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To
OTC Journal Members:
Former President Ronald Reagan's
passing this week put the country and the markets into a reflective and
remorseful state. President Reagan earned the respect of both friend and
foe during his tenure at the most important job in the world. The NASDAQ
opened Monday at 1991, and closed the shortened week at 1999. Volume was
absolutely non existent. This was one of the sleepiest weeks on Wall Street
I can remember. It felt like Christmas Week.
The market has bounced back from
the April/May selloff. Money is rotating out of high beta stocks (volatile
tech stocks), into dividend plays and larger names. The market perceives
earnings growth is beginning to decelerate after a year of very rapid acceleration.
Small Caps and Technology stocks
should break out of these doldrums in concert with the following pending
events:
-
A 50 basis point interest rate rise
(which could come at the end of June)
-
A calming of the Iraq situation, which
could include the U.N. entering into the transition phase (hopefully this
summer)
-
$30-$32 per barrel oil (if Iraq cools
off, this should come by the Fall)
-
An strong pre announcement season (starting
to come in now)
-
Modest inflation numbers; 2% to 2.25%
range
As I have been stressing in past editions,
this is an outstanding time to accumulate for the big moves coming later
in the year. There is some serious money to be made by those with the courage
to act. The right companies with the right growth will pay off handsomely
when money starts chasing small stocks again. Values are holding up, which
suggests investors are content to wait it out. Traders are frustrated by
the lack of volatility.
Last week I visited several of our
featured companies. Here's one that's definitely an outstanding growth
opportunity:
 |
NeWave (OTC
BB: NWAV): Announces Stellar Growth in 2nd Quarter |
|
NeWave has hit the sweet spot
for people interested in doing business online. The company is riding a
huge wave of interest in business on the internet. eCommerce in all forms
is hitting its stride. We have arrived where the market thought we would
be back in 2000 when Wall Street over funded hundreds of dot com start
ups with flawed business models.
NeWave has an inexpensive
turnkey solution for allowing anyone to set up their own eCommerce web
site. You can learn all about it at www.onlinesupplier.com.
You can sign up for a 14 day trial for a mere $6.95. After 14 days,
your monthly fee goes to $29.95.
NeWave is handling about 6,000
incoming calls per day (up from 4,000 at the last report), 13% of which
turn into a paying customers. The result: Over $600,000 in revenues
in May alone as disclosed in Friday's press release. This is an
outstanding accomplishment when you consider the company achieved $1 million
in the March quarter. This would equate to an average of $333,000 in revenues
per month in the first three months of 2004. Sales since the beginning
of the year have doubled on a monthly basis. The company feels it can generate
about three times this revenue level by year end.
The 6,000 daily incoming calls are
handled by about 75 customer service reps, who are answering the phones
non stop 15 hours per day. About thirty or forty callers are on hold waiting
to speak with someone at any moment in time.
The company was making the move to
a new location during my visit last week. They are moving into office space
about the size of an airplane hangar. They will have about 200 full time
reps. Their customer service will improve dramatically.
Once the move is completed, the company
will focus its energy on eliminating some outsourced services, thereby
enhancing revenues per customer and overall margins.
The company is also working on a
number of new services it can offer to the existing customer base. Specialized
sites are being developed. For example, the company is working on a special
version of the service tailored made for real estate agents. Car dealerships
and their sales people will also be able to get a special version of the
service.
NeWave still remains an undiscovered
gem. The company came out of nowhere, and has a limited following. If the
current trend continues, the stock will end up on many radar screens before
the end of this year.
There are less than 11 million shares
issued and outstanding. $600,000 in May alone equates to $7.2 million
in
annual sales. However, if you factor in the growth rate, the company could
be clipping along at $18 million in annual revenues by year's
end.
Factor in this company's extraordinary
90% gross margins, and you have the potential for major profits.
Get on board and ride this one for
the remainder of the year. They are riding the sweet spot of this massive
wave. Sooner or later, someone is going to take notice of this company.
Here's Friday's news release for
your review:
| Press Release Source:
NeWave, Inc.
NeWave Announces Record
Monthly Revenues of Over $600,000 in May
Friday June 11, 1:34
pm ET
LONG BEACH, Calif., June
11 /PRNewswire-FirstCall/ -- NeWave, Inc. (OTC Bulletin Board: NWAV - News)
a provider of membership-based online products and services through its
subsidiary OnlineSupplier.com announced record monthly revenues of over
$600,000 in May.
NeWave CEO Michael Hill
stated, "In just two months so far this quarter, we have already surpassed
our reported first quarter revenues of $1 million. Our accelerated growth
can be attributed to dramatic improvement in the quality of our product
and services and increased member satisfaction." He added, "The current
environment for e-commerce is extremely robust and we believe the future
outlook will remain bright as consumers have begun to embrace the internet-based
shopping experience."
About NeWave, Inc.
NeWave, Inc. through
its wholly-owned subsidiary Onlinesupplier.com offers a comprehensive line
of products and services at wholesale prices through its online club membership.
Additionally, NeWave's technology allows both large complex organizations
and small stand-alone businesses to create, manage, and maintain effective
website solutions for e-commerce. To find out more about NeWave (OTC Bulletin
Board: NWAV - News), visit our websites at www.newave-inc.com or www.onlinesupplier.com
. The Company's public financial information and filings can be viewed
at www.sec.gov.
Forward Looking Statements
This release contains
forward-looking statements, including, without limitation, statements concerning
our business and possible or assumed future results of operations. Our
actual results could differ materially from those anticipated in the forward-looking
statements for many reasons including: our ability to continue as a going
concern, adverse economic changes affecting markets we serve; competition
in our markets and industry segments; our timing and the profitability
of entering new markets; greater than expected costs, customer acceptance
of our products and services or difficulties related to our integration
of the businesses we may acquire; and other risks and uncertainties as
may be detailed from time to time in our public announcements and SEC filings.
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 document to
conform these statements to actual results or to changes in our expectations,
except as required by law.
--------------------------------------------------------------------------------
Source: NeWave, Inc. |
Charts Provided Courtesy
Of TradePortal.com |
