Eyeballing VELA..strong, steady turnaround last 3days / up 33% that could ignite....Bullish article out today provides exceptional forecast..

Focus:  VELA

VELA is steadily gaining on recent/ongoing accumulation near .03 and recent, very bullish news.

In light of..including excerpts from an earlier newsletter sent to subscribers @ www.greenbackers.com mainly @ 3/25 7:21am mst

Well the turnaround that started latter last week with VELA expecting to be fueled further on new rpt.....Stock has been a letdown in March, but with increasing amount of bullish news, including the closing of acquisition earlier in month, this stands a good chance to channel back to upper end of intermediate term range .06 with a little patience......Lets not forget the explosion to .26 back in Dec when news first broke about the acquisition.......At this point going forward would have to say debate under .04 (vs under .03)........


New VELA rpt....Recall turnaround last thurs/fri....


Regarding the news: 




Investor Alert: VelaTel Global Communications: After $300 Million Education…Redemption?


As many of your know NBT (and in my past life with ChangeWave Research) has followed and endorsed VelaTel Global Communications (VELA) as an undervalued pure play on the global move to 4G-LTE networks in emerging markets.


For much of this time VELA has been a work in progress…mostly with NO progress and lots of market capital destruction. Cumulatively, VELA has spent about $300 million to come up with a

· Business strategy that works

· Strategic acquisitions that are in fact strategic and accretive

· Positive cash flow positive operations

· 20-50% CAGR for its various 4G-LTE operations


Based on my lengthy interview and meeting with CEO George Alvarez, I can report the following:


1. The NOW have a business strategy that works—they are now an experienced and profitable Mobile Virtual Network operator (MVNO) that brings highly competitive 4G MVNO technology and operating success (via their China Motion acquisition) to both Honk Kong, Taiwan and the PRC (China). MVNO is a fancy term for buying bulk wholesale minutes from incumbent mobile carriers (like Virgin Mobile, Boost Mobile in the US) and reselling them in various consumer and business plans at a retail mark-up.



The MVNO strategy WORKS—it’s much less capital intensive and NOW they have the marketing and in-country marketing operation they can replicate in OTHER regions. For instance…NOW VELA will take their MVNO operating and marketing skills and create B2B and B2C MVNOs for their two 4G network development deals with $billion+ Chinese State Owned Enterprises (SOEs) NGSN and China Aerospace. THOSE MVNOs will be profitable and accretive to VELA from the get go—with little capital required.



In their old plan they would be spending tens of $millions on network equipment with ZTE…and cash flow would be years away.



MOST important—China Motion’s MVNO license is a country wide concession—most MVNOs are a carrier concession that puts the MVNO at mercy of the carrier. As a country concession, China Mobile is the only non-PRC carrier that has the right to negotiate with all the major carriers in Hong Kong/PRC and Taiwan—and issue dual number SIM cards to their users so they have both a Hong Kong and PRC mobile number.



With the PRC announcing 6 new MVNO licenses in order to bring real competition into the mobile wireless space, China Motion is in perfect position to win ONE of these national MVNO concessions. They have proven and tested MVNO customer service/back office systems and mobile carrier relations ALREADY in China…they have 10 years of successful MVNO operations and the unique ability to issue mobile numbers for users in both China and Hong Kong…a MASSIVE cost savings for business people who travel.



In short…the China Motion acquisition turns the VELA stock from an already MASSIVELY undervalue stock (based on normal multiples for MVNOs for cash flow/revenues or simply subscribers) to a stock with ....

For rest of the report click: http://www.nbtequitiesresearch.com/report/investor-alert-velatel-global-communications-after-300-million-educationredemption

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Posted by: greenbackers - 5:28 PM | Updated: Monday, March 25, 2013 6:31 PM