WESTON, Fla., April 28, 2004 (PRIMEZONE) -- Wall Street News Alert's "stocks to watch" this morning are: WebSky, Inc. (Pink Sheets:WBSY), Isonics Corp. (Nasdaq:ISON), Covansys Corp.(Nasdaq:CVNS) and Xenova Group plc (ADR) (Nasdaq:XNVA).
Aggressive investors and traders will want to watch WebSky, Inc. (Pink Sheets:WBSY) this morning! Yesterday after the markets closed, the company issued a press release announcing that it has signed a definitive Agreement to acquire the majority interest of Digital Way S.A., the third largest broadband, wireless services company in the Nation of Peru!
This could be big news for investors! According to the press release, Digital Way S.A., located in Lima, Peru, is a provider of broadband wireless internet and related data services in the Greater Lima/Callao area and was the first company to offer such services in South America. Per the terms of the Agreement, WebSky, Inc. will acquire a majority of the Digital Way stock from individual shareholders giving it nearly three-quarters of the outstanding shares of Digital Way in an all-stock transaction. The Agreement is expected to close this autumn.
The release further states that Digital Way provides its services to a diversified customer base over licensed radio spectrum frequencies similar to the MMDS-band (2.5-2.7GHz) frequencies that WebSky currently controls in seven U.S. markets. This is equivalent to the frequencies which it has entered into other preliminary agreements in Indonesia and Thailand. The licenses owned by Digital Way in Peru are nation-wide, covering all of that large, South American country. Currently, Digital Way's annual revenues are in excess of $US1 million and have a substantial waiting list of new subscribers. It plans to expand its operations to several other commercial and tourist centers in Peru.
"The Digital Way acquisition is an important transaction for WebSky as it demonstrates our focus and ability to execute," said Douglas Haffer, President & CEO of WebSky. "It is our stated business plan to expand what we own and acquire other like-minded operations. Digital Way is a 'perfect fit' and will allow WebSky to facilitate a substantial increase of its wireless broadband revenues and profits," noted Haffer."
Yesterday the stock closed at $1.40 a share.
In case you are not familiar with the company: WebSky, Inc. is a San Francisco-based company that controls licensed MMDS radio frequency in seven small and medium sized U.S. markets and has entered into preliminary joint venture agreements for national licenses for such frequencies in Thailand and Indonesia. The initial U.S. location to be constructed by the Company is Key West, Florida which is expected to be in operation during summer 2004. Other U.S. licensed cities include Grand Rapids, Michigan, Aspen and Vail, Colorado, and Hilo, Hawaii.
WebSky's high speed broadband wireless systems will operate over licensed frequencies, offering protection from interference and a high level of security. WebSky will be able to provide ubiquitous fixed, portable, and mobile service within its licensed areas with very few transmission points, enabling subscribers to connect at very high speeds at very competitive subscription rates. The company's primary focus for new license acquisition is international. The combination of underserved markets and very limited competition provides an exciting opportunity for WebSky to participate in the very rapid expansion of internet penetration which is occurring in the nations of Asia, Latin America, and Eastern Europe.
Stocks showing interesting activity yesterday were: Isonics Corporation (Nasdaq:ISON) up 26% on 8.6 million shares traded, Covansys Corporation (Nasdaq:CVNS) up 23.1% on 1.2 million shares traded and Xenova Group plc (ADR) (Nasdaq:XNVA) up 11.8% on 8.4 million shares traded.
Commentary:
"According to the National Association of Realtors, existing home sales jumped 5.7 percent in March, or an annual rate of 6.8 million units. That is up from a revised 6.13 million units in February. After Chairman Greenspan's comments last week regarding interest rates, it seems that home sales, still affordable with mortgages at a 40-year low, are still very active. This was the second highest level on record in sales," stated Sonja Rudd in Wall Street News Alert's daily commentary continued at: http://www.WallStreetNewsAlert.com.
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