GEO Investing

GeoBargain on the Radar WTT designs and manufactures radio frequency (RF) and microwave-based products for wireless and advanced communications industries and markets its products and services worldwide.  Yesterday shares of WTT hit a new 52 week high.  In our 4/15/2013 email to premium members, when the stock was trading at $1.80, we mentioned that:

“Overall it looks like the company is in a much leaner position than it has been in for many years.  Top-line growth is being driven by increased demand for WTT’s products as the installation/upgrade of the distributed antenna system (DAS) accelerates.  A DAS network can provide more coverage and is more efficient than a traditional antenna.  Since only 5% of the wireless market utilizes DAS, a good deal of growth opportunity for WTT could be in the cards.”

Although operating income growth has been inconsistent on a higher level of revenue in the third quarter of 2013, we are still watching the WTT story.  Our interest lies mainly in the DAS business becoming more of a focal point instead of the legacy test and wireless communication segment, which is mature and  somewhat dependent upon Government contracts.  We also believe WTT is an ideal acquisition target.  We are still long this name and will be reassessing our original price target of  $3.25.  Our follow up attempts to interview WTT a second time have been, thus far, unsuccessful.