HI there,

After the announcement that Intel had purchased a substantial stake in GPacket, it doesn't seems like the stock manage to attract any upswing to its price. With its plan to roll out wimax services in M'sia by June and *fingers crossed* no news of it postponing the plan either. I'm wondering if any body had bought the share and take a gamble on it?

It just amazes me that the share price did not move up by much after the announcement. Did you guys saw something fishy that I don't?

cherroy,

saw the newspaper clip that goldman sachs had reduced their holdings to a mere 5% but another Datuk from some other company is snaping up the shares they sold. But I guess Intel would only invest rm50 million if they foresee a substantial return from it and the reason its financial result is in the red is because of the initial investment in rolling out the wimax service.

dreamer101,

have friends working in maxis and they said the internet service based on 3g connection sucks big time and connection speed + coverage is a main issue here, but i'm not sure about the speed of the 3g services provided by celcom though. developed countries only started using the wimax technology recently so I would not say it will be profitable for sure but gpacket claimed its wimax coverage can cover up to 80% of the population base (note population base & not geographical area) and I believe going wireless is cheaper than laying down cables for a broadband (m referring to TM) in the long run. GPacket even hired former TM streamyx's division president as its staff overseeing the wimax department, mind you it is that guy who laid the foundation for tm's successes in streamyx (in term of marketing & sales).

I'm not sure bout the price and I can see why you asked so with celcom & tm bundling their services together but with wimax tech based on a an enhanced version of wifi frequency, I don't expect any problem with speed. :-) I myself is no tech genius though. lol.

To sum it all up, if the statistics provided by gov is true, broadband penetration is sitll less than 20% (out of all the internet users) so I see potentials here.

Besides the divestment by goldman sachs & its financial standing in red, any other news worth to be noted huh?

thanks for participating in the discussions.

to be frank, I'm taking a gamble with this stock, high risk high gain you see =) this is what tech stocks are all about, bout still, it's worth digesting all the risks surrounding it.

dreamer,

what makes you think it won't be profitable then? I'm sure the financial analyst hired by them would have done the required calculations and risk assesment as we are talking now. You're right, either they price their service at rm99 or lower or they would not be able to compete with the other 3 giants in the industry. But by the time they reveal their price, I believe the share prices would reflect the actual value of it already, just thought of speculating on the potential movement of the price before hand

Cherroy,

you never fail in giving out constructive comments. Yes, the CEO state that at best they can only reocup the initial investment by 2011 or 2013 and till then we are only gambling on the odds of it taking off. Tech stock is simply hard for us to judge, unlike other traditional stocks. There's simply no standard method of evaluating their investments and return.

Although there are 3 other wimax licensees, 1P itself will be the first move in that spectrum, it has its advantages and disadvantages. With the other 3 not coming out with anything concrete (I believe they are just taking the wait and see stance in the mean time), we can just say that they won't be a proven direct competitors in the near to medium term. But like I mentioned again, the 3 giants in the industry are (I'm just curious as to when DIGI will be rolling out their 3G services, DIGI is always the dark horse, coming out with innovative products all the time and I'm already speculating on digi's price before it rolls out its 3g services. lol).

Regarding the saturation of the broadband market, am a little worried about it too. There's direct linkage between economic prosperity and consumer spending, if economy turns out to be so so this year, I believe it will have some impacts on the adoption of wimax by consumers too.

lol. you're right, rm50 million is peanuts for Intel. noted there.

cheers guys

mind to elaborate more on the internet bubble and telecom bubble you said earlier? as far as I know, those events are something akin to the tulip bubble faced in holland and I don't quite understand it. Are you implying that news are made to sell shares? It applies to all stocks in general I assume and with no stocks being issue in the short term. I see no benefits in raising the profiles of the company now.

but to summarise it all, dreamer101, you're saying that 1P's stock is not viable now because you see it not being able to compete with the other giants in term of cost and coverage and the news out there about Gpacket are just hypes?

Coverage wise, I don't know bout 3G coverage but if Gpacket states that its coverage can cover 80% of population base, I assume it would be big enough then.

Anybody here familiar with wimax tech? like how big is its station? If Gpacket said it can cover such a big population base, I don't hear any news of it creating any transmitting station? lol or it just need a larger version of router to create the needed coverage.

Again, if 3G is sufficient, Paris will not adopt the wimax approach to cover its city in its pursuit of ICT improvements. I just need to know the pricing of its wimax and we should be able to see its viability.

Any more comments on Gpacket?

following the links are the views of the opposing camps.
http://nexttrade.blogspot.com/2008/05/gpac...xs-success.html
http://www.theedgedaily.com/cms/content.js...98eb00-66294695

nice seeing lots of comments in here

This post has been edited by jimmyttl: Jun 1 2008, 06:27 PM

Results are a little mixed for the past few days. Still.. might sidetrack a little here, am wondering how bad the oil shock gonna affect bursa tomorrow.. Could just pray and watch my portfolio's value go down. Am seeing a drop by at least 5% tomorrow..bought another lot of digi today and pak lah sent me a bad news at 5pm..

Highest of 1.69 today.. it bucked the general trend... why ah... 0 o I don't see the logic behind this... Maybe somebody is manipulating the stock's price *grin*

Some insider news perhaps?

This post has been edited by jimmyttl: Jun 5 2008, 10:06 AM