Maiden Earnings Positive Month , page-2

  1. This is great news from Swiftel, Allfinanz. The Company has become EBITDA positive within the first 15 months of commissioning its network, and the pace at which contracts are being won is quickening.

    From here on, additional sales go straight to the profit line, so the fundamentals begin to look more and more secure.

    But it's the 'blue-sky' that excites me. I believe the market has yet to grasp the significance of Swiftel's Memorandum of Understanding with Schlumberger Information Solutions (SIS), a major international IT Services Company headquartered in New York.

    SIS is an operating unit of Schlumberger Oilfield Services which in turn is a business segment of Schlumberger Ltd. An indication of the size of the parent company, Schlumberger Ltd, is that in 2000 it had revenue of US$9.61 billion (AU$18.6 billion).

    If the Swiftel/Schlumberger MOU is fully consummated (which, with Hamlet, I think we'd agree "'tis a consummation devoutly to be wished"), then SWT becomes VERY interesting. I have a feeling Schlumberger may already have begun to point potential customers in Swiftel's direction.

    With a present market capitalisation of only around $7.2m, SWT is in my view significantly undervalued.

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