There’s not a lot to say about NeWave (NWWV) other than to congratulate both shareholders who hung in there and either established a position or bought more when it was cheap, and the management for executing one of the best turnarounds I have seen in twenty years.
During the nearly 2.5 years I have covered the stock, I have seen over $2 on the high end and $.19 on the low end. Ups and downs aside, the company has never been healthier.
The recent $4 million Q1 with the first announced profit was an eyeopener for the market, and the stock has been gaining ground ever since. Here’s the current chart:
The huge surge in price and volume I have circled occured when the company announced Q1 earnings. Since that time the stock retraced and has now gone on to make a new high- very bullish.
The market has now decided it wants this stock. I can’t say where it will end up, but $1 seems to me to be a reasonable longer term target if the company stays on course. Assuming it gets to $.60, that still only represents a $24 million market valuation. I can see this company trading at a $50 million market valuation quite reasonably.
Certainly, there will be some pullbacks and surges. I don’t know if it’s a short term sell right now. I would suggest hanging in there for at least Q2 numbers in early August, which could be outstanding. The stock is behaving as if someone believes they will be.
Comments and questions are welcome- I’d love to hear some success stories on this one.
60,000 shares bought at .32, SOLD !!!! at .58 thanks for the great pick. I hope she backs up again. I would like to buy another 60k shares!!
Editor: Eric- Kaching on $15 g’s. A hall of fame trade- well done. I can’t help but notice you had the courage to buy the stock at $.32 after it had come up from $.19. Of course, you know the stock will go to $1 now- but never look back.
I am curious when you think a good time to buy back in to NWWV would be with this down market. Have you bailed on BPTR completely. I am so tempted to buy more of that stinker.
Editor: No unfortunately I am still saddled with 15,760 shares of that nightmare. However, you are right- it is tempting at this price. Sooner or later they are bound to have one to two decent quarters in a row. On NWWV- that would be my #1 oversold pick right now in our little universe of microcaps. I believe Q2 numbers are going to be mind boggling, and in any decent market could take the stock to a whole new level.
One could purchase 1 share of NeWave or 2 shares of Network Installation for approximatly the same amount of capital, which would you recommend as the better investment at this time?
Editor: Tough call. NWWV has completed their turn around and is enjoying a considerable amount of success. By the way- it’s Planet Commerce now- CPNE- Network is closing in on completing their turn around, but is not as far along as Commerce Planet. If it were my money, I would go with CPNE- simply because they have paid down so much of their debt and profitability is going to continue to accelerate. Also, the stock has a fairly vibrant audience now because of their performance. I would then start looking at NWKI when it starts trading better.