Baseball season is nearly upon us, so I can drag out the baseball metaphors. I’ve been getting requests for an update on NIHK, so I thought I would comply.
Not all major league baseball teams get to the World Series with home run hitters. The 2003 Florida Marlins come to mind- they became world champions with great pitching and by playing “small ball”- executing a lot singles, sacrifices, and hitting with runners in scoring position.
Since the big announcement of the cell tower installations in New Jersey, NIHK has been hitting a lot of singles. For example, NIHK has recently announced sales to City Water, Light & Power (“CWLP”) of Springfield, Illinois, Cotton Electric Cooperative of Walters, Oklahoma, and Denver-based Wisper Telecommunications.
While none of these are home run hits like the Verizon cell tower deal in New Jersey, these singles keep the base runners in motion and the score climbing.
Here’s the current chart:
You can see the first surge and then the second surge the stock made over the last 2 months. Each successive surge took the stock to a higher high.
For the last month the stock has been idling. It is extending out to the right with no major price movement.
As long as this stocks stays above this $.08 level it’s a buy if you believe in the future of the company.
If you accumulate it today you will be in a position to knock one out of the park when the company delivers the perfect pitch. A walk off homer if you want to take your profits.
In the meantime, the singles the company hits limit your downside risk and keep the top line moving forward.
I would accumulate this stock in here with a Stop loss if it trades much below $.08.
Comments and questions are welcome.
I need some help understanding this company a bit better. How many shares are issued and outstanding? What are their expected revenues given all these “singles” you speak of? What about future financing – do they have enough revenues and cash flow to keep going without issuing more shares in the near future? Are they currently profitable, and if not, when would we expect to see a profit? Thanks! On another note, I just wanted to say that I appreciate your website! Thanks!
Editor: There are currently 77 million I&O- I don’t know exactly what their revenue number looks like, but I know Q4 was the biggest in their history. They will be reporting in their 10K by the end of March. They do have a high level of debt- in the range of $5 million- that is problematic and will no doubt prevent this one from going through the roof to something like $1. More details in a future edition. I have a call scheduled with the CEO to go over some of these issues you bring up.
I look foward to the future details regarding Nighthawk on your website. One follolw up question – the stock fell through the 8 cent level today and dropped to about 7.4 cents – it looks like there’s strong support at about 6 cents or so if I read the stock chart correctly (I’m no expert at technical analysis, so feel free to offer your guidance) — any thoughts as to whether I should consider it a buy if it should drop to that level? Thanks!
Editor: I am travelling this weekend, but with the stock being that attractive will take a hard look next week after the holiday weekend.
Well, the stock is somewhat below the 8 cent mark again, sitting at about 6.9 cents at the close. Do we buy or stay on the side lines?
Editor: Just follow the suggestions on the home page- I believe it is more of a buy right now. Much lower, and we can start to worry.
Your coverage of NIHK has expired. Will you/they extend?
Editor: I believe so- the computer model just goes out one year, but I’m sure I will keep following it.
Not a comment but a question: Any news yet?
Editor: Just read this weekend’s edition.
Do you think that there will be a major pull back tommorow or at least by the end of the week? The reason I ask is because I want to increase my holding but I definitely don’t want to get stuck with no stock. What do you suggest?
Editor: There are always pullbacks in every stock. Perhaps this one will pull back later this week- perhaps not. Since it’s been quiet for a while, it probably will pull back a little after the surge, but maybe they have more stuff in the pipleline to talk about. A partial trade might be in order.
The name association alone with Daimler-Chrysler is worth the deal because it attracts more people’s awareness towards the stock. Was that deal one of the 8-10 big deals you mentioned they are working on or are those deals even bigger than the Daimler news? And what are the actual odds of those deals coming out?
Editor: I do not know what each of the deals is- I know a couple involve the utilities industry and an evolution of the business model. With a story like Daimler-what you want to see is an initial installation- the big news would be a system wide follow on for the whole company in the US. Like with the cell towers- what if Verizon did a system wide installation? Here’s what I like- in 2006 we focused on the utility industry. In the last few months, they have now added cell towers and the auto industry as potential customers. It shows me they are expanding their reach. The number of applications for this technology boggles the mind. They just have to get them out there.
What does it mean that the stock is trading well even though it is well passed the news of Daimler-Chrysler?
Editor: I don’t understand the question.
In your discussions with NIHK, have you ever discussed the possibility of a reverse-split of the stock due to the large number of shares outstanding?
Editor: This company is no where near that type of move.
Will you be issuing another blog on NIHK? I was wondering about the retracement levels.
Editor: Soon