This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

WFI Marks the Hot Spot

Sometimes standing in the shadow of Google (GOOG - Get Report) isn't such a bad thing.

Take WFI (WFII). Earlier this month, when it was learned the San Diego-based wireless equipment company had partnered with Google in their proposal to turn San Francisco into a free wireless-Internet zone, it was Google that grabbed all the headlines. And this was despite the fact that WFI issued the press release, not Google.

Partnering with Google on a high-profile project is a little like opening for the Rolling Stones: You may have millions of people paying attention to you for a while, but a few days later many of them have forgotten you. Google's stock is up 12% since the announcement, but WFI's is up 4%. (Google's gain was buttressed by its strong third-quarter earnings, while WFI has yet to report its numbers.)

But for WFI, playing sidekick to Google may be just the boost it needs. If Google's proposal gets the nod from San Francisco, WFI stands to benefit. And investors looking to get in on the emerging trend of wireless municipalities can buy Google at 42 times its 2006 earnings, or WFI at a ratio of 17 times 2006 earnings.

Of course, another option is buying EarthLink (ELNK - Get Report), which won another high-profile contract to bring a wireless network to Philadelphia. But with Earthlink you'd get a company that has revenue that fell by 7% last quarter, and with WFI you get an 8% growth rate.

What's more, WFI has the leverage that Google brings to the package. The partnership faces 16 other competing bids, but judging from the press alone, the momentum appears to be behind Google. While Google critics voice the usual privacy concerns whenever the company steps into a new arena, San Francisco's Web site promises, "the City will explore the most cost-effective ways to ensure universal, affordable wireless broadband access." And Google and WFI have offered to do it at no cost.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ELNK $9.05 0.00%
GOOG $750.26 0.00%
S $3.73 0.00%
VZ $45.23 0.00%
AAPL $117.81 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs