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Missy, I have a large position here. I've been DD'ing and accumulating this one for some time. Check out this post (I've also posted on the Yahoo HRC Board)http://www.investorshub.com/boards/read_msg.asp?message_id=3457419
Meister
WLSA starting to really move. Here's some DD (taken from a few different posts I've made in the last few weeks):
When I last mentioned this one, it was trading at 1.40. Since then, it has been relentlessly pummeled down to the current price of 1.23. Obviously, there's a huge seller in the stock. As unpleasant as the drop has been, I view it as a buying opportunity and have been adding shares on the way down.
I continue to believe that WLSA will be a big long-term winner, for the reasons previously given. But I view WLSA as close to a can't-miss trade from these levels. To make AMEX, the company will likely need to get its stock price up to at least about $1.90 (they should have about 26 million shares out after the pending acquisitions, and need a market cap of $50 million to trade on AMEX).
So, assuming that the AMEX listing happens as planned, you're looking at more than a 50% gain from the current price to the target 1.90-plus level. Despite the recent price weakness, I still expect the AMEX listing and accompanying 50%-plus gain to materialize within 2 months (at most).
There appear to be some even more immediate catalysts here as well. The company has indicated that it intends to close several acquisitions this month. That's catalyst number one.
The second major catalyst (discussed in the last conference call) is likely to be additional insider buying. WLSA's CEO and some of his "friends" (presumably some of these "friends" are company insiders, but I don't know that for certain) are in negotiations with the former CEO to buy his very large block of WLSA stock. If that happens (it's not a sure thing, but I strongly feel that this deal will get done within the next few weeks), there will be a PR indicating the insider buying. That PR should light a fire under the stock, imho.
Disclosure- I have a very large position here.
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The CEO bought 400,000 shares at 1.40 (and said in the last conference call that he would love to acquire more company stock), and somehow I don't think he's sweating this temporary decline. He knows that WLSA's stock price will be much, much higher someday. In fact, he predicted in the call that he expects the stock to go to $10 within the next couple of years. That may or may not prove to be an overly aggressive prediction, but even if the company gets sold someday for half of that (which I think is a very reasonable expectation), that would still be roughly a 4-bagger from current levels.
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I expect WLSA to bring it within the next 5-6 weeks or so. Simmonds is on a mission to get the company onto AMEX. He's holding back on announcing at least one major acquisition (per his conference call comments), and I wouldn't be at all surprised to see him announce sometime in the near future that he has personally sucked down a boatload of additional shares in the company (again, per the conference call). After he runs the stock with PRs and secures the AMEX listing, he'll move on to the road shows. That could be huge for WLSA, for two reasons: 1) WLSA is about as under-the-radar as it gets- so the ramp-up in exposure once the stock is AMEX-listed and the road shows start will be profound; 2) Simmonds is an amazing salesman, with the track record to back up his pumping.
This strikes me as one of the strongest catalyst trades I've seen in awhile. I think that WLSA has a good chance to be at least 50% higher within (roughly) a couple of months. It's hard to say where the stock will peak or how well it will hold its gains (though I like this one a lot long term as well, as I expect the company to be sold within about two years for a hefty premium)- but, in any event, WLSA is an outstanding trade from these levels, imho.
We might even see one of those fun, explosive low-float-stock runs here (WLSA has had some impressive runs in the past- it can move fast once it gets into gear).
Is anyone watching WLSA? Here's the nutshell (I posted more extensive DD previously): the CEO has predicted an eventual buyout for $10 and recently scooped up 400,000 shares at 1.40 (and indicated in the last conference call that he would like to buy more company stock), Amex listing and accompanying road shows are expected within the next month and a half, and at least 2 significant acquisitions will be announced in the near-term (per the last conference call).
WLSA's small float has led to violent moves in the past, and I expect it to happen again sometime relatively soon.
