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Gold/Mining/Energy : National Challenge Systems (TSE:NLC) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Lefebvre who wrote (420)	9/3/1999 2:24:00 AM
From: Cal Gary	Read Replies (1) \| Respond to of 453

Dennis, the news is great. Perhaps you have, but just in case, check out their web site at nationalchallenge.com Re: Stock price dropping, I can only guess: 1. buy the rumor, sell the news 2. by the way the stock traded, taking out resistance with ease, the market was expecting some block buster news, along the lines of buying 5000 compactors from WMI in NE USA which means instant new $ 3. locking in profits (esp those buying from $1.40 to about $2.25 which at one time was a resistance point) 4. unless there is further news, a nice run up always needs consolidation to advance. There was much wild accumulation then distribution in the stock. It needs to settle. Then the company needs to educate the market about the merits of the agreement. By the way it is currently trading I bet the market will wait to see what $ this agreement will actually bring. If it took NLC 4 years to sell / rent only 40 units, think what a marketing alliance with CWS might bring. IMO this is brand new product and service line added to their business. Depending on the terms of the agreement, I hope it is very profitable to get hundreds of these units out, quick. I like their thinking. Use this agreement in Canada to test. Then use the results to determine a better way (more $) to proceed into the larger US market by JV or direct marketing. I understand companies have to be careful in wording news releases. What I would love to know is the basic things like breakeven, profit margins for the organics, etc. I have looked at their latest financials, but there is no breakdown by product/service line. Perhaps they could start to break down their quarterly financial releases this way. Information like this helps to assign additional value to the company per unit shipped. And translated to share value. Look for instance at stocks like QLT. The market knows it has a great product and potential, but once the market learned of its margins, and that the margins were actually better than analyst expected, the stock blasts off passing the $century mark. Perhaps Heather might help in this area ;-). Some threads and company web sites that educate and inform, not hype, tends to have large followings and the stock trades relatively predicable. Check out QLT's web site, esp the list of analyst following the company, as a great example of what all trading companies should do with their web sites. Check out other SI threads like the recent hot East Lost Hills gas play at the Kookabura thread. Indeed happy people posting happy messages but also lots of good clean information, even bad news is great news.