To OTC Journal Members:
 

The Internet Is A Mess

The Internet is a mess these days. It's like LA's famous 405 freeway. Some of the recent viruses are grid locking networks, wreaking havoc with ISPs and desktops. I believe it is likely many of you may be experiencing some interruption in the flow of the OTC Journal. It may be arriving in your inbox very late, or not arriving at all.

At the bottom of the left hand menu bar of our home page (otcjournal.com) is a button labeled "Newsletters in Chronological Order". You can go to this web page anytime you want, and check to see if there is an edition you might have missed or wish to review. Click Here to be taken directly to that page and save it in your favorites. Alternatively for you copy and paste folks, here is the URL: http://www.otcjournal.com/archives.php?chrono=1.
 

Important Announcement: The Best and Most Risk Free Investment You Can Possibly Make

The staff at the OTC Journal has a bunch of new and fun stuff planned for 2004. To kick it off, next Tuesday, February 10th at 12:00 Eastern, 9:00 Pacific, we are cosponsoring an Emerging Growth Microcap Forum which will be broadcast on the internet. Our friends at Trilogy Capital are cosponsoring the event with us.

One of our primary goals for 2004 is to find new and exciting ways to get our members closer and more intimate with the management teams of the companies we feature. This web cast will give you the opportunity to view a presentation from Hyperdynamics (HYPD), NuTech Digital (NTDL), Spectrum Sciences (SPSC), and The Project Group (PJTG). You can get an intimate glimpse of what they are all about, and formulate your own opinion. The webcast will run about 45 minutes, and you only have to invest your time. You might find any or all of these presentations valuable. It could end up being the best investment you have ever made.

Simply Click Here, and log on to attend. You can go back to the URL when the broadcast begins, or view the archived version at your leisure. Here is the URL for you copy and past folks: http://www.informedinvestors.com/iif_forums/forum.cfm?forumID=345

I'll publish a link to the archived version next week and a reminder to view it. Education is always a good investment, especially when it is free.
 

Is There Any Upside Left In This Market?

Most people read the morning paper. Not me. Every morning I read techno mumble jumble from three different "expert" market technicians. Technical analysis is supposed to be a science. It never ceases to amaze me that three different "scientists" can look at the same charts, and come to three different conclusions. Predicting the future will never be a science.

My favorite newsletter published a statistic on Friday morning which got me excited about the market. I had to share it with you, because knowing this should allay any concerns you have about whether there is any upside left. 

We're nearing the end of earnings season, and the results are in. The most current forward 52-Week Operating Earnings consensus estimate for the S&P 500 rose by a whopping $0.80 this past week to $63.25 (according to data from Standard & Poors). This takes the forward 52 Week EPS estimate to a  NEW ALL-TIME HIGH. The estimate for 2004 stands at $62.66 per share.  Hence the result of balance sheet write downs during the bear market, cost cutting, and a little top line growth.

I've put up a chart of the S&P going back to the 2000 bubble so you can see how high the market went when earnings were considerably lower. I have no idea if it's going on to a new all time high, but if it does large cap stocks will not be nearly as "overvalued".

For you Bears who are hanging your hats on the weak employment figures, to paraphrase Tony Soprano- Forget About It. Stocks go up when companies grow and become more prosperous. Companies don't necessarily have to hire more more people to achieve that goal.

Technology is about reducing human effort and enhancing productivity. On a typical morning I can order supplies on the internet, read three newsletters, and deploy the OTC Journal to 1.8 million members before noon from the comfort of my office. Ten years ago everything would have taken much longer, perhaps days. We would have printed up the OTC Journal and mailed it to a few thousand people. By the time you got it, you would have been reading old news.

Job growth won't be back as soon as some would like. It's not a slow economy, it's a different economy, driven more by labor saving technology than manufacturing job growth.

The market tried to give us a long overdue correction this week, but the news is just too good. I would love to see the market pull back at least 10%, as many stocks did. This speeding train is not stopping at stations for too long. You should have a first class seat. If you don't, it's not too late. 
 

Network Installation (OTC BB: NWIS) - Continues Working Higher As New Business Keeps Coming In

My stress free idea in the Wi-Fi sector continues working slightly higher as the company announces more new business wins. I call this my "stress free" idea, because the stock never seems to correct down, nor run up out of control. 

After trading sideways throughout the Holidays, NWIS has once again started to climb higher, recently attaining the $3.80 mark for the first time since last August.

Since last reporting on the company, NWIS has delivered three new contracts. One with insurance behemoth Trammell Crow (Travellers Insurance), one with CMED, and one with Builders Showcase. All three new contracts are for wireless installations. Wi-Fi infrastructure is expected to grow 10 fold over the next three years, and NWIS seems to be getting its fair share of new business.

If you're keeping count, this is the 18th new contract NetWork Installation has announced since last September.

On Friday, just after the market closed, NetWork Installation announced it had entered into an agreement to become a Premier Reseller of San Jose based Aruba Wireless Networks products and services.

Aruba claims to have the best solution for Wi-Fi security, which is a huge issue for any company or government agency considering deploying a wireless network. 

This new product line pretty much completes the suite of product offerings for NetWork. The company has few competitive peers on the product side.

As a few of you have pointed out, the stock trades fairly light volume. I expect that will change in the coming months as the company attains more visibility. I heard the same observations on Cam Commerce (NASDAQ: CADA) at $4.30 last year. No one mentioned it when the stock hit $10 a week ago. In my opinion, accumulate NWIS for a move to $6 to $8 later this year.

Here is the complete text of the news release for your review:
 

Click 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 250,000 newly issued restricted shares by NetWork Installation for coverage of the company.

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.

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