NightHawk Finally Out With Numbers
NIHK finally came out with its long overdue 10k. I don’t quite understand why companies cannot get these things out in a timely manner. Every CEO knows- if their year end is on the calender year, that their numbers are due out by the end of March to be compliant. Then, you can get a two week extension without penalty. If you falter from there, the consequences can include losing your listing.
At the 11.9999th hour, NIHK Doug Saathoff finally delivered, and the news is bringing some life back to the stock.
I am going to have to dig into the financials to come up with some comments on how they are performing. The losses were quite severe, but you have to differentiate between operational losses, and one time cash and non cash expenses associated with the acquisition of the set top box business. Then we can get a feel for the overall health of the business.
I won’t be able to grind through it until later tomorrow, so expect a BLOG on it perhaps Friday with more useful information.
In the interim, of particular note, is the associated press release wherein CEO Saathoff forecasts $10 million in revs this year. If gross margins remain at 23%, this would imply the company will generate $2.3 million to cover costs. And, they expect to turn (dare I say it) profitable by Q4. I don’t know if Mr. Saathoff means cash flow positive or EPS, but I will endeavor to find out.
While the stock hasn’t quite traded 1 million shares yet today, it is finding some support, and looking like it could try to move higher.
More probably on Friday.
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please read the comment below and give me your opinion
thanks, Verland
Here’s the really intriguing comment from the PR:
“….the Company’s initial deliveries of custom power control units to a provider of photo traffic and electronic toll enforcement services”
This could dwarf both the utility disconnect and even the set-top box segments of the business.
Why? Because cities and municipalities are increasingly turning to traffic and toll enforcement as a normal, natural source of everyday, ongoing revenue. And that means buying the equipment with which to accomplish said enforcement. And that market is barely dented. And that’s not even getting into non-traffic surveilance applications which more and more cities are deploying. Dallas is doing it all over the downtown area.
Huge. Simply huge.
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Sell)
Editor: Yes- as i have been saying, the company is doing a good job mitigating the risk through rising sales and lowering losses. Of course, the preferred dividends are being paid in stock, so that will give the market more supply to wrestle with. However, as I have been saying, it’s like an option that doesn’t expire.
Comment by Verland — 5/15/2008 @ 7:13 pm
Tomorrow has come did you mean Wed or Thurs? The stock doesnt seem to care. I thought it would rally into the #s but I guess no one cares anymore about the HAWK anymore.
Editor: I don’t think it’s directed exclusively at NIHK- Not many investors care about micros in today’s environment. If you believe, it just requires patience.
Comment by Mike — 5/15/2008 @ 7:57 am
Ok Im READY!!!!!!!!!
When are earnings they should be blockbuster or at least move us up to .06 lol.Really i dont understand what is really going on here. The dilution has to stop sooner or later. Wont dutchess finally run out of shares at some point? Such good things going on at the corperate level that has to mean something. 8 million coming in just on set tops alone right?Someone turn that machine back on please!!!!!!
Editor: I am informed earnings will be out tomorrow, and I’ll have a review at some time.
Comment by Mike — 5/13/2008 @ 4:38 pm
I have emailed Doug a couple of times about him and his management to buy shares of nihk, of course I don’t know what their financial situation is but I thought that would give a vote of confidence to shareholders. He never responded so I am assuming he didn’t think it was a good idea. With the stock price so low I felt it would help get the pps moving up again.
Editor: Share buy backs in small companies like this one are a mega rarity. The company hasn’t been successful enough to create any real wealth for the management, so it’s unlikely Doug is financially in a position to be a big buyer of his stock. It’s a good idea, but probably unrealistic.
Comment by Rob A — 5/9/2008 @ 11:09 am
Oh yea, NIHK has tought me patients. I have been in it since last summer I bought 1/2 at $0.11 (Ouch) and half a $0.045. It has traded down to $0.48 today, I think someone is out to get me after my last comment! LOL!!!!! When are you going to post on your alt energy ideas or did I miss it. I bought Vestas Wind Systems VWSYF last year at $69(now $110). Been a nice ride. PS you still have not reccomended me a good book. Thanks! Fibonacci Rules!
Editor: I have two new ideas to introduce this year. However, it looks like both will come after the summer. In the interim, I’ll continue to provide short term trading ideas. My alternative energy idea is shaping up to be the best idea I have ever had.
Comment by Bret — 5/5/2008 @ 12:14 pm
It looks like things are starting to heat up at NIHK. Well its about time.
Editor: At the corporate level, it depends a lot on the new version of the set top box they have been working on. That will carry them through the year if it goes well. They need the final version, then they need a second big customer. The power management side for utilities continues growing slowly and surely.
Comment by Doug — 5/5/2008 @ 10:20 am
Looks like NIHK is building a wedge against the 50 day. With the markets breaking above resitance, This could be a setup for a small run if they put out a story or news. If it falls to the bottom how far down do you see it going? Back to .045 range?
Editor: Doesn’t seem like there is a lot of risk in the stock right now. I can’t say how low it could drift. I believe this is simply a lack of buyers in micros- the switch is still flipped off despite the improving performance in large cap tech. We just have to be patient.
Comment by Bret — 5/4/2008 @ 2:03 pm
I really didn’t think that was funny or called for, that’s what my Ameritrade had on the streamer.
Editor: Oh come, get a sense of humor. We have to have a little fun with this stuff, or we’ll all go crazy.
Comment by Rob A — 4/30/2008 @ 6:38 am
Any idea why the bid would be 0.04 and the ask 0.059? Unless Ameritrade has the wrong bid and ask today? Are they trying to make it harder to buy or sell NIHK?
Editor: Yes, they are trying to make it harder just for you. It’s a conspiracy against you personally. My computer shows a bid of $.049- so no doubt, it is just directed at you.
Comment by Rob A — 4/28/2008 @ 8:49 am
This was the first news release since Doug started doing it that he did not send out a letter with his comments to go along with it. I found that rather odd. The only other time I can remember him doing that was when there was another press release shortly after. Think we could be seeing a big deal, or any for that matter, soon?
Editor: I got his associated letter. You might check your spam filter.
Comment by ed — 4/24/2008 @ 5:10 am
Dear Larry,
What gives with NIHK? 1.3 mil shares traded yesterday, stock up 12%, now we’re down 14% on low volume. Thought the news was very promising and I’m in for the long haul. Any advice with this one?
Editor: I’ll have some coverage on it over the weekend.
Comment by Mark — 4/17/2008 @ 8:10 am