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Re: [sharechat] Cris' Current Watch List & SKG - Skynet Global

From: "Cristine Kerr" <>
Date: Thu, 22 Apr 2004 12:45:15 +1000

Interview with Jonathan Soon on Wall Street Reporter:
Took some unedited notes of highlights as I was listening. Apologies if anything is not clear or misspelled. Please feel free to jump in and correct.
1) Company is now profitable - 2004 will see increased profits - $10M revenue + $1M earnings - March Qtr 2004 sales up 440% over same period last year
2) Big increase in interest in home automation products - huge national retail distribution channel x 240 retail stores (incl Harvey Norman) - not just relying on direct sales - exclusive rights to Home Automation brand
3) Second largest WiFi network in Singapore - generate revenue within 2 months
4) Key competititve advantage - over last 4 years have built brand recognition - largest number of hot spots in the Australia - 5000 hotspots worldwide in 60 countries - noone in the country has this huge competitive advantage - last 12mths x WiFi to 20,000 apartments exclusive agreements (some indefinite)
5) major growth in near future perceived as digital home revolution - connectivity including WiFi + air conditioning + alarm x connect from anywhere in the world
6) metrics/measurement/performance indicators - a) customer usage x growth b) apartments x growth c) now in profit
7) management - board of 4 (2 non-exec) - Some of the credentials: one ex MD of Unisys and NCR, Chief Fin Officer - SAP,  was head of finance Singapore Airlines, Jonathan Soon
10) Value Proposition - fastest growing industry in sector - forecast for wireless substantial growth over next 4 years - established customer base to build on - continuously bringing out new solutions - best positioned to take advantage of growth - also broadband market x overcome barriers to entry in apartments - own patent technology
----- Original Message -----
Sent: Friday, April 16, 2004 1:35 PM
Subject: Re: [sharechat] Cris' Current Watch List & SKG - Skynet Global

Other side of the coin:
ASX Announcement 6.4.04
March Quarter - sales up 440% to $998,000 for the period Jan-March 2004 (compared to same period last year).
Cash Balance at the end of the period was $1,007,000.
Sales are up and SKG are $17K into profit.
----- Original Message -----
Sent: Thursday, April 15, 2004 4:13 PM
Subject: Re: [sharechat] Cris' Current Watch List & SKG - Skynet Global

Extract from post by 'Russ' follows.
Content has not been verified.

' ... the books where audited at the end of december and the auditors told SKG to reclassify some capital expenditure as working capital for the December quarter.

Thus SKG's cash flows this year are actually:

Q1: 109k profit
Q2: 430k LOSS
Q3: 17k profit

Mr Soon is talking to the ASX today about whether he has to make a statement about the error as they are disputing the auditors recommendations. ... '

----- Original Message -----
Sent: Thursday, April 08, 2004 8:48 AM
Subject: Re: [sharechat] Cris' Current Watch List & SKG - Skynet Global

For anyone following SKG, please note there have been some issues raised regarding their recent financial report.
I (personally) have not had time to review and confirm, however; a question has been raised regarding an error in quoted working capital. I sent an email query to SKG yesterday but have not yet received a response. This is fairly significant and if confirmed, not good news.
The following is a copy of the issue. It was raised on
..................................................(calc by me) (reported yest.)


Staff Costs.........90......270.....253........613.............613
Working Cap.....510.....513.....695.......1718...........2213


Net cash flow....109.......66.......17.........192...........-304

The slight difference between Receipts calculated and reported are just a rounding error I expect.

But the big error is the Working Capital. Either they had made a mistake on yesterdays figures or they have misreported previous periods. ... '
Sorry to not be in a position to clarify or confirm details - unlikely to have time today either.
Anyone else want to review the financial reports and comment?
----- Original Message -----
Sent: Tuesday, April 06, 2004 1:11 PM
Subject: Re: [sharechat] Cris' Current Watch List & SKG - Skynet Global

ASX Announcements:
SKG 1:00 PM   March Quarter Sales up 440% 1 PDF
SKG 1:00 PM ! Commitments Test Entity - Third Quarter Report
----- Original Message -----
Sent: Wednesday, March 24, 2004 8:34 AM
Subject: Re: [sharechat] Cris' Current Watch List & SKG - Skynet Global

ASX Announcement 8.30am - Wed, 24 March 2004
WiFi Roaming at McDonald's Launched
1) 125 McDonalds outlets (over 20% of the total number of wireless hotspots in Singapore) - adoption of service is being promoted via free access offer to all McDonald's customers until end April, followed by a highly competitive $3 fee. ' ... "Indeed from our standpoint, it is not just about introducing Internet terminals, flat-screen televisions and music videos into our re-imaged restaurants but also helping to facilitate a wireless networking lifestyle," said Bob Beard, Managing Director, McDonald's Restaurants. ... '
2) SkyNetGlobal is an 'open network'. That means ISPs are able to provide access to their members provided there is a roaming agreement with SKG. This applies to access by members by local ISPs and international ISPs through iPass or GRIC. Ad-hoc users can also purchase access sessions from SkyNetGlobal on a retail basis.
3) Singular wireless broadband network based on the 802.11b technical standard + high quality, high grade security via deployment of Cisco routers and security/LAN technologies at each of the restaurants and at SKG's network core. Managed VLAN switches ensure integrity. SKG is also a carriage network for a number of VPNs (virtual private networks), including McDonalds in-house data and backend traffic for any new services.
4) Advanced security and policy-based traffic shaping, includes bandwidth control and service placement support - allows differentiation of user experiences based on service agreements with different categories of users.
5) Ease of purchase - retail single session sales via credit card and is presently working on a system to introduce 'stored value cards/cash cards'.
6) Fully customisable login page - creates opportunities to perform e-commerce.
7) SKG network architecture - optimised for future services under development - game server, video streaming, video conferencing.
----- Original Message -----
Sent: Sunday, March 14, 2004 2:15 PM
Subject: [sharechat] Cris' Current Watch List

Hi All,
As a fairly regular poster, I thought I'd share some of the more promising from my present (evolving) watch list on the understanding it may be different again tomorrow.
NB A good prospect today can be a bad prospect tomorrow and vice versa depending on world events, good/poor business planning and execution, changes in key executives (eg KAZ last year), etc, etc, etc.
I consider all of the following to have high growth potential. I'm reasonably sure all of these have been summarized at varying times.
CBD - Maintain a vigil for best entry price
INL - Wait a while for it to settle down again
IVN - May take a while
MIC - Await confirmation of BioGold acquisition
MUL - Great today, tomorrow, etc, etc (I researched this one following an excellent tip from 'Oski' who posts occasionally to an Ozzie forum.)
NLX - Hoping it will drop a little more to make it worthwhile
PDR - Promising a return of capital to shareholders
SKG - Market has grown a little bored with SKG of late
VSG - Long overlooked - ticking time bomb
WAL - Great buy today, tomorrow, etc, etc
ZYL - Wait until it settles after Rights Offer period.
All the above notations are naturally subject to change of circumstances.
These shares have what I consider to be high growth potential which usually goes hand-in-hand with high risk. I minimize risk via research and tracking.
These shares are suited to a patient, long-term hold. Time frames will be dependent upon market trends and factors.
As always, I like to share info that may bring benefit to someone else.


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