Kaloyan Gadzhev

m-Wise, Inc. (PINK:MWIS) In the Sights of Vringo, Inc.

by Kaloyan Gadzhev March 9, 2011
What happens when an OTC traded company receives attention from a company traded on the AMEX? In the case of m-Wise, Inc. (PINK:MWIS, MWIS message board), the result was a nearly fivefold blastoff in a single day.

MWIS_chart.pngTo be more accurate, MWIS gained 471% during yesterday's session, and closed at $0.0571 on unprecedented 9.58 million traded shares. Very often companies on the tier of MWIS make mind-boggling moves for no apparent reason. This, however, is not the case here.

The obvious reason for this stellar performance is the announcement of a letter of intent (LOI). Most of the time LOIs are not a solid base for a serious move up, but this time the LOI is not from an obscure "leader". Instead, it comes from Vringo, Inc. which in not only a real company, but one that is traded on the AMEX and reported a positive working capital in excess of $5 million as of September 30, 2010.

MWIS is a technology provider for mobile operators, wireless ASPs and large content and media providers. Mergers and acquisitions in the technology sector have been on the rise for some time now, and while the numbers in the latest quarterly report of MWIS are not extremely impressive, there is something about MWIS that got the attention of Jon Medved, CEO of Vringo, Inc.

MWIS_logo.jpgInvestors should still keep in mind that a LOI is non-binding and the actual acquisition depends on a number of factors. If for some reason the acquisition doesn't happen, the price of MWIS could potentially get hit really hard. Additionally, until a deal is made and finalized, the real effect on shareholders cannot be certain, as pointed out in this post, and many others.

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