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To
OTC Journal Members:
Many thanks to those who sent in
their best trading idea. I have about 100 charts to go through this week.
Hopefully I will find the time to include the three best looking charts
in this weekend's edition. If not, I'll get them out there before too long
as we are moving into the best season for stock appreciation. It is important
to see these ideas now.
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NetWork Installation
(OTC BB: NWKI); Volume Surge: Price Improvement To Follow? |
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Since covering NetWork Installation's
2 for 1 stock split in September I haven't published an update on their
progress. For those of you who might have missed the event, the company's
symbol changed from NWIS to NWKI in conjunction with the
split.
In the June quarter, NetWork Installation
delivered 43% growth over Q1, and 113% growth over the June qtr in '03.
Their growth is fueled by the growing demand for wireless internet access.
It is becoming more prevalent every where you go, and many schools, government
offices, and companies are choosing to install wireless internet and intranet
access.
NetWork Installation is expanding
geographically. From their Southern California locale, they have now expanded
with offices in Seattle, Sacramento, Las Vegas, Phoenix, and San Diego.
Management has publicly stated they intend to have a nationwide footprint
by the end of 2005. If you haven't looked at the company recently, now
might be a good time for review. Volume has been building quite impressively,
and the stock could be poised to break out. Go
Here to read our archive section on NWKI.
As you can see from the chart, NWKI
sold off rather viciously and abruptly in mid August, but immediately turned
around and has been in an uptrend ever since.
More importantly, the volume has
increased markedly. Prior to mid August there were many days this stock
only traded 10,000 to 20,000 shares. Over the last few weeks the volume
levels have increased. The stock now trades nearly 100,000 shares each
day.
For the most part, the higher volume
days have been the days the stock has moved up. Lower volume days tend
to be the down days, which suggests the stock is under accumulation.
The stock is also in a nice uptrend-
meaning the lows are getting higher and the highs are getting higher. The
longer term uptrend (lower blue line) began in mid August. The shorter
term uptrend began in mid September (upper blue line). Both trends appear
to be continuing.
NWKI closed today at the support
line of the upper trend. If the trend is going to continue, the stock should
head back up from here.
The continuation of the trend is
likely as NWKI delivered news after the close today. The company
has been awarded another Wi-Fi installation contract value at about $100,000
for the Tustin, CA Union School District. In addition, NWKI also
disclosed it has been awarded contracts for installation of IT platforms
for Poway Union School District in San Diego, Cambridge Schools in Citrus
Heights, CA and Rancho Cordova, CA.
None of these contracts is huge in
scope, but taken as a whole they add up to a very compelling growth picture.
In addition, both the company and
the market are gearing up for the next wave of Wi-Fi expansion. Wi-MAX
technology, which is Intel's initiative in the Wi-Fi, is on track for deployment
starting in 2005. Wi-MAX is kind of like Wi-Fi on steroids. Using
Wi-MAX, outdoor fixed wireless can be used for high-throughput enterprise
connections (T1 class services), hotspots and cellular network backhaul,
and premium residential services.
How would you like a wireless T1
in your home at broadband prices? Intel sees it coming in about two years,
and NWKI will be ready to deliver it.
Call it more of a feeling that anything.
With the volume increasing markedly there could be a breakout coming in
the stock soon if it continues to make higher highs. A surge into the $2.50
range would give us a new all time high and put nearly everyone in the
money.
Go
Here to read today's press release on NWKI.
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