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arsenal23

234 Posts.

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25/02/19

16:49

Post #: 37560123
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Originally posted by aniesbaswedan: ↑

The fact of the matter is that the company can make claims about anything and I suppose they are free to do so. I believe, the onus is on investors to try and decipher those claims and then decide whether they want to believe in them or not. So let us dissect their revenue claims:

"Examples of announcements where financial terms and revenues have been disclosed are set out below:
Sat Space Africa announcement dated 24/8/2017: 10M-35M USD per annum
Beeptool announcement dated 21/12/2017: 6M USD per annum
GlobalSat announcement dated 28/11/2018: 5M USD for the first 2 years.
The potential aggregated revenues from the above are 21M-46M USD per annum and are based on the specific terms of the agreements."

First up, SSA announcement:

https://www.investi.com.au/api/announcements/sas/0356b3bf-056.pdf

Please read the announcement yourself but for the purpose of my argument, here are some quotes from the announcement:

"...Once the full Sky and Space Global Equatorial Constellation is deployed, potential revenues from customers via Sat- Space Africa will be between US$10 million to US$35 million annually..."

"...Having secured new customers, SSA have
forecast revenue of approximately US$500,000 per annum from the 3 Diamonds and there is
potential for this to increase up to US$35 million per annum once the Company’s full equatorial constellation is launched from 2018, and fully operational by 2020..."

So it seems to me that the number is a part of forecasts and potentials and not certainty. I think we all know for sure now that there has not been any revenue from the 3Ds so that is a FAIL. The schedule has also been a FAIL considering that no pearl has been launched in 2018 and fully operational by 2020 is very unlikely at this point. In my opinion, the number has always been very much uncertain just like how 3DS revenue potential has been:

https://www.investi.com.au/api/announcements/sas/01841770.pdf

So if the numbers for the 3Ds revenue are unreliable then, my question is, how reliable is the rest of the agreements?

"Sky and Space Global is working towards building a constellation of 200 nano-satellites to cover the equatorial belt by 2020. The quantum of bandwidth generated by the full constellation has the potential to generate gross revenues of circa US$600 million to US$1 billion per annum."

I personally wonder where SAS got the figure of "US$600 million to US$1 billion per annum" from? How likely is it that this revenue would be reached considering that some investors have actually taken those figures onboard in their decision making?

From what I have observed, having been to the SSA website recently, in the news section, there seems to be lack of activity since March 2017 and when I click on any of the news, there seems to be no detail provided.

Anyway,

Next is the Beeptool announcement:

https://www.investi.com.au/api/announcements/sas/56d2b52b-71e.pdf

My first concern is on the ability of Beeptool to actually pay, especially based on this website, in relation to beeptool OYI-1:

https://m.guardian.ng/technology/yo...t-smartphone-invented-for-low-income-earners/

"...stage one had to do with technical development which includes design, testing and prototype manufacture of a basic affordable smartphone, adding that the second stage was to raise public awareness and funds to manufacture the first batch of 3,000 units."

...To me, it seems that Beeptool doesn't even have the funds to produce 3000 phones. I assume the phones would have been really cheap, perhaps around the ballpark of max 40 USD. I know there are smartphones from India that is only $4 US, so if only 3000 of them then surely Beeptool could have funded $12k worth of phones. I seem to remember that Beeptool did some fundraising through paypal and they received some 500 dollars or so. If they are struggling to fund some relatively cheap project then to me their capacity to pay is really uncertain.

To me there also seems to be really tiny digital footprints in relation to beeptool. Relatively small number of downloads in googleplay store and almost none in apple app store. The material terms outlined in the announcement, in my view, also seems to mundane form of normal commercial transaction, obligation free, in that if you want to buy then that is great, put down the deposit and if not then that is fine too, cancel anytime, if not then just let the agreement expire with no consequences.

Anyway,

Next is the global sat agreement:

https://www.investi.com.au/api/announcements/sas/fd754ffe-a6b.pdf

Please read the announcement yourself but for the purpose of my argument, here are some quotes from the announcement:

"...Conservative estimate of US$5 million for the first 2 years, with significant potential to
expand the service offering to GlobalSat from the SAS network on further deployment
of the full constellation during 2019/20..."

So again nothing but estimates...

"Under the terms of the agreement, SAS and GlobalSat have established non-exclusive commercial terms for GlobalSat to distribute,sell, market and promote SAS’ ground-breaking narrow-band connectivity solutions and respective products to its customers, affiliates, resellers, subscribers and end users within Latin America."

It seems to me, so if there is no product to sell then global-sat is not obliged to do anything. In my view, this agreement is completely obligation free.

"Notwithstanding the fact that the agreement is binding, the parties have agreed to negotiate and execute a more definitive agreement within 60 days, on terms consistent with the agreement signed."

What is the progress on this???

In my opinion, the revenue figure claim seems to be silly in nature...

Expand

Your posting history on SAS, AVZ, RAP, and others is very similar. You seem like an angel that was sent from above to protect all shareholders. What do you get out of all this good research you do to warn shareholders of buying into these companies? There are not many people on this planet that give up a lot of their time for free, to help others with financial advice. Hmmmmm very suspect
SAS Price at posting: 2.9¢ Sentiment: None Disclosure: Held
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