To OTC Journal Members:
 

Do You Think the World is Getting Safer, Part III?

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.
 

Attention Hawk (Nighthawk- OTC BB: NIHK) Lovers: The Bird Is Ready to Soar Again

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? - 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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