To OTC Journal Members:
 

Comments in the BLOG

No new BLOG entries this past week, but the 4th quarter rally looks like it going to happen. For the first time in a very long time, I am seeing some of my non-energy positions head higher, which is very encouraging. 

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels or in volatile markets. Your questions and postings do not automatically appear, so don't bother posting the same question multiple times. I personally go through to moderate and respond to every question.
 

Market Comment

It was a huge week for the markets. Despite a two month delay as compared to '04, Santa might indeed be on his way to stock market investors as he is 84% of the time.

The NASDAQ Comp, which had a nice summer rally from mid July to mid August, swooned in September and October as Mother Nature unleashed her entire fury on the US Energy infrastructure, driving energy prices through the roof.

However, the US Economy continues to demonstrate it has the ability to adapt and prosper. To paraphrase Mark Twain, the death of the American Consumer has been greatly exaggerated. Most economists predicted American Consumers would all hide in their newly remodeled and refinanced homes, afraid to spend a few extra bucks on gasoline. As usual, the economist were wrong.

October retail sales came out early in the week, and they blew away all the estimates. The consumer represents 70% of GDP, and apparently the consumer is alive, well, and responded to early retail markdowns.

The market traded up magnificently, convincingly breaking the down trend line associated with the brutal hurricane season. Santa's coming. The market has changed directions. Buy the dips, and do so now. Retail investors are behind on this one as there were outflows in mutual funds this past week, but it's not too late to load up the truck on your favorite stocks.
 

NetWork Installation (OTC BB: NWKI): $20 Million Plus, Here We Come

When Jeffrey Hultman agreed to take the reins at fledgling NWKI back on March 7th, I was very excited. After all, this is the guy who managed the growth of PacTel from $100 million to $1 billion in sales, and eventually pedaled the company to Verizon at a huge premium.

Throughout a multi decade career, Hultman has successfully managed to roll up a number of exciting technology companies into a nice bundle and sell them at a big premium for investors.

Can you spell Deja Vu all over again? On Friday after the market closed, CEO Hultman announced NWKI had closed another major acquisition. Southern California based Spectrum Communications has been acquired for 18.5 million shares of NWKI stock. Through October of '05, Spectrum had $12 million in '05 revenues. About $1.2 million per month.

NWKI will now turn the corner into 2006 cooking along at about $22 million in annual revenues, and looking for loftier levels beyond that. An extraordinary achievement when you consider the company hit the pavement at about $4 million in annual revs as '04 became '05.

It has taken six months for Hultman to get rolling, but now it's all systems go. I can assure the first $25 million is much harder than the next $75 million.

The Spectrum acquisition comes with some major management talent. Meet Robert Rivera. From the press release: "Spectrum Communications is a six-time recipient of the 'INC. 500 - Fastest Growing Companies in America Award' (1998-2003) and a three-time recipient of the 'Fastest Growing Hispanic Company in America Award'. Robert Rivera was the 2000 'Entrepreneur of the Year' for Hispanic Business Magazine, 1999 and 2000 First Runner-up for the 'Ernst & Young Inland Empire Entrepreneur of the Year Award' and a 2001 'Business Press nominee for Innovator of the Year' Award. Spectrum currently services clients including and within NORAD, U.S. Department of Homeland Security, Healthcare Industry and K-12 education."

Not Bad.

It's easy to lose perspective in a year when the market has treated everything non energy pretty savagely. With this acquisition I can't help but reflect on how the internet has changed our lives since the late 90's. Consider how much you use the internet in your daily life. Email is rapidly becoming one of the major forms of communication. Browsers spew forth information on any subject instantaneously. Google is trying to $400 per share, and Wall Street hated it at $80- Remember, they reduced the initial price considerably and reduced the number of shares.

I don't know about you, but I comparison shop for almost everything except food on the internet.

With all this added use comes the need for expanded hard wiring and wireless infrastructure. NWKI, under CEO Jeff Hultman, has many years of expansion out in front of it. When WiMax hits the market, hot spots will span 5 miles instead of 100 feet.

Look for Hultman to continue on the same path in 2006. The Spectrum and Kelley were done at about 1 times sales. Paid for in newly issued, restricted stock. Hultman knows that if the entire entity turns profitable, any kind of decent market environment for technology will yield a stock trading at 4 to 5 times sales in market value.

With the two recent acquisitions, NWKI now has about 49 million shares I&O. Based on Friday's closing print of $.80, the market is now placing a value of $39 million on the entire company. With $22 million already on the books for 2006, and three growing entities under the same roof, the stock price has simply got to improve at some point in the future.

Our crack technical team sees $1.96 at some point in the future as the stock is probably destined to complete a 61.8% retracement of the old highs. Do the math.

Here is the complete text of Friday's news for your review:
 

Subscribe

Information is power and timely information is profitable. Become informed and profit from OTC Journal Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the OTC Journal Email Newsletter on a regular basis.

To ensure newsletter delivery, you can add any additional email addresses you may have to the OTC Journal Member List. Receiving the OTC Journal Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the OTC Journal recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery.

Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. If you no longer wish to receive the OTC Journal, simply follow the instructions located at the bottom of every OTC Journal Newsletter Edition.

Go Here to view our compensation on every company we have ever covered, or visit the following web address:  http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts. MarketByte LLC has been paid of fee of $25,000 and 500,000 post split newly issued restricted shares by NetWork Installation for coverage of the company. The aforementioned restricted shares are now eligible to be free trading due to an effective registration statement and maturing under Rule 144.

All statements and expressions are the sole opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

From time to time MarketByte LLC sells shares in the open market it receives as compensation for coverage of client companies. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, the editors do not view the sale of the shares as contradictory to any advice delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies. 

The editor, members of the editor's family, and/or entities with which they are affiliated aside from MarketBtye LLC itself, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication unless specifically disclosed in the newsletter. Some of the companies featured in the OTC Journal pay a cash ESP fee to an affiliated technology company ranging from $2,000 to $5,000 per month for internet related technology services. 

The Trustee of the MarketByte LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately $140,0000 in Dutchess Private Equities II LP (“the Dutchess Limited Partnership”), a limited partnership in which the MarketByte Pension Plan is a limited partner.  No one associated with the MarketByte Pension Plan has any knowledge, information, or control as to any past, present, or future investment activities of the Dutchess Limited Partnership.  The Dutchess Limited Partnership is one of two hedge funds managed by Dutchess Advisors.  Dutchess Advisors periodically refers companies to MarketByte LLC for possible coverage by one of the MarketByte LLC publications, which publications include The OTCJournal.com Newsletter.  Dutchess Advisors may or may not own shares in the companies that it so refers to MarketByte.  MarketByte has no information (outside of information readily accessible to the general public such as SEC filings) as to whether Dutchess Advisors owns any shares in the companies that it refers to MarketByte LLC.  The above relationships should be viewed as a potential and/or actual conflict of interest by shareholders and prospective shareholders of MarketByte LLC client companies.

The profiles, critiques, and other editorial content of the OTCjournal.com may contain statements that appear foward relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN  SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN  CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm. Disclaimer ID:$subst('Recip.userid') Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.  MarketByte LLC's mailing address is 3525 Del Mar Heights Rd #334, San Diego, CA 92130.