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When we conceptualized the BLOG,
I was hoping it could turn into a forum for questions and differing points
of view. I get a lot of email questions and respond to everyone on an individual
basis. I felt it would be valuable if all members could view the questions
and answers. We are beginning to achieve this public dialogue through the
commentary option at the BLOG.
Each individual BLOG entry
has a form for users to leave a comment. After you fill out the form and
submit it, it does not immediately appear on the web page. If we allowed
that to happen, it would be clogged with unwanted advertising. Once you
submit your question or comment, I have the ability to respond and then
post your comment to the BLOG. Therefore, it might take a day or
two for your entry to appear. For example, there is a fair amount of traffic
on MRKL. Click
here to visit the comment section from the last BLOG entry.
I'm starting to get some good dialogue
going with active members. I welcome both positive and negative comments
on any side of any issue. It would prove a valuable use of your time to
go through some of the commentary on past postings to learn what people
are asking about.
Each individual BLOG posting
has it own individual section of commentary. There isn't one section of
commentary for each covered stock.
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.
I will probably do a BLOG
posting on NeWave early next week. Your comments and questions are
welcome.
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NeWave (OTC
BB: NWWV) Making New Highs |
|
NeWave completed its 3 for
1 split and opened for trading last Friday under its new symbol. The stock
formerly traded under the symbol "NWAV", and now trades under the
symbol "NWWV" on the OTC Bulletin Board. For those of you who get
your quotes at Yahoo!, the symbol to use would be NWWV.OB.
The closing trade in Friday's session
was $1.66 per share, which equates to $4.98 pre split, a
new all time high. When I first introduced the company to OTC Journal
members on February
15, 2004, the stock was trading at $2.76, or $.92 split adjusted. Net
return so far: 80% after one year. I'll take that anytime.
I seem to be making the right calls
on NeWave as my December
22nd year end wrap up on the stock was entitled: "NeWave Corp
Should See New Wave of High Prices Next Year".
NeWave deserves to be trading
at new highs as the company is delivering the goods. From a fledgling start
up in '03, NeWave has grown at a 700% growth rate year over
year ('03 to '04).
The company is rapidly approaching
the $1 million per month revenue figure, and their business has
very high margins. NWWV has now provided service for over 125,000
individuals, and the phone rings about 4,000 times per day at their sales
and customer service center.
NWWV has very ambitious expansion
plans in 2005. They intend to fully ramp up the new Auction Liquidators
division. This division is an eBay drop off service. If you have
something to sell, you simply ship it to the Auction Liquidators warehouse
in Long Beach, CA, who then places the item up for auction on eBay
along with a professional presentation. NeWave keeps a percentage
of the sale price as a fee. In its beta testing phase, Auction Liquidators
has
now completed over 800 successful auctions. A full roll out of this new
service is beginning now, and could be a huge revenue generator for the
company. NWWV is also setting up a special division to handle auctions
on behalf of charities. If your local school or church wants to sponsor
a fund raiser with a virtual garage sale, NWWV will handle the job.
NWWV is also going into production
on an infomercial featuring their national spokesman Bob Eubanks,
famous for his many years of hosting the Newly Wed show.
I couldn't provide a current chart
of the stock, as our chart provider has not updated the data to reflect
the new symbol and price. I made a crude version so you could get the picture.
The blue line extension at the right
end of the chart shows where the stock would be trading if it had not split
three for one. As you can see, it has cleanly broken away from its $4.50
ceiling on the third try. As importantly, the volume has been surging as
measured by the blue lines at the bottom of the chart.
The current market valuation of NWWV
is running at about $50 million. If they can continue to deliver
growth at their current torrid pace, the company should turn the corner
into 2006 at an annualized run rate of $20 million. This company could
end up sporting a $100 million plus market cap quite easily, which allows
upside of a double from the current levels.
I expect this to be a major break
out year for both the company and the stock. Rightly or wrongly, investors
will perceive a lot of upside from the $1.66 level. We are still at the
very beginning of a great growth story.
Today, NWWV announced its
strategic growth initiatives for 2005. I've covered most of them in this
edition. Here is the complete text of the press release for your review:
| Press Release Source:
NeWave, Inc.
NeWave Announces Strategic
Initiatives for 2005
Monday February 21, 1:05
pm ET
Expansion of OnlineSupplier; Launch
of eBay Drop-Off Provider Auction Liquidator and Discount Online Warehouse
LONG BEACH, Calif., Feb
21 /PRNewswire-FirstCall/ -- NeWave, Inc. (OTC Bulletin Board: NWWV - News),
a direct marketing company that utilizes the internet to maximize the income
potential of its customers, today announced its significant achievements
of the past year and outlined its strategic initiatives for 2005.
NeWave Chief Executive
Officer, Michael Hill, stated, "Over the past year, OnlineSupplier achieved
successful penetration into the ecommerce marketplace. Our growth was fueled
completely from internal operations and without the benefit of acquisitions."
He added, "We believe we can now aggressively roll out other services in
2005 and maintain or even increase our high rate of growth. For instance,
in just three months, a test launch of Auction Liquidator has already produced
over 800 successful auctions. This year we will also intend to pursue an
acquisition strategy seeking opportunities which add value and fit within
our model."
Key
achievements and events during 2004 include:
* Provided service to over 125,000 paid members;
* Reported over $4.7 million in revenue for the nine month period
ended
September 30, 2004 during our first calendar year of operations;
* Developed new subsidiaries, Auction Liquidator, an eBay and online
auction drop off provider and Discount Online Warehouse, a provider of
heavily discounted products with bulk purchases;
* Engaged TV Game Show Host and Radio Personality Bob Eubanks to
represent the Company as its national spokesman.
Strategic
initiatives for 2005:
* Declare a 3 for 1 forward split of NeWave common stock;
* Continue to expand the OnlineSupplier brand;
* Roll out the Company's first ever TV broadcast infomercial;
* Full scale launch of Auction Liquidator and Discount Online Warehouse.
About NeWave, Inc.
NeWave is a direct marketing
company that utilizes the internet to maximize the income potential of
its customers by offering a fully integrated turnkey ecommerce solution.
NeWave subsidiary Onlinesupplier.com, offers a comprehensive line of products
and services at wholesale prices through its online club membership. Auction
Liquidator, a NeWave subsidiary is an online portal which provides customers
with a quick and efficient method for selling unwanted items on eBay and
other online auction sites. To find out more about NeWave (OTC Bulletin
Board: NWWV - News), visit our websites at www.newave-inc.com, www.onlinesupplier.com
and www.auctionliquidator.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. |
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