Ever heard the buzz phrase “Horizontal Market”. Wonder what it means? It references a company who sells its products and/or services to another industry group outside it’s primary target.
In the case of NIHK, the primary market for their remote disconnect technology is Utilities- their technology allows utilities to switch services on and off wirelessly and remotely, now using an internet interface.
They have made some moves into horizontal markets in the past, and each time the stock traded very well. For example- the stock traded up when they announced DaimlerChrysler would install their remote disconnect technology in the fan systems in one of their huge factories.
Another instance was the remote disconnect technology installed on the back up generators on Verizon’s cell towers in New Jersey. Let’s hope that contract expands in a big way.
This past Tuesday morning, NIHK announced another move into a horizontal market. It seems American Traffic Solutions likes NIHK’s remote disconnect products for photo traffic enforcement- they can switch it off and on from a remote location using an internet interface. They ordered systems and are installing them.
Still small- yes. Growing- no doubt- New Markets developing- definitely. Here’s the chart:
As you can see from the trend line, the stock is trying to reassert itself and climb back up towards the $.10 mark, and then hopefully higher.
As all of you know who have been following this one, when the volume comes in, it really comes in.
More news like Tuesday morning’s just might have us cruising back in the right direction.
Comments and questions are welcome.
With recurring revenues each month on the horizon and bigger and new orders coming in is there any chance nihk can come out of debt by end of 09, maybe 08?
Editor: It’s not so much debt- it’s equity financings I’d like to see stop. The stock would trade better that way. Hopefully, it will happen in ’08.
I don’t want to get my hopes up. But last friday looked good for the pps of NIHK. Maybe this is finally the start of a nice run……
Editor: it’s a little overdue.
Well I thought it was going to run. It almost makes me believe that the market makers make it look like it’s going to run. Then it goes down again. It really looked like to me it was going over 0.10 today. But it just fizzled again. I guess it is a patience thing like you stated in one of your posts. I hope the micros catch up to the market. The market is over 14 k today and the micros are just treading or sinking water. jmo
Editor: Really? what’s wrong with PNWIF and SPKL- it’s just your micro that is quiet now. There are plenty of others starting to behave much better. I expect this one will also.
I am beginning to believe that this market is mostly geared for companies that have earnings. I know you stated that spkl and pnwif are doing good. But that’s few and far between in my opinion. What’s your opinion?
Editor: and TTGL- they have earnings. There could be a correlation. Certainly, if you invest in company’s that make money, you have less risk. However, look at CPNE- they are making money, and that stock has been a dog.
Well I guess I will have to go back to what I thought about NIHK. I really think it will test the 0.065 price rangebefore it starts to head back up. Because technically it looks terrible. JMO
Editor: Perhaps that will be the case.
Ok maybe 0.065 isn’t the true bottom. That probably is a low estimate. But I think the bottom is very near. I agree with on of your statements you made that this is a seasonal stock. I can imagine we are very close to going higher. JMO
Editor: That would be nice. In the meantime, the company’s sales are growing, and that’s the main issue.
Should I sell and just take a loss on NIHK or do you think this stock will make a turn around soon?Bought at .10 per your advise.
Editor: Not all stocks go up at the same time. NIHK is quiet now, so everyone thinks they need to dump it and go into whatever is hot. Of course, after you switch, NIHK will go up, and whatever you trade it for will get quiet. That’s the unwritten rule of investing. I guess you have to decide if you are a trader or an investor. If you are a trader, it might be the right way to go. If you are an investor, just accept the fact that NIHK is quiet right now and wait it out. It’s not like the stock is falling apart.
I am an investor on this stock so I ask you should I load the truck down here at.08?
Editor: The 8 ball says yes. Could be ready to turn back up.
I know I have gone back and forth on where this stock will bottom out before it goes back up.The way it’s going it could hit the 0.065 mark that I posted before. It’s not that far away. I guess we have to stay tuned on this one.
Editor: Decide for yourself how much risk you want to take.
Looks like nighthawk got Cramered in mad money lightning round. I have developed nerves of steel for this one…I am now an investor.
Editor: There’s a NASDAQ company named Nighthawk- not the same as the penny stock. Could be some confusion, but I a looking for NIHK to start behaving better soon.
It’s not us, Cramer has spoken about Nighthawk Radiology Services many, many times on his show. He doesn’t cover OTC or Pinks.
Editor: agreed
I have the Ameritarde streamer. It reads 0.11 for the asking price for nihk? I thought it was a mistake. So I put in a buy order and sure enough it was 0.11? I didn’t actually buy it I just wanted to see if it really was true. Any idea what gives?
Editor: No idea about pricing when the market is closed. Could be a good day on Monday.
Maybe the news today with Eagle Broadband will finally make this go up and stay up.
Editor: We’ll see.
Just wonder, you mentioned 0.13 as suggested target, what’s your suggested target now, taking into account the deal with Eagle Broadband ?
Editor: I haven’t had a chance to evaluate that question yet, and it’s a good one. I have to get a picture of the whole capital structure before I can give you a good answer. On the technical side- supply/demand- I believe it will work higher.
Perhaps this acquisition is what is needed to add to the already great success at NIHK!
I am bullish and adding more to my portfolio!
Editor: Probably a good move. Perhaps we are close to another run.
I was a day too late to get repurchase into NIHK. Do you see a pull back to the $0.09 or maybe $0.08? If so, is it healthy for the stock to do so?
Editor: Perhaps. Tough to say. Depends on news flow.
This is a Quote off of Bloomberg.com “ATLANTA, Oct. 15, 2007 (PRIME NEWSWIRE) — Market Pulse is pleased to announce the following stock picks. Bernard Schmitt of Market Pulse states, “These particular stocks should be closely watched due to existing fundamental and technical factors affecting each company.” Bernard possesses many years of experience in the financial industry evaluating and picking stocks. He rates them as follows:
Baidu.com Inc. (Nasdaq:BIDU): Market Outperform
Nighthawk Systems Inc. (OTCBB:NIHK): Attractive
Intel Corp. (Nasdaq:INTC): Bearish
Oracle Corp. (Nasdaq:ORCL): Attractive”
Editor: I think girls are attractive- I like to buy and sell stocks. Nice to see NIHK is a good looking girl.
are you going to post a new NIHK blog soon to analyze this deal and what it may mean short/long term? We need to generate some new chatter on where we are going now.
Editor: I need to have a better understanding of the capital structure now- but will do so down the road. Right now, I just have so much going on it’s tough to get to.
I would say it might be a good idea to write a blog on the new business they are in. Just a thought.
Editor: I wrote a whole edition on it. Not sure what more you want.
There’s a gap between Friday’s close of .08 and Monday’s open of .089. Do you think a pullback could fill that gap or is it gone based on this weeks news?
Editor: Anything’s possible. I can tell you the company has plenty to announce in terms of new business, and it is our time of the year. 50/50 at best.
at 2000 boxes a month, it will take 20 years to outfit all 500,000 rooms for this hotel customer. IPTV won’t exist in 20 years
Do you expect an accelerated rate of order or have most of these rooms been installed prior to the nihk purchase from eagle?
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. Yes, I do expect it to accelerate, and with other customers beyond the one distributor. I was recently travelling, and its amazing how badly they need a hi-def signal in hotel rooms. They are all getting hi-def tvs, but no one offers a hi-def signal. That will be the next step.
If this news today about 3rd quarter guidance doesn’t propel this stock to a higher pps. I’m not sure what else could?
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. The stock is really trying. We could be close. A couple of news releases away on any front.
Curious to know what you imagine is in store for the company long term, say 5-10 years.
What are the odds that this company won’t be around? I know most otc bb companies have much shorter lifespans than their major exchange cousins.
Or if not, what kind of market cap would you expect in 5-10 years? Could this be an acquisition target down the line?
Basically I am a long term investor, not too concerned with the day to day movements, I just hope that in 5 to 10 years they will have been able to keep up expansion while staying afloat, and am curious as to your opinion where this company could be in that time frame, if they continue their current businesses.
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. In 5 to 10 years I suspect there will be a time frame when this company does extremely well. There are many BB companies that have major breakthroughs. You don’t hear about them, because they typically get bought out long before their stocks could go up to create breathtaking results. Many do go down the toilet. In the case of NIHK, numbers have been improving steadily over the years, and their new line of business is very promising. As you know, it is very risky. After all, it’s a $.10 stock. However, this one seems to be heading in the right direction.
