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To
OTC Journal Members:
Today's edition contains commentary
and news on four different companies. There is a lot to report, and I generally
prefer to focus on just one or two companies at most. However, as I observed
in the pre Labor Day edition, there is at long last a lot happening on
the corporate front for small companies. For the last three years companies
have been hunkered down in defensive mode, afraid to invest the capital
to fuel expansion. The improving market climate has brought many of these
small companies out of their shells. Expansion can equal stock price appreciation,
as I hope will be the case in all four of the companies covered in today's
edition.
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NetWork Installation
(OTC BB: NWIS) Secures Agreement With Vivato |
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Network Installation has settled
into the comfortable $2.50 to $3 range after making its breathtaking
two day run to $6 back in August. As I stated in several past editions,
I believe the stock was well ahead of itself at $6, and was probably a
better sell than a buy at that level. However, at less than half the price,
the stock now offers significant upside potential as the company leverages
its considerable networking experience to enter the exploding Wi-Fi (wireless
internet access) market.
Today, just after the market closed,
Network
Installation made an announcement which solidifies another piece of
the puzzle. The company announced it secured an agreement to become an
authorized VAR (value added reseller) of the revolutionary new Vivato
switches. Vivato is a private Bay area company which has secured
$67 million in financing to develop wireless indoor and outdoor Wi-Fi routers.
The current technology, which is
deployed in the typical "hot spot" you find at Starbucks or Borders Books
has a range of about 300 feet. The new Vivato technology provides
a range from 300 meters to 2 kilometers, and is being referred to as a
"hot zone". Vivato offer products for both indoor and outdoor use.
You can learn more about the company by visiting their web site at www.vivato.net.
When you couple the Motorola Canopy
technology, which Network Installation announced it was approved
for back on August 1st, with the new Vivato technology they announced
today, you have the ingredients for state-of-the-art Wi-Fi solutions.
The Motorola Canopy provides
wireless broadband internet access from a tower on line of sight with a
range up to five miles. The Vivato switch then converts the Motorola
access into a true Wi-Fi solution on bandwidth 802.11 with much higher
ranges than the 300 feet currently available.
As disclosed in today's press release,
St. John's University recently allocated $7 million to install a campus
wide Wi-Fi solution. Once implemented, the University intends to offer
virtual classes and lectures which will be broadcast over the Wi-Fi network.
NetWork Solutions already
boasts USC, UCLA, and a number of other educational institutions amongst
its customers. This is just one arena for expansion. The company can also
provide the infrastructure for a WISP (Wireless Internet Service Provider),
which would include a recurring revenue business model.
The final piece of the puzzle is
in place. Stand by for developments as the company moves into the Wi-Fi
arena. Accumulate at or below $3 for what I hope will be a move back to
$6 on real fundamental developments. Click
here to read today's press release.
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SHEP
Technologies (OTC BB: STLOF) Provides Update On Progress |
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Just before the market opened today,
SHEP
Technologies dished up its first corporate development in nearly two
months since the company announced it planned to apply for an AIM listing
on the London Stock Exchange and had appointed a new Chief Technology Officer.
I have received dozens of emails
on SHEP, as it has become highly controversial. The stock went crazy
in June, running from a low of about $.75 and achieving the $3 mark in
a few short weeks.
This company has been the target
of a smear campaign throughout the summer. Well known shill for short sellers
Carol Redmond of Dow Jones has been bashing the company excessively along
with several other powerless entities.
The run in June was probably the
result of a "short squeeze" in the stock. However, if you look at the fundamentals
of the company, you can easily understand why short sellers would be in
the stock. After all, the company has no real hard assets, very little
cash, and no revenues. In fact, as I stated in my first edition on SHEP,
I didn't expect the company to generate any revenues in 2003.
With a market value north of $25
million you can't blame short sellers for taking an interest.
My view is simple. Nothing has changed
since I first published on this company. I believe the stock is too risky
for many investors. I believe their technology is very exciting and could
eventually end up on millions of motor vehicles world wide. I believe everyone
should own a few shares of this company is case they pull it off. I suggested
2.5% of your high risk capital be allocated for this stock, with an eye
towards increasing your allocation to 10% over time. Click
here to read my original edition on SHEP Technologies.
The detractors of the company have
one disadvantage. I went to Detroit and drove the Lincoln Navigator which
was fitted with the SHEP system. I saw it work. I don't know whether they
will ever reach their potential. If they do, you will wish you owned a
few shares.
I'm planning much more comprehensive
coverage on this company either later in September or early October. This
coverage will clear up many of the questions you may have concerning their
direction. Stand by. Click
Here to read today's press release.
As I stated, Carol Redmond of Dow
Jones has been bashing SHEP Technologies. She was also bashing Hi Energy
Technologies (OTC BB: HIET) earlier this year. The stock dropped from $2.50
to $.25. Recently, on the heels of great fundamental progress, the stock
has run all the way back to $1.50. You can't believe everything you read-
either from Carol Redmond or the OTC Journal. Differing opinions
are what makes a market.
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StockGroup
Information Systems (OTC BB: SWEB) Gets $.60 Price Target |
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On Tuesday morning, just prior to
the market opening, unbiased Investrend analyst Ryan Fuhrmann placed a
$.60 price target on StockGroup.
If you are looking for unbiased opinions
on stocks, you won't find them at the OTC Journal. I am very biased,
and won't report on a company unless I like it. I like StockGroup,
and have since I started covering the company one year ago at $.19.
Sooner or later StockGroup simply
has to take off. The stock has been stuck in the mud since January when
it briefly attempted to eclipse $.40. Since then, the stock never trades
below $.25, but struggles to trade above $.30.
Investrend has been projecting this
stock will trade above $.50 for two years now. Sooner or later they are
going to be right as long as the company continues to grow.
Look for StockGroup to finally
trade at higher levels when you least expect it. If the company keeps growing
at its present rate, eventually Investrend will be right. Click
Here to read Tuesday's news release.
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Titan
General Holdings (OTC BB: TTGH) |
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Last week's trading alert on Titan
General has been a non-event so far. The stock traded heavy volume
the following day between $1.30 and $1.40. This week it has stayed in that
range on lighter volume.
I suggested a mental stop loss of
$1 on the stock. You might consider raising the stop loss into the $1.15
to $1.20 range if the stock trades down to that level. I don't believe
it will, but you never know. You cannot file a formal stop loss on the
stock- you just have to watch it and sell if you see it trade down into
that range.
The company is growing rapidly and
should be able to deliver more compelling fundamental developments during
September. My time frame for this idea was 60 days, so we still have plenty
of time for a surge to the upside.
Charts Provided Courtesy
Of TradePortal.com |
