SmallCapPower
Box Score
Daily Stocks on the rise
|
 |
The Ubika Research Tech Stock Watchlist
| Craig Wireless Systems Ltd. (TSX:CWG) |
| Company Name: |
Craig Wireless Systems Ltd. |
| HQ Location: |
Winnipeg, British Columbia |
| Company Website: |
www.craigwireless.com
|
| Shares Outstanding |
49.7 Million |
| Market Cap: |
$10.9 Million |
| 52 Week Range |
$0.08-$0.375 |
| Average Daily Volume |
13,000 |
|
|
|
Share Highlight / 1-Year Stock Chart
|
|
|
Business Overview
Craig Wireless and its affiliates (collectively, the "CWS Group"), offer a broad range of telecommunications services, including, broadband Internet access, television programming delivery, business connectivity solutions, hosting, security and telecommunications solutions. Through certain members of the CWS Group, Craig Wireless holds or leases licenses for spectrum in the 2.5 GHz, 2.6 GHz or 3.5 GHz bands in Manitoba and British Columbia, Canada, the Coachella Valley region, California, United States and in Greece. The CWS Group also has spectrum interests in Norway and New Zealand. Spectrum in these ranges is effective for delivery of point-to-multipoint signals, possesses robust bandwidth capability and supports emerging WiMAX-based and other fourth generation (4G) applications, including portable and mobile applications. Currently the company is winding down the pre-WIMAX operations in Manitoaba and working to launch the new WiMAX network in Palm Springs, California and Vancouver, British Columbia.
What is interesting?
The following are key investment highlights:
- While the company doesn’t have a lot of revenue and is unprofitable, the spectrum assets it is having can be quite valuable. Their true value don’t show up in the balance sheet or financial statements
- Craig Wireless holds WiMAX spectrum in some attractive markets like Palm Springs, California, Vancouver, BC, Norway and New Zealand.
- It is in the process of launching services in Vancouver and Palm springs which could bring revenue growth
- The spectrum licenses that it owns could potentially emerge as a valuable asset as more and more WiMAX based applications are emerging and cellular networks are becoming more expensive and facing capacity constraints as more data services are being launched. So cell phone operators may find WiMAX spectrum attractive particularly for data services and Craig Wireless holds this spectrum in attractive markets.
- The closest example of a large telecom company which has used this strategy of acquiring WiMAX spectrum and patching together a national network in USA is Clearwire Corporation.
- The company recently raised money - $1.5 Million dollars from its Co-CEOs, suggesting management seems to believe in the potential of this company.
Risks
Craig Wireless is not a profitable company and is burning cash and requires cash infusion to sustain. The WiMAX is an emerging technology and the full range of possibilities and challenges of this technology for modern applications is yet to emerge. The company is winding down its pre WiMAX operations that is bring its current revenue in Manitoba and Vancouver and focusing on launching new WiMAX networks in Vancouver and Palm Spring California. This transition could present execution risk for a small company like Craig Wireless as it does not have significant excess capital to manage project risks.
Craig Wireless Systems Ltd. News
Ubika Research Disclosure
Copyright
The content on this site may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Ubika Research, a division of Ubika Corporation.
Disclaimer
Ubika Corporation is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to any visitor of this report or site or readers of any content on this website. The information on this website is designed to present the findings and opinion of Ubika’s analysts, columnists, speakers or commentators and what they believe to be the factual information.
Where reference is made to estimates of value or relative value of a specific security or ETF or any underlying asset or company, those are based on the information available from the public sources. They should not be relied upon in making specific investment decisions and readers should seek advice based on their risk profile and investment requirements from a person qualified and authorized to provide advice.
Ubika Corporation (including its Directors, employees and representatives), its analysts, columnists, speakers or commentators or a connected person may have positions in or options on the securities including Exchange Traded Funds (ETFs) mentioned on this site/report and may buy, sell or offer to purchase or sell such securities and ETFs from time to time.
Nothing on this site constitutes an offer or invitation to purchase or acquire any shares in any security or ETF mentioned on the site or any other asset or company or any interest therein, nor shall it form the basis of any contract entered into for the purchase or sale of shares in any ETF or asset or company mentioned on this site.
|