NIHK has had a breathtaking week. We started at just under $.04 and made it over $.08 this morning in the early going. It’s just a couple of cents below my target price of $.10- a triple in the last couple of months.
The company started the week by announcing a deal with Verizon Wireless to install hundreds of their remote control switches on the back up diesel generators at the cell towers in New Jersey.
This morning, the company announced ’06 revenues will be 70% higher than ’05- welcome news to investors.
What to do- here’s my advise. If you bought it right and you think you are a pretty good trader, go ahead and sell it even though there may be more upside in the stock.
This is simply a technical thought. I believe there is a lot more upside in the company in Q1 of ’07. More breakthroughs order wise could be in the pipeline.
If you are a buyer, which you should be because this is not over, here’s a chart which gives us our lower risk target entry level:
Note the 61.8% retracement I am so fond of brings us down to about $.055. That’s the level I believe you should accumulate the stock. You want to be a seller on days like today.
The stock is now making a serious of higher highs, which is very bullish. The next higher should be even higher than today’s $.083. If you want to make money on surging days like today, you have to buy it right.
Comments and questions are welcome.
You Are Always Wrong…There is no way this is you guys
IMO they got a nice crew on it bringing market awareness – also since I’m SBSH .0825 bid I’m taking it to .10
Editor: That would be great. We appreciate the effort. For my money today, this stock is more of a short term sell than buy, but a long term buy if you grasp the difference.
It looks like your call on NIHK was right. At least it is getting close to the price. I did sell some in the 0.8-0.09 range. I bought it in the mid 0.06 range initially I wish I had sold it all.
I feel uncomfortable trading stocks. I usually hang on to long and end up ;osing. So you feel this will eventually get to 0.10?
Editor: I will be publishing a BLOG with a pretty good estimated price to buy it back in the next day or so. Yes, I believe the next surge will take it to my $.10 forecast price. If you have read my stuff, you know I suggest the trading levels for traders only. If you are simply a long term investor, there is nothing wrong with that and much of the time offers the highest return.
Good call on the sell off. I should have listened.
Editor: You will probably have another chance later this month.
I knoe this one would explode, like I said all it needed was a catalyst. I’m glad I accumulated in the low 3′s earlier this quarter. With the recent news my faith is only stronger and I was wondering how far you think it will drop now before it takes off again. I’m looking to get in even more and I want it to be at the lowest. I don’t see this dropping into the 3′s again so I was thinking about getting in again around mid 4′s to 5′s. Do you see it getting down there? Also, how do you feel about it’s short and long term future now? Thanks for all the help, especially introducing me to NIHK!
Editor: Will have an updated BLOG with my next entry level in the next day or two. Just need the market to open so I can create a proper chart.
When you do your charts. Do you use the rsi for an over bought indicator (70) and an over sold indicator (30)? Also do you use the mfi indicator over bought (80) and over sold (20)? I am starting to get into ta and this seems like a good way to start. Thanks
Editor: No- I know there are approximately 1 zillion indicators for technical analysis. I have played with those indicators as well as Stochastics to determine if a stock is oversold or overbought. I don’t care for them, because stocks can stay overbought and continue to be overbought for months, and vice versa. I prefer to mainly use my Fibonacci Retracements as low risk entry points. If you buy a stock in an uptrend on a 61.8% retracement, your odds of a favorable trade go way up. More importantly, if a stock drops much below the 61.8% retracement level, it is probably going much lower. The 61.8% retracments work great for this newsletter, because a lot of people can buy without taking huge risk. I prefer to suggest selling into the big, streaky runs. Therefore, you can place a pretty tight stop and not risk as much capital. The other indicator I really like if you are looking for breakouts is the DiNapoli 3×3 Double Repo. That is the best indicator of break outs I have ever seen.
I don’t have the Fibonacci Retracements or the DiNapoli 3×3 Double Repo on the stock chart site I use. Where can one get something like that? Thanks
Editor: We use eSignal for our charting software. Expensive, but extremely robust. Has everything. About $130 per month. Check out the current BLOG on NIHK- a perfect 61.8% retracement.
Where’s a good place to learn Fibonacci Retracements or DiNapoli 3×3 Double Repo? I’m not looking to take your job. LOL I was just curious. I find it very intersting. Thanks
Editor: Don’t worry- some days I’d like to give you my job. At any rate, we use eSignal for our live quotes and charting software. It is extremely robust and will do anything you tell it to do. If you get it, let me know, I will tell you how to find those indicators. Not -cheap- figure $100 plus per month.
Could you please verify this statement from a poster from Raging bull. I know NIHK pays you people. I just want this cleared up. Here it it:
the otc journal and these other rags promote stocks in return for free shares…..so Dougie keeps giving stock away for promotion purposes…this is not the way to do business…next stop 4 cents and then you should buy and wait for the next pump and dump session…but one of these times its going to go to a penny instead of up…then it will reverse split and go down again…after that run down…I’d buy again……do yourself a favor buy some DOW JONES STOCKS and learn to understand what a company is and what it does and then find emerging companies who have their ducks in a row and invest WISELY…not into a casino market like the OTC
Editor: I’m glad you brought this up, so thanks for sharing this post. In the case of NIHK, we were paid a nominal amount of cash, and 1 million shares of newly issued, restricted stock. We can’t sell it. I believe it will become eligible for sale under Rule 144 in about four or five months. When we are engaged, we can’t sell our stock for a year in open market, so if the company fails we get little or nothing. Therefore, we have to pick stocks where we believe there is a reasonable chance things will work out. Another point- just look at the performance- I said to buy it at $.03 to $.05, and sell it when it got into the $.08 to $.09 range. If you bought a DOW stock at $40, and sold it at $80 in two months, you would have thought you were the greatest trader in history. Now, if you look at the next post, I am saying it is time to buy it again.
While I do agree this end of the market is more a less like a casino, there is no reason why you shouldn’t invest here if this is what you like. I don’t know about you, but I love Vegas, and even win occassionally. The DOW stocks have their place in the less risky end of your portfolio, but there is nothing wrong with taking a big risk with a little money. There is just no comparison. The post you put up was probably done by some shill who is trying to knock the stock down on behalf of some short seller. Thanks for allowing me to address the issue.