Bigbrother is watching you. Vancouver-based Webtech Wireless offersvehicle tracking systems for service fleets such as FedEx and governmentfleets including the City of Chicago and is showing very strong growth.The company is building revenue off a low base, notwithstanding thecurrent economic downturn, and looks poised to break out based ontechnicals, according to Hugh Cleland, manager of Northern Rivers LPFund.
Webtech (WEW/TSX) showed 10% revenue growth in the firstquarter of 2009 to achieve revenues of $6.7-million and delivered onecent per share in EBITDA. The company expects 40% revenue growth for2009 as a conservative estimate, which translates to $28-million inannual revenue.
Webtech will generate that growth in 2009 throughsix major companies that run fleets or fleet services according toCleland. ARI Fleet Leasing is a key partner of Webtech’s and has morethan 600,000 vehicles in the U.S. alone which could translate tosignificant revenues this year and next.
The recently inked dealwith TMW Systems, the largest provider of enterprise software for fleetmanagement in the United States, is key says Cleland. He points out thattwo competitors of Webtech—Qualcomm and PeopleNet are TMW customers,yet TMW has chosen Webtech’s telematics solution.
Cleland believesthat the stock price is about to break out on technical factors. Thecatalysts suggests that the share price could spike in the near term,but Webtech looks like an exciting small cap company to buy and hold.