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Do
You Think the World is Getting Safer, Part III? |
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I've been involved in microcaps for
over 20 years. Curious about the greatest microcap stock I have ever seen?
Many great companies don't deliver their full potential to shareholders
because they get bought out by the big boys. Here's the best I've ever
seen: Comverse Technologies (NASDAQ: CMVT). In 1987 I was a rookie
to micros. I learned about Comverse- trading at about $.30.
It was pre cell phone, internet, email, and voice mail. It was the first
time I ever heard the phrase "voice mail", and Comverse was commercializing
Israeli Military Technology developed to monitor radio transmissions. CMVT
was $.10 one year later, and after one reverse split and two forward splits,
12 years later the stock traded to $140- I did the math- about $3,000
turned into $4.3 million if you sold at the top in March of 2000.
Many great companies have developed
into stock market superstars commercializing Israeli military technology.
You are going to learn about another potential superstar Monday
after the close. A new idea. Airport security- it's huge. Billions are
being spent to screen cargo and luggage for explosives.
Also- there's video. There's a video,
and we will have it for you. It's not like the Spicy Pickle video-
it's a news video starring the CEO of the company. A local news station
thought this technology was important enough to give it some serious coverage,
and I'll have it for you. Get ready. You might love this one.
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Attention Hawk
(Nighthawk- OTC BB: NIHK) Lovers: The Bird Is Ready to Soar Again |
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It's transformational. It's big,
and there's lots of upside potential here. And- more importantly, it's
highly unlikely that anyone knows about this yet- you have the information
ahead of the rest of the market because I pay attention and try to give
you the competitive investing advantage.
I get a lot of questions about NIHK-
everyone wants to know why it's not moving again. We all watched the stock
go nuts last April, making a meteoric run from about where it is today
to $.24 in 9 trading days. I recommended taking profits when the stock
ticked north of $.16, and I hope a lot of you made a lot of money.
Then, in a very predictable manner,
everyone is looking for deja vu all over again right away. Well, guess
what folks- the nine day run was great, but the forces building up to it
took months to run their course. Like a volcano exploding, the forces under
ground started well before the event.
If you have been patient and accumulating
as I have been suggesting, you might be rewarded next week. If you are
not in, or want to be in for more, you might have a shot Monday morning,
because you are going to have information the rest of the market might
not have picked up on.
After the market closed on Friday,
NIHK
filed an 8-k with the SEC- you can find it on the EDGAR system. An 8-k
is a major reportable event. Here's what it says.
NIHK entered into a two part
transaction. The first part is a transaction wherein NIHK issued
600,000 shares of newly issued preferred stock in return for $6 million
in cash. Here's Part II- NIHK then took $4.75 million of
its $6 million, and purchased the only performing asset from miserable
failure Eagle Broadband, a publicly traded company that lost its AMEX listing
earlier this year and has struggled with a lot of bad business decision.
Here's what NIHK bought- this
set top box technology. What is it you ask? I'll tell you. This is set
top box technology that is used to provide TV programming- but it doesn't
come in over cable or satellite- it comes in over the internet, and it's
booming in the hospitality industry- they are installing these things in
hotels all over the place.
NIHK has purchased this entire
line of business from Eagle Broadband, and a quick look at the history
is eye opening. Back on April 3rd, Eagle Broadband announced a $6.4
million purchase order for these advanced IP-TV set top boxes.
NIHK
now gets to deliver on that order, which was a second one in 2007 from
the same customer. In fact, Eagle Broadband announced the same customer
ordered another 2,000 boxes in August.
Here's your upside- IPTV is
booming in the hospitality industry. I know they have installed in at Wynn,
and I am going to try to get a list of other hotel chains that are doing
the same. Hotels love it because it is cheaper and integrates the internet
with the TV. You and I have our computer separate from our TV at home,
but hotels want to be able to offer them together. Have you been in a hotel
with a key board and internet access running through the TV?- that's what
this is, and my research shows this is the only company that offers a reliable
IPTV
set top box in HiDef targeted for the massive networks in the hospitality
industry. There are lots of companies offering a set top box without HiDef,
but that's not the future. I'll be looking into a little deeper next week.
Looking for something big out of
NIHK?
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Here it is. Everything will change now for the better in my view. Revenues
will accelerate quite dramatically, and obviously there will be some big
changes in the capital structure and balance sheet.
Here's the key- the 8K was filed
post close on Friday, so it's now public information and you can act on
it. However, the company has not put out a formal press release describing
the transaction. How many investors are checking the SEC filings everyday?
Therefore, if you want to pile into
NIHK
at the open on Monday, be my guest. Could it be April all over again? Hard
to say, but if it can happen, this might just do it.
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