China Broadband (CBBD) - Profile Of The Week!

Wallstreet Universe newsblast at wallstreetuniverse.com
Sun Nov 18 16:35:01 PST 2001


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NOVEMBER 19, 2001 - THE WALLSTREET UNIVERSE REPORT
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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 China’s most significant
broadband Internet access provider; capitalizing and leveraging
on its first mover advantage in China’s 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 Company’s
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 at 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 China’s residential and business Internet market. By
taking advantage of existing network infrastructure, particularly
China’s 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 China’s 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 China’s most significant broadband
Internet access provider 

* CATV subscriber footprint of +14 million 

* Capitalizing and leveraging on its first mover advantage in
China’s 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 MOU’s (memorandum 
of understanding) 

* Hunan and Fujian Province MOU’s 

* 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 China’s 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 Broadband’s 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 Company’s 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 Broadband’s business model, the
Company’s unprecedented CATV footprint of 14 million and growing
cable subscribers, and China’s WTO ascension this year. China
Broadband is consequently extremely well positioned to be both
China and the world’s most significant broadband Internet access
provider. We therefore are positive about the Company for the
short term and remain optimistic about the Company’s
prospects and progress in the Chinese broadband market. 

China Broadband, under Matthew Heysel’s 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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>>===================================================>>





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