NeWave: Heisser Smallcap
lancerevo7 : NeWave: Heisser Smallcap
Since we profiled eCommerce technology firm NeWave (OTCBB: NWWV) on March 22nd at 19 cents, the Company has been anything but idle. (Have a read of our piece for a detailed background).
This Company, in our opinion, is poised for significant ongoing success and firmly on track to deliver outstanding shareholder returns.
Due to the significant and ongoing sales growth, we strongly suggest continued accumulation of NeWave shares at these levels.
Besides paying off a whacking $500,000 of its debt within the last few weeks--thanks to a growing surge in cash flow-- NeWave's online site enrollments clocked in at a huge 43,000 new subscribers in March alone (release below)--the fifth consecutive month of significant membership growth and 72 percent ahead of its record February sign-ups. (We told you they'd be good...)
As you'll recall, NeWave has three unique eCommerce sites: www.onlinesupplier.com, www.buydiscount.com and www.mysoftwaretutor.com. Have a look. Heck, you may even want to sign up.
At $20 a month for a base membership, NeWave also has the opportunity to up sell members to premium offerings, including the very cool ActionLine, a live eBay Coach product at $59.95 per month and the mysoftware tutor product at $19.95 per month. The subscription revenues have and will add up quickly. I'm sure you can do the math. While there is some attrition, the impressive subscription and product sales growth trend already proves that NeWave has the technology as well as the right products at the right time for both customers and shareholders.
Investors need only look at the volumes on this chart to see that we are in NeWave at the right time. Significant investor interest has already appeared and the shares look to want to stay above the sub-20 cent level and move higher.
The spikes seen between 15 and 30 cents are very positive technical signs, although the lack of follow through after the last big volume day is somewhat annoying. We haven't seen the confirmed double repo we were looking for, as yet.
That said, as momentum continues, we could well see at least a 3/8 retracement of the previous big sell-off. That would give us a target of 80 cents--a very decent return.
Bottom line: accumulation at current levels likely means that any short-term risk is well worth the potential reward. Big-time.
Investors have to be impressed not only with the phenomenal growth NeWave has already posted, but also its aggressive drive to pay off debt and move to sustainable and growing profitability ASAP.
Given the growth already and that to come, we reiterate our opinion that shareholders who wait to accumulate shares at these levels will likely be disappointed.
NeWave represents a high growth, dynamic Company that has already proved --and we believe will continue to do so in spades--that it deserves a place in the SmallCap portion of your portfolio.