China Broadband (CBBD) - Profile Of The Week!
<><><><><><><><><><><><><><><><><><><><><><><><><> NOVEMBER 19, 2001 - THE WALLSTREET UNIVERSE REPORT <><><><><><><><><><><><><><><><><><><><><><><><><> Dear Investor, Our last three profiles of: AMSE, CETA and EMBI have performed tremendously!!! Our new company spotlight is China Broadband (OTC BB:CBBD.OB) China Broadband CBBD has become the leading provider of cable broadband Internet services in China by way of its joint ventures partnerships with existing network operators. CBBD is positioned to be Chinas most significant broadband Internet access provider; capitalizing and leveraging on its first mover advantage in Chinas Internet broadband sector. China's recent addition to the WTO affirms CBBD position and future opportunity. CBBD is extremely optimistic about the Company for the short term and very excited about the Companys future prospects. Savvy investors can immediately identify the potential of CBBD at its current valuation. The full company profile is below. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ China Broadband (OTC BB:CBBD.OB) Friday's Closing Price:$0.50 52-week Range: $0.40 - $9.50 Company Homepage: http://www.chinabroadband.com Contact Info: ir@chinabroadband.com To Read The Full Write-up Go Here: http://si1.streetinsider.com/index.cfm?method=site_profilesCurrent ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ABOUT CHINA BROADBAND (OTC BB: CBBD.OB) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ China Broadband, through its wholly owned operational subsidiary Big Sky Network Canada Ltd. (Big Sky Network), provides cable broadband Internet services in partnership with existing network operators to Chinas residential and business Internet market. By taking advantage of existing network infrastructure, particularly Chinas modern hybrid fibre-optic coaxial (HFC) cable television architecture, China Broadband provides reliable access to the Internet at a fraction of the cost and many times the speed of the current telephone line (dial-up) alternative. As the purchase of networks by foreign companies is not permitted, China Broadband forms co-operative joint ventures with government owned network companies, which have the sole right to offer Internet access and value-added services. Under these joint ventures, the Chinese partner contributes the exclusive access to the network, while China Broadband contributes the required capital, management and Internet technology to enable Internet access once all government approvals have been received. The capital China Broadband contributes is limited to the hardware to enable Internet access. As a result the Company obtains exclusive access while avoiding the sizeable network installation and maintenance costs. China Broadband enjoys favorable terms under these joint ventures, including 60 to 80 percent profit sharing, board control and a 15 to 20 year term. The resulting footprint of cable television subscribers the Company has under agreement is in excess of 14 million, representing approximately 15 percent of Chinas 90 million cable subscribers; the largest cable market in the world (65 million in North America). Given this large exclusive footprint and the rapidly increasing demand for Internet in China (400 percent per year) China Broadband should achieve its minimum target penetration levels of one million subscribers in the first 5 years and significant growth thereafter. The Company charges its subscribers up to US$22 per month. With average subscriber acquisition costs of less than US$255, the Company believes it will achieve rapid pay out and be profitable within its first two years of operation. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ KEY INDUSTRY / COMPANY CONSIDERATIONS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ * Positioned to be both Chinas most significant broadband Internet access provider * CATV subscriber footprint of +14 million * Capitalizing and leveraging on its first mover advantage in Chinas Internet broadband sector * Proven Management Team * First fully approved deployment in Shekou, Shenzhen * Fully approved and deployed in Chengdu, Sichuan, Beijing, Shanghai and Chongqing municipalities signed MOUs (memorandum of understanding) * Hunan and Fujian Province MOUs * Superior product (+50x speed, reliable, affordable, always on) * Target of + 1,000,000 subscribers by 2005, significant growth thereafter exceeding US penetration * Co-operative Joint Ventures to avoid infrastructure costs * Exceptional Joint Venture Terms; exclusivity, profit sharing, 15 to 20 year long term contracts * Financing at NAV and Comparables, * Value added services revenues * EBITA positive early, profitable 4th quarter 2001 * IP Telephony Revenue potential, Mother of all Markets * Well positioned to take advantage of Chinas ascension to the World Trade Organization (WTO) * US $11.8 million raised to date, cash position $2.8 million, no debt, approx. $150k /month burn rate ~~~~~~~~~~~~~~~~~~~~ INVESTMENT SUMMARY ~~~~~~~~~~~~~~~~~~~~ The Company has no debt, raised US$11.8 million to date and has $2.8 million in cash and an approximate burn rate of $150k/mth. With a market capitalization of approximately $15 million (based on fully diluted shares) China Broadband can offer investors substantial upside potential if the Company can deliver on its business plan and rapidly convert its exclusive and existing cable subscriber footprint to Internet broadband subscribers. Over the past year China Broadbands stock has lacked visibility and has been flying under the market radar while management has been quietly executing its business plan, signing joint ventures, and rolling out service. As well, it has been caught like many companies in the general down draft of the Internet / broadband / fiber-optic blow off and the market has not recognized the prospects of Companys cash flow valuation. The stock price is down significantly from its peak of US$9.50 for a variety of market reasons discussed in this profile. However we feel the current stock price could go higher based on; the favorable economics of China Broadbands business model, the Companys unprecedented CATV footprint of 14 million and growing cable subscribers, and Chinas WTO ascension this year. China Broadband is consequently extremely well positioned to be both China and the worlds most significant broadband Internet access provider. We therefore are positive about the Company for the short term and remain optimistic about the Companys prospects and progress in the Chinese broadband market. China Broadband, under Matthew Heysels leadership, has built up an impressive team of senior managers and directors to guide the Company. They have taken the Company from start-up to its current state and the current team appears more than capable of bringing the Company through its next phase of growth to profitability. +>+>+> TO READ THE FULL WRITE UP GO HERE: <A HREF=" http://si1.streetinsider.com/index.cfm?method=site_profilesCurrent "> http://si1.streetinsider.com/index.cfm?method=site_profilesCurrent </A>
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