Wpcs Intl Inc (NASDAQ:WPCS)

CAPS Rating: 1 out of 5

The Company provides design-build engineering services for communication systems, which are wireless networks for applications, and for wireless infrastructure, which include commercial cellular systems for wireless carriers.

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Member Avatar TSIF (99.96) Submitted: 8/28/2014 3:15:46 PM : Underperform Start Price: $1.22 WPCS Score: -16.89

Making 15-20% swings erratically lately. Caught one in July, had the bait set to try again. Never can tell what will bite.

Appeared it could go either way, (had a high of $4.00) and while I agree metrics for this one are poor, (Burns $11M a year, has $2M). Selling assets for another 2M or so. As long as it stays erratic, I will try to bank a few points. Down long term seems more likely than up. (Low of $0.60 seems very excessive, but hard to tell on one that goes on volume romps, speculator, day traders, short covering cycles regularly.

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Most of the "gang" jumped on Wpcs Intl after it's hard fall in the $0.60 range, which Jed71 notes in his pitch. Threats of loosing listing due to sub-$1 or threats of covenants being broken by listing warnings are important, but generally of marginal duration. Companies can always reverse split, and lenders aren't too ken on forcing debt repayment if it will just push a company into bankruptcy. Best to try manage the debt unless a company is a total loss. So risk of a downthumb at $0.60 seemed greater than waiting. A small rebound from $0.60 can be harmful on CAPs, though usually for a short time.

P/S of 0.34 so some revenue coming in, P/B of 3.5, however still leaves this grossly overvalued with highly negative margins, Revenue down over 50% YoY the last three years. Bleeding $3-5M a quarter, but only has about $2M in cash. Dubious receivables of $10M, but accounts payable and short term debt $12M.

250 employees to feed, no redeeming financial qualities.

Calling back down, not sure how far....

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Member Avatar SmartAce (99.85) Submitted: 8/6/2014 2:50:12 PM : Underperform Start Price: $1.00 WPCS Score: -38.79

Progress depends on our changing the world to fit us. Not the other way around.
Joe

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Member Avatar jed71 (35.76) Submitted: 6/26/2014 10:26:03 AM : Underperform Start Price: $0.54 WPCS Score: -160.67

8-K released on 6/20:

"WPCS International Incorporated (the “Company”) previously issued secured convertible notes (the “Notes”) to certain accredited investors (the “Holders”) pursuant to a securities purchase agreement dated December 4, 2012. Pursuant to the terms of the Notes, an event of default occurs when the Company’s common stock is suspended or threatened with suspension from trading on The NASDAQ Capital Market (or an equivalent market). As discussed more fully in Item 3.01 below, the Company received a letter from the Staff of the Listing Qualifications Department of The NASDAQ Stock Market LLC (“NASDAQ”) indicating that the Company’s common stock would be subject to delisting from The NASDAQ Capital Market on December 15, 2014, unless the Company regains compliance with the continued listing requirements of NASDAQ or is entitled to additional time to achieve compliance with the NASDAQ rules. As a result of the notice from NASDAQ, an event of default occurred under the Notes (the “Event of Default”). As a result of the Event of Default, the Holders have the right to require the Company to redeem the Notes equal to the Conversion Amount (as defined in the Notes) to be redeemed, plus a make-whole amount equal to the amount of any interest that, but for any redemption of the Notes on such given date, would have accrued with respect to the Conversion Amount being redeemed under the Notes at the interest rate then in effect for the period from such given date through October 31, 2023, the amended maturity date of the Notes, discounted to the present value of such interest using a discount rate of 2.5% per annum. Currently, the principal amount of Notes outstanding is $898,334.

The Company has provided notice to the Holders of the Event of Default, but no Holder has exercised its right of redemption. If the Company is required to repay the Notes, the Company does not have sufficient working capital to repay the outstanding borrowings. The Company intends to commence discussions with the Holders concerning a forbearance or waiver of the Event of Default; however, there can be no assurance that the Company and Holders will come to any agreement (either oral or written) regarding repayment, forbearance, waiver and/or modification of the Notes."

10 for 1 reverse split anyone? Maybe 20 for 1? Cash is down to a few $MM and their list of options is short. Will a white knight ride in a save them at the 11th hour? Without MASSIVE dilution and other very restrictive concessions, I highly doubt it. Either way, common shareholders are in deep trouble here. AVOID.

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Member Avatar bclear2 (23.93) Submitted: 3/4/2014 2:37:35 AM : Outperform Start Price: $1.52 WPCS Score: -13.21

Bitcoin play. One of the world's leading bitcoin trading platforms,

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Member Avatar SqwiiTrader (< 20) Submitted: 2/19/2014 5:51:48 PM : Outperform Start Price: $1.62 WPCS Score: -21.00

WPCS close to long term bottom. Tom Demark 13th Monthly buy

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Member Avatar jargonific (< 20) Submitted: 1/24/2014 8:02:40 AM : Outperform Start Price: $1.70 WPCS Score: -26.12

WPCS has put out a lifeline with their Bitcoin trade platform. They can now restore profitability and create new trade interest in Bitcoins with volatility becoming their bread and butter.. the more volatility the more people might trade in/out of the electronic coin.

Seems like a win

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Member Avatar Haugurafpeningum (42.87) Submitted: 1/5/2014 1:32:22 AM : Outperform Start Price: $2.56 WPCS Score: -53.07

BB 5

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Member Avatar mfgd (80.08) Submitted: 12/30/2013 1:33:50 PM : Outperform Start Price: $1.95 WPCS Score: -35.60

WPCS is a maker of engineering services for communications infrastructure. On 12-26-13 it launch its BTX Trader Bitcoin trading software. The new software is designed to allow traders to gather information and trade Bitcoins on five different exchanges including the popular MT. Gox exchange. Owning this stock is one way to get in on the Bitcoin craze.

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