Ray of sunshine for WebTech Wireless
After some disasterous days, WebTech Wireless Inc. (WEW:TSX) got a bit of good news. An experienced industry player is prepared to join their board, despite everything that has happened over the past few weeks, cutting the stock in half. Here is today’s quick note from WWCM:
“Clarence Chandran joining WEW board immediately.
Mr. Chandran brings extensive global tech, general business, & corp. governance expertise as ex-COO of Nortel & board of Novelis (Alcan).
Executive brings global experience & South American expertise.
Mr. Chandran has extensive experience dealing with telecom carriers & technology companies in emerging markets in South America & globally. Vote of confidence in WebTech and the industry. We believe Mr. Chandran performed extensive due diligence prior to committing to WEW. Thus, we see this as a vote of confidence for WEW. Re-iterate $6 target ( ~20x our F08E EPS); risk/reward favorable. Our forecast assumes VW continues in F08 at lower margins. We look for near term commercial deals & clarity on Brazil over the next 2 months.”
This situation cries out for a VC investor to step in, with some capital, and provide some of the help that Mr. Chandran will be asked to pony up to.