Nighthawk May Be Spreading Its Wings Soon
June 3, 2009 @ 12:34 pm
Nighthawk Systems (OTCBB: NIHK) is one of those micro-cap stocks that can move up very quickly on light volume and fall very quickly on heavy volume.
Such was the case today after the company addressed its record revenues and enhanced margins during 2008 and painted a powerful story for growth for 2009 and beyond.
Heading into today’s news, NIHK sold for $.02 but rose 27% in mid-day trading. As the day went on, volume increased as did selling and Nighthawk closed at $.025 (+13.64%).
That $.02 mark is key. The stock hadn’t budged from it since March 2, suggesting that $.02 might be a bottom and that falling below it would not be a good sign.
However, if investors take what Nighthawk Systems CEO H. Douglas Saathoff said to heart, the stock could gain momentum in a short period of time. A year ago in May, shares sold for .08.
That’s all contingent upon Nighthawk delivering on its promises of a growing customer base, new products and better sales channels leading to growth in the second half of 2009.
Saathoff pointed to new relationships as the reason the company should be able to supplement existing order flow for set top boxes in the latter half of 2009.
With government spending for smart grid devices on the rise, demand should lead to growth in sales of power control devices in the latter part of 2009.
I know those are a lot of shoulds, ifs and buts. Until the numbers can speak for themselves, this stock is risky but promising. If you want to take a shot and hop in at what might be the bottom, go for it.
Just know what you might be getting into.
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Are you sure you Still want to drop the Hawk? Its ready to fly!
Good morning! The following release went out this morning and announces that we recently received an order from Inland Power and Light of Spokane, Washington. Inland is the largest electrical cooperative in the State of Washington. This is the first order from Inland, and is for 500 units. This equals the largest initial order ever received by Nighthawk, which is a great sign as utilities normally come back to us for similar-sized or even larger orders subsequent to making their first order.
Even though Nighthawk is developing new products that incorporate additional, smart grid functionality, our CEO700 remains in high demand. We have continued to get orders for the CEO700. As the new products begin to roll out, this bodes well for the Company and I expect improving results as the year moves along. I also look forward to updating everyone soon on the status of our relationship with Itron, which is alive and well!
Have a great day!
Doug
Editor: The stock could do great from here. Dropping it is no reflection of the upside of the company. I just have to make room for all the ideas I have coming out of China with much greater growth rates and much stronger profits.
Comment by Anonymous — 6/10/2009 @ 6:13 am
I just don’t get it. Why would this stock out of nowhere go up 50% in a few days? I don’t understand why there would be a sudden interest in this stock to have enough people wanting to buy it to lead it to go up and then to stay up. Obviously the only thing one would think is maybe some people know things we don’t know, but besides that is there any other reason for this to quickly and very quitely go up with no news and a negative quarterly release?
Editor: I really couldn’t say. I’ve decided to finally drop it an move on. Too many other good ones to cover.
Comment by Ed — 6/8/2009 @ 9:09 am
What news came out yesterday? Nighthawk releases their financials in early May…???
Editor: Have decided to drop it. Just too many better ones to cover.
Comment by Mark — 6/5/2009 @ 8:33 am