This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

WFI Marks the Hot Spot

Sometimes standing in the shadow of Google (GOOG) 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), 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs