Penny Stocks To Watch: World Surveillance Group (WSGI)

The share price for the penny stock of World Surveillance Group Inc. (OTC: WSGI) has seen better days when it was $0.3150 a year ago. Shares in WSGI closed up 5.56% at $0.038 after the company filed an S-1 with the SEC for the issuance of up to 50 million shares of its penny stock in a private placement earlier in the week. The worse part of the stock dilution is that the proposed maximum offering price is $0.04, just 5.26% higher than where WSGI closed.

The company acquired Global Telesat Corp. (GTC) in May of 2011, making GTC a wholly owned subsidiary of World Surveillance Group. GTC supplies satellite based tracking and communication solutions to the U.S. Government, defense industry and commercial customers. This acquisition is the door opening WSGI needed if they plan to be able to get their products off the ground as well as their penny stock’s share price.

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WSGI Stock Snap Shot:

Market Cap: 16.73M
52-Week High
(Apr 29, 2011): 0.32
52-Week Low
(Jun 1, 2011): 0.02
Avg Vol (3 month): 471,753
Avg Vol (10 day): 496,043
Shares Outstanding: 440.24M
Float: 300.79M
% Held by Insiders: 5.55%

World Surveillance Group Inc. designs, develops, markets, and intends to sell autonomous lighter-than-air (LTA) unmanned aerial vehicles (UAVs) that are capable of carrying payloads that provide persistent security and/or wireless communications from air to ground solutions at low, mid and high altitudes. The WSGI designed airships and aerostats when integrated with electronics systems and other high technology payloads, are designed for use by government-related and commercial entities that require real-time intelligence, surveillance and reconnaissance or communications support for military, homeland defense, border control, drug interdiction, natural disaster relief and maritime missions.

To view the SEC filings for WSGI, click here.

Bottom Line: WSGI is one of those penny stocks to watch since they are within a whisper from being able to get someone to throw a Government Contract at them. Considering their address is at State Road 405, Building M6-306A, Room 1400, Kennedy Space Center, FL 32815 isn’t hurting them.

WSGI had sales of $203,682 and an accumulated deficit of $145,632,499 according to their 10-K. Best case scenario since the stock seems to live at 4 cents is that news comes out on WSGI and you day trade it. There is no way any contract or revenue stream other than that of the deceased Pablo Escobar could reduce that deficit. Maybe the guys who pumped SNPK could put a dent into it.

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