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NeWave (OTC
BB: NWAV): Announces Expansion With eBay Drop Off Stores |
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You are looking at a chart of Auction
Mills. This equity trades in the obscurity of the Pink Sheets, which
means they don't have to file any financial disclosure with the SEC.
The stock rocketed into the stratosphere
early this summer when the company announced they were opening opening
an operation to sell franchises for eBay drop off auction stores.
From virtual obscurity in July, the stock charged from about $.25 to just
north of $5- it has since split 5 for 1. You are seeing a split adjusted
chart.
The company claims to have thousands
of inquiries from interested parties all over the United States looking
to establish an eBay auction drop off franchise. According to their most
current press release, the company just opened its first store in Dallas
last week. There is no financial disclosure of any kind with the SEC, so
you can't even tell how many shares are issued and outstanding. I read
somewhere the company had a billion dollar market cap when it was over
$1, but you can't be certain.
NeWave, a company with full
financial disclosure and rapid revenue growth, has set up a division to
move into this market. NeWave already has a business relationship
with over 100,000 serviced customers, and enjoyed over $900,000 in revenues
in July alone.
The management at NeWave recently
sent five X-Boxes out of their own inventory to different companies
purporting to have eBay auction drop off capability.
Of the five, only one has been sold.
Three companies did not even have a place to send the box. There is demand
for this service, but no one is filling it efficiently. Hence, an opportunity
in the market.
Today NeWave announced today
the formation of new subsidiary “Auction Liquidator, Inc.” to pursue opportunities
within the eBay “drop-off” store arena.
In order to effectively pursue this
business, the company will need to partner with a nationwide packing and
shipping operator to provide widespread drop off points and provide shipping
services to NeWave's corporate headquarters. According to the press
release: "Customers wishing to sell their goods on eBay but either
lacking technical knowledge or desiring convenience are now able to drop
off the items at a “soon to be announced” retail location near their home
and Auction Liquidator will take it from there."
Management at NeWave points
out they have already serviced over 100,000 individual customers, and their
current flow of incoming calls is now averaging above 7,000 calls per day.
They have the customer base in place already.
We started with NeWave last
February at $2.75. The stock is trading just under the $4 level
as of today's close. The high since launching coverage was $4.60
in May. Therefore, we have retained about 62% of the gains we have logged
on this idea. Not bad in light of the May/June sell off.
The summer sell off in this equity
is over. The stock broke above its downtrend line in early September, and
looks ready to regain former levels. Perhaps this news will spark some
major investor interest. It worked for Auction Mills. Why not for
NeWave.
Go
Here to read the complete text of today's news release.
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