Stockprowler
Stockprowler.com ...HOT stock pick of the week on the Web!

On the first Sunday of each month Stockprowler will bring you his latest hot stock pick profiled in depth ...free on the Web! And every week Stockprowler updates the Stockprowler Watch box with exciting new potential momentum plays. Stockprowler uses state of the art technology to look under the rocks and find those little stocks with the potential to make the BIG moves. Stockprowler screens NASDAQ, NYSE, AMEX, and OTC stocks trading under $3. These stocks offer the speculator considerable leverage. It is not uncommon for these stocks to make moves of 30%, 50%, or more. Please read our disclaimer before trading
in any stocks mentioned on this Website ... Here's the Stockprowler Report for the month of October, 2003:
Stockprowler Watch
Here are some stocks we are watching closely!
Our next pick will be 11/02/03!
         EAG

         AACS

         UTYW
         FGWC
         FXGP
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Stockprowler’s pick this week...

5G Wireless Communications, Inc. (OTCBB: FGWC)
4136 Del Rey Ave.
Marina Del Rey, CA 90292
Phone: (800) 916-1611
Fax: (310) 754-4004
Corporate Web Site: http://www.5gwireless.com
Shares Outstanding: 273.8 million
Market Capitalization: $20.3 million
Closing Price Friday 10/03/03: 7.4 cents
 

Imagine buying a Cisco Systems or Microsoft when they were just penny stocks? Well our stock pick for the month of October 2003, 5G Wireless Communications, Inc., may well offer a similar opportunity to speculative investors. Trading under 10 cents a share, 5G Wireless may just be the next big thing in the burgeoning world of Wi-Fi. Wi-Fi, or Wireless Fidelity, allows users the freedom to connect to the Internet anywhere without wires. Wi-Fi is a wireless technology like a cell phone. Wi-Fi enabled computers send and receive data indoors and out; anywhere within the range of a base station. And it's superfast, several times faster than the fastest cable modem connection.

What makes 5G wireless such a fantastic speculation is the company’s patent pending technology that can deliver Wi-Fi at unheard of distances and without the need for direct line of site. The company was recently profiled in an article "Long Distance Wi-Fi," (www.80211planet.com/columns/article.php/2191841) Eddie Hold, a wireless analyst with Current Analysis in Sterling, VA, maintains that this breakthrough “could considerably change the nature of the Wi-Fi market.” “It makes Wi-Fi a much more useful solution.” “The problem with most Wi-Fi implementations right now is that they are really focused on a small hotspot. So if you can enhance it far beyond that distance, then the cost-effectiveness of it becomes much more attractive.” Hold went on to say, “It is quite feasible that we are getting into a market where you will see people building out Wi-Fi in large residential areas, and at that point you have something that is potentially competitive to DSL.”

On September 16, 2003 5G Wireless Communications, Inc. announced that it had signed a contract with Ohio-based DNS Wireless Internet to provide a full range of 5G's network equipment for point-to-point and point-to-multipoint communications. DNS will immediately begin deploying 5G's patent pending technology in a variety of areas throughout Ohio with plans to expand to other states in early 2004.

“Our decision to partner with 5G was based on a thorough evaluation and hands-on opportunity to see the product in action,” stated Kyle Yoder, Vice President and chief technology officer of DNS. “We had tried a number of different wireless products, Alvarion (Nasdaq:ALVR), Navini, Proxim (Nasdaq:PROX) and Cisco (Nasdaq:CSCO) but couldn't find anything that was cost effective and performed in non-line-of-sight (NLOS) environments while maintaining the high throughput that the 5G solution delivers. Since the areas that we cover present a wide range of terrain challenges, we were duly impressed with the ability of 5G to effectively limit potential multipath interference that would create considerable signal loss as a result of obstacles. This was extremely important to us in making our decision to go with 5G.”

“Our relationship with DNS began with a simple inquiry over the phone,” added Jerry Dix, 5G Wireless Chairman and CEO. “Mr. Yoder explained his requirements and asked if we could provide a solution. We told him we could so he visited us to see for himself.” “I saw things that I didn't think possible with Wi-Fi,” said Yoder. “They demonstrated the ability to communicate with their tower about half a mile from where we were while penetrating a brick wall, at full bandwidth. Certainly a non-line-of-sight demonstration. This coupled with the information gathered from the Garden Grove deployment made our decision to go with 5G a simple one. It didn't take much more convincing.”

Another customer, Charles Kalil, information systems manager for the City of Garden Grove, CA.stated, “Our police substations are leased buildings in commercial areas. When we looked at trying to get DSL, the rates we would have gotten would not have been residential rates. They would have been business rates, which were quite expensive, and they would have been slower speeds. So we looked at cable, but cable does not have the penetration into the business areas.” Connectivity using T1 lines would have cost $200 a month per location, whereas for the 5G Wireless solutions he pays just a $30 monthly maintenance fee… “We are paying dialup prices, and getting the speed of two T1s,” he said.

5G's solution utilizing its proprietary technology provides for very reasonable customer acquisition costs. 5G's competition continues to deploy networking technology known as "FHSS" Frequency Hopping, Spread Spectrum, and is only able to provide a total of 10 clients per radio with a maximum of 17 co-located radios per facility, or 170 clients per co-location. This technology is known as "VPOP" with a per facility cost of approximately $38,000 or $224 per customer on the network side.

5G Wireless makes use of DSS (Direct Sequence Spread Spectrum) technology, which utilizes 3 co-located radios each capable of supporting 250 clients for a total of 750 clients per facility. Customer acquisition cost for 5G Wireless networking equipment is not only reasonable, but achievable very quickly… cost per facility to provide service to 750 clients is $15,000 or $20 per customer, about 1/10th the cost of VPOP. Plans to expand its current configuration to reach a level of 1,024 clients per radio have already been successfully completed and will allow for 3,072 clients per co-location bringing down costs to extremely attractive levels. In addition, 5G networks meet the security requirements of government and police departments, having passed the Department of Justice tests for secure file transfer between government offices without any sacrifice in performance standards.

Shares of 5G Wireless (OTCBB:FGWC) closed up 27% Friday on heavy volume fueling speculation on the message boards that 5G Wireless could be a takeover target… Santa Clara, CA chipmaker Intel Corp. has expressed interest in entering the market, and according to Kurt Sehnert, Intel's mobile platform group manager, Intel will likely choose to partner with someone already making the equipment, rather than develop its own. Stockprowler views FGWC as a very attractive speculation… a 10 bagger here is not inconceivable.

Stockprowler does not receive compensation from companies we profile or from third parties… we never have and never will. We use our own money when we buy stocks, and even though we usually take a position in a stock before we profile a company, our purchases are always relatively small so that the chance of having an effect on a stock’s price when we buy or sell is negligible. Please read our full disclaimer.

Also, contrary to a commonly held belief, Stockprowler does not have access to insider information, nor do we want to, because trading on insider information is illegal! All information contained in our reports is available in the public record… and any written or verbal communication with company CEOs/ IR people strictly adheres to this rule. Readers are urged to read the company SEC filings and do their own due diligence before investing in this or any other stock.

Good Trading... Stockprowler


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