From blog on www.microstockprofit.com
Nighthawk Electric Rockstar
Highlighting the company's new found Rock Star status in the Utility sector, Nighthawk Systems Inc. (OTCBB: NIHK) announced today that internal sales of related products (largely its CEO700 units) more than doubled in 2006 compared to 2005.
Even more impressively, management also noted that in addition to superb 2006 revenues from utility sales which were up 120% over '05, Nighthawk's growth trend has continued thus far in '07, both in terms of utility and overall sales.
10 New Contracts
This is no surprise since NIHK has inked (to public knowledge) nearly 10 new contracts with an ideal mix of first-time and recurring customers since January 1st, not to mention a blockbuster deal in December with Verizon Wireless.
Since we first profiled NIHK back in February of 2006, we stated that in order for Nighthawk to achieve greatness, it was imperative that the company take any steps necessary to establish a well-known, nationwide brand throughout the utility industry. Once Nighthawk got a foot in the door, business was sure to follow. This is largely due to NIHK's ability to present an exceptionally unique and impressive ROI case.
For those of you unsure of what the Return on Investment (ROI) case is here, let's talk a little about how Nighthawk adds value to client processes in the utility industry.
Although the study referenced below is a few years old, costs to NIHK utility customers have done nothing but increase with the recent surge in fuel prices around the country, adding further value to NIHK's offering.
A 2004 survey of 118 utilities conducted by utility industry research firm Chartwell Inc. found that more than 55% of electric utilities use, plan-to-use, or are considering using technologies that allow for the remote connect/disconnect of energy meters such as those offered by NIHK.
Additional findings from the report estimate that approximately 2.3% of the United States' electric meters were individually disconnected and reconnected on more than 4 occasions resulting in estimated costs of nearly $1.2 billion dollars for utility providers. Due to its expertise and experience in deploying wireless remote control solutions, Nighthawk has been hitting the pavement to expose the market on its ability to cut costs for years. Now NIHK is reaping the rewards of its hard work.
In many cases, a utility provider will make up to three visits to a delinquent paying customer. The utility provider will typically send field personnel once, to warn the customer of upcoming disconnection, a second time to disconnect power, and a third to reconnect power once payment is made. Costs associated with this process range from $20 to $100 per visit depending on a number of factors such as customer location and number of utility personnel deployed to execute a particular task.
Often times, more than one service technician must be deployed at one time due to concerns for the employee's well-being. Nighthawk products are ideal for this application due to their ability to allow for the remote connect/disconnect of energy for delinquent accounts not to mention seasonal residences (which may require multiple visits each year) and customers in remote rural locations. ROI for this application is pretty straightforward. Simply multiply the total number of off- cycle trips taken each year to execute related tasks by the average cost of each visit.
Word of mouth isn't just a catchy phrase, at least not at NIHK. Accompanying Nighthawk's recent string of repeat business, news this week drives home the fact that NIHK is thriving in the Utility business. The company first hit the press with news of an initial order for its famed CEO700 units from Cheyenne Light, Fuel & Power Company. The new customer is a subsidiary of Black Hills Corporation (NYSE: BKH) , which services approximately 80,000 residents in more than 1,200 square miles of certificated territory in southeast Wyoming.
BKH, in addition to having a nearly $38 stock, has a vast network of utility connections outside of Wyoming (South Dakota, Montana, Western Canada, Rocky Mountain, and Western Regions of the U.S.). Successful implementations with Cheyenne could make NIHK's CEO700 and next-generation products staples in all of its parent company's territories.
Nighthawk has also attracted first time business from United Power of Brighton, Colorado, a rural cooperative providing electric service to over 60,000 meters representing more than 120,000 customers across Colorado's northern Front Range.
With Q1 orders flying in at record speed, management stating that '06 revenues will outpace 2005 by 70%, a unique and high-demand product and Verizon Wireless (NYSE: VZ) as a key partner; Nighthawk Systems Inc. (OTCBB: NIHK) is a low-cost/highpotential reward venture – especially at under $.07. Do yourself a favor and add a little NIHK to the portfolio. You’ll thank us later.
If we haven't given enough good reasons, a brief jaunt through recent press releases and recent Q's should do the trick . While NIHK may not be performing like a $38 stock such as VZ, a substantial ownership position of Nighthawk is obtainable with a fairly insignificant capital investment. Verizon started here and substantial owners have profited the most.
