Edgewater Wireless Systems: Ten Bagger In The Making?

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Edgewater Wireless Systems (KPIFF) is one of our favorites. We wrote about the prospects of the company here and here, and have not made it a secret that we believe the company is a potential ten bagger.

The company is offering wi-fi technology products and services, and has +20 patents. It solves the high-density problem that most public and highly crowded locations suffer from. It announced a cooperation with Apple last year, after which it surged from $0.10 to $0.60 (a six bagger).

Since then, the stock has retraced and remained in a consolidation range between $0.15 and $0.38.

Over the course of the last two weeks, however, the stock surged srongly, and closes right above its trading range. Volume picked up significantly, which is something we have not seen in more than six months.

Interestingly, there was no ‘official news’ apart from some press releases which announced product launches (see the investor section of the company’s site). We believe these press releases did not ’cause’ the recent rally. We rather believe insider buying combined with insitutional buying is taking place at this point. That is obviously very good news, as those buyers are mostly of the type ‘buy and hold’.

YFI_July_2016

Time will tell what exactly is going on. Right now, we can only analyze price and volume patterns. We love the company’s story, and believe in its potential. However, this is a nano-cap, so investing comes with significant risk!

Disclaimer: InvestingHaven.com makes every effort to ensure that the information ...

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Lucas J. 8 years ago Member's comment

Does this mean they will be releasing some new products or services?

Taki Tsaklanos 8 years ago Contributor's comment

That COULD be the case, but my personal opinion is that institutional or insider buying points to an upcoming success, potentially related to one of their patents or a new sales channel or sth similar. Time will tell.