The stock had been very weak recently until today, due (imho) largely to selling by one major shareholder http://www.sec.gov/Archives/edgar/data/1130131/000116923204003181/d59832_s-3.txt
My feeling is that today might have marked a turn, but opinions on the chart from those with better technical skills than I have would be appreciated.
Disclosure: This is one my largest holdings at the moment.
Meister
I’d like to share some DD on WLSA ($1.60). I’ve loaded the boat on this one (average cost probably somewhere around $1.50) and honestly feel that it represents a great opportunity at current levels. WLSA is rolling out numerous strategic initiatives focused on the Canadian market, including wireless products, battery products, radio products/services, wireless services, and land line networks (including broadcast on demand and VOD). For starters, I advise anyone who is interested to listen to yesterday’s conference call (http://tinyurl.com/3bh7n) and to speak with the CEO, John Simmonds (905-833-0808, ext. 223).
Part of the reason I am so high on this play is because of Simmonds’ extraordinary track record. Among other successes, he took Intec from around $.44 to $8, and Glenayre from $14 to $700 (albeit in a market that “got way ahead of itself” and in part due to “manipulation by a third party”, as John was quick to point out when we spoke). He also headed up ClubLink, another massive success which became the largest golf chain in Canada.
Below is a brief overview of some of the conference call highlights, compiled by a friend of mine who is a stellar investor.
<I was generally very pleased with what the management team had to say today. Here are a few points in no particular order:
- happy with investment in Relm and Relm's current financial performance, very upbeat about the future for them
- in discussions on strategic initiatives With Relm
- have very recently moved from sales in 2 Canadian provinces to 4 provinces
- management goals of $100 million in revenue within 2 years (by 2006), with a 10% EBITDA margin (not sure if this means that run rate by the end of 2006 or 100 million during 2006)
- management expects roughly 30 million shares (give or take 10%) to be outstanding to acquire the businesses needed for these financial goals, and they expect a very high level of organic growth after they put the pieces together
- they also think it's not unreasonable to achieve a mkt cap of 3 times sales within a few years (or $300 million, $10 per share), might be lofty goals but I personally think $5 is easily achievable upon successful financial execution
- a couple other strategic acquisitions in the works in both the retail and networking areas
- they have plans for building a wireless network to deliver “the last mile” to the nearly 2 million people in Canada who don't currently have access
- wireless penetration is much lower in Canada compared to most industrialized nations
- new proprietary battery offering to come public within 60 days
- emerging concept of “broadband stores” for both wireless and non-wireless
- plan for a broadcast on demand and video on demand offering
- plan on offering some services that are not even currently available in urban areas of Canada
- eventually move into US markets
- current infrastructure of the company can support 100% organic growth from current levels
- test site for the network offering will be up and running by the end of the year
- expect to be on amex by late July (at the latest) because they feel both the unveiling of various business plans and acquisitions in the next couple months will increase the mkt cap of the stock enough to meet the $50 million amex requirement
- expect some financings in the near future to support the synergistic acquisitions
- CEO plans to buy more stock and may arrange to buy some from the former director (largest shareholder) if his intentions are to sell, not sure what the intentions of the Sim's are at this time as they merely tried to register all their stock (not necessarily sell it), regardless he probably won't let these shares hit the mkt tape
- they have not done any road shows or started talking to institutions to promote the stock yet, this will happen after the amex listing in late summer and after the business plan has been more solidified
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And my favorite quote of the evening from the CEO...”I want to buy more stock at these levels, but it's hard because I am an insider and I have to find someone that will sell them to me and someone who won't sue me when the stock doubles.”
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While I have no idea what to expect from the stock near term, I will probably add on any weakness and may add even without weakness...I think the overall market, especially as it relates to small cap stocks, has turned into a “prove it to me” mode as opposed to a giddy buying mode on silly hype. So that being said, it's just a matter of time with stocks like this one....pick the growth / speculative stocks carefully and be confident in the eventual execution.>
Meister
VRMD headless. EOM
Evo- This stock is a rock star, long term. Also looks good short term, as you say.
