Got a nice heads up from MicroStockProfit.com yesterday on NIHK. They were promoting the last time this thing ran.
From the Write up:
Prior to its sale, the boys at Eagle Broadband made some valuable inroads with one of the world's leading hospitality IP solution vendors before the big telecoms could make it to market with a viable offering. Under the terms of the agreement, the company would follow up an initial shipment of 500 units with a $6M contract that was staggered out over 13 months if all went well.
If NIHK is able to deliver on this new contract and pave the way for a bigger relationship down the road, the possibilities are very interesting. Based strictly on our estimate of, say, 505,000 hotel rooms under their hospitality customer's umbrella, and at an average selling price of $500 for EAG's set-top boxes (likely a sickeningly discounted); it is safe to assume NIHK experiencing the following revenues at specific penetration rates:
5% penetration = $12,600,000
10% penetration = $25,300,000
15% penetration = $37,900,000
* Please remember that these figures are only estimates and represent only potential revenues derived as a result of a strengthened relationship with its unnamed customer in today's news and do not take into consideration the growth of NIHK's historical business.
This deal is a home run for a number of reasons. Hey, I'd say any acquisition that boosts revenues by more than 600% near-term and holds the potential for 4000% gains down the road is a winner. I'm guessing the market will react favorably off the bat, so dig your heels in and conduct a little due diligence on your own behalf on the IPTV industry, the potential set-top box deal on hand, and the prospects of NIHK's historical business
