I haven’t published an update on NCNC since the initial presentation back on June 13th. The company hasn’t been in a position to announce some of the events that are happening behind the scenes.
However, I did have a chance to speak with CEO David Duquette today at length, and based on our conversation I believe this is one stock that could really take off later this year.
If you check back and read the original presentation, you will note one of their key growth drivers is the newly developing demand for wind turbines. Duquette reports the demand for machines to manufacture the components for wind turbines is skyrocketing. He has proposals going out nearly every day, and expects to have a number of new announceable contracts throughout the month of August. GE could be producing as many as 50 new wind turbines weekly by year’s end.
On the Boeing Dreamliner front, their joint venture is set up, and they will be setting up a machine to work on the 12 ft engine rings in very short order. Order flow is expected to start in August, and gain momentum for the forseeable future.
Q2 numbers are due out by Mid August, and I am expecting another quarter of growth in both top and bottom line.
NCNC does have one big challenge- they are having difficulty with the truck lines getting parts in and shipments out. They are also having challenges with suppliers- getting components they need which are backordered.
We agreed it was kind of a high class problem to have. He’s just got too much business, and the market will catch on sooner or later.
Here’s the current chart:
The stock has come down $.20 since the high of $.80 it made just after I started covering the company.
The chart you are looking at is a pretty typical summer trading pattern. The stock is drifting down on very light volume. It could trade all the way down to $.50 in my view before it becomes a screaming buy.
The company is in the proverbial eye of the hurricane right now. High winds are swirling all around, but there is a calm period before massive new order flow hits. Look for continued significant growth on both the top and bottom lines.
Comments and questions are welcome.