Widepoint Corporation is arguably the most frustrating stock I have ever owned. I have followed this story and traded in and out of Widepoint's stock for over ten years. $WYY is one of the most underfollowed, underappreciated, and misunderstood success stories in the stock market today.
CEO Jin Kang took over when $WYY was on the verge of complete failure. Jin and his team came in and turned this story around. The new executive team got rid of all the toxic debt and cleaned up the cap structure. Handled a massive national contract for the federal government and flawlessly executed through a pandemic. $WYY has secured the renewal of a half a billion-dollar contract at better margins with the department of homeland security.
The federal government is their largest customer. However, that is changing $WYY is partnering with companies like Microsoft to provide significant commercial organizations with solutions to achieve higher margins. $WYY has a strong balance sheet, zero debt, and a super tiny float. I hope you enjoy this interview with Jin, and you dig in to do your due diligence and discover why it could be a hidden gem.
I want to share with everyone. The thoughts I had because I met with Jin. The following is not something that Jin implied.
I started thinking about how efficient $WYY could make our entire country. One of my frustrations as an investor is when I come across a company with solutions that could have a monumental impact on our society. Unfortunately, our politicians can't stop pointing fingers and bitching long enough to focus on real bonafide solutions.
I am not talking about short-term bandaids, like fighting for a two dollar an hour raise for minimum wage low-level, repetitive manual labor jobs. That solution will not fix the massive gap between the "haves" and the "have nots."
In my opinion, that path will eventually lead to jobs done by a machine that never calls in sick doesn't file sexual harassment, age, gender, or racial discrimination lawsuits. Robots that never get pregnant take vacations, breaks, and work twenty-four hours a day, seven days a week, 365 days a year.
Here is what will make a difference! Ask any successful person who started with nothing but wound up building an empire how they did it. Ninety percent will tell you that hard work and education helped them succeed.
Our country uses $WYY's solution within the Department of Defense and Homeland Security, which validates a very effective identification and certification system that works!
How much money could the country save if we had a single piece of identification for every living person in our country? Which encompasses our social security number, driver's license number, voter registration, citizenship, health records, passports, and any other pertinent information that validates your identity? Which is maintained in what some would call "cold wallet storage," meaning it is not online at some data center somewhere connected to the internet waiting for a breach. There would be no question whether or not you were a legal citizen. There would be no opportunity to commit voter fraud. Teens who use fake IDs to get into clubs or buy alcohol will not be too happy about a system like this. They have nothing to worry about, though.
We will probably never see this system for many reasons, even though the benefits would be tremendous!
I know that many will suggest that I sound cynical. What if I told you that the "haves" include politicians, wealthy groups, and misguided celebrities. Share a common goal of keeping the majority and the "have nots" uneducated, misinformed, and divisive for a reason. What if I told you that keeping most of the "have nots" in a position where they depend on sources that do not help them thrive but only barely survive is intentional. There is a lot of power to wield and money to be made in an inefficient and uneducated society.
Suppose we were to save a ton of money on a much more efficient and simplistic identification program and with the money we save. We were able to develop an entirely new way of helping the "have nots" and designed a system for Welfare where instead of allowing the "have nots" to collect money so they can barely scrape by in an unhealthy existence. Develop a strategy to educate the poor?
What if the welfare system worked jointly with the education department. Covid has shown us that you can be very productive learning through education programs online.
Yet what we do is the same things repeatedly and expect different results. I think the definition of that is called "Insanity."
We could kill two birds with one stone by tying the welfare program to an education program. It gives someone a skill set that would enable them to get a good-paying job and help industries that require employees with that skill set. You give someone that was only surviving an opportunity to grow and thrive, and we provide an enterprise a solution to finding eligible employees.
