Conversation 161: A DEEP DIVE INTO WIDEPOINT

Why does this stock have one of the highest bull ratings on Seeking Alpha?

In early 2017 Widepoint was almost bankrupt. But before the end of that year, new management had stopped the balance sheet blood-flow and since then the company has had 11 consecutive quarters of positive adjusted EBITDA.

In simple terms WidePoint (NYSEMKT:WYY) is a technology company that assists companies and governments to manage, secure and provide visibility into the use of their mobile devices.

The company recently raised their full year earnings forecast for 2020 to between $185 million and $195 million.

If the company hits say $190 million, that’ll be something like an 80%+ year-over-year increase and would beat some analyst estimates of $132 million for 2020. *

WidePoint is one of only two companies in this space with U.S. Government External Certificate Authorisation and as such can provide digital certificates for:

• Identification/Digital Signature for people and devices

• Encryption to secure email and digital files

• Server Authentication for identification of web sites and other devices

• Domain Controllers for securing your Windows domain

• Signing of Code

WidePoint’s held a major contract with the Department of Homeland Security (DHS) since 2012.

DHS is about to issues a Request For Tender document very soon, with the winner of that tender, to be announced in October.

If WidePoint wins the tender, which as you’ll see in my interview with their CEO, they are extremely bullish about retaining, it’ll add $500 million to their top line over the next five years.

WidePoint is also moving their entire operation to Amazon AWS cloud servers, in an effort to improve efficiencies.

WidePoint could have access to up to $40 million, with a cash position of $9m and a possible capital raise through shelf registration and a credit facility.

While the company has not pulled the trigger on those raisings, CEO Jin Kang told me that a merger/acquisition was definitely a case of when, not if.

Useful links

WHAT WIDEPOINT DOES l SHARE PRICE TREND OVER 200/100/9 DAYS l ANALYSTS VIEWS l TECH AND COMMERCIAL READINESS INDEX

ABOUT WIDEPOINT

WidePoint Corporation (NYSE American: WYY) is an innovative provider of Trusted Mobility Management (TM2) solutions. Trusted partner to government and enterprise, WidePoint has a diverse portfolio of clients, serving global and international organizations and the Fortune 100 across a multitude of industries. WidePoint is the leading provider of customized telecom and mobile management solutions to the U.S. public sector. WidePoint is also an approved and trusted issuer of U.S. government strong authentication credentials since 1999 and a provider of Identity Management (IdM) credentialing services since 2006.

USEFUL LINKS

Widepoint website

External Certificate Authority

TECHNOLOGY AND COMMERCIAL READINESS.

Based on the Technology Readiness Level [TRL] developed by NASA and the Commercial Readiness Index [CRI] that grew out of it, Widepoint is a Bankable Asset.

SOME OF THE RECENT MARKET ANNOUNCEMENTS BY WIDEPOINT:

WidePoint Secures More than $42 Million in Federal Trusted Mobility Management (TM2) Contracts during the Second Quarter of 2020

WidePoint Provides Fiscal Year 2020 Financial Guidance