4-Star Stocks Poised to Pop: Boingo Wireless

• Report this Comment On July 11, 2011, at 2:30 PM, TSIF wrote:

  I think 4 stars is too high for Boingo. By their own analysis growth is slow, expenses are growing at a similar clip to growth, (not unusual for a young company, but it needs to be taken into account), and WIFI is starting to become a service to bring in other business that people expect for free. The high end EPS for 2011 is $0.14, making the P/E 70. The funds raised in the IPO were limited as insiders sold some of the shares and will be out playing in their new yachts. Let's try 3 stars.

• Report this Comment On July 11, 2011, at 4:12 PM, stanmanwplan wrote:

  I say 4 stars is right. Regarding Boingo's growth rate: I would expect a (big) growth spurt as the impact of various factors is felt over the next year or two, such as the growth of Wi-Fi enabled tablets including media tablets (people watching TV etc. on their tablets), growing cloud based computing and data synching as with iCloud, and as Boingo continues to expand its already huge global footprint including in all kinds of new venues like stadiums, as well as airports globally. Also, I believe very strongly that the argument about free/commodity Wi-Fi is wrong. Free Wi-Fi is of course important and it will always be there. But, commercial Wi-Fi co-opitates with free. E.g., Boingo leverages free Wi-Fi within its Wi-Finder app, which can then attract customers when commercial Wi-Fi is the only choice or when it offers a superior experience. And, while it is true that some exec's sold some shares during the IPO, they held on to the vast majority of their shares. And, Boingo received a lot of cash from the IPO; it's not fair to describe that as "limited". Check out their balance sheet. Also, Boingo is profitable; not true of other startups.(Disclosure: I am a former Boingo employee, who has a vested interest since bought up my stock options.)

• Report this Comment On July 11, 2011, at 4:34 PM, stanmanwplan wrote:

  I meant to say the argument about "free/amenity" Wi-Fi is wrong...

• Report this Comment On July 12, 2011, at 1:15 PM, TSIF wrote:

  Good arguments for forward pricing stanman, but it speaks little to the current valuation. Some company's especially, IPO's with little actual data can come out the gate too strong and fade. I'd rather find my entry point after the horse has been around the track a few times and shown it can get a second wind. I definitely won't say that WIFI doesn't have growth potential, but too much is already priced in. One needs to find the right entry for an investment to be most productive. I appreciate that you're holding stock currently and I wish you all the best. I'll consider after it drops to $7.50 or so in the next six months what a better entry is. Good luck.

• Report this Comment On July 25, 2011, at 10:36 PM, boure wrote:

  Are you guys nuts??? Boingo is a glorified middleman whose days are numbered. They operate only a fraction of the locations they list as "their's". They piggyback on other operators' networks. The correct play here is to sell high and buy low!!!

• Report this Comment On July 26, 2011, at 9:59 AM, dp23peace wrote:

  What do you expect from their earnings announcement on Aug. 4th? Will they dissapoint?

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