High Wire Networks Inc (HWNI)

[ORyoucan]

This sounds like a very plausible explanation for the high OH. If you're ramping up to expand, that kind of unabsorbed overhead would definitely jack up the indirects/OH if there aren't enough accounts to charge direct.

Now, this is only a temporary problem if they get more contracts where those engineers can then charge direct. The risk, of course, is that the growth doesn't match pace.

But I spent a few hours learning more about this business and the coming moves to 5G and where SGSI might fit into this macro move.

And what comes to mind is that SGSI is like the dudes selling pick-axes and shovels to the gold rushers. The Verizons and Time Warners of the world are going to compete to stay on the cutting edge of wireless technology advancements--the onset of 5G being the most easy to understand and visible advancement we're aware of. And those big-guys with the best tech and capabilities are going to make a ton of money in this technological gold rush. But SGSI (and others) are very well positioned to make quite a bit of money installing this new equipment....and the analogy to Halliburton/KBR is an apt one...though hopefully SGSI is a less evil version... ;)

And with the recent major tax breaks all these companies received, a lot of that on the telecom side is going to go to CAPEX to build out these networks to stay competitive in this technological revolution we're witnessing. And it's happening right now - not at some indeterminate time in the future when the stars might all align. The stars are aligning now in this industry.

So the fact that this thing is trading at less than a penny and the MC is below $2M right now just doesn't make any sense. Especially with the OS (and the convertible notes don't worry me at this point - pretty standard stuff for a start-up like this and for all of JH's ravings, it will only go bad if revenue disappears). That's the kind of valuation that would make sense for MVTG at this point with no revenue and no reasonable prospects for quick monetization.

But for a company like SGSI in this industry at this time? Doesn't make sense. So while this company would otherwise not be on my radar had I not been a holder of a MVTG lotto ticket, I'm cautiously optimistic that we have a major under-the-radar winner here.