To OTC Journal Members:
 

NeWave (OTC BB: NWWV) Rips Cover Off the Ball- If Only It Were Last Year

NeWave's Q1 numbers are simply off the charts. The company has lived up to expectations in a major way. Alas, if it were only last year at this time. 

Do you want the good news or the bad news first? OK- first, the bad news. If the company had delivered these kinds of results one year ago, we wouldn't have the brain damage we experienced as the stock swooned from $2 to $.20.

Now- for the good news. Last year's disappointing numbers equate to opportunity for those looking at the stock at today's levels.

The NeWave saga has come nearly full circle. Dramatic growth from '03 into '04 as the company flexed its marketing muscles and grew exponentially. Expectations were high in '05 for more growth and a turn to profitability. In a reasonably favorable market for ecommerce companies, the stock traded to a high of nearly $2.25.

'05 comes along and the company opens a couple of disappointing subsidiaries. Sales drop, losses increase, stock crashes in October and November of '05.

Last summer the management at NeWave recognized that had to return to their core business. Their turn around strategy has been executed admirably. Q1 numbers, found in the 10Q at the SEC's web site this afternoon, are outstanding.

NeWave is in the business of putting people in business on the internet. It's a subscription based model. Slowly but surely they have improved their service, and it is clearly evident from today's numbers that the company is executing. Here are the hard facts:

• Revenues for the quarter were $3,932,343, up from $1,258,616- a 212% increase.
• Profits were $194,380, up from a loss of $1,291,480; That's a turn around of $1.45 million
• The company reduced its debt by $1 million- to $2.8 million. 

Therefore, at $.30 this now profitable company growing at a clip of 200% per annum is only trading at 1x sales.

As you can see from the chart, the stock has been grinding in a range between $.20 and $.40 since December.  By the time you read this, I'm guessing a major breakout will have already begun. 

Had NWWV delivered these results in '05 I'm pretty sure we would have made a nice profit in the stock from the $1.50 range. The stock was ahead of the company. Now, the company is ahead of the stock. Stay tuned for more growth from here.

If you are going to try to trade the stock on Tuesday, caution should be used. The inevitable morning surge will not doubt be followed by a pullback of some sort. Use your common sense on the trading side. 
 

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