobile and China Telecom is the PERFECT fit and structure for building out the CASC and NGSN 4G TD-LTE networks. China Motion sells SIM chips with numbers that work in BOTH Hong Kong and China...and just Hong Kong and China. For the CASC/NGSN projects that means VELA can use the MVNO structure which is OTT (over the top) of China Mobile and China Telecom’s 4G-LTE network to immediately have a 4G network up and running in China with very little CAPEX investment.

2)      The China Motion MVNO network will do $18-$20 million in revenue next year with organic growth, that is BEFORE the CASC and NGSN network revenues are added to the revenue ledger. Add in VELA operations in Peru and Croatia/Montenegro plus a >$15 million in purchase orders for Cell Tower fuel cell backup systems from their subsidiary VTech...and VELA is a $40-$50M revenue operation with REAL EBITDA cash flow

3)      How does VELA pay for the acquisition? Mum is the word from Mr. Alvarez...but clearly they would NOT have entered into such an acquisition (which is already approved by the board of the seller) WITHOUT a very clear cut plan to pay for it.

4)      The SINO Crossing fiber deal in China NOW looks like it will be a big winner as well. The network would serve as the necessary data “back haul” network for China Motion/CASC/NGSN. The back haul revenues for SINO Crossing would be at least 25% of the total network revenue for China Motion/CASC/NGSN.

5)      China Motion has a very big Shanghai MVNO network also. One can assume VELA will go after that business as well.

6)      As mentioned, the VTECH fuel cell business looks to break out any day. With partner ZTE, the VTEC fuel cell design has been approved by the Chinese government AND China Mobile/China Telecom; the Chinese Ministry MIIT has been quoted in the state news agencies as “mandating” long life power back-up for the nation’s 1 million+ cell towers. We expect the first big >$10M purchase agreement any day.

for rest of article goto http://www.nbtequitiesresearch.com/report/velatel-communications-now-up-550-from-september-lowsbut-more-to-come

 

 

 

 

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