We all have to admit, the world of small cap stocks is often one of disappointment. Think about it. An incredibly small percentage of small businesses even survive. But with lots of blood, sweat and tears and finally voila! - that small business is a small cap company, fending for itself in the big bad world market. If being a small business was hard. . . ha! . . . being a small cap company is oh-so much harder and a completely different ball game.
But we know that when we do our trading. There is a lot of risk, but so much reward too. Hey, Ebay was small once. Google was too. The companies out there today are all fending for a position in the market and sadly, many of them will fail. But the ones that succeed make millionaires along the way.

Nighthawk - Movin and Shakin!

"And this has what to do with Nighthawk?", you ask. Let's just say, we have a good feeling about this one - and with good reason. (Gosh, we love being right.)

Just when it appeared that things couldn't get much better at Nighthawk Systems Inc. (OTCBB: NIHK) - the company wowed the investment community this morning with what could be its biggest news ever.

Announcing a collaborative marketing agreement with SkyTel (Revs > $100M in '06), a division of Bell Industries, Inc. (AMEX: BI) - NIHK has aligned itself with a premier telemetry solutions provider boasting unparalleled name recognition in the Utility industry, Nighthawk's bread & butter as of late.

First Verizon, and now this?

For those of you unfamiliar with the term, telemetry, as defined on Skytel's website is: The ability to measure and transmit data from a remote point. Sounds like a broad and far-reaching application, doesn't it? It is. And these two newfound affiliates are set to cash in on their ability to meet the needs of a very diverse client base - from electric utilities to health care organizations.

Although the deals with Verizon Wireless and American Messaging have obviously proven to be worth their weight in gold (they did, in fact, facilitate 2nd quarter revenues that are expected to be the highest in four years), SkyTel essentially opens the floodgates to a virtually infinite flow of telemetry related opportunities for NIHK.

Widely recognized as a technologically superior, best-of-breed solutions provider, Skytel combines a robust network with industry leading hardware and superior installation/support services. Just receiving the distinction as a Skytel marketing partner speaks volumes for the quality and efficiency of NIHK's hardware.

Nighthawk and SkyTell - Synergy at Work


The SkyTel agreement will also lead to Nighthawk's products being implemented into broader systems/solutions. This is very positive when taking into consideration the rapid ongoing/expected growth for telemetry/M2M applications. The smart metering market alone is expected by Energy Insights to grow from $2.3B in '06 to $5.5B by 2011.

Since both NIHK and SkyTel have deep roots in the automated meter reading space, collaboration there seems logical in the near future. Widely recognized as the leading solutions provider in the M2M space, SkyTel could help Nighthawk cash in on industry growth and develop an even more entrenched position in the Utility industry, both domestic and abroad.

Commenting on the agreement, H. Douglas Saathoff, Nighthawk's CEO, stated, "I'm extremely excited about this relationship with SkyTel, which has a long history of providing telemetry services. It gives Nighthawk a reliable, nationwide wireless network on which it can seamlessly offer enhanced, two-way telemetry products and services. We now have the opportunity to enhance our traditional control products with monitoring and data-delivery capabilities, which translates into additional revenue-generating opportunities. I look forward to a long, mutually- beneficial relationship with SkyTel."

Bouncing Off Support

Labels: Nighthawk, Nighthawk Systems Inc., Skytell