3SOF

WDPT.ob - WidePoint Corporation

Sector:    Services
Industry:    Technical Services

Profile: WidePoint Corporation, through its subsidiaries, provides information technology consulting services primarily to the federal government and commercial sector in the United States. It offers iDentity Management and eAuthentication Services that supports business-to-government, government-to-government, and citizen-to-government secure digital transaction requirements. http://finance.yahoo.com/q/pr?s=WDPT.OB

website: http://www.widepoint.com/

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Fundamentals and News

An excellent earnings report was issued on Monday!

QuoteWidePoint Year-End Revenue up 139% to $13.2M; Company Cites Significant Balance Sheet Improvements, Files for Amex Listing
Monday April 3, 9:40 am ET
Conference Call Scheduled for April 4
http://biz.yahoo.com/iw/060403/0120939.html

Strong growth, Great Balance Sheet and files for AMEX listing!  The Conference Call on April 4th was very bullish and now the stock is having a great reaction to it.  

Michael listened in to the conferece call.. these are some of his notes about the company:

---------------Michael's Notes-------------------------------
-According to the conference call they expect to announce new distribution alliances in the coming weeks and months
-stellar growth
-struggling to meet existing demand from government agencies(lots of opportunity)
-7 job openings on their website!(growing companies must hire)
-growth is also fuelled by the increased ID theft!

**All DOD ressources and information will be protected with ORC PKI
and all contractors and suppliers will have to acquire the PKI

ORC's (100% owned subsidiary of WDPT) identity Management and eAuthentication Services have received three major U.S. government certifications. ORC remains the exclusive holder of one such qualification and has near-exclusive status in the others giving the company a substantial competitive advantage when bidding for governmental orders.

ORC was recently awarded a blanket purchase agreement (BPA) from the General Services Administration with a ceiling of $100 million. Under the BPA, ORC may provide digital certificates, credentialing services and managed PKI services to federal agencies, state and local governments, educational institutions, commercial businesses and the general public.

The company's customers includes U.S. federal government agencies such as the Department of Defense, the Department of Homeland Security, the U.S. Treasury Department and the Department of Justice as well as major transnational corporations such as Boeing Aerospace, Northrup Grumman and several major pharmaceutical companies.

----------End Of Michaels Notes----------------------

Technicals:

The subject says triangle explosion and we have just that.  A symmetrical triangle broken to the upsde with large volume and this great fundamental news!  Strong support below from the triangle and moving averages(9,20,50) all bunched togeter.

Short-term:



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Long-term:



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WDPT is growing and is taking the steps to get listed on AMEX.  With support in place from heavy volume and mvg averages.. risk seems limited.  When a hot earnings report combines with explosive TA we must act.

We will buy WDPT @ market open.

summarization 
http://www.hawkassociates.com/widepoint/profile.pdf

As good as nmkt.ob?

- For which portfolio? SOF or SOV (or both?)

- Price target?

greetz

(btw: VMCS.OB released an amazing PR, stock is up 60% in Germany, maybe interesting?)

Quote from: Fré on April 06, 2006, 07:04:32 AM
As good as nmkt.ob?

- For which portfolio? SOF or SOV (or both?)

- Price target?

greetz

(btw: VMCS.OB released an amazing PR, stock is up 60% in Germany, maybe interesting?)

Hi Fre 

-This is the 3SOF thread..lol.. so it would be the 3SOF portfolio

-We'll talk price targets as the play develops.. but we're looking for at least $4 as this is the triangle projection.

Quote from: Fré on April 06, 2006, 07:04:32 AM
- For which portfolio? SOF or SOV (or both?)

Hi Fré,

eliteG answered that question very diplomatic. The truth is that it took 5 minutes to agree that this is a great pick and then 2 hours to discuss whether it was on fire or was a value play. EliteG won and I have to agree that it is on fire – but it is also a great value play!

Elite mentioned one Blanket Purchase Agreement but in fact they have 5 more similar agreements with a number of different governmental offices at a total value of $600 million (WDPT's market cap is $100 million). They obviously need to convert these agreements into revenue but as we saw in the last quarter that is in fact what they are doing. Widepoint's competitive position in the Governmental sector is extremely strong due to their intellectual property rights.

For now we will treat this as technical play but for those who like to pick up great growth companies cheap this might be a good long term investment as well 

QuoteeliteG answered that question very diplomatic. The truth is that it took 5 minutes to agree that this is a great pick and then 2 hours to discuss whether it was on fire or was a value play. EliteG won and I have to agree that it is on fire – but it is also a great value play!

LOL I am having the same issues,I started a position on this today at 3.05 and wondering with all the great things if I might turn this into a long term value play.

I am really loving what this company is doing and will do in the future.

Thanks for bringing this one to light Elite and Michael

GLA!

Quote from: rodri59 on April 06, 2006, 10:47:04 PM

QuoteeliteG answered that question very diplomatic. The truth is that it took 5 minutes to agree that this is a great pick and then 2 hours to discuss whether it was on fire or was a value play. EliteG won and I have to agree that it is on fire – but it is also a great value play!

LOL I am having the same issues,I started a position on this today at 3.05 and wondering with all the great things if I might turn this into a long term value play.

