I have been following Wavefront Technology Solutions Inc. (WEE.V) since 2005. This is forever in stock market time. I don’t think there’s ever been a time where I didn’t own at least a few shares. Sometimes I’ve had far too many, sometimes not nearly enough. I’m not good at selling.
Unfortunately for shareholders, Wavefront recently hit prices not seen since 2005 last year. It was an extension of a long downward trend that began in 2009. I’ve been associated with the company in varying capacities over the years and have seen up close some of the company’s challenges. I’ve been exposed to waves of investor dissatisfaction.
On a trading note, Wavefront has pretty good resilience. Whenever the shares drop below 50 cents, bottom fishers have been rewarded with a nice run. In case I might ever forget this fact, I get emails from shareholders who are very frustrated whenever this happens. I don’t like confrontation. I don’t like answering emails from people who appear angry or unhappy. I want the share price to go up too. I think everyone, especially Wavefront’s management, is on the same page with that objective. I am however grateful for the feedback barometer.
On a financial note, Wavefront is in great shape. No NYE resolutions are required. The $21.9 million (at $2.10/share) raised in May, 2010 has allowed the company to navigate some tumultuous market conditions. It also facilitated acquisition of Texas-based Vortech for $US 4 million which has provided complementary product lines. As of August 31, 2012 Wavefront still had $15.1 million in cash and $1.7 million in receivables.
Next up - How Will Wavefront Cross the Chasm?