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Those of you who follow the situation know ZAPZ took another turn for the worse today as the potential relationship with Mercedes Benz is officially dead. I posted a BLOG entry on the event late in the day with my thoughts on the stock.  Please feel free to keep the comments and questions coming on ZAPZ. Another BLOG will be coming tomorrow on AMW which has finally filed its 10K and should reopen for trading on the AMEX in the near future. 

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.
 

NetWork Installation (OTC BB: NWKI) Inks Largest VOiP Contract To Date

NWKI was out with news after the close last night. The company announced it inked the largest VOiP contract in its history to date, and this news could bring this oversold issue back up to reasonable levels. 

If the company is going to achieve the $10 million in sales hoped and planned for in 2005, it will have to deliver a few more contacts of this magnitude, but the core of the growth is more likely to come from acquisitions. New CEO Jeff Hultman has a couple of candidates in the cross hairs. There are no guarantees, but Hultman has engineered some major mergers at much larger telecom companies, and should be able to follow suit in this case.

Despite being off the Wall Street radar screen at the current time, VOiP is still growing at a startling rate. Here are some eye opening statistics:

• 12.1 million households are expected to adopt VOiP by 2009.
• 17% of households with broadband, or 10% of all US households will adopt VOiP
• 10% of all US businesses and organizations are expected to install VOiP by the end of 2005
• 45% of all US businesses and organizations are expected to install VOiP by the end of 2007- this represents a potential market for millions of installations. (Stats provided by Jupiter Research)
• $11.4 billion is the estimated market size in 2006.

I am only looking at long term charts these days. In the April 2nd edition I suggested anyone who wasn't long term sell all their positions and get out. Therefore, if you are still in you should have a long term outlook. If you are thinking of bottom fishing, a long term outlook is prudent as well.

The chart of NWKI is revealing. Note the severe drop in the stock price in the first half of '04. The low for the year was made in mid August in a climatic sell off, and the stock then moved from a low of $.85 to a high of $2.15 by February of '05 for a 152% gain.

This year the sell off has been skewed forward into February, March, and April, instead of May to July. If history repeats itself, we might see the stock at the bottom now, and a rebound phase could begin soon.

Today's order for $350,000 equates to half as much as the company achieved in Q1 of '05. NWKI is delivering the growth. The system was sold to NeWave, another OTC Journal following. This news bodes well for NWWV as well. The need to a $350,000 VOiP system is demonstrative of the explosive growth rate at NWWV. Aside from the OTC Journal, the two companies have a common funding source, which is no doubt how they got together.

They say the best indicator of future performance in past performance. If that is the case, NWKI may be nearing the bottom and ready to turn up. 

Here is the complete text of today's release for your review:
 

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