otcbargains undervalued stock board

[otcbargains]

NGHT - I will own over a million shares by the time they release their annual report and if it continues to drop the way it has It could be much more than that.

Why?

I still think they will beat last years results. Over the last 9 months assets have increased, Liabilities have decreased and revs have grown by 21%.

Last year they reported an operating profit in the 4th q of 172K and that was when something Wicked was a 1 day event.

Last q's results were about 100K worse than the previous years and it is due to the jump in direct costs that happened in the 3rd q. Is it permanent? I don't think so. As an example they were 63% in the 2nd q of 2013 but fell to 53% in the 3rd q of 2013. Basically I think some events have more costs associated with them than others. They could return to normal levels.

Last years 4th q included only one day of something wicked while this years will include 2 plus they had far more events this year than last year as well. They are on pace for a 21% revenue rise but I think that increases in the 4th q due to the 2 day event of something wicked. Last years 4th q showed revs of 2.2 million. This years will likely be closer to 3 million. 21% growth would be about 2.7 and throw in the extra day of something wicked and we are probably close to 3 million in revs. Lat years direct costs were 59% in the 4th q.

If they do 3 mil in revs with direct costs of 59% they will have a gross profit of 1.23 mil in the 4th q. Last years 4th q operating expenses were 33% which would be 733K. I this years 4th q is the same if would leave 4th q operating income of 497K and operating income for the year of about 297K which would be a sharp increase over the previous years operating income.

This is predicated on direct costs returning to 59% where it was last year and operating expenses remaining the same.

Even if they don't they should pull a profit for the 4th q and lets assume they break even. A 4th q operating profit of 200K instead of 500K.

Then you are left with an over 7 million dollar a year revenue company with break even operations trading at a market cap of 1.3 million.

Last year it hit .20 following the annual report. I don't think it is worth that but I don't think it is worth .02 either. That is why I will just keep on buying.

It is funny how a 3rd q that was 100K worse than last years created this huge sell off.

Buy when others are afraid. IMO!

Then again, it could be the biggest mistake of my investing career. We will just have to find out.