If the revenues guidance is all we have, then your prediction that the stock will head towards .25 is very mistaken. Will there be anything else?
Editor: Do you think the company might be in a position to announce additional product sales?- remember, the guidance only covered a quarter that has already ended.
Do you have any insight into why nihk doesn’t recognize the purchase of eagb assets and the new product offering on their website? (No one’s too busy to at least put a link to a press release). Does their management think this whole “internet thing” is just a fad and they can’t be bothered with it? You need to put them through a PR boot camp and whip them into shape!
Editor: Doug Saathoff has a list of interested parties to whom he writes a note with every press release, which is a great way of reaching out to investors. You can sign up for it on the web site. However, they should have content on the set top box on their web site- that is problematic. I would guess they are working on it.
As it seems to be very difficult to get a reliable view on the fundamental economics of NIHK, just let’s look at the ‘technical’ side of the chart. That is, a technical correction into somewhat a 0.95 is on its way. From there on, it might go two ways, up or down, depending on the news release from the company. 0.95 however seems actually a non-avoidable must. My question, how are the odd’s from there, up again, or very much down onto another not covered pull back in the 0.48 region ?
Editor: Any pullback into the range would probably come in the heart of next summer’s doldrums. I believe it is highly unlikely, but you never know for sure. More likely up in my view, but a pullback to .95 would be perfectly normal.
I emailed Doug about Eagle Broadband news not being on his website. He had a software glitch. It on the website now. That’s why I feel comfortable with this company. Right there tells you things get done!
Editor: They do care about shareholder communications, and Doug is pretty excited about where he is right now.
What is a good entry point at this point in the game?
Editor: Without looking at the chart, I would guess around $.09. I’ll have a look at some point.
I got in at $0.10. Should I continue to wait with my money to buy in at a lesser price?
Editor: I don’t know. Could be trading great next week, could pull back a little. It kind of depends on your time horizon. If you are willing to hang in for 6 months or longer, it really doesn’t matter. If you are looking for a trade, you have to really buy right. You want to wait for an irrational pullback to buy.
I am in for the long-term. I was able to pick up some shares at $0.095. Thanks for my sanity! I often beat myself up over pennies.
Editor: Decide if you like the company and want to be in there for the longer term. If so, don’t worry so much about these short term swings.
I emailed Doug about American Messaging’s role with NIHK. I haven’t seen anything from them as far as orders go. Unless I am missing something. I was under the assumption they would generate more sales from them.
Editor: I believe a number of the new sales are related to American Messaging on the utility side. Not sure. Good question.
I think the current low pps is kind of misleading. The Chaikin Money Flow and the money flow index look really great. That indicates that this is being accumulated. JMO
Editor: I have never followed those indicators, but I like what you say. Sounds interesting, and I agree- there is not too much distribution going on now.
When will NIHK report their 10-QSB this month? Is this a good time to start buying before the quarterly report?
Editor: Should be out any day now. Probably a good idea.
WTF! you should post a Blog on NIHK- No Love From the Market!
Editor: not for the moment. Will post on blog on the quarterly numbers.
If Eagle broadband goes out of business before the 1 year maturity of the stock given out by Nighthawk for the IPTV what happens? just curious
Editor: I’m not sure how that could effect NIHK. They bought the business from Eagle for cash- there was no stock transaction- I don’t believe what happens to Eagle effects NIHK in any way.
What are good entry points?
Editor: Still looks like $.08 is a pretty low risk entry point on NIHK. It’s still a very risky stock, but not as risky as at $.10.
This was looking real good technically just recently. But know it’s looking very weak. I am beginning to believe that ta indicators don’t mean anything anymore. I thought this would get a lift when the earnings came out. This is a puzzling stock for sure.
Editor: I don’t know- the market is absolutely getting its brains blown out right now. Looks to me like a buyers strike in this one, and a few small sellers. Not a big deal in my view.
With NIHK repeatedly hitting your SSL it seems like its either 1) time to accumulate or 2) consider an exit. We could use any news toward an upside on this, but this moved down after the Quaterly #’s, and its re-visiting the 6 mo lows (yes low vol)…given the downtrend and the SSL is it your feeling that it might be time to get out?
Editor: Read the my BLOG today after your question for my thoughts on the current state of the company and the stock.
are you planning to cover Q3 #s?
Editor: Check next entry- posted earlier today.