MM
HLSH and GUSH jiggy. EOM
Very much agreed on GUSH. I'm in big around .44. Added a little at .48. I expect this one to really rock.
HLSH running wild. EOM
HLSH completely jiggy.
I actually don't know whether HLSH is still a great short term buy. Long term, it's a keeper though (headed to $10-plus next year, imho- see the post to which this post responds for DD).
If any of the chart experts on this Board have an opinion as to how the near-term technicals are shaping up for HLSH, I'd be very interested to hear it.
Disclaimer- HLSH is my largest position, by far.
Meister
HLSH moving again. Much more to come. EOM
I bought some ECGI this morning at about .97. Here are a few of the reasons why: The Company is profitable, cash flow positive, has a market cap of under $25 million, and has WalMart, Staples, Safeway, Cott, Home Depot, Shaw's and A&P as clients. I think that the Company should really benefit from being a leader in the private label market (meaning generic retail products- e.g., Sam's Choice Cola from Wal-Mart versus Coca Cola). ECGI doesn't manufacture private label products- instead they design and market these products (they handle packaging, labeling, brand strategy and positioning, etc.) The private label market is expected to grow 33% in the next year, according to one report I saw. That same report indicated that private label branding has a 50% saturation rate in the U.K. and 30% Canada, compared to only 16% in the U.S.
ECGI benefits from recurring revenue streams from existing clients (for whom they design new product labels, brands and names over time). They also seem to be well-positioned, as a major player in the industry, to add additional plum clients as they did recently with Shaw (the Shaw deal has the earmarkings of a major coup- Shaw tabbed the company to relaunch all of its major brands.)
The Company seems to have carried off the recent restructuring well, and I also like the large insider ownership here.
Meister
WLSA continues to stand on its head. EOM
WLSA is worth a look here, imho.
I apologize for not sharing WLSA with the Board earlier. It has already run A LOT, but I think it still has some serious legs. I posted this to a private board on Monday:
WLSA
Posted: 10-27-2003 09:29 AM
I have started accumulating WLSA (last close- $2.31):
Here is a pretty solid overview of the company: http://messages.yahoo.com/bbs?action=m&board=7080974&tid=brka&mid=188745&sid=7080974
I am far from an expert on this company. Yet I have started buying mostly because: (1) I am intrigued by Simmonds' track record; and (2) WLSA is completely under the radar and I anticipate that promotional efforts should be ramping up in the near-term. I think that increased exposure alone will take this stock to $3.00 in fairly short order regardless of whether or not WLSA becomes a major success story (though my feeling is that it will be). So I guess I'd characterize this one as a catalyst trade for now, with the potential to become more than that.
Anyone interested in the story here should consider calling Investor Relations for the company (John Hansen, at 866-801-0779.) I did that, and the conversation was worthwhile.
Hansen told me this: "They're making money. The Company is trading at a high PE, but you're paying for Simmonds. He knows how to do this. He's done it before. This is a 'bet-the-jockey' investment." He also made the point that Canada's wireless market has been thus far underserved- roughly 40% penetration versus 57% in the U.S.
My last two picks on this Board were NXTI and HLSH. NXTI has blown up. HLSH has done squat, but I think it will move big soon.
Meister
HLSH on the move. EOM
HLSH seems to be getting frisky. Volume way up....EOM
HLSH starting to move- written up positively in today's Wall Street Journal. Here's the first page of the article http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7076888&tid=hrc&sid=7076...
This is just the beginning. When news hits that the forensic review has been completed and default resolved (which I expect to see within a couple of weeks), this stock will fly, imho.
MM
NXTI standing on its head. HLSH will do the same in the next couple of weeks, imho. EOM
NXTI- There it is. EOM
HLSH beginning its run. NXTI trading well. EOM
Time to buy HLSH.
Sorry about that last post. Forgot the way subject headers work on this Board (Doh!) Let's try again....
