WPCS International: Clearing Up Some Misconceptions
Let me be very clear. I hold no position in WPCS International (NASDAQ:WPCS) and that is unfortunate given that I missed a big move in the stock that I was expecting (figure 1.) I had a standing order at $1.3500 that did not get filled. I simply missed the move. However, there are a few new pieces of positive evidence for WPCS that need to be shared and there are some clarifications from my last article that need to be made regarding WPCS’ operations.
Figure 1. Price of WPCS International Over the Last Five Days
Clearing Up Some Misconceptions
First, there seems to be some confusion regarding exactly what the company does. Some have contacted me with the impression that the company is a FOREX type company that is now dabbling in Bitcoin. That is not the case. It is moving to develop a Bitcoin platform after its deal with btxtrader.com. But this company is still primarily a failed telecommunications company — a pitiful performer that is hanging on to life. That said, I wrote my last bullish piece (and this current one) because WPCS is attempting to save its business. In turn, the stock that once traded 24 times higher than its current $1.60 price could move significantly higher given this decision by the company.
Make no mistake, the company still primarily provides a comprehensive range of capabilities in wireless communication, specialty construction, and electrical power. It is not a currency company or even a software company. Its core business is in the design, project management, installation, and maintenance of infrastructure for businesses. WPCS has no major plans to abandon its focus on the servicing and installation of wireless technology construction and installation of servicing cables for various enterprises. It is the move to Bitcoin and the trading platform that I believe will save WPCS, or put it out to pasture. There is significant risk, but very profitable trades can be made.
Further, as a long-term investment, the risk is that WPCS will not be able to cover its liabilities and could fail at monetizing the platform. I believe this is a possibility, but that WPCS is doing all it can to ensure this will not happen.