Ravi Sood
WebTech Wireless Inc.
WEW-T
DON'T BUY
Apr 21, 2008
Investors have to look at this one very carefully. Thinks they have very little in proprietary technology. They are virtually a reseller of off-the-shelf technology. History has a lot of black eyes.
(Top pick, March 26 2007. Down 52%) Have been buying lately. Been building a beautiful base between $2-4 dollars. Believe they’re the emerging leader in global telematics.
Signed up about 5000 long-haul trucks with a division of FedEx (FDX-N). A one-off sale with no recurring revenues. Question is, can they move beyond the long-haul to the local and other delivery services. Unfortunately, contracts take a long time to close. Still in a “show me” mode. Good technology, but there are better opportunities in the business.
Has GPS technology. Didn’t win the Brazilian contract for tracking stolen vehicles. Very high anticipation for growth. There’s talk of some big contracts coming down the pipe. He is watching.
Market cap is a little high based on the revenues they have had to date. Have been aggressive in saying they are going to sign contracts. Need to start getting into the tens of millions of dollars in sales.
(Market Call Minute.) Reported earnings. Still waiting for indications of success with FedEx plus and an opportunity in Mexico. Speculative and would not be a buyer yet.
Very conservative management. Have about 70,000 customers on a recurring basis. Unfortunately he has no estimates in his database and nobody covers it. In spite of all that, it ranks fairly well. Hasn’t seen any recent research on the company.
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