NWWV was out with some very promising news yesterday, and I thought it might make some sense to review current events at the company and take a look at what could happen through the remainder of the year.
The company delivered a 400% growth rate over the past two years, but since peaking in April with $1 million in revenues for the month, the growth rate has slowed and the stock took it on the chin in the Spring/Summer sell off.
The company is now 100% focused on turning the corner to profitability. They hope to accomplish this by implementing more cost effective strategies for acquiring new customers while lowering overhead at the same time.
To accomplish this task they have closed several expansion subsidiaries, and are concentrating solely on positive cash flow from their core business.
Auctionliquidators, while a viable offshoot of their business, was looking like it would take 2 years to turn profitable. It has been shut down.
In the meantime, a recent online initiative which requires no human capital investment is taking off. As disclosed in yesterday’s press release, their online initiative landed 2900 new customers in August, up from 295 in July when the program was launched. These new customers signed up with no customer service interface, thereby lowering the overhead.
NWWV has been under signficant pressure this past year. While sales growth has slowed from the first two years, the company does continue to grow and there is a major focus on reducing costs.
The nationwide infomercial roll out with Bob Eubanks is still scheduled for this Fall, and could re-invigorate the company’s growth.
In the meantime, I believe the drop in the price of the stock is more related to the Spring/Summer sell off and the market’s 2005 obsession with energy stocks.
The stock is very cheap right now, which sets it up for a big rebound in the Fall. High energy prices will cause people to seek additional sources of income, which plays right into their business model.
The stock has a lot of upside from current levels for a trade this year. Watch the stock rebound as they get back on track.
id like to buy some of the stocks you takl about. i have 126 shares of lu id like to trad for somthing..A LONG SHOT
Editor: The choice would be yours.
NWWV may be cheap, but examining the Point-and-Figure chart ( http://www.stockcharts.com) shows it may go even lower .
Editor: Certainly possible. We’ll see between now and the end of the year.
It looks like NWWV is starting to get some respect. Check out http://www.stockprofit.com to read todays profile.
Editor: Let’s hope it starts to get some traction.