July 16, 2006

SpeculatingStocks.com Stock Pick: Wireless Xcessories Group, Inc. (XWG)

Stock Price: $4.89 (short-term strong buy)

Wireless Xcessories Group, Inc. designs and distributes a range of accessories for cellular phones throughout the United States and Canada. The Company offers in excess of 4,000 items that include rechargeable batteries, personal and vehicle hands free kits, portable and vehicle antennas, in-car and travel chargers, and plain and colored carrying cases.

XWG recently reported $5.485 million in revenue for the first quarter of 2006, up 10.7% over the same period last year. Net income came in at $468,000. XWG is currently trading at a PE of just under 12 and a price to sales ratio of 1. A major order was left out of the first quarter report due to a delay. The order is expected to make the second quarter stronger than expected.

The company has a strong balance sheet with current assets exceeding current liablities by a ratio of 6 to 1. There is no debt on the company's balance sheet.

XWG's chart has been playing a game of hitting higher highs and higher lows over the past 30 days. At $4.89, XWG is at one of those higher lows. We expect XWG to reverse within the next day or two.

SpeculatingStocks.com Target Price: We expect XWG to reach $6.60 within the next 7 - 15 trading days.