Let’s see- NIHK recently announced its highest revenue quarter in four years. Then it announced the single largest order in its history. Then, it announced it would be shipping the hi-def hospitality industry set top boxes in December, which means the December quarter will also be the a new record high top line.
Sounds like NIHK is really getting its act together on the fundamental side. CEO Doug Saathoff is talking about a new day for NIHK in 2008 as the company finally plows through the excess supplies of stock, generated by 4 years of losses as they have been building the company.
Where’s the turning point? When does the company stop creating excess supplies of stock? When does the stock break out, and generate the big run NIHK fans have come to expect on an annual basis?
They say timing is everything. The timing on the last serious of events out of NIHK has been bad from a market point of view- we had a great run in equities Sept through mid Nov, been since then investors have been very reluctant to reach into their pockets and start bidding for oversold stocks. The “headline” shock is pervasive everyday.
For those who are becoming impatient with the stock and are wondering why it didn’t trade better on a 2 million share day- I suggest you look at the past patterns in previous runs- the volume simply needs to be higher. Here’s the chart:
Look at the huge spike from last March- note- it was accompanied by many days where the stock traded 9 million shares plus.
We need a more microcap friendly market tone for a repeat of this performance. Everyone has their hands in the pockets, afraid to jump in right now.
If you sell the stock right now it’s more of an overall market call than a call on the company. The company is doing great.
If you have the intestinal fortitude to wait it out for another month, past the tax selling and the daily sub prime shock which is winding its way down, you are in for better days in my view.
In this market, we won’t get the big run. Most of the damage is done, and the next market is coming.
Comments and questions are welcome.