I had a lot of optimism about NIHK in the early going, but my optimism has been replaced with a muted feeling that this company’s time is not quite here- yet.
The company has a very unique wireless remote power supply on/off system. It uses the same technology used by pagers.
Back in January when I first looked at the company there were a number of factors which could have led to a winner. They had a huge contract with a Texas based utility they were hopeful of landing. It was awarded to a competitor. They signed a distribution deal with Verizon Wireless- nothing has come of yet it.
NIHK points out the importance of stop losses in the microcap world. My published SSL (suggest stop loss) on the stock was $.09. I pointed out in the last BLOG entry when it traded below the stop loss level, and suggested traders get out.
Now, NIHK is trading at $.06 with no signs of life. Concrete sales from the Verizon relationship is the problem. When and if they materialize the stock will be easy money. However, as we are entering the quiet summer months, I don’t believe anything big will happen until the Fall.
My guess- the stock will probably end up making a round trip back to $.04 where it will be easy money for a rebound in the Fall.
Comments and questions are welcome.
re: Verizon. Check out http://www.vzpaging.com and go to business solutions and check telemetry. You will see Nighthawk products being suggested there. The Nighthawk webpage also has a link to this page.
Editor: Yes- good point- but we need to see sales coming from this relationship, and it’s just not happening yet. Thank you for your contribution.
It looks really interesting right now and I feel that if you can catch the dips into the .03′s to accumulate, this isn’t a bad play. Before the Verizon deal this company was stable around the same price. Do you see it going any lower than .03 and how do you feel about its future?
Editor: This one has been a disappointment. In conjunction with first covering them, they had some sales targets, including one huge contract. The big contract was lost to a competitor. They simply have not delivered on the promised results. Could the stock come back against a backdrop of performance?- sure- seems like a pretty low risk entry point. However, if you are looking for just silly oversold with some improving numbers, check out NWKI. I’ll have a better idea on that one in a day or two, but I believe that is the same investment theme with a company that is already delivering major improving numbers and really has it going on. The Verizon deal with NIHK has not yielded any results, which of course is why the stock is where it is.
Any thoughts on that ISS deal, looks pretty big to me. I am accumulating heavily in the low .03′s because I really feel within the next year this is looking to take off huge. After the announcement from ISS we saw a lot of early volume and movement into the .04′s before it retracted. All this needs is a catalyst and I know it would explode. Let’s hope i’m right.
Editor: Good move on your part. I was planning on reporting on this one over the weekend as there have been some new developments which make me believe it’s a good candidate for a turn around call. When I tell people to buy them when they are cheap and no one wants them, it’s nice to see some are listening.
They are pretty close to making a profit. That was without American Messaging. Now that they are teamed up with AM. I think we could see some interesting things happening in this company.
Editor: That’s what I am hoping for. Would like to see some news announcements concerning sales from the American Messaging relationship. Seems like a pretty good high risk bet from this price.Â
Looks like the interest in this stock has gone down quite a bit. Very low volume. Today it has even traded yet. I think the products are great. I think the company should have a stock buy back program at these levels. Just to show that they have confidence in the company.
Editor: It’s having a pretty good day today- they just need to keep announcing sales. A stock buy back won’t happen with this company- they don’t have the cash.Â
News today: Nice
Nighthawk Systems Receives Larger Order from El Paso Electric
Business Wire – October 10, 2006 16:01
SAN ANTONIO, Oct 10, 2006 (BUSINESS WIRE) — Nighthawk Systems, Inc. (OTCBB:NIHK), a leading provider of intelligent wireless power control and emergency notification products, announced today that El Paso Electric has placed an additional, larger order for Nighthawk’s CEO700 remote power disconnect units, which will operate on the American Messaging wireless network. El Paso Electric has chosen to move forward with their ongoing remote disconnect program utilizing the Nighthawk Systems-American Messaging partnership.
Nighthawk’s CEO700 gives electric utilities the ability to remotely disconnect and reconnect power to residential electric meters, saving them significant time and money over the traditional manual disconnect method requiring field personnel. Last month, Nighthawk Systems and American Messaging announced they had strengthened their joint marketing agreement to take advantage of their core competencies and provide the best wireless remote control solutions possible to their customers.
“We are focused on providing our customers with the most dependable one-way local and nationwide paging services in the United States,” said American Messaging President & COO, Dave Andersen. “El Paso Electric has been utilizing our network for their traditional paging needs for 10 years. We are very happy that El Paso Electric chose to use the same reliable paging network for their remote disconnect program utilizing the Nighthawk CEO700.”
H. Douglas Saathoff, Nighthawk’s CEO, stated, “El Paso Electric, like most utilities, has identified a growing need to implement a remote connect/disconnect program to better service its customers and to save money. Reliable access to our units was a key factor in continuing to move forward with El Paso Electric. Simply put, customers will not deploy on an ongoing basis if they cannot count on access to our units. This sale is a great example of how we expect team selling with American Messaging to accelerate the rate at which Nighthawk can provide reliable, ongoing solutions to our customers.”
Editor: As covered in last night’s edition.Â
What’s with all the planned insider’s sales? This is kind of disturbing to me. I would think people would be buying shares of this company?
Editor: I don’t really see a lot of big sales filed. The last one was fairly large at 690,000 shares, but that was nearly 5 months ago. By the time you read about these sales, the stock has already been sold. It would be nice to see it spike a little higher, but it could take a couple more big volume surges.Â
What’s your take on the 3rd quarter report?
Editor: Nice progress, but not enough to push the stock up into the $.10 to $.12 range- they need more orders with high profile customers. The good news- they have added the right people to make it happen.