SwingTrade Member Forum

[MikeDDKing]

FKWL is my largest holding and I think has great odds of being a multi-bagger. Here is why:

1. FKWL reported EPS of $0.17 on much higher margins. The higher margins are due to the fact that they brought product development in house. They did this by buying a controlling interest in another company. At $2.85/share the price is cheap based upon quarterly EPS of $0.17.

2. Their only competitor at Sprint for their u600 USB 3G/4G modems disappeared at the end of 2010 or the first day or two of 2011. This information is not well known. The lack of a competitor for USB 3G/4G modems at Sprint should cause revenue to increase going forward. My understanding is that Sprint is their largest customer. Also, Sprint has been highlighting FKWL's u600 on their home page (see "Get more zip" in the middle of the page).
http://www.sprint.com

3. They have many new products that are either available now or will be available shortly. This will increase revenue and provide diversification particularly in LTE which significantly broadens their customer base. Here are press releases for some of the new products:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59870604
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59870627
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59844365
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60069096
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60069167

4. I think they will return to near their old revenue level with just the u600. With the higher margins, earnings should increase dramatically from the current level. Also, new products should increase revenue above the old levels and further increase earnings.

5. Diluted EPS is understated due to the buyback of additional shares from C-Motech that is in progress.

6. FKWL has a stellar balance sheet with a book value of $1.46/share and cash of $1.32/share.

The FKWL board is located here:
http://investorshub.advfn.com/boards/board.aspx?board_id=3907