Today’s edition on NWKI, entitled “NetWork Installation: Market Likes June Results” contained an error which needs to be corrected.
I inadvertently stated “Chairman Michael Novielli has pegged a $10 million annual run rate as a target by year’s end.”
As one loyal reader pointed out, Mr. Novielli is actually shooting for the $8 million annual run rate level by year’s end. He stated in my January 28, 2005 interview:
“Michael Novielli: Well as you mentioned with any growth company that’s experiencing a high growth – a high rate of growth there’s a need to invest in expanding your infrastructure in support of your sales organization. In doing so your fixed costs will typically outpace gross profit margins until you achieve a critical mass and we believe that point for us to be about 8 million in sales which would put us into the fourth quarter of this year.”
The full text of the interview is available in the SEC filings as an 8-k.
As usual, comments and questions are welcome.
Any thoughts on why the live discussion by the CEO was postponed?
Editor: He went on vacation.
Just a thought but I rather have a conference call postponed because the Quarterly results weren’t ready by that date than be told a CEO would schedule a conference call and then decide he rather go on vacation and postpone it till after he comes back. I am sure he has an idea of when he is going on vacation. Just my 2 cents…
Editor: That’s the nature of August. Conflicts occurred after the fact. It doesn’t change anything about the company.
dear ED Re. the sharks are circling comments in a recent BLOG What factors do you aply in determining if a stock is under valued. A newbe question, but your thoughts would be valued… thanks marc
Editor: A number of factors. Almost all related to the market value of the company vs corporate performance. Perahaps market cap vs sales, cash flow, earnings if they have them. Growth is also a major factor. Stocks trade the best when the market perceives the company is growing and they are in a group Wall Street favors.
Dear Editor, So what are your thoughts on the information provided during the call?
Editor: I was out of town when the call happened, and I haven’t had a chance to listen to it yet. Will be listening this week and will BLOG my thoughts.
What is going on with the stock, it keeps dropping.
Editor: It dropped in the summer sell off, but has been pretty stable of late. It will probably rebound nicely through the remainder of the year. Look for some major milestones in the Fall.
Since I was unable to listen to the October 5 shareholder call I was hoping to read a post on what was said. Did you listen and if so are you going to post some info on it.
Editor: I was not either- I had a conflict- I will find out what happened a post a BLOG- the stock is trading very poorly- could be a function of the market.
Waht’s the deal here? It had a nice jump up to about .96 and then drop, what gives?
Editor: In this case, I believe it is simple market related malaise related to both the industry group and microcaps in general. The company will be cranking out some pretty good numbers from here forward, and at some point the stock should be able to get some traction.
would you considering buying into this now that it’s around .67?
Editor: If you are a long term investor- absolutely- if you are simply looking for a a quick trade- no. It could be there, but I don’t know what the catalyst would be. It’s a question of the market- when it turns its attention back to telecom, this stock will do really well. They have several more huge acquistions in the pipeline- they could be at $100 million by mid ’06.
What now after rescinding the Spectrum deal ???
Editor: This was a big surprise to me. Bad news. Looks like they couldn’t get along. The stock will trade down some, then probably try to come back.
Seems like todays news was not what the market was looking for. I do not see any negatives on the surface, do you? Is this a buying opportunity, or time to put out the white flag? Mike
Editor: This is a negative event, but is mitigated by the fact that all the shares were retired. The market hadn’t placed much value on Spectrum yet, so the sell off shouldn’t be too bad. It is probably more of a buying opportunity, but they need to get growth back on track.
There have been what I considered 5 good news releases since Jan 9th. Yet the stock continues to slide downward. Any thought on the future of this stock. I have owned it for some time and have taken a beating. Have been hoping for a rebound
Editor: The company needs to put some initiatives in place to get the stock moving in the right direction. It falls to them. I have not put out a lot of content on the company because this stock simply does not want to trade very well, and I have simply chosen to follow some other situations that appear to be positioned to trade better. After all, I followed it for over 2.5 years. I don’t know what to tell you- if they keep moving forward the stock should come back into the market’s sweet spot at some time in the future.