The last 2 press releases for Phantom Fiber (OTCBB: PHFB) have been very interesting to me. When I originally started looking at this company, I was under the impression that it was more of a software development company for the gaming sector. However, putting together the Investor Fact Sheet (click for PDF) and reading the last 2 press releases have really been educational for me and they demonstrated that this company is not really a "gaming play" at all. Phantom Fiber is a delivery platform for all types of software applications to mobile devices, period. Gaming is a part, and a large part right now, but I suspect that Financial will become the bread and butter over the next year or two and other applications could also become a much larger component of the picture as well.
And if the client base is an inidcation, Phantom Fiber's technology is apparently pretty good as evidenced by the fact that leading casinos, leading gaming sites and leading financial service firms are now using the platform across multiple industries.
The real question now becomes how does the company translate the ability to deliver a leading application delivery platform into a cash machine? I think that the recent announcement of FX Solutions GTS Mobile deal might shed some insight as to how Phantom Fiber will expand its profitability and do so with impressive margins.
Let's review. For the past few years, Phantom Fiber has been in more of a developmental stage. The Company identified several key components that would be required by potential customers and began creating the software that would address the most stringent requirements. From my understanding, 3 primary components, of equal importance, were addressed during the development stage:
1. Graphical interface
2. Speed
3. Security
Graphical interface that allows the mobile device user that have a near PC like experience on their mobile phone or PDA is most advanced in the gaming sector.
Speed is critical in software application delivery. Whether it is in gaming, financial services, healthcare, etc., the delivery of data at full mobile high speed is mandatory for current users.
Security is of the utmost importance in nearly all delivery applications. Of course, being involved in the financial sector, I tend to believe that the "most important" security measures deal with transactions involving the movement of money. This would include financial services and gaming programs. (I do realize that ANY and ALL data requires a 100% secure transaction, it is just that money transfer, at least to me, should be at the top of the list.)
In the gaming sector, the various game manufacturers have very sophisticated applications on casino and gaming websites. Users need to have the same functionality on their mobile devices as they are accustomed to on their personal computers. Phantom Fiber chose the gaming sector as its first market segment to target because this sector allowed Phantom Fiber to ensure that it was addressing each of the 3 major criteria (graphics, speed & security) while concentrating its marketing efforts on a targeted number of potential clients. Based on what I have read, Phantom Fiber has been successful in penetrating this market as it is the leading delivery platform in the mobile space for the Gaming Sector.
In my opinion, the announcement of GTS Mobile deal for FX Solutions is the start of the next phase at Phantom Fiber. While the gaming sector provided Phantom Fiber with the stage for developing and proving its delivery platform is the best available, I anticipate that the finacial sector will be the stage for showing the true power of Phantom Fiber from an operational and financial standpoint.
Providing the platform to banks, brokerage firms, etc. could create an income stream at Phantom Fiber that is not commonly seen at traditional software companies. Yes, Phantom Fiber will get the traditional installation fee, maintainence fees, user fees, etc. BUT, if it can also get a piece of the transaction fees that are generated as a mobile application is used - for example a fee for each stock trade that is completed at a brokerage firm - the cash flow annuity that would be developed over a growing client list could be tremendous.
When I started working on this company on June 4th 2008, the stock was bid at 16.5 cents per share. As I write this, it is currently bid at 27 cents per share. I personally think that we have only scratched the surface on what the value will be over the next couple of years. I am currently buying PHFB shares.
DISCLOSURE: Through First Capital Investors I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services. In my private equity holdings, I own stock and warrants in the company. Via Meehan Capital Management Group, I am currently acquiring shares in the open market for select investors of the MCMG Private Client Group.
Wednesday, June 25, 2008
Friday, June 6, 2008
Phantom Fiber: (OTCBB: PHFB)
I have just begun working with Phantom Fiber Corporation (OTCBB: PHFB) as their Investor Relations and Capital Markets Advisor. The Company is a software developer of applications for the mobile space. They are involved in bulding software apps for a number of industries including: Financial Services, Gaming, Medical Records, Logistics and many more.
The founder of Phantom Fiber, Jeff Halloran, is a seasoned veteran in the software space, particularly in the banking sector. was one of Larry Ellison's first employees (employee #6, I think) at Oracle (NASDAQ: ORCL) and helped to develop Oracle's international consulting business.
While completing a enterprise solution for one of the largest banks in Canada, Jeff and his team recognized a major shortfall in the way that software applications were being addressed when "real time" mobile applications were required. Mobile applications relied on a specific network carrier and had delays that were not compatible with performing transactions that need to be "real time". Phantom Fiber developed applications that solve this delay issue and work directly with the customer and their client base of users.
They have a very impressive client list and are partnered with some of the leading companies in multiple industries. They are already the dominant firm in the online gaming sector and are working diligently to become the dominant player in banking and financial services. Banking transactions, brokerage trading, currency trading, etc. etc. are all in the near term pipeline.
I have prepared an Investor Fact Sheet that is currently being reviewed by the Company and I will have it available at www.firstcapitalinvestors.com as soon as the Company's approval.
The Company has a very low number of shares outstanding with only 19M and about 70% or so of that is held by restricted insiders. Not a lot of stock in the float and I don't expect the stock to stay at its current levels for very long. Once some eyes are put on this stock, I expect that we will see a nice price appreciation.
DISCLOSURE: I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services and I own stock and warrants in the company as part of my compensation. I am currently acquiring shares in the open market for myself and my clients.
The founder of Phantom Fiber, Jeff Halloran, is a seasoned veteran in the software space, particularly in the banking sector. was one of Larry Ellison's first employees (employee #6, I think) at Oracle (NASDAQ: ORCL) and helped to develop Oracle's international consulting business.
While completing a enterprise solution for one of the largest banks in Canada, Jeff and his team recognized a major shortfall in the way that software applications were being addressed when "real time" mobile applications were required. Mobile applications relied on a specific network carrier and had delays that were not compatible with performing transactions that need to be "real time". Phantom Fiber developed applications that solve this delay issue and work directly with the customer and their client base of users.
They have a very impressive client list and are partnered with some of the leading companies in multiple industries. They are already the dominant firm in the online gaming sector and are working diligently to become the dominant player in banking and financial services. Banking transactions, brokerage trading, currency trading, etc. etc. are all in the near term pipeline.
I have prepared an Investor Fact Sheet that is currently being reviewed by the Company and I will have it available at www.firstcapitalinvestors.com as soon as the Company's approval.
The Company has a very low number of shares outstanding with only 19M and about 70% or so of that is held by restricted insiders. Not a lot of stock in the float and I don't expect the stock to stay at its current levels for very long. Once some eyes are put on this stock, I expect that we will see a nice price appreciation.
DISCLOSURE: I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services and I own stock and warrants in the company as part of my compensation. I am currently acquiring shares in the open market for myself and my clients.
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