Central Wireless Inc (OTCMKTS:CWIR) On A Tremendous Bull Run

The positive view towards the strategic view as well as decisions made by Central Wireless Inc (OTCMKTS:CWIR) have been the cause of the surge in the share price in the recent past.The stock has benefited from the increase in the price of their share, rising from near zero in September 2017 to $0.0073 in October, just shy of a penny. CWRI Daily ChartGiven such a jump attributable to the market’s belief of value addition in future, this article will focus on the company’s strategy as well as growth prospects in a bid to evaluate these beliefs. Furthermore, an assessment of their strategy and the company’s ability to implement based on their financial muscle. Finally, we will give our take on their future prospects.An Overview of Central Wireless IncCWIR was incorporated in the State of Colorado as a domestic, for-profit corporation on May 23, 2014. Prior to that, the name of the Issuer was “Fuzznbuzz Brands, Inc.” By amendments to their Articles of Incorporation, on November 27, 2015, they changed their name to “National Corporate Systems, Inc.”, and on January 10, 2016, we changed to “Central Wireless, Inc.”The above was courtesy of bankruptcy proceedings that led to their acquisition by two different companies over this period. The company’s strategic objectives as well as operations changed drastically during this period, leading to the fall in their share price to a near zero level until the recent past.However, the company has recently adopted a new strategy that they see being their saving grace into the future dubbed growth through strategic acquisitions and sectoral integration. In management’s view, this will ensure that they exit the grim position they currently stand at as explained below.New StrategyCWIR has since adopted a new strategy: aggressive acquisition growth strategy in various industries that will be interconnected. They look to acquire, finance, grow via roll-up or organically and re-brand operating businesses with current revenues of between $5 to $30 million and potentially sell or spin-off each wholly-owned subsidiary onto Nasdaq or NYSE within 36 months.Since its adoption, the company has made headway into diverse sectors in a bid to implement it. Their first move was to acquire Inqubus, Inc through a reverse merger in July 2017. This strategic move was in line with their vision given that Inqubus, Inc offers business services to startups, which including networking, finding funding, business development, software development resources mentorship and other services young startup businesses often require.Moreover, the Inqubus, Inc.’s management team brought over 50 years of industry experience as well as a track record of high profile projects and clients. They are comprised of technology, real estate and financial advisors who provide the necessary support and platform for entrepreneurs to be successful. They had been a part of successful company's like Experian, Scoutalarms, Particle.io, Phunware and many others.CWIR’s CEO, Charles Townsend, was quoted saying:

“As part of the company’s restructuring to bring shareholder value, the company has acquired Inqubus, Inc., and will soon rename the company to Inqubus, Inc. This is what is typically known as a reverse merger.This acquisition allows the company to move forward rapidly with the business plan of incubating small companies in many fields, including Internet of Things, Software, Medical Research, Super food Drinks, Battery Technology and other businesses.”

Source:Moreover, they further went on to acquire The American Trucking Group/National Truck Funding (ATG/NTF), a transportation and financing company in a move to gain a foothold in the transportation and logistics segment and to begin their rollup consolidation within the industry. This came in the wake of The American Trucking Group/National Truck Funding’s fall in revenues and EBITDA by over 21% in the period ending December 2016. Seeing this opportunity, CWIR chose to seize it and gain optimally from it in the long run through streamlining the company.Alan Walls, CFO of ATG said:

“We are thrilled to be joining a team of diverse professionals at Central Wireless (CWIR) that have a shared vision of growth and opportunity for the Company, the employees and the shareholders. The trucking industry has many levels of integration and roll up possibilities to fuel growth and profitability simultaneously and the CWIR group understands this. It is a tremendous and rare honor to serve the group being brought together under the CWIR umbrella in the various business sectors as we move the vision of CWIR forward.”

Source:The above go to show how CWIR has been implementing their strategy over time and paint a good picture on the future prospects of the company within its industry.Financial Base:Despite the above, the company’s financial position over the recent past have not exhibited similar promise courtesy of significant discontinued operations.However, with their new structure, their revenues went up from $8,000 to $57,516 for the quarter ended March and June 2017 respectively. A net loss position was still seen, however, with a loss of $26,000 being exhibited and adding to an already high deficit of about $12,179,000.The loss was, however, mainly driven by an increase in the costs of software and technology development and commissions and fees which stood at $16,256 and $23,467 respectively. The company has since stipulated that the above costs are meant to increase revenues as well as streamline the process over time. They expect the software especially to boost their revenues significantly in the future.With the grim picture as is, the company still managed to raise over $36,000 in shares in the quarter ended June 2017 showing investor belief in the company’s future. It is expected that given the above strategy that they will grow in the long run.ConclusionCWIR is on the verge of bouncing back with the restructuring and new strategy they have adopted to enable them do so. Investors should expect gains in the future as the company seeks to boost value through strategic acquisitions and growth in different industries. As such, the company stands out as a penny stock on the move.We will be updating our subscribers as soon as we know more. For the latest updates on CWIR, sign up below!Image courtesy of Lena Thelander via FlickrDisclosure: We have no position in CWIR and have not been compensated for this article.