NetWork Installation: Deja Vu All Over Again?

July 6, 2005
Volume VI, Issue 60
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There was a new BLOG entry this week on American Water Star (AMEX: AMW) last week.  The stock has finally reopened for trading, and somehow managed to maintain its AMEX listing. It has traded between $.25 and $.30 since reopening, which is semi miraculous as compared to where it could be. Considering the condition of the company, not a terrible haircut from when it was halted for trading about 2 1/2 months ago.

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NetWork Installation (OTC BB: NWKI) Delivers Big Contract in Summer Doldrums

We are in the heart of the summer doldrums for small stocks. It could go on for some time. I'm seeing a few stocks show some life, but on the whole the micros tend to drift down on light volume throughout the summer months as individual investors turn their attention to leisure pastimes. 

In the nearly 20 years of involvement with microcap stocks I cannot remember a raging bull market in the summer. Looking back on the first half of the year, my only regret is not publishing the April 2nd edition earlier wherein I suggested all traders sell all microcaps. If you are a long term investor you simply have to put up with depressed values in the off season.

On the plus side, those who are around and paying attention can swoop in a pick up some outstanding bargains. A little historical perspective is in order.

In 2004 most microcap stocks got clobbered in May and June. Someone let the air out of the balloon. The fear driven '04 sell off was fueled by uncertainty surrounding the Presidential Election and the possible negative consequences of war in Iraq. By mid August Chicken Little realized the sky was not falling, and the market delivered its highly predictable second half rally.

This year fear centers around sky high oil prices and rising interest rates. The '05 sell off was skewed a month or two earlier than the '04 sell off. As we are nearing the end of the cycle, it's time to start looking at some bargains.

NetWork Installation was out with news before the market opened today. The company announced the single largest contract in its history. The Poway school district in Southern California has awarded them a $1.1 million contract.

This is welcome news for shareholders who have been clobbered on this one over the past four months. 

If it's deja vu all over again for NWKI in 2005 investors should take a hard look at the chart. The 2004 high for the stock was $2.75 pegged on 4/26/04. The low occurred four months later on 8/9/04 at $.84.

This year's high was $2.165 set on 1/28/05, a couple of months earlier than the '04 high. We could be setting the low right now- four months later. 

Investors should also take note of what happened to the stock after the August low in '04. If you had the courage to buy at the low, five months later you notched a cool 157% return on your investment.

Today the company announced the largest contract in its history. However, I don't believe organic growth will be the big driver of this one. CEO Jeff Hultman has a history of clever mergers and acquisitions in his former role as CEO of Pac Tel. Sooner or later there will be some major growth driver, and it will come in a major development.

Attention K Mart shoppers- NWKI is today's special bargain. History suggests now is the time. Look for a repeat of the '04 performance. This is the time when you stand to make the most money because this is the time most people won't act because they aren't paying attention or are fearful. Fortune Favors the Bold.

Here is today's news release for your review:

Press Release Source: Network Installation Corp. 

Network Installation Awarded Record $1.1 Million IT Project; Largest in Company History

Wednesday July 6, 6:48 am ET 

IRVINE, Calif., July 6 /PRNewswire-FirstCall/ -- Network Installation Corp. (OTC Bulletin Board: NWKI - News) an IT and communications solutions provider, today announced that it was awarded a record $1.1 million five year IT project from the Poway Unified School District (PUSD). This project supplements the project awarded from PUSD announced on June 28, 2005. 

Network Installation CEO Jeffrey R. Hultman stated, "The significance of this project cannot be overstated. It is clearly a direct result of the current initiatives and sales strategy implemented by the new Network Installation team. Our competencies in the K-12 market are second to none and we now look to take our expertise and focus on projects of similar size and scope in other markets."

He added, "Our current backlog of projects remains robust and fundamentally we have never been better positioned to accelerate our growth. Approximately $6 billion will be spent this year on IT related projects by K-12 and we plan to have our fair share of that pie."

About Network Installation

Network Installation Corp. provides communications and IT solutions to the Fortune 1000, Government Agencies, Municipalities, K-12, Universities and Multiple Property Owners. These solutions include the design, installation and deployment of data, voice and video networks as well as wireless networks including Wi-Fi applications and integrated telecommunications solutions including Voice over Internet Protocol (VoIP) applications. To find out more about Network Installation Corp. (OTC Bulletin Board: NWKI - News), visit our corporate website at The Company's public financial information and filings can be viewed at

Forward-Looking Statements

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of wireless networks or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.

For further information, please contact: Michael Novielli, Chairman,

Network Installation Corp.,, ph

(845) 575-6770.

Source: Network Installation Corp.


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