Airborne Wireless Network (OTCMKTS:ABWN) is a stock that occasionally pops up onto the OTC radar as a potential “big idea” winner in the micro-cap space. The company is working to develop a high-speed broadband wireless network for air travel. ABWN has been on fire in recent days, with shares rising over 110% in about three trading sessions. A possible big break for the company hit the headlines to spur the move:
The company just announced that on December 14, 2017 it entered into a Support Agreement with GE Aviation, one of the GE (NYSE: GE) Business Units. According to the release, “ABWN anticipates that this relationship should significantly accelerate the development of ABWN’s proprietary Hybrid Radio and Free-Optics Communications System to be demonstrated the 2018 calendar year.”
Airborne Wireless Network (OTCMKTS:ABWN) trumpets itself as a company that focuses on developing, marketing, and licensing a wholesale fully-meshed high-speed broadband airborne wireless network.
This network will enable participating aircraft to act as airborne repeaters or routers, sending and receiving broadband signals from one aircraft to the next creating a digital superhighway in the sky. The company is involved in developing Infinitus, a micro-cap providing connectivity for worldwide broadband carrier services using commercial aircraft. It intends to sell wholesale bandwidth to the telecom and Internet service providers.
The company was formerly known as Ample-Tee, Inc. and changed its name in May 2016. ABWN was founded in 2011 and is based in Simi Valley, California.
According to company materials, “ABWN intends to create a high-speed broadband airborne wireless network by linking commercial aircraft in flight. Each aircraft participating in the network will act as an airborne repeater or router sending and receiving broadband signals from one aircraft to the next creating a digital superhighway in the sky. The company intends is to be a high-speed broadband internet pipeline to improve coverage connectivity. ABWN does not intend to provide retail customer coverage to end users, but, instead, will act as a wholesale carrier with target customers, such as internet service providers and telephone companies.
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Michael Warren, CEO of ABWN said, “Our collaboration with GE Aviation should provide the highest quality of engineering support in our upcoming Hybrid Radio and Free-Optics Communications System test. The expertise provided by GE Aviation, which will arrange for tactical-grade Inertial Reference Units (IRU) with embedded GPS that can be utilized for heading, pointing, attitude, and stabilization for the System, should help assure a successful result.”
“GE has provided inertial reference systems to our customers for more than half a century,” said George Kiefer, GE Aviation Product Management Executive. “Tactical inertial navigation and the support of satellite communications solutions are areas of expertise for our team and we’re excited to support Airborne Wireless in its mission to reduce the cost of Aviation connectivity and to help connect underserved markets. This is a rapidly evolving market, requiring innovative technologies to enable the future. GE product engineers stand ready to provide world-class product expertise to help Airborne Wireless successfully achieve this important testing milestone.”
Recent action has seen above 120% piled on for shareholders of the company during the trailing week, but that move comes in the context of a larger bearish trend. That said, ABWN has a history of dramatic rallies. What’s more, the name has seen interest climb, with an increase in recent trading volume of more than 390% over what the stock has registered over the longer term.
Traders should note this as important given the stock’s tight trading float of 30M shares. One is wise to respect the dynamic this may create — a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.
At this time, carrying a capital value in the market of $238.4M, ABWN has a reserve ($218K) of cash on the books, which is balanced by virtually no total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $ABWN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ABWN, either long or short, and we have not been compensated for this article.