CASH COW

[jaybird249]

DIME BACK TO DOLLAR: WOLV $.18 +20% ex NASDAQ stock $1 in 2005
WOLV will be back over $1 in January its in best shape in 3 years, costs reduced 27%, Huge new contracts (e.g. Flowers.com)
Only 27 MM float cash flow positive
NetWolves Corporation (WOLV) provides network security solutions coupled with network management and communication services worldwide. It operates in three segments: Voice Services, Managed Service Charges, and Equipment and Consulting. WOLV met all NASDAQ requirements except the bid price, so was delisted on May 16, 2006. WOLV began trading on the OTC BB in early June.

WOLV is a turnaround story. After losing its major customer, Swift, WOLV took quick action to slash costs and diversify its customer base. The end result is that WOLV is now a more diversified, streamlined company than ever. With nearly $2 MM in annual cost reductions, WOLV turned cash flow positive in March 2006:
http://biz.yahoo.com/bw/060222/20060222006065.html?.v=1
It is interesting to note that the last time WOLV was cash flow positive, in early 2005, the share price exceeded $1.

The third quarter 2006 financials show WOLV is on the road to sustained cash flow and profitability. Costs were reduced by 27%, and net loss was reduced by 40% to $486,000. If depreciation and amortization are added back, WOLV was essentially cash flow breakeven for the entire quarter, but as noted, turned the corner to positive cash flow in March 2006.
http://biz.yahoo.com/bw/060518/20060518005875.html?.v=1

IN THE MAY CONFERENCE CALL THE WOLV CEO STATED WOLV'S SALES PIPELINE IS THE STRONGEST IN HISTORY.

As of August 16 2006, WOLV has a market capitalization of $5 million and a Price/Sales rato of 0.3. This is a significant discount to the Industry average Price/Sales ratio of 2.6:
http://finance.yahoo.com/q/co?s=WGRD

WOLV management also considers WOLV very undervalued. Options were recently placed with exercise prices as high as $.75 per share:
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=4290970

WOLV has many large Fortune 500 clients including General Electric and McLane, a wholly owned subsidiary of Berkshire Hathaway Inc. WOLV has signed 4 major contracts in 2006, including recently with 1-800-FLOWERS.COM Inc. (NASDAQ: FLWS). WOLV has significantly increased its sales pipeline and diversified its customer base through a new marketing strategy that increases the company's sales reach:
http://www.thechannelinsider.com/article2/0,1895,1928373,00.asp

WOLV also provides VOIP services and will benefit from the exponential growth in this sector.

With the March $1 Million financing, WOLV is now in EXCELLENT financial condition. WOLV has positive net working capital and only around $1 million long term debt.

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OS AND FLOAT
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As of 05/19/2006:

31,774,479 shares outstanding and approximately 27.4 million float. WOLV management owns 6,895,000 shares.

In conclusion, WOLV represents a compelling investment opportunity: A cash flow positive stock with GAAP profitability in sight with a relatively low share count trading at a huge discount to its peers. The disconnect between WOLV's performance and the share price WILL NOT LAST.