NWKI Breakout

NWKI had a sudden surge today. The stock looks like it is poised to deliver one of its volume and price surges. I hope many of you are reading this BLOG entry, so you can take advantage of the stock’s trading activity.

As I write this entry, the stock is trying to challenge the $2 level, and trading far above average volume. As you can see from the chart, the two month ceiling at about $1.90 has now been breached. This stock has a tendency to break out on high volume about four times a year, and it looks like it’s getting started now.

3 thoughts on “NWKI Breakout

  1. Network Installation’s has a competitor, XTEN Networks, Inc. (XNWK). I have been watching both NWKI and XNWK and they both brokeout today. I was just wondering if and which one was leading the other?

     

    Editor: I haven’t looked at the fundamentals of XTEN, but the stock certainly had a nice surge a couple of days ago, but has given back 66% of its gains. The only troubling thing about the XTEN rebound was that it was not accompanied by a major volume surge as has been the case with NWKI- I would guess there is little relationship between the two.

  2. Should I still look to get in at 2.07

     

    Editor: Maybe wait for a little pullback to maybe the $1.98 to $2 range, but I believe the stock could have a lot more energy in it over the next several weeks.

  3. Are you guys still covering NWKI? Unfortunately, I am sitting on some stocks (never placed a sell order) and wondering if this stock will ever gain any momentum and get back to a decent trading price. The stock price is heading down….wrong direction! Any insight would be greatly appreciated. Thanks!

     

    Editor: Yes- I never have abandoned this one. The company is actually doing very well- record sales and closing in on profitability. When I wrote the May edition entitled “Don’t Say You Weren’t Warned”, this is exactly what I was talking about. This is a typical summer, quiet, low volume, no one cares pullback. I might buy a bunch in August and early September for the fall rally if the pattern continues.