To OTC Journal Members:
 

Don't Forget to BLOG

Based on Friday's post close news, it is clearly going to be a big day for NetWork Installation on Monday. Both the price and the volume have been on the increase this week. Friday's news should keep the ball rolling. 

Look for a market update in the BLOG on NWKI shortly after the market opens on Monday. It will contain thoughts on the trading activity, and levels that might make sense for a good entry. It will be the top link in the middle of the home page. If you want to review past BLOG entries on NWKI, just click on the spiral notebook which automatically scrolls down. You can minimize the BLOG notebook if it blocks your view. Look for an entry about 1/2 hour after the market opens. Those who read the BLOG on MRKL and NWKI this week avoided paying too much for their stock.

If you want to start understanding how to use the automatic RSS feeds, we have made the first step simple. For those with a Yahoo! Home Page simply click on the MY Yahoo! links on the right hand menu bar at www.OTCJournal.com , and you can add both the OTC Blog and the OTC Journal to your Yahoo! home page if you have one. If you don't, you should get one. The content flexibility is amazing. You will then be automatically be notified about new editions and new BLOG entries.
 

A New Day for NetWork Installation (OTC BB: NWKI)

NetWork Installation had a great week, but both technically and fundamentally this could be just the start of a new beginning for the stock. I believe we are much closer to the beginning of the current fledgling surge. If the overall market cooperates, this could be the kick off to a multi month growth spurt at NWKI.

This past week NWKI started to trade up on greatly improved volume after the company announced it had signed a new contract to install a network at 73 Footlocker locations throughout Southern California.

A prediction from my December 6th wrap up edition on NWKI is starting to look prophetic: "While there are certainly no guarantees, look for NWKI to pull a major coup of some sort early next year, which should result in another major volume and price spike like we had in March and October. Hopefully, we will eclipse the October high, and shareholders who have been accumulating will be rewarded for their patience."

Friday, after the market closed, NWKI announced the acquisition of Com Services, Inc of Costa Mesa, California. Com Service's ongoing business could add as much as 50% to the company's top line. However, far more importantly, Com Service is a Union Certified contractor, which opens the door to a substantial amount of Government and large corporate business that was heretofore unavailable to NWKI.

NWKI made its all time high last spring when the company announced the acquisition of Del Mar Systems. I'm not sure it will be Deja Vu all over again on Monday as the stock would have to appreciate 33% in one day to make a new high, but anything is possible.

I have put a lot of elements in the chart of NWKI because I believe there is a favorable technical rally going on right now.

Here's a long term look at the stock extending all the way back to the high set last March prior to the summer correction and subsequent turn around at the August low.

There are several impressive characteristics about this chart. The first component which I find striking is the huge increase in volume over the past week. Secondly, the stock has never broken the uptrend which started after the August low (had you only had the courage to buy this one under $1). Thirdly, the stock has been grinding in a range between a 50% and 62% retracement of the Summer drop for four months. The longer the stock grinds sideways, the stronger the move when the stock finally starts up. 

Odds are the stock is going to at least try for the $2.26 level before it is really tested. A solid break above $2.26 would bring the old high of $2.74 back into the cross hairs. Don't expect it to go straight up. Look for some mini pull backs enroute.

In order for the stock to challenge the old highs the company will need to deliver a more consistent steam of positive events. In the first half of 2004 NWKI was very active on the corporate side, but the company slowed down and reset its course in the second half of the year. The changes that were made at the end of '04 should help the company's growth rate accelerate rapidly in '05.

I am convinced high speed internet access will be wirelessly available just about everywhere within the next five years. Schools, restaurants, hotels, offices, public places, and homes will all have high speed wireless access. This massive infrastructure build out is gaining traction, but still in its infancy. There is a lot of work to do in the near future.

NWKI should grow along with the build out. But don't take my word for it. I believe we should hear it from the boss. I have invited Chairman Mike Novielli to participate in an audio interview. You will be able to hear or read the interview in next weekend's edition.

I plan to conduct the interview sometime in the middle of next week, which will give OTC Journal members an opportunity to participate. I invite you to send in questions you would like to have answered by NWKI's Chairman. Please email your questions to editor@otcjournal.com. We will pick those that are most representative of the majority.

Look for a big week next week. Here is the text of Friday's news release for your review:
 

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