Praesens #2
Hey “praesens”,
You asked a good, tough question:
“Are they doing business successfully?”
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IMO that is a difficult question to answer with the
“restricted” (see previous posts) information we have been provided to date and there is a lot of information we have not been provided (i.e. Mexico, Jamaica). The past Letters to Shareholders have painted a pretty “rosy” picture of the future for UtibaAmericas while the impression I got about the IMS security side of things was that management wasn’t even sure what to do about it – no revenues reported to date – do we continue fishing or cut bait? Any chance now that we might start hearing from Henryk about all kinds of security contracts signed but not able to disclose. That would be convenient timing!
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Keep in mind that we only see Consolidated Financial Statements in which all the revenues shown have come from UtibaAmericas whereas the costs/expenses are from all the subsidiaries/joint ventures/projects that ALYI is involved in. The details of the UtibaAmericas joint venture are buried in the consolidated figures – pretty hard for shareholders to make an informed decision without that detailed information.
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In regards to continuing losses keep in mind that
UtibaAmericas was only established in 2010, yes growth and revenues have been slow to develop but that is not restricted to Utiba Americas –
YellowPepper (2004) who just lost Digicel Haiti to UtibaAmericas and possibly many others we may not know about
received an additional $15 Mil in funding in August for a total of $ 30 Mil.
Remember YellowPepper was the company that was interested in the Utiba platform about two years ago and eventually settled for the
Accumulate platform about a year ago! They appear to be starting a “re-build” in Columbia.
The ALYI accumulated deficit at December 31, 2009 was $6,334,660 (more baggage) and was $17,374,623 at September 30, 2013. So ALYI has essentially committed in ball park figures $ 11 Mil net so far to the development of UtibaAmericas and IMS – would be nice to know the split. I repeat only UtibaAmericas is providing revenue.
Monitise who has VISA as an investor has experienced great revenue growth but also has continued to incur significant losses!
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In spite of the “adult baggage” the company is carrying and the IMS subsidiary that so far has only been a cost centre I do believe that UtibaAmericas has been successful in the LAC region. I also believe that the potential for continued growth and expansion in the LAC region is huge, just slow to develop.
I am basing this on:
1. information on projects we have been told about/have been implemented/billed to date
2. information on projects that have been described in general terms but no specifics provided
3. information on projects we haven’t been told about in detail – read my next two posts
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If you are going to “sell the farm” it’s good to know the
real value of the farm before entertaining offers!
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“Living in the sunlight”
Always DYODD
DKM
