As a friend of NBT, you know we've been watching and waiting for the 4G Broadband Mobility revolution. Now that it's finally upon us, I don't want ANYONE to be left behind when this sector -- and the best stocks within it...
How to Play the 4G Broadband Mobility Revolution
We get lots of questions here about VelaTel/ChinaTel’s 4G-LTE emerging-markets network strategy, particularly on days when there’s no news to report. But even though there are times when there are no major headlines to report, the company is working hard on fulfilling all the plans and promises it has made.
So today, I want to update you on everything I know, and to assure you that I very much like what I’m seeing. In fact, I have full confidence that the stock is going to 60 cents by year-end. Here’s why.
A Built-in, Broadband-Hungry Market
You have to think of VelaTel as the 40%-60% LOWER-cost 4G-LTE broadband mobility provider than the competition in the emerging markets. That user base starts with one BILLION mobile-broadband-STARVED Internet users in China
So not only are they creating their own marketplace, but they also have the price advantage. VelaTel’s 4G-LTE mobile data network will be the LOWEST-cost broadband mobility service plan like the Virgin Mobile data plan in developed markets.
But the BIG difference is that UNLIKE Virgin Mobile (which leases mobile wireless data capacity from a local carrier)...
VelaTel owns at least 50% of the network, too!
THAT is the killer value proposition for shareholder and enterprise value.
Blazing Past the Competition
There’s no two ways about it. VelaTel is THE lowest-cost broadband mobility service to 1.5 BILLION broadband-hungry people worldwide ... that is the business strategy, and it’s a sustainable one.
AND with TD-LTE as their standard ... ANY 4G handset or terminal (dongle, MiFi card, tablet, PMCIA card) on ANY 4G spectrum chipset ... 2Ghz to 3.7Ghz ... will work on their network.
As the world converts to UNIVERSAL handsets on TD-LTE standard ... VelaTel will be in front of 1.5 billion emerging-market consumers with a 20-times-faster data plan than 3G at a 40%-60% LOWER price...
Stealing MILLIONS of data-starved customers from incumbent plans 40%-60% HIGHER in cost and 20X SLOWER...
VelaTel now forecasts five networks in operation by year-end. That’s in addition to three mobile broadband networks in operation in the next 15-45 DAYS (Peru and 2 Eastern European national networks they are acquiring).
Time to ‘Back Up the Truck’
Want some even-bigger news? With the addition of 2 additional networks in China in operation in China cities with 30 million consumers...
We now forecast VelaTel will be cash-flow-POSITIVE in 2012 as their equipment and financial partner ZTE Corp. (the fifth-largest telco equipment and sixth-largest handset manufacturer) does NOT start charging interest on their 85% vendor financing for 12 MONTHS ... then Libor +2.5% interest only for five years...
For all the reasons above, CHTL is NBT's No. 1 pick for a direct play on the global broadband mobility wave ... and we see at least 10 major catalyst events coming into the stock over next six months...
Our 2011 end-of-year target is 60 cents; today’s price is 12 cents. There’s too much opportunity in store and progress ahead for it to remain at these levels over the intermediate term.
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