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Wireless Facilities, Inc. (WFII) Message Board

  • jbhdallas2000 jbhdallas2000 May 9, 2007 2:53 PM Flag

    WOW!! Is WFII for Real? Book Value @ $3.44 and $340Mil in Sales

    This stock just hit my radar screen. This look like a good stock. Why is it so cheap with a book value of $3 per share, low float, low debt? This low price just does not make sense.. Can somebody tell me whats going on???

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    • This stock just hit my radar screen. This look like a good stock. Why is it so cheap with a book value of $3 per share, low float, low debt? This low price just does not make sense.. Can somebody tell me whats going on???

      I'll try. Notwithstanding other issues with the company (lawsuits, options investigation, substantial loss of organic business, transition to new business, digesting recent buyout of defense contractor etc.) the simple answer is, if you invest in this company based on its Price / BV (Book Value) ratio, you should at least use the one that's reasonable close to Tangible Book Value, without a lot of accounting junk that is on the books as assets but really aren't - just waiting to be written off.

      See the thread and posts starting with
      for a real net cash book value of this company for that number, which shows that BV of WFII is under $0.90 as of September 2006, when last audited numbers were provided.

      You may be swayed to buy the stock for other reasons, but if you are only basing your decision on the fact that WFII BV is above $3, it would be a mistaken assumption. Hope it answered your question.

      Current run up in the price could be the feeling that things are getting on track with the company, could be the result of arbitrage, could be technical (chartists) correction, or simply a result of short squeeze which many small "value" stocks have experienced in recent days and weeks - if latter is the case, then WFII is somewhat late to the short-squeeze party that's been going on, but better late than never, as they say.

    • SEC investigating option grants of former officials. Officers have been removed and the company has sued them for the losses. The Government services side of WFII is getting some good Nasa , Homeland and defence contracts. The stock has been under the shorters pressure as they continue to sell and drive it down. The triple bottom and little burst up lately has got them running. The Anti-Terrorism Force is another string of wins lately. The company is ready to roll back.

    • Before you get yer knickers in a knot, look at the last 3 years of chart. Stocks do not lose over 90% of their value in a 3 year period without a lot of bad news.

      The valuation you are looking at was last stated before 2007. We do not have a clue what earnings were for last quarter 2006 because management did not choose to tell us. Whatever the valuation of the company should be, everyone pretty much agrees, it is not what your numbers show. The debate is not even if it is higher than those numbers; it is generally agreed to be less than the last stated numbers.

      The debate is over whether the company is turning around or still languishing. Since no real information is in the ether everyone is guessing.

      Look everything over carefully and give us your guess. Just don't bother spending time calling people names or questioning the size of their genitals since that has been overdone quite enough.

      Best of luck,


    • Here's the brief scoop:

      *Restructuring to improve revenue/profits (went from making money to losing money).
      *Sales of European, Middle eastern, South American and African businesses.
      *Stock Option Scandal (like many tech companies).
      *Delay in filing 4Q 2006 & 1Q 2007 earning report.
      *Dropped like a rock as investors became impatient with turnaround and dumped the stock.
      *Concerns that 4Q will be an even worse loss than expected.

      *SEC suing former employee who stole $7 Million in stock options (obviously mgmt really was looking into stock option situation and not just an excuse to buy time to release bad earnings report).
      *Announcement of $15 contract pact and of $13 Millino Gov't Services Contract. Yeah, business!!
      *Company is expect to make a profit this year.
      *Management has finally communicated some good news and future is looking better.
      *Also there is a "google factor" as the company is partnering with Google to build out it's Wi-fi business in corporate headquarters hometown along with plus four other municipality wi-fi projects.

      The Prudent Speculator (TPS), value newsletter headed by John Buckingham with an excellent track record, has the stock listed as a value buy since 3/31/2006 when the stock was at $4.02 with a goal target of $8.00. This is a value newsletter which identifies undervalued stock (selling at half what they think it's worth)--sometimes they get in a little soon as it would appear they did with this stock.

      As of 5/2/07, WFII remains on their buy recommendation up to $1.88 with a goal price of $4.00. Don't be concerned about the low goal price, with improved results, they usually up their goal price as they see revenue/profit improve.

      I think this is a good buy for a patient investor between the $1.01 low and $1.88.

      Also, a good stock to buy on speculation for a quick trade if more good news keeps coming (ie, better than expected 4Q which is not likely; better than expected 1Q; more announcement of new contracts, filing, winning the suit against former employee, etc).

      I already own a big hunk, my lowest was at $1.14--could have bought more at even lower, but was getting a little concerned that there was zero good news at the time and didn't want to get too heavy in one stock.

      Looking for sell prices of $2.50 in my speculative account and $8.00 in my IRA (much more long term investment).

      Good luck with the stock to all the longs!