NeWave is what I would call a “sleeper” stock. It appears to be in a sleep state now, but some day it will wake up and then- watch out.
Corporate performance wise, this is the hottest little ecommerce company I know of. Last year at this time they delivered $1.2 million in revs in Q1- this year it was nearly $4 million in Q1- up 230%. More importantly, the moved from a $1.2 million loss to a $200k profit and were able to pay off nearly $1 million in debt in the quarter alone.
40,000 people signed up for their service in April, and the story just keeps getting better. This is exactly where I expected them to be one year ago, which would have saved us all a lot of brain damage.
The stock has been responding well to numbers releases, but it hasn’t been quite enough for a real breakout yet.
If they continue on their current course,otc chart, stock proi which I expect them to do, we can look for further increases in both revs and earnings in future quarters. Perhaps not 400%, but certainly successive quarters will show improvement. They are currently rolling out a Latino version of their service- a hot demographic target market.
Here’s a weekly chart going back to last year’s crash in the stock price:
It’s been a very slow but sure improvement since the December bottom in the stock. I don’t believe the stock price has nearly reflected the corporate achievement yet, but last summer when it was trading in the $1.50 range, the stock price did not reflect the difficulty the company was having at that time either.
I believe the stock has the potential to bounce to the 31.8% and 61.8% extension levels. Those are $.80 and $1.20 respectively. Over sold and underfollowed, but delivering big at the corporate level.
If the company continues on its current fundamental tear, higher prices are inevitable. I just don’t know what the summer will bring as far as market conditions, and I certainly don’t know when ecommerce stocks will get hot again. That will be up to the whims of Wall Street.
Against the backdrop of what looks like tough sledding ahead in the summer months, this is one I really believe should be held for the long term from here forward. As long as the company continues to deliver, this one will have its day sooner or later.
Comments and questions are welcome.
Hi, of the 3 websites listed in this companys PR’s, only one website gets much traffic and thats onlinesupplier.com. buydiscount.com” and “mysoftwaretutor.com do not seem to recieve much traffic at all. I guess the online auction business is pretty good.
Editor: There have been a number of changes that have this company just smoking this year. The main one- customer retention- they have improved their education technology considerably, and people are staying with the service two to three times longer than they used to. The next step- to get hundreds of thousands of them to actually make some money. It is possible if they work the system. The numbers don’t lie- this company is kicking butt.
to follow up my comments…it appears this companys main source of income is from the site:http://www.onlinesupplier.com... as the other two websites listedto not get much traffic at all…this can be checked at: alexa.com My concern is there whole business seems to be just signing people up to a 14 day trial membership to sell items through ebay. Does not seem to me like they would be able to retain may of these members over long periods of time. I guess it just does not seem like much of a business to me. Thanks Dan
Editor: As I stated in the last comment- customer retention is going through the roof. People can actually get some sales on the internet if they work the system. The vast majority do drop off, but the numbers are seriously huge. The June numbers should be outstanding.