I am personally tapped out right at the moment, but I'd otherwise be loading up on HLSH here ($2.75).
I feel news coming. We know that the sale of the Coral Gables hospital was projected to close "within 60 days" of August 18th. So that seems likely to happen this week, and this news should give us at least a small boost. More importantly, my gut says that the convertibles will be paid off this month, even though the company said "by the end of the year" (if you held a gun to my head, I'd guess within a week). I think that the news, when it comes, will thrill the market. Marsal is an accomplished sandbagger- he continually gives the market more than it expects. So look for at least one other announcement to go along with the resolution of default on the convertibles. Maybe he'll announce that the company has more cash than anticipated (this is my guess). Maybe a new Line of Credit. Maybe an announcement that all debt has been refinanced (as reportedly sought by the company) either concurrently with resolution of default on the '03 convertibles or a few days after that. Maybe the forensic audit will be completed a little early. Or maybe some combination of the above. My point is that the news is going to be big. I expect to see a run-up prior to the actual release of the news, and then to see the stock scream upward into the $3.75 range when Marsal drops the bomb(s).
The bonds are absolutely standing on their heads, yet the stock is selling off in advance of the Congressional hearings this week. I find that to be silly, because the Congressional hearings are a non-factor, imho.
Here is a write-up I put together on the Company: http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7076888&tid=hrc&sid=7076....
I think that HLSH is easy money at current levels.
Ross
Hi all.
I am personally tapped out right at the moment, but I'd otherwise be loading up on HLSH here ($2.75).
I feel news coming. We know that the sale of the Coral Gables hospital was projected to close "within 60 days" of August 18th. So that seems likely to happen this week, and this news should give us at least a small boost. More importantly, my gut says that the convertibles will be paid off this month, even though the company said "by the end of the year" (if you held a gun to my head, I'd guess within a week). I think that the news, when it comes, will thrill the market. Marsal is an accomplished sandbagger- he continually gives the market more than it expects. So look for at least one other announcement to go along with the resolution of default on the convertibles. Maybe he'll announce that the company has more cash than anticipated (this is my guess). Maybe a new Line of Credit. Maybe an announcement that all debt has been refinanced (as reportedly sought by the company) either concurrently with resolution of default on the '03 convertibles or a few days after that. Maybe the forensic audit will be completed a little early. Or maybe some combination of the above. My point is that the news is going to be big. I expect to see a run-up prior to the actual release of the news, and then to see the stock scream upward into the $3.75 range when Marsal drops the bomb(s).
The bonds are absolutely standing on their heads, yet the stock is selling off in advance of the Congressional hearings this week. I find that to be silly, because the Congressional hearings are a non-factor, imho.
Here is a write-up I put together on the Company: http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7076888&tid=hrc&sid=7076...
I think that HLSH is easy money at current levels.
Ross
EXTI is pissed off. Chipped- you are The Man. EOM
Thanks Chipped and Vazzzz. I think that EXTI is a cut above your typical penny stock. EOM
Chipped- have I lost it, or does EXTI look like not only a good trade but also a good long term play?
I'm still doing my DD, but the risk/reward ratio here seems very favorable to me so far...
All comments appreciated.
Marvelmeister
NXTI- Nice volume. Getting ready to run? EOM
NXTI is one to watch, imho.
I've been averaging down into this one. Bought more today at $.90. I can't say for certain that it is set to move, because my technical analysis is pretty mediocre. But I can tell you that volume has been on the upswing over the last several weeks, and that the stock seems to be under accumulation.
I consider NXTI to be a fundamentally sound play. Rapidly growing revenues, reasonable PE, good management, very undiscovered (though a little less under-the-radar than was the case 2 months ago, as I mentioned) You could do much worse than to hold this one for 2-3 months and see what happens. But I expect it to deliver solid returns before that.
First time poster. Really enjoy the Board.
Marvelmeister