I don't know if it's just me but I sense a lot of nervous excitement as the pps keep going up.
There is no reason for being nervous or scared. The company improving fundamentals can easily support $4 right now....and a lot higher prices if they keep capitalizing on the many opportunities in front of them.
You must know that there are forces more powerful than all of us small retail investors collectively. These "entities" are controlling the price appreciation systematically. They was the stock to go up...way up...like we all here do...and they know that the stock will do that. But nothing can kill a rally than a huge spike followed by a sharp sell-off. Only the opportunists, momentum players, swing traders, and day traders can benefit from a situation like that. They just want to make 10, 20%, etc...quickly and swiftly. They don't care about this company like we do. So be very happy with a 5 to 15% weekly gain.
I don't know about you, but I've invested in NTWK because I will not be satisfied with anything less than 200 or 300%. I really don't care if I have to wait a few week/months for that to happen. It will happen and I don't want to be on the outside and looking in wishing that I held a little longer.
There are many reasons why NTWK will continue to go up....some weeks more than others. Let me list a few:
- The stock in undervalued even with the recent 100% gain. The stock is just playing catch up. Not many investors would buy NTWK a month or more ago despite the obvious strong fundamental. We all know that that was because the company was facing a real Delisting threat getting closer and closer to the September 28 deadline imposed by NASDAQ 6 months ago.
- But after the company posted better-than-expected, very-strong 4Q 2011 and Full Fiscal Year 2010 financial results, many investors including myself bought all we could afford. I have been accumulating for about two months and my cost basis is 88c/share. Cramer or anyone so called expert would tell you take your profits now....sell ...sell...sell. But they are just looking at a sharp gain and not at the whole picture. (Just like our dear board clown who was shorting all the way from $1.1 to $1.64 ....his last announcement...hehehe).
- NTWK is trading at at least a 70% discount to sector averages in terms of price to sales and forward PE metrics. You can do the math yourself
- But we many here know that the CEO usually gives conservative guidance. This means that the stock could be even more undervalued than it shows on the surface.
- NTWK is is unique situation that it is expanding globally and doing extremely well in China and other strong economies. But even in sputtering Europe and the US, the company is doing better than expected.
- The new Global Alliance with Daimler/Mercedes Benz (DMB) announced last week is truly game-changing. DMB is opening the doors to NINE new countries where NTWK is not currently doing significant business. If you really think about it, DMB thinks so highly of NTWK's products, services, commitment to quality and reliability that it decided to add India in the initial nine-country package. India is world-renown software mecca many times the size of Pakistan and with hundreds of low-priced software providers. DMB is one of the most respected companies in the world for its commitment to the highest quality. NTWK shares this philosophy by having achieved the world's highest software quality certifications.
But the NTWK-Daimler deal does a lot more, it will help bring in other businesses and customers in the new countries. The NTWK-Daimler China agreement was key for NTWK to grow so amazingly fast in China to owning 90% of the auto-leasing software market!! And that reputation and traction has motivated the company to push hard in related markets like banking/lending and other verticals.
I've tried to warn you that we will see a dip or two every day. That's healthy in my opinion. The manipulators will squeeze out the shaky hands.
But the general trend is the we are setting Higher lows and Higher highs every single day. This is the mark of a hot stock. NTWK is now a very liquid stock with high volume of shares traded each day. That attracts days traders and the like.
Hold on to those precious shares
Thanks JC. You are doing a great job maintaining peace and restrain among the ranks. We know that we have a winner here. A big time winner. We just need to wait.
Here are the alternatives: take your money from NTWK, put it it somewhere else and hope for a return of good 40-50% in six month , or stay here, with our fantastic fundamentals, and sell for $8.00 in the same six months.
JC, Great job. I agree, I do notice the anxiety as well on the board. I think the spire that has become the price line is something a lot of us investors haven't seen too often.
We have heard it from a number of people here, they have never had a stock this good. The reason it is doing so good is that it was undiscovered, did great in 2010 and is going to do SOOOO much better going forward.
As this continues upward, you're also right larger buyers will want part of this.
One of the board wrote the other day that he'll check in about six months to see how NTWK's doing. Ballsy, but that's exactly what we should all do. Imagine the surprise when you check in six months....
That my friend is what this board needs. Educational, nuts and bolts, down to earth facts. Thank you so much. I am not a pumper but I do dislike bashers because they lack facts. I am dead serious here, get in!!!
From the previous post...
- Besides doing a masterful job in business development over the last two years, they have increased their efficiency so much that gross margins now are approaching 70% from the 30's a year ago.
- We also know that NTWK is in the short list or a front runner on a number of infrastructure and military digitation mega-projects in Pakistan. Recall the bid that jointly presented with Raytheon for $320 million dollars for a military project early this year.
- But there are also potential mega-projects that the company is pursuing with its joint venture in Saudi Arabia where it is a majority owner.
- The two categories of projects are very large, but the CEO/management with the usual ultra-conservatism have not included any potential revenue/net income proceeds in the current guidance....nor the ones deriving from the global alliance with Daimler Mercedes Benz.
....and I can go on and on about pluses...amazing pluses for a company with less than $70 market cap.
- Speaking of market cap, watch the stock start moving much after and higher after the pps goes above $2.6/share. This is because larger institutions/funds/money money managers will start buying large blocks. These big boys do not, or are forbidden, to invest in stocks of companies having a market cap of less than $100 million. The same thing recently happened to REDF.
....Do I have to tell you again??...knowledge is power....buy with conviction and hold with conviction...and forget about the daily swings in price. We are in the driver's seat....all of us buying this stock under $3 are basically in the same boat.
JC...Do you work for Allstate ?
I will rest well tonight( other then that "this can't be happening , giddy feeling " that I lay there with for awhile) as I always have, since I found this board...