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[sharechat] spectrum resources


From: rickpage@zfree.co.nz
Date: Thu, 22 Feb 2001 22:39:48 +1200


SPE agm December 2000. Present : Levison,Carr, Stiasny,Patterson. Stiasny 
reappointed
director.Tytus holdings (3rd largest shareholder) very satisfied with the 
personel
and competence of the board but not happy with the issuing of 9Million 6c 
options
to directors when SPE is second lowest shareprice on the NZSE! The meeting 
agreed
with this sentiment and directors forfieted their proposal for options. 20mill. 
options
will be offered to incentivise key wel tech staff, of which 3 key new ones have 
been
hired.
Carr said spe currently has $6m in cash ( from rights issue and Lucent sale of 
pv2
source code) and looking at 2 furthur aquistions before june 01. Levison won't 
estimate
june 01 figures, Carr said SPE would at the very worst break even.
The Wel Tech Pv2 billing system is sold to overseas power utilities for $300,000
- 600,000US per time (effectively making SPE an exporter) and utilities pay 15% 
annually
of this figure to maintain the software system. We are told that newly 
degregualating
U.S. power utilities will need the billing distinctions the pv2 provides and 
that
U.S. power co's spend $40billion on software. As I understand it, SPE reps will 
also
sell Peace end user software (for a commission) incorpored with PV2 software.
The first PV2 U.S.sale to Warren Buffet's power co will be used as a reference 
and
example for other U.S. power co's.
Gavin Mitchell of wel tech said spe now has sold Pv2 versions to 70 of 150 
deregulated
Ontario, Canada, power companies ( many of the smaller companies however, buy 
the
software together). 
Pv2 is often sold in part functional mode for between $50,000- $200,000US, i.e. 
40%
of its potential effectiveness and WEL charges more to install the extra modular
capacity at a later date, so there are maybe 6 different levels of installation 
functionality
that can be adapted and added to, at a price, plus the 15% p.a. ongoing 
royalties.

Wel tech is working on a next generation Pv2, and also looking at adaptations of
the software to other utility applications.
Lucent Technologies analysed PV2 for 7 months before deciding to buy the source 
code,
and it has saved them 18 months development time. They will pay royalties to SPE
for using the source code in Telco billing software they are developing with 
Oracle.
Rob Levison doubts that Lucent with their current problems, will take up their 
option
to buy 20% of wel tech.
All spe directors took up the rights issue, Levinson owns 5 million shares, Carr
at least 30 million, Stiassny and Patterson appear to have much less faith.
Why are this company's shares trading at 2.8c, when it has $6 million in cash 
and
a profitable business? Because we never any news? Spe web site is slack.
As a holder of SPE, I have had occasions of doubt! But on the upside WEl Tech is
an already profitable company and Pv2 a good product, the board is strong and 
the
newly deregulating U.S. market offers real opportunity for spe not only to make 
sales,
but to build a long term ongoing royalty revenue stream. At 2.8c , I'm looking 
at
buying more.
Half yearly earnings announcement due before end of March. 



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