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Since I have been given a 1 week extention by some of my fellow Newcom holders I will post my current opinions (and leave out any "guarantee dates") Newcom has shipped the 500 unit evaluation order to Dell computer. This is just a evaluation order and their certainly is no guarantee of any future orders, but if Dell was satisfied with the modems than this could be huge. The new Digital camera product that Newcom unveiled has begun shipping. This camera has been very well received by the retailers as it is one of the cheapest on the market (around $175 retail) Many other "great" things are going on at the Newcom but the company has decided to stay quiet untill the earnings are released. Their are two reasons for this. First they believe the earnings will speak for themselves (.96 per share for the year) Second they do not want to look to aggressive because AURA (the parent company) is allowed to sell 300,000 shares per quarter and they have. They sold 300,000 about 2 months ago to a institution, anyone that follows this stock closely probroly remembers the print ( I believe it was in the high 12 range) They will only sell "off the board" to institutions and will not go to the street, but at the same time do not want to be accused of hyping the stock with press releases and then AURA be a seller at the same time. There is no way around this, AURA is desperate for cash. In the long run this is a positive because AURA owns less stock and less voting power. Trust me things are going great at NWCM, sales continue to exceed internal projections and the company can not wait to get the earnings out. Another thing, AURA is not agreeing to sell any of their stock to any institution that does not give a committment to buy additional shares in the open market. This will trade with great volitility, they always do when the short position ratio is so high, just remember we are not dealing with a hope and a prayer, like a bio-tech, we are dealing with a company with established earnings and a proven growth rate. Do not let the shorts scare you, they are shorting this stock because of AURA. They have let their emotions get in the way of good sense and they are going to suffer financially because of that poor judjement. If they have a problem with AURA, which I understand why, then they should short AURA not NWCM. |
