Replies to post #127327 on MATRIX Penny Stocks

[EVO]

that AAC has a hard time breaking out/moving at all because company management is being paid in shares and they look for every opportunity to dump...

[Omnitrader]

MBTT, NMXS, EELN,LFTC: added to BB list

[Marvelmeister2002]

I thought that WLSA's conference call yesterday was impressive.

A few notes:

I was very intrigued by the potential of the new partnership with Azonica. Simmonds is extremely excited about the "911 phone" (though it does seem that the company won't be seeing significant revenues from this product until the 4th quarter, and especially early next year.) Simmonds has shown an incredible nose for opportunity in the wireless sector in the past- so I don't take his excitement about this opportunity lightly (Simmonds said that the potential here was "tremendous" and "unbelievable"). Whether his enthusiasm is entirely justified or not remains to be seen, but the potential here is certainly significant, in light of the pending Homeland Security mandate alluded to in the call (that every classroom and floor of every building 6 stories or higher have an emergency kit containing an alkaline-battery-powered 911 phone). This partnership seems fairly likely to provide the company with another solid revenue stream, at the least. At best, the 911 phone could be a home run for the company. So I was pleased to hear about this development.

But I consider potential revenues from the 911 phone to be a bonus, and definitely tangential to the main thrust of the company's business. There was very good news on that score as well. I was extremely pleased to hear Simmonds say something to the effect that "Business is trending well. July was the company's best quarter ever in terms of profitability by a country mile." That was a heck of a nice bone to throw to shareholders- it strongly reinforced my feeling that this quarter would be impressive. WLSA's core businesses seem to be ramping very nicely, as Simmonds was even more bullish on the 4th quarter. He didn't provide specific guidance, but clearly gave the impression that it would be a gangbusters quarter. Guidance for next year wasn't discussed specifically either, but there's every reason to expect outstanding results as the 911 phone and/or the broadband initiative should start to gain traction by early next year.

Obviously, I would have liked to hear that the Westcan deal was set to close within a week rather than within 60 days. But I found the reasons for the delay to be understandable, and was impressed with Simmonds' straight forward, unflinching explanation of them. I'm satisfied that this key deal will happen (albeit somewhat later than initially expected.)

I very much agree with Simmonds' prediction that the trajectory of the stock price should be upward going forward. The road shows (which he indicated should start later this month) should help. How much they help remains to be seen, but I wouldn't be at all surprised if this proves to be a major factor (the stock has based nicely and- thanks partly to a small float- it doesn't take much buying pressure for WLSA to move fast. So even a little hedge fund buying could make a big difference here). He predicted that the stock price has already seen its lows for the year and would return to the $1.50 range over "the next few weeks or months". That seems like a reasonable expectation to me. He also said that he "certainly" expected the company's market cap to return to the 50 million level needed for an AMEX listing, by the fourth quarter. I agree that this is very possible, especially if the broad OTC market starts to trade better (which seems likely. It's very hard to imagine it trading much worse than it has over the last several months). It is also possible that the stock price won't return to the $1.80-$2 range needed for AMEX listing until early next year. But it will almost certainly happen sooner or later imho, and an AMEX listing should help the stock to settle in over $2 by increasing WLSA's exposure and trading volume, and allowing institutional investors to get into the action.

I plan to hold a core WLSA position (average cost roughly $1.20) until the company makes AMEX, while flipping trading shares on major spikes along the way. I expect the trend here to be solidly upward for the rest of the year, and expect to close the year at $1.50-plus with or without an AMEX listing. AMEX should bring at least a double from current prices. And I see very little downside risk to this investment, as all uncertainties are more than priced into the stock now imho.

I continue to feel that WLSA is one of the best investments in the market at current levels (.99).

A recording of the call will be archived for roughly the next month http://news.moneycentral.msn.com/ticker/article.asp?Feed=BW&Date=20040902&ID=3950445&Sym...
RM