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Today's edition marks Number 100 for 2005. A very busy year. So far, the first half was good, the second half terrible. It's going to get better. We are due.

There is a BLOG entry on new idea UpSnap (OTC BB: UPSN). As I stated in the original presentation, UPSN is setting up to be Mr. Toad's wild ride. On the first day of trading it's range was $2.45 to $3.10. That's no different than a stock trading between $24.50 and $31.10 on the same day. On Monday morning I was able to compute the perfect entry level at about $2.40, and a stop loss level at $2.30. It the stock trades much below $2.30, just sell it and take your loss. There is a new BLOG with a more detailed explanation.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels or in volatile markets. Your questions and postings do not automatically appear, so don't bother posting the same question multiple times. I personally go through to moderate and respond to every question.
 

NetWork (OTC BB: NTWK) and Health Sciences (OTC BB: HESG) Lead Us to the Holiday

NTWK and HESG were both out with news releases this Tuesday morning as we roll into the Thanksgiving holiday. These two turkeys appear to have escaped the Thanksgiving table this year, and should spend another year growing nicely. Paying attention to unfolding events when most investors are out of touch can be very profitable. It gives you a competitive edge.

HESG published a lengthy news release which gives us some insight as to where they stand on sales of SHUGR. The news release warns us that revenues for the September quarter for the company were minimal, but sales of SHUGR appear to be gaining some real traction. Here are the highlights:

• DNP, their food distribution manufacturer, has agreed to guarantee HESG $2 million in SHUGR sales in 2006. DNP sold 2 million lbs of Vitamin C in 2004. DNP's job is to get food and beverage manufacturers to include SHUGR as an ingredient. This is where I believe the really big revenues could come down the road.
• GNC, Vitamin Shoppe, Meijer, ValueDrug and drugstore.com are now all carrying the product. The company has recently received PO's from GNC and the Vitamin Shoppe. According to HESG, the product is moving from testing phase to full distribution and featured shelf space at the nationwide chains.
• The company is close to an exclusive deal with a Japanese distributor with 50,000 retail doors in Japan. The deal would require a minimum of $1.1 million in PO's in 2006, tripling every year thereafter.
• Despite not being included in today's press release, don't forget SHUGR will make its debut on QVC network in January. It will be sold in a grouping of a dozen cookies baked with SHUGR, a cookbook, and a container of the product.

NetWork Installation also delivered a powerful update today. The company disclosed Q3 numbers, and they basically a non-event because they were not reflective of the current businesses of the company. 

While NTWK delivered $1.1 million in revs in the quarter, a follow up press release disclosed their current backlog at $16 million in contracts, which are being worked on at this very moment.

Kelley Technologies was acquired on Sep 22, so there were only 8 days of Kelley's performance in the Q3 numbers. The Spectrum acquisition closed on November 1, one month into Q4. Therefore, the Q4 numbers will include 100% of Kelley's performance, and 66% of Spectrum's performance. We won't get the full picture until Q1 numbers in '06.

The bottom line is $16 million in current contracts which are ongoing. I don't have a good feel for where it puts the company profit wise, but I know the pub co expenses are now split amongst a much higher revenue number, which is a major positive for shareholders. 

It will be a whole new world for NTWK in 2006. If interest returns to microcap stocks in the telecom/internet infrastructure sector, this one should garner a lot of attention. Investors bet on Jeffery's Hultman's roll up strategies with Pac Tel and made a fortune. It would be foolhardy to be against him now. Look for a whole new face on this company.

The chart of NWKI is pretty schizophrenic. The only conclusion I can draw at this time is "buy the pullbacks". Each time the stock has moved to oversold levels it has bounced, then headed back. Follow the bouncing ball, and buy at the bounce level.

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