To OTC Journal Members:
 

A Reminder- The Priceless Half Hour

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.
 
 

It's Go Time

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.
 

NightHawk (OTC BB: NIHK): The Good News Is Between the Lines

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.
 

eFoodSafety (OTC BB: EFSF): Cinnergen Finally Getting Traction

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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