10/22/2012
NBT Research Report

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
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  • WEEKLY BRIEFINGS ON EMERGING GROWTH COMPANIES
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VELA Game Plan July 2012-2015 Is Execute, Execute, Execute

VelaTel Global Communications, Inc. (VELAD ticker symbol remains till mid-August) has reversed split its stock 100-1...which is very symbolic of its entire re-boot as a company.

They have published a 70+ slide "executive summary" of their current operations including VERY extensive and conservative pro-forma projections of operations, revenues and EBITDA margins. Here is the full report

With over 10,000 4G subscribers in its Peru and Balkan 4G networks...at industry norm per-subscriber valuation of $10M (@$1k per sub) already exceeds their $7M market cap.

The value of their 4G spectrum China, Balkans and Peru and 34km fiber optic network backbone in China adds another @$2 in asset value.

We will sit down with CEO George Alvarez next week to go over this plan and the bigger strategy, business plan and most important financial plan and report to NBT subscribers shortly thereafter.

But VELA shareholders...take some time to familiarize yourself with this plan. Potential subscribers...take a read and then we will go over our report on a webinar or conference call after we publish.

The company is now ALL about execution...things will NOT go 100% to plan as that is the nature of business (especially in emerging countries).

But we are still confident the light at the end of the 2015 rainbow is still shining...and with 100,000 4G subscribers around the emerging economies world, a return to $200,000,000 market cap is inevitable.

Disclaimer: NBT and affiliates own/control over 200,000 shares of VELA

Join the Conversation: Let's Talk About It, Baby!

VELA

How's the report coming re: your converstation with the C.E.O?

Thanks

VelaTel....authorized shares multliplied by fifty...

I'm surprised how NBT keeps on touting VELA. It is not clear whether NBT still is getting paid for promoting VELA. I think not, but Tobin and friends must have lost millions already, and are not saying goodbye to their losses just yet....

The next steps should make them realize what is about to happen:

After the recent reversed split of 100 to 1, VELA's next step is to increase the number of authorized shares from 22MM to 1.1Bn.

Execs, staff and suppliers will be paid by issueing more shares with a value of next to nothing.

Tobin's estimate of 200mm marketcap for the company at 1.000$ per subscriber is not realistic. Value comes from a multiplier of accounted EBITDA.

And with 1.1Bn new shares the future per share value will remain at the level of US$ct's.

It is hard to see how VELA shareholders can get a return on the capital they provide.

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