Friday, March 9, 2012

Boingo Wireless (WIFI) about to go bonkers ??

Boingo Wireless, Inc. (NASDAQ: WIFI), is the world's leading Wi-Fi software and services provider. Boingo's global Wi-Fi network now spans more than 400,000 Wi-Fi locations in over 100 countries worldwide. Boingo's retail service was recently voted 'Best Wi-Fi Service' by Global Traveler Magazine, the companies second win of this award in three years. The company recently reported a strong quarter which saw:

·         2011 revenue increases 18% and adjusted EBITDA increases 57% over prior year

·         2012 full year guidance of 19% revenue growth and 30% adjusted EBITDA growth

CEO David Hagan on a recent conference call suggested that the company enters 2012 with a robust pipeline of new venue launches and wholesale partnerships that are expected to propel our business in the coming quarters and years.

As seen in the chart Below of WIFI shows a recent and large base breakout above resistance near $ 10.00 (red lines). There is now no real resistance until $ 14.00. This target aligns with the high street target of $ 14.00 at CSFB, and represents about 37.00% upside from present prices. The preferred stop would be only a break of $ 8.50. Given that is a large drown down (if hit) we would prefer to see this being acquired on pullbacks as it would decrease the drawdown potential in the event we are wrong and also increase the upside return potential. This is a growth story and Wi-fi/hot spot access is a global market, with massive potential for new venues before saturation becomes an issue.


Key accomplishments include:

·         Agreements with Nintendo of America Inc. and Nintendo of Europe to provide free Wi-Fi access to Nintendo 3DS™ owners via 42 of Boingo's North American airports and via Boingo's managed and operated hotspots at some of the UK's largest airports.

·         Agreements with ADR Tel S.p.A. to provide managed Wi-Fi services in Rome's Leonardo da Vinci Fiumicino (FCO) and G.B. Pastine Ciampino (CIA) airports. The new agreements make Boingo the exclusive Wi-Fi provider for the Ciampino airport, and a premium Wi-Fi provider for the Fiumicino airport. The Rome airport agreements represent an expansion in Italy, joining Boingo's existing networks at Malpensa (MXP) and Linate (LIN) airports in Milan.

·         An agreement with Aeroportos de Portugal, SA (ANA) to exclusively provide Wi-Fi services at the 10 largest airports inPortugal.

·         An agreement with Glimcher Properties Limited Partnership to manage Wi-Fi services within the food courts at 18 shopping centers nationwide.

·         Agreements with Westfield, LLC and Cafaro affiliated companies to manage and operate Wi-Fi services at 17 Westfield shopping centers and 3 Cafaro shopping centers. Boingo's managed and operated Wi-Fi network now includes 43 malls nationwide.

·         An agreement with Skyrove (Pty) Ltd., South Africa's largest independent Wi-Fi hotspot operator, granting Boingo customers access to an additional 600 hotspots throughout the country.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.


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