Wireless Xcessories Group Inc (WIRX)

[erehwontim]

I decided to lighten up on WIRX this morning. About +120% since entry in Sept -- thanks HWEB!. Other than wanting some cash, here is my reasoning.

Recently some significant buying pushed the stock up over three dollars and has held there for a few days. I believe that if the price stays above $3 for 30 days, they will qualify for AMEX listing. I suspect that there is likely to be some tape painting to keep the price above $3. The buying around 2/1 through 2/7 may have been related to the action in FORD from earnings on 1/20 and heavy buying on 2/3. The big increase in FORD sales was related to carrying cases supplied to 2 OEMS who introduced new models in the quarter -- this should not have a significant impact on WIRX. The buying might also have been friendly buying to get the stock up to $3 or even just somone taking a pretty good position for their own reasons.

Q4 results: The last two years Q4 sales have been below Q3. If that happens to be the case this year we might see as low as $.03 EPS but probably unlikely given the new products. If sales get up to 4.3MM or so, they should equal the .06 form Q3. I think there is a good chance the GM will be up a point or so and also that OpEx will be up a little. If EPS is .06 and that is sustainalbe then .24 for next year gives a PE of 12.5 or PE of 21 taxed. I think there could be a lot of selling pressure if EPS is less than .06. Anyway, I feel the upside is limited for the time being and expectations for AMEX and big EPS are pretty high. Tim