SwingTrade Member Forum

[MikeDDKing]

Why I think FKWL has the potential to be a multi-bagger:

FKWL is a provider of wireless modems for the cellular industry.

1. FKWL made $0.10/share last quarter. Tthey are trading at a PE of just over 5 using annualized Q1 earnings.

2. FKWL recently purchased 50.6% of Diffon. Diffon will make new products going forward for FKWL. This will allow FKWL to expand their margins. My estimate is that margins could more than double because of this relationship. If margins doubled their earnings would skyrocket assuming flat to growing revenue.

3. Sprint and Clearwire are rapidly increasing their 4G coverage which increases the market for FKWL products.