I am really loving what this company is doing and will do in the future.

Thanks for bringing this one to light Elite and Michael

GLA!

You're welcome rodri59  .. lol Michael is right.. it took a while to decide which portfolio this should have gone in.. but the clear thing is that this has the right gears in motion to crank us out some great returns period.


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update WDPT:

Today WDPT had a pause day closing a bit down but still above its mini-breakout and well above its triangle breakout.  Time to set a stop and its an aggressive one. 

We will hold WDPT unless it closes below 2.70.

Elite & Michael,

Nice work.  Your detailed presentation of each stock is always appreciated !

I called and spoke with Cale at Hawk Associates.  They seem much better than most IR firms.  I got the impression that they give their clients sound advice to improve the pps, without the pump and dump OTC stigma.

A few things that stand out from my notes:  (probably nothing that you do not already know, but here goes).

-  The 1st and ONLY commercial provider available to choose from in the arena for these agencies to order from.

-  President Bush mandated with HSPD12 that government agencies have a plan in place by October 27th.  They then have 3 years to implement. 

-  With a head start on a virtual Monopoly, WidePoint can forecast an amazing revenue stream based on the Presidential mandate alone.

-  The only company PKI in the order catalogue to choose from.

-  Hawk Associates says that the market is now discovering who the recipient of all the contracts will be (WDPT).

-  The # 1 client of Hawk Associates based on tenure and hours spent meeting with management.  Management of WDPT lays it on the table and also is willing to work hard on improving shareholder value. (they all seem to say that  )  Hawk Associates feels very comfortable with WDPT management after numerous face to face meetings.  (they did not say this about some of the other companies they represent, we discussed 4 total).

-  WDPT has a reputation of being conservative in forecasting but may give some forward looking statements soon.

-  Hawk Associates projects serious revenue to hit Q3 & Q4 but thinks the AMEX listing may move the price ahead of this.  Obviously, he could not comment much on price.

-  4-8 weeks projection on reaching the AMEX from the filing date.

-  Barron Partners and Goldman Sachs had past positions in WDPT.  They are currently marketing to institutions.

-  1.3 million in current debt but not in further need of financing.(perhaps for an acquisition)

-  Looking to possibly make some more acquisitions as they did with ORC in 1994.

-  21% insider ownership.

-  9 million shares in the float & 50 million approximate fully diluted.

WDPT - OTCBB

Closing Price (04/06/06): $3.00
52-Week Range: $0.61 - $3.25
Market Cap.: $99.2 mil.
Basic Shares: 33.0 mil.
Insider Ownership: 20%
Est. Public Float: 9 mil.
Average Daily Trading: 280,225

FY '05 Revenue: $13.3 mil.
FY '05 Net Income: ($7.4 mil.)
Diluted EPS: ($0.30)
Diluted Shares: 54.0 mil.
Total Assets (12/31/05): $10.7 mil.
Total Liabilities (12/31/05): $3.1 mil.
Fiscal Year End: Dec. 31

* please correct any information above if applicable.  I was refering to notes earlier in the day.

Nice pick.  I bought some today.  It will be interesting to see how it develops.  Will it continue to gain strength before AMEX decision or pullback over the next few weeks.  We will have to see.   Enjoy the weekend.

Great research Jeff  .. very informative .. only a matter of time. 

update WDPT:

Great information from fill_the_gap!  Out of all the 3SOF play WDPT has the most potential for growth.  The day we talked about it Ramsburg, Michael and I all caught it in our scans.. so thats got to be magic right? 

WDPT is acting bullish up here above its breakout(tight consolidation, inside day).  Support coming up from the 9ema and 20ema as well as the triangle top.  Strong volume again should send this one flying and being such a good value play as well we will probably have it in the portfolio for quite some time.

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Position: bought WDPT @ 3.09 on 4/06/2006
Order: Hold
Exit: on close below 2.70
Target: n/a
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Applause gap - great work!!!!!!

Elite, Michael and others,

Any ideas on a trading plan for WDPT ?   

You think it moves at all into potential AMEX listing ?  Or do we need news of a deal ?

What is the up to date PE compared to the sector ? 

Thank you in advance.

Hi Jeff,

First of all thanks for the summary of your call to Hawks, Great stuff!

I see little doubt that WDPT will be accepted for trading on AMEX. They meet all criteria including a stock price above $1. We just have to have a little patience.

WDPT has already crossed the line between a penny stock and a "real" company. They have cleaned up their balance sheet, warrants have been exercised, they are cash flow positive etc.

I will not try to forecast a PE for 2006 except that it will be positive. As most software companies an increase in revenue has a strong impact on the bottom line and WDPT has everything lined up to continue a strong top line growth. Their revenue last year was $13.2 million and with Blanket Purchase Orders of 600 million and their very strong competitive position I think we will see a very significant growth.

Concerning the trading plan we already have a stop at 2.70 I really wouldn't put a target on this stock from a fundamental point of view at this point in time - it would be pure guesswork.

Big drop on the Widepoint just now, no news that I can find, close to the stop... anyone know anything?

Update:  looks like just a blip, I tried to bottom tick it but missed out.

Michael,

Well, not 100% certain, but I hope so!  Here is what I saw (I use Etrade Pro)...