Aug 27, 2010 10:04 AM PDT
Trends, Charts and Exclusive Opinion
Three SmallCaps Deal with Capital in Very Different Ways
XFN: Co Sells its 69% Stake Instead of Diluting Shares
CPF: Opens Door with Reverse Split Options; But Will it?
MTE: Delhi and Mumbai Telecomm has Some Clout
First up this morning we have Xfone Inc., (XFN) http://www.xfone.com/ Currently trading in the $1.35 range on a 3-Month average daily trading volume of nearly 100k. XFN has a 52-week high of $1.88 set on 03-22-10. XFN is in the data telecommunications services for residential and business customers in the United States, the United Kingdom, and Israel. XFN has entered into a Material Agreement (filed in an 8-K on 05-14) with Newhall Limited, the Company's 26% minority interest partner in XFN’s Israeli-based subsidiary, Xfone 018 Ltd., and Marathon Telecom Ltd., for the sale by XFN’s 69% interest in Xfone 018, and the sale by Newhall of its 26% interest in Xfone 018 to Marathon Telecom, the owner of the remaining 5% interests in Xfone 018, Margo Pharma Ltd., became a party to the Contract for the sale of its interests in Xfone 018 to Marathon Telecom. Selling assets that are ‘non-producers’ or that have become obsolete to business strategies is a better way to raise money than diluting the value of shareholders by a stock offering. Good management. More than a half a buck off its high, XFN is a short-term (6 Mo) ‘Buy’ consideration for me.
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Next up this morning we have Central Pacific Financial Corporation (CPF) http://www.centralpacificbank.com/ currently trading in the $2.13 range. CPF is a ‘Watch Closely’ stock for me. CPF provides commercial banking services to businesses, professionals, and individuals in Hawaii. As of March 16, 2010, CPF operated 37 branches and approximately 100 automated teller machines in Hawaii. In late May CPF elected four nominees as directors, hired on KPMG as accountants, and developed an amendment to the Company's Restated Articles of Incorporation to effect a reverse stock split of the Company's Common Stock by a ratio of not less than one-for-five and not more than one-for-twenty at any time prior to April 30, 2011, with the exact ratio to be set at a whole number within this range as determined by the Board of Directors in its sole discretion. So now the Co has the options, but will it do between now and April ’11?
Finally this morning we have Mahanagar Telephone Nigram Limited (MTE) http://www.mtnl.in/ currently trading in the $2.68 range on a 3-Month average daily trading volume of nearly 100k shares. MTE has a 52-week high of $4.70 set on 07-27-09 with current trailing twelve month revenues of $757+ million. MTE provides telecommunications services in Delhi and Mumbai, India. As of March 31, 2009, the company had approximately 41.77 lakh (100k) cellular subscribers; 184,000 CDMA mobile connections and 122,000 fixed wireless connections; 25,600 ISDN subscribers; 5.71 lakh (100k) broadband customers; 1.43 million Internet subscribers; and 53,000 leased line subscribers. I just came across this company and they really have a captive niche. Conisering 1) the stock price –$2 off its high- and 2) the number of customers they serve in so many capacities, MTE is definitely worth some due diligence. MTE revenues drive the Co and it could be a find.
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