RE:RE:Is anyone out there!!??I think that it is way too simplistic to hold your views.
While the Company does have operations in providing communications networks in Canada, the whole thesis for owning Terago lies elsewhere.
It is the spectrum licenses which hold most, if not all, of the value in the Company. It is the licenses which allowed the Company to gain access to funds to sustain its operations. Unfortunately, the Company managers do NOT control when they will be able to extract maximum value for these assets. The governnment seems to take forever with endless consultations about the future of 24GHz and 38 GHz bands.
I think it is a race against time. Will Terago be able to extract value from these licenses before it runs out of funds. That is the crux of the matter. In the last quarter their long term debt reached $12mm Canadian (adding more and more prohibitive financial costs) on the $20mm USD credit agreement. I don't think that any operational improvements will work in the short term or be sufficient.
Something has to give, in my view, within the next 6 months before they run out of cash. Their Smart Growth Strategy might not get them there in time. Will they be able to sell the Company, without being able to realize full value?
Any other (serious) thoughts out there??