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SkyPostal Networks Inc. (SKPN.OB); Necessity – The Mother of All Invention (Not to Mention Profits)

In the U.S, we take our mail system for granted. We pop a letter or some other correspondence in the “box” and we know that, with very few exceptions, that piece will be delivered in a matter of days. Naturally, we tend to think that the rest of the world operates this way, too. If you’ve not lived in a third world country, you wouldn’t have any idea what the mail service is like. But make no mistake about it, compared to the U.S. postal system, the bulk of the world’s mail delivery is a shambles. This is especially true in Latin America and the Caribbean.

Imagine for a moment you have a business interest in Latin America. You send a document from the U.S. to the Latin address, but it never arrives. Imagine also that your Latin American business is thriving, selling natural resources to the growing European Bloc area. So they send you order forms. Yet they don’t get delivered. Is that possible? It’s not only possible, it’s the norm. According to research based on mailing tests from Europe and the USA, approximately 30% of the mail destined to the LAC (Latin America & Caribbean) never gets delivered.

This is where SkyPostal (trading under the symbol OMGA) comes in. SkyPostal’s mission is to provide its customers with a consistent, secure and reliable mail delivery service of the highest standards into Latin America, the Caribbean and Mexico through the use of innovative logistics solutions and state of the art information technology. Considering that the industry in Latin America is completely fragmented, positive growth through careful acquisitions will provide positive cash flow, while the company becomes the dominant provider in the region. On any given day a single business address might receive mail that’s been delivered by five or six different companies. By consolidating those smaller players, SkyPostal takes on an economy of scale allowing larger profit margins, with no increase in costs.

It’s really quite rare, in this day and age, to find a company that is EBITA positive, has a tremendous management team, has already built a solid business, and is trading for around $1 a share; yet one of the keys to their success is simply getting the mail delivered. But that’s where SkyPostal really shines. Frankly, there has been no direct competition, because up until SkyPostal came on the scene, the only choices were with the very expensive, time-sensitive providers like UPS and DHL, or the smaller local carriers whose dependability was less than desired.

SkyPostal has proven that they can take the “final mile”, which is the actual physical address delivery of mail, and do it for less than half the price that the majors charge by focusing on “time defined” delivery, versus time specific delivery. As a region-wide, cross-border private postal service, SkyPostal solves a large market need for reliable, low cost, time defined, and trackable mail service in Latin America and the Caribbean. Because there is great need, and SkyPostal has the solution, it would be the wise for investors to take a closer look at SkyPostal for its growth and profit potential.

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