3SOF

WWA GROUP

WWA Group, Inc., together with its subsidiaries is one of the world's largest auctioneers of transportation and industrial equipment. The company's auctioned items include mobile and stationary earthmoving and construction equipment, such as crawler tractors, excavators, wheel loaders, cranes, trucks and trailers, generators, compressors, agricultural tractors, and forklifts. It also sells light vehicles and other related items, such as boats and motorcycles.

WWA Group's business strategy is to continue to grow the number and size of auctions held during the year, to increase the cash flow generated from such auctions, and to expand operations to new auction sites. WWA Group intends to focus on formalizing new joint venture relationships, management arrangements, new wholly owned facilities, and expanded auctions as a means by which to increase net cash flow.

The company controlled over 65% of all industrial equipment auction sales concluded in Dubai in 2005. Dubai is a regional hub for sales of "previously own" equipment for the Middle East and Africa. WWA Group also manages auctions in Amsterdam, The Netherlands; Perth and Brisbane, Australia, Indonesia and Qatar through operating joint ventures with local registered auction companies.

There are not many pennies where you look at the Income statement and the Balance sheet and go away with a good feeling. Since WWAG was mentioned here the first time I have spend some time looking into the financials and I like what I see:



Revenue, profit and shareholders equity have steadily increased over the years and the dilution have been very modest:



While the company has continued to perform the stock price has been sluggish at least and the stock is in fact trading below its trading range in 2004.



The result is that the valuation of the company has become very attractive:



As can be seen from the forecast for 2006 and 2007 I expect the company to continue to deliver good results in the coming years.  The economy in the Middle East is strong due to the new found oil wealth and the construction industry is booming. This will ensure a continued strong demand for Heavy equipment. There are several other reasons why the future earnings seems poised to increase in the future:

• The company was part of a consortium that won an order from the US military for disposal of scrap metal, vehicles and equipment on the British territory of Diego Garcia. This island has been used as a base during the Gulf War. Revenue and profit from this venture should start to be reported by the end of this year and start of next year.
• The company acquired a RoRo container ship in July. The company will report revenue and profit from this investment starting from this quarter
• On line Auctions have shown a very promising trend, which will help increasing gross margin
• They should start to earn fees from auctions held in Qatar, Indonesia, The Netherlands and Australia.

As said earlier this stock seems to suffer from a sever case of lack of interest. It can take some time to cure this disease but sooner or later the valuation becomes ridiculous and the market corrects its mistake. I consider WWAG to be a speculative buy but the return could be very attractive for the patient investor.

WWAG looks hot Mike, technicals are good

Where's the Volume......
Without that how hot can it be....
If you bought this thing, How could you sell it....
Just a thought guys..


52wk Range: 0.31 - 1.35
Volume: 12,000
Avg Vol (3m): 7,800

I know the volume is the problem there, if the volume comes in next week i'm probably a buyer

-- Still WWAG is hot, technicals are hot
-- MACD bullish cross (going above zero)

I agree Terliso.  WWAG...look ready to pop very soon.

Hi Terliso, Seatravis and kslifka,

When I see you guys in a thread i know that the stock has potential 

You are obvious right that WWAG needs volume/interest even though volume has picked up lately. Based on the valuation of the stock the down side risk is however very limited in my opinion.

That is why this stock is for the patient investor. I find it hard to believe that the stock will trade at this level 1 year from now and if you are willing to wait I am sure that there will be times when you can exit as I could have done Friday with a healthy profit 

I and it seems other holders of this stock decided to stay in even though the stock was up more than 15% and that is a good omen 

Well let's see what happens come Monday.
For I am a very patient investor....
Applaud the work Michael ,Terliso ,kslifka and superman7 for the pick....

Pump up the Volume....

i opened a thread already in june 

http://www.3stocksonfire.org/trading/index.php?topic=5999.0

Quote from: ket1390 on October 23, 2006, 04:12:02 AM
i opened a thread already in june 

http://www.3stocksonfire.org/trading/index.php?topic=5999.0

Sorry about that Ket. That was an oversight from my side especially as your thread had some valuable information (Applauds).

I have joined the two threads into this one.

Quote from: ket1390 on October 23, 2006, 04:12:02 AM
i opened a thread already in june 

http://www.3stocksonfire.org/trading/index.php?topic=5999.0

Now That's What I'm Talking About !
When members choose to start new threads without using the search.
Prime example here, ket1390 had thread that already existed.
Applaud to you ket1390.......

That needs to be done with all these threads with numerous ones created. "Merge" 
Merge them with the very first thread that was created ! 
It would make the Boards so much more efficient...."Simplicity" 

Quote from: setravis on October 23, 2006, 04:00:55 AM
Well let's see what happens come Monday.
For I am a very patient investor....
Applaud the work Michael ,Terliso ,kslifka and superman7 for the pick....

Pump up the Volume....

Well we don't have the volume but we for sure are heading in the right direction   

Volume requires sellers and they just don't seem to be around.

Nice looking numbers for this company,good find.Kicking myself I didn't buy the morning pullback

Quote from: Michael on October 24, 2006, 02:58:59 PM
Well we don't have the volume but we for sure are heading in the right direction   

Volume requires sellers and they just don't seem to be around.

Michael, another Applaud for the work on the Fundamentals.........
Well I wet my toes (or should I say dove in  ) this one this morning.
Was able to get in @0.80

52wk Range: 0.31 - 1.35
Volume: 54,765
Avg Vol (3m): 8,647.69

Support @ 0.91...0.84...0.78
Resistance @ $1.25

MACD is Bullish
Stochastic is Bullish

Recent CandleStick Analysis
Oct-18-2006 Bullish Engulfing 
Oct-17-2006 Hammer 

chart looks great

looks like it's going to run like last time.
tomorrow will be an interesting day.





P.S. ket, sorry didnt mean to take credit away from you. Great finding!

Quote from: Terliso on October 22, 2006, 04:50:41 PM
-- Still WWAG is hot, technicals are hot
-- MACD bullish cross (going above zero)

The Magic sweet!!
Buckle up....Volume is heading north for this little stock