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This company missed earnings by 1 cent yesterday, triggering a downgrade from Deutsche Bank and a 24% price drop. This was almost certainly an overreaction.
While Boingo's prospects don't look as rosy as they did before the Q2 report, this is still a profitable, growing company with plenty of cash, very little debt, a solid business plan, and management with a track record of success.
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Spectrum is scarce asset; company owns strategic footprint; carriers will have to use them for offload in crowded, key locations - no brainer
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when every electronic device needs a wireless signal, broadband carriers keep limiting and raising prices on their signals, and wifi has always been the faster type of Internet connection anyway - what's not to like?
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Company has cash. Closed two deals in Rome. Has
Low debt, 90k 87m in cash. Small market cap and I am betting this wireless will be a growth story to tell your kids
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Sell if the mega merger between AT&T and T-Moblile is approved.
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While some people might say on-demand WiFi is supplanted by cell service, the reality is that cell carriers are all going to throttle heavy data use, and people who need access to data will bump up against the limitations of the data throttling. Even ISPs have begun to throttle some data.
The case for Boingo is that the major data providers (ISPs and cell carriers) will remain behind the curve as data use continues to grow at an exponential rate among the connected populace. If you believe that to be true, Boingo has a very compelling expectation for future growth.
The major downside risk will be developments of new connecting technology -- faster cables or better transmission protocols or something I can't even imagine yet -- but the mass adoption of such technologies will be years off. In the meantime, Boingo is profitable and has a market niche largely to itself, which is more than you can say of many of the IPOs coming out this year.
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Global wifi connections-airports, hotels etc--
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**Mobile data usage is on track to increase more than 20 times between now and 2015, yet so-called wireless “4G” networks are progressing too slowly to meet demand.
**Boingo is filling the gap with a global high-speed Wi-Fi network — and is growing fast as a result.
**Wall Street doesn’t yet believe in the opportunity, as reflected in an unjustified 20% sell-off since the company’s May IPO.
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With the Light(stream, speed?) national deployment being delayed due to GPS issues, I expect the company to continue to fill the need in airports where signal and speed is marginal at best.
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stand alone wifi
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More WIFI enabled devices equals more subscribers and partners, which equal more revenue.
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4G networks will get overloaded, WiFi can be used to offload some of that in congested Metro areas.
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