To OTC Journal Members:
 

Comments in the BLOG

HDY is rebounding today after making its low yesterday. There is a new BLOG posting up for all who want my latest thoughts. HESG, our newest idea, is trading very nicely, up about 10% after one day. Those who acted early are being rewarded.

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.

The extended period of poor trading seems to be ending, and microcap stocks are behaving very well in a normally quiet time of the year. If you are holding positions which have traded poorly in the first half of '05, now is the time to get your average cost in line for a profitable sale prior to the end of the year, assuming the company is still headed in the right direction. 
 

NetWork Installation (OTC BB: NWKI): Stock Likes Quarterly Growth

NetWork Installation announced June quarterly results Monday just prior to the open, and the market clearly likes them. The stock is making another valiant rebound attempt on the results, and doing so on relatively high volume.

NWKI announced it achieved $1.1 million in revenues in the June quarter, up 56% from the same quarter in '04. At the half way point of '05, NWKI has booked as much revenue as it achieved in all of '04.

Despite the robust increase, the real upside opportunity is not in organic growth. For this company to achieve the size required to garner much more significant market interest, growth needs to come from strategic acquisitions. Chairman Michael Novielli has pegged a $10 million annual run rate as a target by year's end.

Company President Jeffrey Hultman states: "Even with the recent string of successes we've experienced, our sights are set even higher as we continue to engage in discussions with potential acquisition candidates, which we believe will lead us to achieve a critical mass sooner rather than later."

NWKI is continuing to generate losses as they grow, and I would expect the losses to continue until later this year. 

Since the stock is trading so well, I decided to include a fairly complex technical picture. You can easily see this week's volume and price surge. The blue line in the chart is the 3x3 DiNapoli Displaced Moving Average. The stock trading well above the 3x3, which is a bullish indicator. The DiNapoli MACD is trying to break into positive territory right now, which is a bullish indicator as well.

If the volume holds up, this stock is definitely headed for higher levels. It is setting up a pattern of moving up on high volume, and grinding down on low volume. This means the stock is under accumulation, and once the sellers have left the party, the stage is set for a major move.

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

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