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Update on New Idea in Gold:
DGP |
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Those of you who caught the weekend
edition should be aware of my new idea for investing in Gold. With
the market moving up a bit today, the fear fueled gold rally is taking
a bit of a breather.
My idea for investing in gold is
DGP-
the 2 for 1 ETF, is new closing in on an excellent entry point. I'm looking
for this security to pull back and fill the gap that was created last week
when the market tanked and gold gapped up.
As you can see from the chart, that
entry level is in the $21.30 to $21.50 range- As I make today's
notes, DGP is trading at $21.86- within striking distance
of my ideal entry level.
If you see the $21.50 level,
don't hesitate to begin accumulating this one. Gold is going to do well
this year. Fear is driving the price right now. Inflation expectations
will drive it later in the year.
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Nighthawk (OTC BB: NIHK)
Dishes the Goods: Negatives All Priced In |
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Those of you who have been waiting
patiently for some sort of update out of Nighthawk's CEO Doug Saathoff
were enlightened this morning in the preopen hours.
The company let the cat out of the
bag officially- revenues for the first half of 2009 are going to be down
from the same time period in 2008. I would say it's not much of a surprise,
and I would also say any negatives associated with this sort of revelation
have already been priced into the stock.
I guess the big question with regard
to Nighthawk is when the newly forged Itron (NASDAQ: ITRI)
is going to start translating to sales. Remote disconnection capabilities
for utilities in the current recession/near depression have got to be growing
in demand. I would like to see that translate into orders and revenues
in the not too distant future. If it's in conjuction with the Itron sales
force, so much the better.
The set top box business is not a
mystery. Hotels have to upgrade in order to remain competitive, but I don't
see them doing so aggressively in this recessionary climate. They are scrambling
just like everyone else to live on lower revenues, and entertainment upgrades
are no doubt being put on the back burner.
Since NIHK is still not profitable,
one would expect more dillution in some form. Undoubtedly, the company
is going back to its financing sources to help meet its capital needs,
and more dillution is not a positive for the stock price.
Despite the rather negative tone
of today's news, Nighthawk does have some very interesting new relationships
developing, and some old ones that could be "reincarnated". The table is
now set with the moderately negative news out of the way. In my view, negatives
shareholders might perceive out of today's news have already been priced
in. This sets the stage for the company to share some positive developments
as they become available, and hopefully some sort of rebound in the stock
price.
Hardly worth selling at this point.
Something is bound to improve.
Here is today's news for your review:
Press Release Source:
Nighthawk Systems, Inc.
Nighthawk Systems Discusses Expectations
for 2009
SAN ANTONIO--(BUSINESS
WIRE)--Nighthawk Systems, Inc. (OTCBB: NIHK - News) CEO H. Douglas Saathoff
issued a statement today discussing expectations for the Company in light
of current economic conditions. Nighthawk Systems is a leading provider
of wireless and IP-based control devices and solutions, with a primary
focus on power control devices for the electric utility industry and high
definition set top boxes in the hospitality industry.
Mr. Saathoff commented,
“As I stated just over a month ago, we are coming off the strongest year
ever for the Company. With our set top box business fully integrated into
the Company, we produced record revenues during 2008 and enhanced our margins
as well. Based on feedback from existing customers and prospective customers,
we expect to see further growth in 2009, and positive cash flow remains
a realistic goal of the Company for this year. However, I expect revenues
for the first half of the year to decline in comparison to last year as
we deal with the effects of the current economic downturn. Although interest
in our products remains strong, customers are acting more slowly and cautiously,
and production cycles are getting longer as everyone deals with a tighter
credit environment. Capital sources are strained and acting more slowly
than normal.”
Mr. Saathoff continued,
“In spite of the economy, the reasons for optimism at Nighthawk are many,
and the results from 2008 have us better prepared for the road that lies
ahead. A growing customer base, new products and better sales channels
should lead to growth in the second half of 2009. We have been working
with several new companies within the hospitality market, integrating our
set top boxes into their systems, and with several new customers outside
of the hospitality industry as well. New relationships should supplement
existing order flow for set top boxes in the latter half of 2009. Demand
for money-saving devices should increase in this economy, and spending
on smart grid devices should increase due to government incentives and
regulatory requirements. These factors, combined with our new relationship
with Itron and the introduction of new products into the market, should
lead to growth in sales of power control devices in the utility industry
during the latter half of 2009.”
About Nighthawk Systems,
Inc.
Nighthawk is a leading
provider of intelligent wireless power control products that enable simultaneous
activation or de-activation of multiple assets or systems on demand. Nighthawk's
installed customer base includes major electric utilities, internet service
providers and fire departments in forty states. Nighthawk's products also
enable custom message display, making them ideal for use in traffic control
and emergency notification situations. Individuals interested in Nighthawk
Systems can sign up to receive email alerts by visiting the Company’s website
at www.nighthawksystems.com.
Forward-looking statements
Statements contained
in this release, which are not historical facts, including statements about
plans and expectations regarding business areas and opportunities, acceptance
of new or existing businesses, capital resources and future business or
financial results are "forward-looking" statements. You should not place
undue reliance on these forward-looking statements. Such forward-looking
statements are subject to risks and uncertainties, including, but not limited
to, customer acceptance of our products, our ability to raise capital to
fund our operations, our ability to develop and protect proprietary technology,
government regulation, competition in our industry, general economic conditions
and other risk factors which could cause actual results to differ materially
from those projected or implied in the forward-looking statements. Although
we believe the expectations reflected in the forward-looking statements
are reasonable, they relate only to events as of the date on which the
statements are made, and our future results, levels of activity, performance
or achievements may not meet these expectations. We do not intend to update
any of the forward-looking statements after the date of this press release
to conform these statements to actual results or to changes in our expectations,
except as required by law.
Contact:
Nighthawk Systems, Inc.
Doug Saathoff, 877-764-4484,
Ext. 701
dsaathoff@nighthawksystems.com
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