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I posted a couple of new BLOGs earlier this week. There are some comments on eFoodSafety's recent news concerning its study on PureEffect. In addition, there are some comments on Titan Global's (OTC BB: TTGL) recent quarterly numbers release, which wasn't as good as the headline.

The BLOG is your opportunity to ask questions and offer comments. I will make an effort to answer every legitimate question. If I don't know the answer, I will contact the management and get the answer. Alternatively, if you have questions you don't want publicly displayed, you can always email me directly at editor@otcjournal.com.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG scrolls down from the upper right hand corner. The most current journal entries appear on the right hand side of you screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels in volatile markets.
 

NightHawk (OTC BB: NIHK) Soaring on the Wings of SkyTel

There are some things you should be catching on to by now. For starters, the OTC Journal tips the odds in your favor. I don't know which companies are going to be successful, and which stocks are going to trade great. However, I can tip the odds your way with information and sensible trading strategies. When you have 19 and the dealer has a 5 showing, its likely you will win the hand. However, no matter how much you know, it can go the other way.

Take NIHK today for example. The stock is trading at its highest level of the summer- it hasn't approached the $.13 level since the 1st of June. When the stock ran up to $.15 to $.24 back in April I suggested taking some money off the table. I took advantage of the price. 

Lately, I have been suggesting accumulating the stock when it is trading quietly and no one wanted it- I was emphatic at $.10, and was equally emphatic at $.09. It was the feature of my "Summer Ends Early For Micros" edition this past weekend, and the one-two punch of the last two news releases has investors excited again.

Here's what I know- I know NIHK is growing very nicely. Revenues are increasing along with reorders from utilites. The June quarter will be there highest top line number in four years. I know the company has several very large potential orders out there, any one of which could completely change the company for the better.

I also know they are working on new technology that could create a recurring revenue model. In their model, they would manage their installed devices through a web interface on behalf of utilities who have installations. They would charge a nominal monthly fee for management. The more installations, the larger the fee. It is possible every device installed could become a mini "annuity" for the company. 

So, let's look at today's news, and try to figure out what it could mean to NIHK's future. Today, just before the market opened, NIHK annouced it had entered into an arrangement with SkyTel (a division of Bell Industries (AMEX: BI)) to bundle their services into Telemetry solutions for Fortune 1000 companies.

Sounds exciting, right? But, what's Telemetry? Telemetry has to do with the transmission of data, and measurement thereof, from and to remote sources. 

Here's another Buzz acronym for you coming out of Telemetry: M2M- M2M stands for Machine to Machine, and the wireless connection of the two. Right now, NIHK has technology which allows devices to be turned on and off remotely through paging technology. 

This joint product offering with SkyTel should allow NIHK to expand its application beyond the simple turning on and off remotely M2M. This should allow NIHK to use its technology for other applications. 

Here's a statistic for you to consider: “Machine-to-machine communications could grow by 49% per year until 2010, with revenues surpassing $270 billion and more than 100 billion objects communicating wirelessly.” (IDATE)

So, today we have a nice power surge in the stock as a result of this news. This chart was done about an hour before the close, and you can see the beautiful break out in both price and volume. If you were patient enough to buy it in the last two weeks in the $.09 to $.10 range, you could take a very nice short term profit today. It depends strictly on your personal preferences.

However, if you are considering buying and want my viewpoint, I believe you already know what I am going to say. If you are a smart OTC Journal microcap investor, what do you do when your favorite stocks are cheap, quiet, and no one wants them? That's when we buy. And what do we do when our favorite micro enjoys a big, spiky rise in price on high volume? We lighten up if anything, so we are ready with liquidity for another round of quiet, listless trading.

If you don't own this one and want to, a good strategy might be to take a partial position now, keeping your powder dry for a pullback. The reason to act now? Suppose they announce a sale of a multiapplication device to a Fortune 1000 company next week, and the stock runs to $.20? You will wish you were in. It might pull back to $.10 again, but that's not too bad from $.12.

All in all, NIHK is setting up for another great year. At some point this stock is going to make another rocket like move as it has the last two years. Until it does, you can "trade around" a core position. This is where you do partial sells on good days and partial buys on cheap quiet days while maintaining a core position, or simply hold it for the longer term. In either case, all signs point to improvement for NIHK and its shareholders.

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

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