Nuvo Network Management Inc. Message Board

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Technology Stocks : Nuvo Network Management Inc.

NVO 51.61

+7.3%

Dec 23 4:00 PM EST

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From: DenDen60	10/4/2006 9:31:13 PM
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Nuvo is a strong company I was looking at the C$ chart and realized that the C$ average price and NI for the last Qs were for: Q1: .8522_____NI(270k$) Q2: .8662_____NI+061k$ Q3: .8912_____NI+119k$ Q4: .8915 What is interesting, is that Net Income increased almost 400K$ even with the C$ increasing from .8522 to .8912. This shows that management is doing well and it bodes well for the future since the C$ is expected to go down. The average C$ price for Q4 was .8915 so the C$ should not have any impact from Q3 to Q4. At least, from the information I have. Revenues should go up this Q by between 300k$ and 600k$. Around 100k$ should come from the IT LAB (reporting 3 months instead of only 2) and between 200K$ and 500k$, depending on how fast implementation of previously signed contracts went. Revenues should therefore be between 4.5m$ to 4.8m$. NI should rise as well. I figure that NI will be between 300m$ and 600m$ depending on increase in expenses and end of the year surprises. Remember that Nuvo stop paying 33k$ a month last June for debt repayment. This increases the NI by 100k$ alone for this Q. Also it's operational leverage is able to increase revenues without increasing expenses. Now unless they have restructuring charges, I really think Q4 results are as follows. Rev_____ Between 4.5m$ and 4.8m$ (11% and 20% increase Y/Y) NI______ Between 0.3m$ and 0.6m$ (1.84m$ deficit Q4-05) This would make FY06 profitable and also show an increase in sales. Last year Nuvo had 16.4m$ in revenues. We need to have revenues of 4.2 in Q4 (same as last Q) to be even. With 4.8m$ in rev. Y/Y increase would be around 4%. Again the most important aspect will be the amount of new contracts signed, at least to get this share price up. If we can get between 6m$ and 10m$ in new contracts signed, we should be able to lift his share price up the ground. At least I hope.

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