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Tomorrow morning I'll be authoring a new BLOG posting for NeWave so you can post comments or questions. The company is knocking the cover off the ball right now. Revenues are accelerating rapidly, and the stock has to follow suit sooner or later.

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NeWave (OTC BB: NWWV): Eclipses The Million Dollar Month

There are high fives all the way around at NeWave, the company that helps individuals with eCommerce solutions. Today, after the market closed, NWWV announced they surpassed the $1 million revenue mark in the month of April alone.

This is a remarkable achievement when one considers NWWV was a complete start up in August of '03, a mere 20 months ago.

The company has three subsidiaries, and all are gaining traction. They are:

• OnlineSupplier.com offers organizations of all sizes from home business to large enterprise the ability to create, manage, and maintain effective website solutions for e-commerce.
• AuctionLiquidator is an online portal which provides individuals, enterprise customers and non-profit organizations with a quick and efficient method for selling unwanted items on eBay and other online auction sites.
• Discount Online Warehouse is an online wholesale club which offers discounted products purchased in bulk quantities to its members.

If you want to sell personal belongings and any other inventory you might have, AuctionLiquidator has an eBay drop off service. 

If you want to buy or sell deep discount goods, Discount Online Warehouse has the inventory for the goods.

NeWave is fast becoming the Michael Jordan of ecommerce for individuals. They have now serviced in excess of 150,000 members in their brief 20 month history. Their new systems are even more user friendly and efficient than past versions, and customer retention is increasing.

Coming off $6.54 million in revenues in 2004, double digit plus growth in 2005 is now a Jordan like slam dunk. With over $1 million in April, we can assume the company will achieve at least $12 million in '05, and possibly much more.

Long time TV personality Bob Eubanks is the company's celebrity spokesman, and he is featured in an infomercial the company has in production. It will roll out nationwide over the next several months, and should generate another wave of interest in their services and equate to continuing strong growth.

Over 750,000 people make a living on eBay. There are many others looking to do the same. There are millions of consumers looking to offload products through auction sites, and their are millions of aggressive consumers looking for bargains.

NWWV has the platform to match them all up, and collect ongoing, recurring fees.

There are 35 million shares issued and outstanding for NWWV. The $1.50 level gives the company a market valuation of $52.5 million. With the company tripling in size year over year, I don't believe it will take long for the market to award a $100 million market valuation to the company. 

I love companies with high margins and recurring revenues. NWWV fits the bill on both. Since they are primarily a service business, they have little or no cost of goods. After you subtract the monthly overhead, the remaining revenues flow right to the bottom line.

In 2004 NWWV had negative cash flow of about $100,000 on its $6.54 million in revenues. They spent the money to exapnd the infrastructure last June. Profits should now flow to the bottom line.

As you can see from the chart, NWWV made a nice run in late February in conjunction with a 3 for 1 split. The stock then pulled back and has since traded on very light volume. It strikes me as important that the stock has not come down with the rest of the market as so many others have. The company is building a long term shareholder base willing to hold in this rough climate.

Look for this stock to be a stand out. I would love to see the stock wrestle with the old $1.94 high. Over $1 million per month is an outstanding achievement, and even better things lie ahead.

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