Sewing the Seeds for a Fruitful Future….
With shareholders and investors a bit up in arms lately regarding the recent market activity of Eagle Broadband (AMEX: EAG), corporate management is on a mission to both improve operational efficiencies and keep EAG listed on the AMEX.
News this week only exemplifies that fact that Eagle’s corporate team means business. Recently we have learned that EAG has agreed to purchase Connex Services, Inc., a Houston-based provider of IT-based services. Connex does an estimated $600k in annual revenues, not too shabby! In addition to bringing in a significant amount of cash, the artful acquisition is expected to facilitate growth of EAG’s IT services division by more than 35% (in terms of both accounts and incoming revenues).
At a cost of 1,203,774 shares of unregistered Eagle Broadband common stock, EAG believes that this is one of many moves that the company needs to make to both diversify its business and fuel future growth. Furthermore, the agreement stipulates EAG will not assume any of Connex’s debts or liabilities, a huge bonus as Eagle lays the foundation for a lucrative future.
So at this point, like I was, I am sure many subscribers are wondering what this recent announcement has to do with big picture for Eagle. The majority of EAG’s news releases have been strongly focused on IPTV and SatMax in recent months. Any investor following Eagle would wonder, “What calls for the acquisition of an IT services provider??”
After a little research, I can answer that question. There is more here than meets the eye. According to Tuesday’s announcement by EAG, Connex provides “national and international project management services for data, voice, fiber-optic, wireless, hospitality systems, access control, audio and satellite installations”. This acquisition, in addition to aiding a struggling bottom line and strongly complementing EAG’s existing IT services business, will provide greater visibility for EAG in its key markets. Exposure in this arena can mean the difference between a 5 cents stock and a 5 dollar stock. Many of EAG’s newly-acquired clients will also be targets for its ready-to-rock IPTV product/service offering.
Through strategic moves like this one, EAG is exposing their product to a larger captivated market and broadening thief offering. With more eyes on the company, potential business opportunities will present themselves. We, at MSP, never claims to be psychics. We have no crystal ball, but as the IPTV market begins to pick up steam (expected to become a $40 billion market by 2010), a prediction like EAG’s success is just common sense. For a little refresher course on EAG’s positioning in the marketplace and why we think this one is going to be an industry frontrunner, check out the most recent coverage of the company by Amalfi Research Group, Ltd. - EAG Research Report.
News this week only exemplifies that fact that Eagle’s corporate team means business. Recently we have learned that EAG has agreed to purchase Connex Services, Inc., a Houston-based provider of IT-based services. Connex does an estimated $600k in annual revenues, not too shabby! In addition to bringing in a significant amount of cash, the artful acquisition is expected to facilitate growth of EAG’s IT services division by more than 35% (in terms of both accounts and incoming revenues).
At a cost of 1,203,774 shares of unregistered Eagle Broadband common stock, EAG believes that this is one of many moves that the company needs to make to both diversify its business and fuel future growth. Furthermore, the agreement stipulates EAG will not assume any of Connex’s debts or liabilities, a huge bonus as Eagle lays the foundation for a lucrative future.So at this point, like I was, I am sure many subscribers are wondering what this recent announcement has to do with big picture for Eagle. The majority of EAG’s news releases have been strongly focused on IPTV and SatMax in recent months. Any investor following Eagle would wonder, “What calls for the acquisition of an IT services provider??”
After a little research, I can answer that question. There is more here than meets the eye. According to Tuesday’s announcement by EAG, Connex provides “national and international project management services for data, voice, fiber-optic, wireless, hospitality systems, access control, audio and satellite installations”. This acquisition, in addition to aiding a struggling bottom line and strongly complementing EAG’s existing IT services business, will provide greater visibility for EAG in its key markets. Exposure in this arena can mean the difference between a 5 cents stock and a 5 dollar stock. Many of EAG’s newly-acquired clients will also be targets for its ready-to-rock IPTV product/service offering.
Through strategic moves like this one, EAG is exposing their product to a larger captivated market and broadening thief offering. With more eyes on the company, potential business opportunities will present themselves. We, at MSP, never claims to be psychics. We have no crystal ball, but as the IPTV market begins to pick up steam (expected to become a $40 billion market by 2010), a prediction like EAG’s success is just common sense. For a little refresher course on EAG’s positioning in the marketplace and why we think this one is going to be an industry frontrunner, check out the most recent coverage of the company by Amalfi Research Group, Ltd. - EAG Research Report.
Labels: AMEX, EAG, Eagle Broadband, IPTV, SatMax
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