IPTV Stock Recommendation
Baltimore, Maryland Mon., Nov. 28th, 2005
IPTV Stock Recommendation
In this Issue...
* Welcome New Subscribers
* IPTV: The New Boob Tube
* Buy an IP Pure Play
* Goodbye Satellites; Hello IP
* An IP Military
* Disaster Relief to go IP
Dear Archimedes Lever reader:
First, I'd like to say that I really hope that you enjoyed your
Thanksgiving holiday. I know I did. I've been eating leftover turkey for
days. And I love it.
Second, I'd like to welcome all the new subscribers we received over the
holiday weekend. Archimedes' Lever is becoming increasingly popular with
each passing day. And today's readers can consider themselves among the
first ten thousand subscribers.
Now onto business.
If you subscribe to Wealth Daily, you already know what I have in store
for you today: A new stock recommendation that I am tremendously excited
about.
Now like I told Wealth Daily members on Friday, I wasn't going to talk
about this company for another few weeks. But my inbox has been slammed
with emails asking about IPTV. And I just can't keep the company a
secret any longer.
And if you missed the piece about IPTV and how big it is soon going to
become, let me quickly run you through it.
Okay. So you've heard of VoIP, right? Voice over Internet Protocol. VoIP
allows users to transmit audio signals over a broadband internet
connection.
IPTV is very similar to VoIP. Except that instead of transmitting a
voice signal over the internet, IPTV broadcasts audio and visual
signals.
The New Boob Tube
IPTV is basically a system where digital television is delivered to
subscribing customers over a broadband connection. And it will
revolutionize the way we watch TV.
Every television program, movie, and advertisement will have hyperlinks
that connect to the internet for more information. And while your
surfing your IPTV, you'll be able to send and receive email or text
messages to friends and family.
You'll never have to leave the couch again. (I'm going long
WeightWatchers!)
Now here's why we're going to make a substantial profit on this stock.
Simply put: IPTV is going to be massive.
IPTV is expected to grow exponentially in the coming years as broadband
is now available to more than 100 million households worldwide.
Market professionals say that by the year 2007 there will be more than
200 million digital TV homes subscribers with 25% global market
penetration.
Worldwide subscribers to cable video on demand services will increase to
almost 14 million in 2007 (up from about 5 million at the end of 2003).
Broadband penetration in the United States and Europe will grow to 290
million in 2008 (up from 25 million in 2002).
It is predicted in less that 5 years, 72 million homes worldwide will
subscribe to IPTV services.
What does this boil down to? Profit. Massive profit.
IPTV is rapidly emerging and will be available to you in just a few
years if not sooner.
For those businesses implementing IPTV it will provide a means of
deploying interactive content and meetings unlike anything previously
available on such a large scale.
For the consumer it will provide an interactive experience unlike
anything they have known as the technology evolves and becomes
wide-spread.
And for the investor it will offer a new technology to capitalize.
Which brings me to the topic at hand: Archimedes' Lever second stock
recommendation.
This company has already partnered with some of the biggest names in
communication including Motorola, Nextel, Nortel, Lucent, and RCA.
That name of the company is Optibase (NASDAQ:OBAS)
(NASDAQ:OBAS)
Buy OBAS up to $5.00
Optibase is the lever that'll move next generation television.
It is a leading provider of high quality IPTV streaming, encoding,
decoding and video server upload solutions for telecom operators,
service providers, broadcasters and content creators.
Now there's two things that really stood out when I looked at this
company.
One, the company is almost an IPTV pure play. This is going to make
Optibase incredibly attractive to investors once IPTV becomes a
household word.
Two, it's cheap. At last look the company was trading at $4.70 a share.
And it has a paltry market cap of just $62 million. This thing is a
true-blue microcap.
But listen. OBAS is even cheaper than that.
OBAS is sitting on $47.7 million in cash. So if you subtract the cash
position from the current market, you get an enterprise valuation of $18
million!
The market is completely dismissing this stock. valuing the company less
than its annual revenues, which are $26 million.
This has buy all over it.
I'd also like to point out the average three month volume is 17,000 per
day. Less than $100,000 worth of stock trades hands each day making it
virtually unknown on Wall Street.
So let's talk a little more about the company.
Now I don't want get into all the technical gibberish of platforms,
encoders, decoders, DBV/PCI multiplexers and the like.
So let me break it down nice and simple for you. Optibase manufactures
and markets all the necessary equipment needed to broadcast IPTV.
Even though Optibase is still trading under $5 a share, this is no
fly-by-night operation.
When setting up networks that offer IPTV solutions that present a
competitive edge, the difference rests on reliability, availability,
flexibility and quality of service.
Optibase's IPTV products give carriers all that and more.
By deploying Optibase's highly respected IPTV platforms, carriers can
use conventional phone lines to stream video over phone lines, over
fiber optics and over DSL. Moreover Optibase's platforms support several
different transmissions.
Keep all this in mind as I tell you more about how Optibase's technology
is going revolutionize our lives.
You see, Optibase's products can be used in more applications than just
watching Everyone Love Raymond.
Goodbye Satellites, Hello IP
Content delivery is an essential part of broadcasting. Broadcasters need
to deliver content between affiliate stations and from regional stations
back to headquarters. Video contribution over leased satellite lines is
costly. But by using IP networks, it is possible to drastically reduce
costs without compromising on quality.
Optibase's IP Video Contribution offers all the advantages of delivering
video over IP, without any of the prohibitive costs involved in leasing
dedicated satellite lines.
IP networks also allow broadcasters and operators to manage bandwidth in
a far more efficient way. More bandwidth means faster transmissions. So
long to the days of feed delays from field reporters.
Also IP networks are accessible 24 hours a day as opposed to leased
lines and satellite links that are leased on an hourly basis. IP
networks also offer superb video quality. No more snow due to satellite
interruption.
An IP Military
Optibase's carrier will transform the way military organizations and
security agencies retrieve, monitor and analyze live audio-visual
information.
Through the use of Optibase's advanced video compression and processing,
video streaming over IP networks and sophisticated analysis and
retrieval tools, military and government command and control centers can
have full visibility and control in critical missions and life
threatening situations allowing them to make real time decisions and
respond immediately.
With IP technology military and intelligence agencies will be able to:
* Monitor geographically dispersed points of conflict and target
areas via various cameras and other sensors located in unmanned
aircrafts or in remote locations.
* Create a live two-way video dialog between combat commanders,
fighter pilots and central command. Using these two advanced
technologies central command, pilots and field officers can share live
video displays, identify targets and make mission critical decisions in
real time.
Disaster Relief to go IP
Optibase's advanced video analysis can also save lives in mass casualty
events or when disaster strikes.
Broadcast quality video streamed in real-time with minimum delay from a
disaster or emergency scene to a control center gives emergency response
teams the ability to follow events closely in real-time and respond
accordingly.
The key to a time-critical response and decision making is speedy and
accurate access to large video libraries.
This only scratches the surface, folks.
Buy Optibase (NASDAQ:OBAS) up to $5.00
Until next time,
Luke Burgess
posted by Victor Lloyd Smith @ 2:57 PM
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