InvestorsHub Logo
Post# of 596819
Next 10
Followers 82
Posts 2822
Boards Moderated 0
Alias Born 05/05/2006

Re: None

Tuesday, 05/09/2006 11:55:08 AM

Tuesday, May 09, 2006 11:55:08 AM

Post# of 596819
WOLV:NASDAQ $.22 cash flow positive $1 target
Network security stock Netwolves is the turnaround stock of 2006. There are no other NASDAQ companies trading below $1 that can COMPARE to WOLV's financial metrics. With WOLV's cost cutting program and new business model completed, the stage is set now for a fantastic 2006 as you will witness soon. WOLV has IS THE CHEAPEST CASH FLOW POSITIVE STOCK ON NASDAQ. $1 + target for the following reasons:

1) POSITIVE CASH FLOW: MARCH 2006 is when WOLV turned the corner to CASH FLOW POSITIVE:
http://biz.yahoo.com/bw/060222/20060222006065.html?.v=1

2) COST REDUCTIONS: Implemented nearly $2 MM in annual cost reductions. Fiscal 2005 report stated WOLV was cash flow positive in Q2 2005 with $6.5 million revenue. HENCE WOLV CASH FLOW BREAKEVEN REVENUE LEVEL IS NOW BELOW $6 MILLION BASED ON 35% GROSS MARGINS.

3) Many large Fortune 500 clients including General Electric and McLane, a wholly owned subsidiary of Berkshire Hathaway Inc. In February Conference WOLV stated it now has 1400 customers.

4) FINANCIALS: If WOLV traded at Industry average Price/Sales ratio of 2.4 it would be a $2 stock.

5) NEW CONTRACTS: WOLV annnual report states that over 300 new customers added in 2005. Recently signed major contracts with a leading energy provider and a top leisure travel agency. FEBRUARY 7 PR STATED MORE CONTRACTS TO BE ANNOUNCED IN NEAR FUTURE.

6) WOLV provides VOIP services. With the Vonage IPO in April, the VOIP sector will be a very hot sector this year.

6) Very small long term debt and a small 27 million float.

7) Insiders bought over 60,000 shares of WOLV in last year. WOLV executive officers own 6,895,000 shares of WOLV (more than 20% of shares outstanding).

8) WOLV has a smart, aggressive management team that has taken all the necessary steps to increase sales, reduce costs and get WOLV back to profitability.

9) WOLV WILL REMAIN ON NASDAQ UNTIL LATE MAY NASDAQ HEARING. IF WOLV IS NOT OVER $1 BY THAT TIME, NASDAQ PANEL WILL HEAR WOLV'S PLAN TO REGAIN COMPLIANCE. With WOLV's long established history, good balance sheet, large sales and return to positive cash flow (as projected in February Press Release and confirmed by Investor Relations in recent queries) NASDAQ IS HIGHELY LIKELY TO GRANT WOLV'S APPEAL FOR MORE TIME TO COMPLY WITH THE $1 BID PRICE REQUIREMENT AS WAS DONE WITH DGIT AND INSG: http://biz.yahoo.com/bw/060316/20060316005783.html?.v=1
http://biz.yahoo.com/bw/060417/20060417005935.html?.v=1
As an Alternative WOLV qualifies for AMEX.

10) Network continuity is the fastest growing business. This is the burning problem in developing countries. They have just started their all business on online network. Because of all of sudden jumping on online work scenario; their computers hang up many times because of overload on the network systems. They need to develop their infrastructure for network. Insurance companies, Bank, Railways, government departments etc. have changed their manual working system in online working systems. NetWolves has vast scope in such countries.

11) Technically, a double bottom in the $.25 -$.30 range range has occured, the strongest chart pattern. WOLV is now ready to explode as supply of sellers has been exhausted.

12) WOLV has a history of EXPLOSIVE price moves, in 2004 WOLV ran from $.58 to $1.60 in 5 trading days.

----------


Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.