Airborne Wireless Networks (OTCMKTS: ABWN) Poised to Disrupt?

The explosion of the internet age saw hundreds of billions of dollars spent to lay down wire and fiber-optic cables that would carry more information in an hour than had been created in all of man’s existence. Cell towers were erected that allowed electronic voice, and later data, communications to travel through the air. Iridium Communications (previously known as Iridium Satellite LLC) was the first to attempt to bring the information superhighway to the entire world. They launched a constellation of low-orbit satellites that allow their users to access digital voice/data communications anywhere in the world – at an expense that most find prohibitive. Now the world has Airborne Wireless Networks (OTCMKTS: ABWN). A company that has a intriguing, patented approach to global voice/data communications at a fraction of the current cost by utilizing airplanes instead of costly satellites.

Simi Valley, CA-based Airborne Wireless wants to fill the geographic “black holes” in the world’s digital communications by linking commercial aircraft in flight.  Each aircraft participating in the network acts as an airborne repeater or router, sending and receiving broadband signals from one aircraft to the next and creating a digital superhighway in the sky.  Unlike Iridium Communications, Airborne Wireless Networks (OTCMKTS: ABWN) will not market to end-users, it will instead sell access to its network to internet service providers and telephone companies. ABWN has started marketing itself on Fox Business News.

The efficiency and convenience of such a network is arguably unparalleled when compared to existing alternatives. Oil rigs, outdoor enthusiasts, or countries that do not enjoy a digital infrastructure comparable to the developed words’ – all could now have equal access to the internet.

In 1998, during the pioneering days of wireless data-connectivity, Airborne Wireless Networks (OTCMKTS: ABWN) inventor submitted a patent application to the US patent and trademark office, and on September 4, 2001, US patent number US 6,285,878 B1 was granted. A few days later an event occurred which changed the airline industry and which would delay development of this disruptive technology for years.

Fast-forward to 2016, Airborne Wireless Networks (OTCMKTS: ABWN)acquired the patent and months later announced that it received an FAA Project Number for its Supplemental Type Certificate (STC) application to install a Broadband Transceiver System on Boeing 757-200 aircraft. In December of 2016, ABWN entered into an agreement with Electric Lightwave Holdings, Inc. The agreement allows the Infinitus Super Highway™, once implemented, to reach the end users. Without a ground link, users would have no way to access the ABWN network.

In January of 2017, Airborne Wireless Networks (OTCMKTS: ABWN) and Air Lease Corporation (NYSE: AL) announced they entered into a Memorandum of Understanding with regards to a strategic marketing partnership for Airborne Wireless Network’s (OTCMKTS: ABWN) proposed broadband wireless networks. Los Angeles, CA-based Air Lease Corporation owns 240 aircraft, including 181 single-aisle narrow-body jet aircraft, 40 twin-aisle widebody jet aircraft, and 19 turboprop aircraft. Under the terms of the agreement, Air Lease Corporation will act as the exclusive marketing agent and use its extensive network of airline customers to market the “Infinitus Super Highway™” to multiple airline customers throughout the world.

Investors seem to be responding positively to Airborne Wireless’ concept and progress. A year ago, AWBN (OTCQB: ABWN) was trading at $0.25, but closed Friday, February, 3, 2017, at $2.17 with a market cap over $150 million and over one million shares traded. Should Airborne Wireless Networks (OTCMKTS: ABWN) continue to successfully execute its vision, it will forever change society. No longer will people or businesses have to factor in internet access availability when deciding where to locate. That makes it a company with a potentially high disruption factor not only in the sense of technology, but also how we function as a society.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Gogo Inc. (Nasdaq: GOGO) Shares Rise on Coverage

Gogo Inc. – Nasdaq: GOGO

Shares of Gogo Inc. are rising after Guggenheim initiated coverage at a “Buy” rating. Shares, listed on the Nasdaq under ticker GOGO, ended yesterday at $8.71, gapped up to open at $9.07, and reached a high of $9.61.

Gogo Inc. delivers internet connectivity and entertainment to aircraft worldwide. Gogo provides services on approximately 9,600 aircraft, which represents more than 20% of the world’s total commercial and business jet aircraft. They are positioned to support global operational execution, as well as a research and development program that enables them to develop technologies for the global aviation industry.

Gogo’s reported sales have increased every year and posted $500.9 million in 2015. GOGO EPS has been negative every year for the past five years and in 2015 GOGO EPS was a loss of $1.35. Five firms follow Gogo Inc. Two rate GOGO shares as a “Strong Buy”, and one each rate the shares as a “Buy”, “Hold”, and “Sell”. Their consensus price target for GOGO is $13.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

 

Update! Airborne Wireless (Nasdaq: ABWN) Flying High Since SNU Report!

Airborne Wireless Network – OTCQB: ABWN

When we first wrote about ABWN a couple of weeks ago, it was trading around $0.80 per share. Today it is over $1.35. This could be due to the announcement today that Airborne Wireless Network (OTC QB:ABWN) entered into an agreement with Electric Lightwave Holdings, Inc. (“Electric Lightwave”). This agreement creates a mutually beneficial relationship pursuant to which the ground segment of our contemplated Infinitus Super Highway™ will be supported by Electric Lightwave’s 12,500-mile fiber optics cable and data center network, which is located throughout the Western United States, including an undersea cable link to the Hawaiian Islands.

A Fox Business interview with VP Marius De Mos can be viewed here.

 

Our December 16th article follows:

Global internet connectivity is achieved through undersea cables along with ground-based fiber and satellites. Airborne Wireless Network is developing a new approach – an airborne digital highway.  The Company intends to create a high-speed broadband wireless network without towers or cables – they will do it by linking commercial aircraft in flight.  Each aircraft will act as an airborne router, sending, and receiving internet signals from one aircraft to the next and creating a digital superhighway in the sky. Airborne Wireless Network intends the network to be a high-speed broadband internet pipeline.

The Company intends to supply their capacity to wholesale carriers that already have customers such as internet providers and mobile phone companies. Once developed, the airborne network could provide low cost, high-speed connectivity to rural areas, island nations, ships at sea, oil platforms, in addition to connectivity to commercial and private aircraft in flight.

Airborne Wireless Networks holds a patent many in the industry consider highly valuable if the team can execute its plan. Impressively, they have secured Alex Sandel, co-founder of Packard Bell computers, as Chairman of its Advisory board. The company closed a $1,200,000 private placement funding on November 22, 2016.

However, ABWN is not a stock without considerable risk. This is a new technology in a highly competitive industry. Volumes of ABWN are currently weak – less than 22,000 today. Also of concern is that no analysts cover ABWN.

Still, if you have the appropriate appetite for risk ABWN, this is an innovative approach to a real need , internet connectivity, that most of the world cannot do without. ABWN closed today at $0.803.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock.