Investing.

Discussion in 'Community Discussion' started by pianodude123, Jul 31, 2006.

  1. pianodude123 macrumors 6502a

    pianodude123

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    Mar 1, 2005
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    in the internet
    #1
    Hello....

    I am about to invest in a company called wherify wireless. They make little GPS locater units that go in everything from cell phones to cargo ships to watches for children. Since the stock is at a low point right now, and their patent just went through the government, I am thinking this could be a good buy. The ticker symbol is WFYW. If anyone here has experience with the investing business, i'd like some help please!
     
  2. MongoTheGeek macrumors 68040

    MongoTheGeek

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    Its not so much where you are as when you are.
    #2
    Unless you have some inside knowledge on this I would recommend against it. Its near its 52 week low, and the P/E is non existent.
     
  3. andiwm2003 macrumors 601

    andiwm2003

    Joined:
    Mar 29, 2004
    Location:
    Boston, MA
    #3

    GPS doesn't work in buildings, between skyscrapers, under trees, inside cars. i don't get their business model. who do they want to sell to in quantities that are high enough? and for other applications there are already products out.
     
  4. baby duck monge macrumors 68000

    baby duck monge

    Joined:
    Feb 16, 2003
    Location:
    Memphis, TN
    #4
    Of course, if you do have some inside knowledge you may not be able to invest for legal reasons. Ah, the good ol' catch-22. :rolleyes:
     
  5. Sesshi macrumors G3

    Sesshi

    Joined:
    Jun 3, 2006
    Location:
    One Nation Under Gordon
    #5
    First thing to ask yourself are the very obvious questions regarding the company.

    - Is the product viable?
    - Why is the stock price falling?
    - How much money is being spent on R&D / marketing of products that may have a dubious future?

    etc.

    Investing in a stock 'because the stock is low and a patent has gone though' is the same as filling in a lottery card. The price could get lower.

    Actually find out what the company does and makes, how it makes (and loses) money. Figure out if the products are viable: e.g. Look at the Wherifone yourself and ask yourself who would buy it, and more importantly who would use it. Show the Wherifone to some younger kids you know and ask if they'd be seen dead using one. Find out why the stock price has sunk so low. Was it unreasonable expectations on the part of the stock market and are they actually fairly priced now, or are they just running the company into the ground?

    Actually figure out by doing some basic research if the company's stock price has a realistic chance of going up. Then invest.
     
  6. pianodude123 thread starter macrumors 6502a

    pianodude123

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    #6

    Actually this is a new GPS technology that does work in dense folliage, most buildings and cars. They are starting to sell to markets in Chile, Italy and Brazil. Then once they have proved that the product works well, they will start shipping throughout the US
     
  7. LastBreath macrumors member

    LastBreath

    Joined:
    May 27, 2005
    Location:
    South Wales, UK
    #7
    The market in the UK and Europe will soon be taken over by its own GPS based system so no market here for it.
     
  8. pianodude123 thread starter macrumors 6502a

    pianodude123

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  9. ZoomZoomZoom macrumors 6502a

    ZoomZoomZoom

    Joined:
    May 2, 2005
    #9
    I agree with the other posters.

    The stock might go up, but there isn't enough information there to make me feel safe. I (personally) don't know much about the market, I haven't seen this company's product, and I don't have access to as many numbers as I'd like.

    I took a quick look through a couple of the articles, and it seems as if this company is having problems with liquidity too.
     
  10. Sun Baked macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #10
    Don't make a stock purchase on a whiff and a prayer ...

    Ford Motor company is a better bet than these, and it is a longshot that will either go private in the next 24 months, take 5-10 years to pay off, or eliminate all the shareholders in a bankruptcy filing -- sort of the same position Apple was in not too long ago.

    If you think highly of this company, buy a thousand shares -- and wait.

    Don't invest any serious money until the product they have actually starts selling and the stock actually moves.

    Every one of these companies has a good idea, only invest in the one that can actually do something with their idea. Rule 1 of micro cap stocks.

    Catch a ride when the company is doing something, and make money that way.

    It's is a better risk to catch a ride on a stock going up, when people like it, and lose the bottom and top 20% of the ride -- than risk money on a load of crap.

    Losing 20-50% of a stock increase on a dubious stock, is better than losing it all.

    Heck Ford is a better stock than Apple was, since they will pay you 3% to own their stock ... but otherwise your money is sitting idle, while you can be making money on stocks with increasing revenues.

    Going around and investing in Apple, Krispy Kreme, Enron, etc. while the stock is going up and getting out before the stock before prices seem silly -- is likely better than waiting around for a lottery ticket stock.

    Sure you won't make as much as the lottery winning stock purchasers, but just a steady payoff on the market darlings. If you can actually get out and walk away when they are still going up.
     
  11. pianodude123 thread starter macrumors 6502a

    pianodude123

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    #11
    Thank you for your advice. I am going to buy a few thousand shares on Monday, like you said, only buy a few, and take a small risk with that.

    Like some of you said, dont buy this stock unless you know a lot about the company. Well, I actually do know quite a bit about the company and I know that it just got a whole buch of money to start shipping units which will make the cycle of P/E begin. They need the money to produce the actual units though. I think this stock will definitely be worth the risk.
     
  12. ejb190 macrumors 65816

    ejb190

    #12
    Rule Number 1 - Don't invest any amount that you can't afford to lose.
     
  13. Soton Speed macrumors member

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    Jan 1, 2006
    Location:
    UK
    #13
    Galileo
     
  14. Sun Baked macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #14
    Having seen enough of the Pink Sheet and OTCBB companies, I would stay away from anything resembling them until the show they can do something with the money they get.

    Producing units is a lot different than selling them to customers ...

    This is usually where the development stage companies explode, I'd wait until they prove themselves before investing anything significant.

    Don't but on dreams, buy on sales ... Ford has sales and it is a very poor risk until they can prove they have small cars to sell here in the US, instead of just trucks.
     
  15. Kwyjibo macrumors 68040

    Kwyjibo

    Joined:
    Nov 5, 2002
    #15
    I don't want to stray to far from the topic, but I really have to disagree here. Apple doesn't have billions of dollars in unpaid pension liabilities. Both GM and Ford do and thats enough to scare me away from either stock in the long term.
     
  16. Sun Baked macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #16
    The company will survive, which is more than you could say about Apple in the dark days -- it is just whether or not the current shareholders will.

    Basically stay away from companies like Apple "was" and Ford "is" until they turn around and make money somewhere else.

    They both suck(ed) in their own way, but they all have one thing this company doesn't -- SALES.

    Without sales from this company, Ford is a better risk, and they are turds floating in a white bowl.

    You know Ford will be around, but if Apple vanished it would have likely ceased to exist. One of the problems with tech companies.
     
  17. pianodude123 thread starter macrumors 6502a

    pianodude123

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    #17
    Well, I finally bit the bullet and invested.

    Did you know that Wherify offered Apple their GPS tracking chips to put in every mac laptop for a price of $.60... something apple would add as a feature for about $100.... and APPLE DECLINED THEIR DEAL!?!?!?!? Just .60 makes a huge difference I guess in pricing these laptops.. I would have thought that it would have been so neat to have that in my laptop... especially if it gets stolen!

    I heard that they offered the same deal for the iPod about 1 year later, but for $.25 each, and that Apple said that was too expensive!~!?

    Is apple stupid? That could be a huge huge feature that they could advertise over some products such as the zune.
     
  18. Trogloxene macrumors regular

    Joined:
    Apr 17, 2007
    #18
    Make sure you do first things first. Pay off whatever you have loans on, starting with the highest interest rates first. Credit Cards, Car Loans, School Loans, House Loans. And then when that is all done, diversify into a variety of stocks.

    Then you can look at investing in risky stuff like this.

    -T
     

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