Scattered Comments re AIQ.......I've owned EWD for nearly 2 years. Not as savvy on the politics and business end of the Co. as most, as for me it's been on the backburner since the slide, as I've been focussing on other favorite stocks. Have always kept up with the boards and co. highlites, but only skin deep. Always realized that most here wanted the CEO gone. And that marketing product was indirect and slack, and that the mgm't was resting on laurels and the 40 mill in bank - while the share price slid along the bottom and nobody seemed to care.
So - to my superficial understanding of this new development - I somehow feel very good about it. Am I misguided?
1) we are now tied to a co that has 3 prominent founding parent co's as major shareholders.
2) the CEO of AirIQ will be our new CEO - and EWD's will be COB
3) we now have major marketing from all angles. direct and indirect. AirIQ is signing up 1000 subscribers a month? Presently has 14,000!
4) look at AirIQ's client list. Pretty impressive.
5) sounds like really well matched synergies and chemistry in this marriage.
6) AIQ seems to be private and not listed.
7) standard subscriber signup is for 5 years! Great recurring revenues!
8) 1.58 mill revs last year. Thats 125% year over year increase from previous year, and represents 8.5 mill underlying in contracts.
9) "AirIQ, based in Pickering Ontario, was formed in 1997 as a partnership among three high tech leaders: Lenbrook Corporation, Bell Mobility Inc. and Veridian Engineering Inc. Lenbrook, controlled by the Simmonds family, is a highly successful electronics company that created the wireless service provider, "Clearnet", which was sold recently to Telus Corporation in a multi- billion dollar transaction. Bell Mobility is a division of Bell Canada (BCE: TSE), Canada's largest telecommunications company, and Veridian is a leading US defense contractor and transportation technology developer. AirIQ's other principal shareholder is Working Ventures Fund Inc., one of Canada's leading venture capital groups"
Questions:
1) it'll all come out in the wash - but, anyone with business savvy completely understand the Transaction Details? Will this be 1 for 1 when the dust settles? If not, which way and how much?
2) Who's buying who? Anybody see this as a reverse merger? Them taking over us and getting a listing and 40 mill and a synergistic co with a product but no sales?
3) too much happening all at once here. Coincidence? I doubt it. PPI has been buying like crazy lately and just got over 10% of the shares in their pocket. First thing they do is blast mgm't and call for a mtg and a shakeup! I personally was thrilled to read it. FINALLY - SOMEBODY doing SOMETHING!!
This almost simultaneous with the AIQ news!
Do you think the PPI buying recently - which no doubt sent a clear message to EWD as to PPI's intentions - forced EWD's hand, and made them quickly jump at the AIQ deal which they were pondering - to avoid hostile action from PPI?
We'll see how the market world reacts tomorrow and in the near future. To this relative novice, however, it SEEMS like a winner in the making.