RE:funnyHey oceaneleven, I did a fair bit of due diligence on NUR after hearing about it a couple of weeks ago. So waded through all of the debt forbearance stuff. My conclusion is that they have a unique line of telecom products that for a couple of years they were on the cusp of launching, only to see delay after delay. And this was after years of R&D where the company's principles invested millions of dollars of their own money into developing the tech.
The debt forebearance was allowed them a second chance to deliver, and now that Orange has signed these contracts, they have a year to prove out the revenue concept around this tech, as they are currently doing in Ghana, Cameroon, and now the DRC. I believe enough of the debenture holders saw the potential and were willing to wait another year before exercising their rights. The alternative was to break up the company and get not much of anything.
Certainly, this is not without risks. But I think the market has yet to recognize three important points with regards to NUR:
1) The governments of countries they are building in are desperate to connect their rural communities to the internet, as it has big impacts on GDP. For this reason, and the fact that Orange has guaranteed monthly minimum fees, NUR should be able to find funding from African banks at very good terms. This will help immensely with capital build-out and limit dilution. Even after the most recent news, they only have 24 million fully diluted. 2) Their new revenue models are along the lines of build-own-operate with solid recurring revenues, and is scalable across many developing countries where affordable telecom infrastructure may be needed. 3) The DRC deal uses numbers that are extremely conservative -- they assume 20% utilization rates in these rural communities, whereas recent numbers in Ghana show that true utilization could be closer to 50% in many cases. So I think the numbers in the press release have some tremendous upside to them. In any event, that is why I bought in around $2.60 and may add if it drops below $2.00 again.
oceaneleven wrote: That Orange would team up with Nuran owned Nuraq company that went insolvent like 6 months ago and then foress 33 staff /board members and then does a share consolidation 1:25 and then gets handed a contract by Orange who has like 2 billion shares o/s to install 3g in a place that is very complicated and double expensive to put in...