Wialan Technologies Inc (WLAN)

[Inorout]

I have a few thoughts on WLAN both positive and negative.

I'm not going to rehash all the negatives since the reverse merger because everyone unfortunately is aware to varying degrees. Now it appears that longs are in a sort of show me state because they've been burnt bad and they're unwilling to get longer until WLAN proves something to warrant additional consideration. The trading volume and bid illustrate this point.

From a valuation standpoint, with 2,533,333,333 shares outstanding and a current PPS of .0049/share, The company is currently valued at nearly $12.5 million dollars.

The question anyone needs to ask themselves is WLAN worth $12.5 million?

IMO the answer is no based on very meager revenues despite the good quarter over quarter comparison. On the positive side, WLAN's cash burn has been relatively small and it appears they've done a good job managing expenses. Cash burn looks like about $100K over the last 6 months so while WLAN is losing money, they're not losing a lot. The fact that WLAN has kept expenses in check explains another positive, and that is WLAN hasn't needed, at least yet, to issue more shares.

So while it's my opinion that WLAN, with a $12.5 million market cap is still significantly overpriced given its revenues and net losses, I've seen a lot worse. But WLAN is going to need to get a lot more revenue, and that is the bottom line.