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A
Reminder- The Priceless Half Hour |
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It's a light bulb moment. By the
way, it's a little hypocritical of me to put up an image of an incandescent
light bulb to use as a metaphor for a new and exciting idea. For those
of you who have been following my ideas, you know I am a strong advocate
of Cree (NASDAQ: CREE). The incandescent light bulb is just "dead
technology walking", and Cree is a great way to participate in the
coming adoption of LED lighting. I gave you the stock last month at $24.50-
trading north of $29 today. Going to $50 in my view in
2008.
But- I digress. Back to the main
subject: the one half hour I am asking you to invest. Sometime on Saturday
I will offer a new idea, and I am asking you to budget one half hour of
your valuable time - 15 minutes to watch a video, and 15 minutes to read
my presentation on the company. You will be personally introduced to the
management and their operations. You will have a great look at the company.
I go into details about the numbers in the presentation. Read and decide
for yourself- this might be one of the best ideas I have ever delivered.
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It's Go Time |
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It's our time of year. The summer
doldrums are over. Bernanke has bonds going the right way thanks to a very
accommodating FED (1/2 point rate cut). Liquidity is coming back into the
markets. Micros should start trading better now.
Recently, one subscriber sent me
an email- he wants to know why the micros haven't started trading better
now that we have made the corner to September? Sir: they don't all just
start rocketing up the charts at once. Three notables jump off my quote
screen- how about PhotoChannel Networks (OTC BB: PNWIF)? It was
$2.60 at the end of August- $3.20 today- that's a 23% move. How about Titan
Global (OTC BB: TTGL)?- it was $1.40 in mid August, has since
seen a high of $2.20, and is now hanging in there at around $2.
Even beleaguered and mismanaged CPNE is starting to show some signs of
life- perhaps the stock has simply run out of sellers.
Others will begin a rebound phase
now. Two that haven't started to behave better are featured below.
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NightHawk
(OTC BB: NIHK): The Good News Is Between the Lines |
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NIHK was out with some pretty
good news today, and the stock is starting to trade some better volume
on the event. However, there isn't much price movement yet, but I don't
think most people grasp the significance of what's happening here.
There's a big picture comment I want
to make on NIHK. In the spring investors watched NIHK make
a huge move from about $.09 to $.24 in pretty short order. The stock comes
back down, and everyone's looking for the whole thing to happen again in
short order. The move happened in a few weeks, but the forces that built
up to cause the breakout happened over many months.
If you think the stock is going to
repeat this performance immediately, you could be in for a disappointment.
Look at the big picture. The last two major breakouts in the stock both
happened in calendar Q1. Also, a look at the big picture shows the over
the longer term, the highs are getting higher and the lows are getting
higher. A strong trend.
Today, NIHK announced repeat
orders from the town of Smyrna, Delaware. Another nice purchase order is
fine, but here's what the market is missing: "Smyrna is using a pre-production
version of Nighthawk's Utility WebConnect(TM) software platform to manage
and control their devices. Nighthawk expects to begin marketing and selling
Utility WebConnect(TM) during the fourth quarter of 2007."
The future of NIHK is very
much tied to the adoption of their new technology- the Utility WebConnect.
This new product provides utilities with a unique, web based tools platform
to manage their remote disconnect units.
An operator can now manage the whole
network of remote disconnects on a point and click basis. Here's the beauty
for NIHK- this is a subscription based service. This is a "recurring
revenue" model. As more devices are installed, more utilities should adopt
the management tools, and NIHK starts generating recurring monthly
subscription revenues. I love it.
Look for Utility WebConnect
adoption to be the catalyst for the next NIHK surge. I don't know
when it's coming, but I suspect it is.
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eFoodSafety
(OTC BB: EFSF): Cinnergen Finally Getting Traction |
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It's been a while since we've had
some very positive news out of EFSF, but today's news has to start
getting this thing moving back in the right direction. The fundamentals,
not the potential, are improving.
Consider the following- in the six
months prior to the quarterly release, EFSF booked about $250k in
Cinnergen sales. This past quarter, the company delivered $322,000 in
Cinnergen sales. Despite the slower than hoped for roll out, the quarter
over quarter gains are very impressive.
Moreover- did you look at the release?
EFSF
only lost $19,000 over the three months. That's a very strong number. It
suggests that at about $400k per quarter in Cinnergen sales, they
actually start making money. That's a lean and mean company.
I'm not sure why investors seem to
be losing patience with the stock. So, it wasn't hot over the summer. The
weather was. However, now that Cinnergen is starting to get traction,
the Pureffect infomercial is in production, and Oraphyte
is out for further evaluation at the University level, it seem all systems
and potential is a go for the remainder of this year.
The company is making more progress
than the stock right now. The recent retest to a new low failed- the lows
are starting to get higher. Now, I'd like to see a move above $.35
on the technical side to get back on a very strong track. I believe the
stock is Go Time right now.
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