Earnings Earnings Earnings
It is a bit difficult, after years of investing in start up and small cap companies, not to look at the world for the demands that are burgeoning and whether or not they are being met by the current market.I constantly enjoy seeing an ingenious product or service or, even better, a dramatic improvement on a service or product. This business side of me has a constant eye on developing trends and markets being tapped or untapped, and then promptly puts my foot in the door. This weekend was no exception.
DineWise On The Rise
While stepping out for a stroll to the beach Saturday morning in an attempt to forget about work for awhile (no such luck!), I was hit square on the head by one of the key reasons that DineWise Inc. (OTCBB: DWIS) is experiencing such solid growth and holds so much potential for the future. We'll get into my rundown on one of the company's biggest value propositions later on, but first, Q2 numbers were announced today, and we like what we see.The company's flagship DineWise® brand (24% of total sales) has experienced 8 consecutive quarters of sales increases. Q2 '07 revenues have increased a whopping 317% over Q2 of '06 and first half '07 revenues expanded 428% over the same period of '06. DWIS has also improved their net loss per share by nearly 80% and decreased operating expenses, giving a very positive indicator of what the future holds.
Nighthawk Soaring to New Heights

Another one of our long-time favorites, Nighthawk Systems Inc. (OTCBB: NIHK) is also out with stellar earnings this AM. Announcing that Q2 revenues outpace those of Q1 2007 by 60% and Q2 2006 by 35%, it appears that NIHK is developing a well-entrenched position in the surging utility automation market. With management stating that more than 75% of Q1 revenues were derived through utility sales, it's very positive to see the company thriving in what it recently defined as its "largest opportunity for near-term growth".
Commenting on the results H. Douglas Saathoff, Nighthawk's CEO, stated, "Demand for our CEO700 remote disconnect product has been very strong so far this year and I'm extremely pleased to see growth not only in the number of electric utility customers, but also in the size of the orders being placed by those utilities. We are building our manufacturer's rep network and beginning to see some positive results from that program. We're making enhancements to our products that will make them even more useful to our electric utility customers while decreasing our production costs per unit. I'm excited about the progress that we are making in the utility market, which I believe presents the Company with the largest opportunity for near-term growth and positive financial results."
NIHK has amassed an optimal configuration of customers, partners, and distributors and is now cashing in on its ability to help just about everybody under the sun conserve energy. With the massive amount of investment dollars being spent by electrical utilities during the first half of '07 as well as the M&A activity in Nighthawk's industry, this company gets more and more attractive every quarter.
Protecting Our Parents
As I embarked on my leisurely jaunt this past weekend, I noticed an older woman in what seemed to be her early 80's about a block ahead doing her best to navigate her cane, her three bags of groceries, and herself back to her domicile. Before I could get close enough to offer assistance, seemingly in slow-motion, the woman took a bad fall. Just missing the pavement by inches with her head, she wound up lucky and a bit shook up with a few minor scrapes on the arm.Luckily for her that morning, I was there to help her up, carry her and her groceries back safely to her place, which was up two flights of stairs that I could barely make it up. I say luckily because there were about 10 other people in the vicinity carrying on with their daily lives that were not stopping to help or even blinking an eyebrow. Wow, I thought. This is somebody's mother, somebody's grandmother. When she mentioned that she had no family in the area, it dawned on me. This is the exact drastically under-served market that DWIS has built an early entrant position in and continues to thrive in.
Think about it - From the Amalfi Research Report
"According to a 2004 study conducted by MetLife and the National Alliance for Caregiving, more than 34 million Americans provide support to an aging family member. In addition, it is expected that today, in between 7-10 million of these are classified as "long- distance" caregivers. This number is expected to skyrocket over the next five to ten years as the baby boomer market ages and one American turns 60 every 7.5 seconds.""With care giving, comes significant expenditures of both money and time. The 2004 study reveals that long distance caregivers spend an average of $392 per month on travel and other out of pocket expenses while missing an average of 20 work hours per month. By providing a "plug-and-play" in-home dining solution to the nation's caregiver population, DineWise is able to help keep costs down, while allowing customers to feel good about doing the right thing for their families."
This is just one key market for DineWise Inc. that has facilitated growth thus far. The company is a marketing machine and has already developed invaluable inroads into the senior caregiver space as well as other very lucrative plays including:
Low-Carbohydrate - estimated 10% of U.S. on "low-carb" diets;
Overweight/obese - >65% of U.S. "overweight, > 39% "obese"
Diabetic - nearly 60 million of U.S. now classified as either diabetic or pre-diabetic;
Premium diet - 33% of U.S. on diet, >70% vow to diet in and
The on-the-go, health conscious consumer - 76%of U.S. consumers are making some type of effort to improve their health.
And don't think for one minute that these guys are just "targeting" some hot markets, DWIS is rapidly penetrating these key under-served segments with a new product line and is aligning itself with the proper company to facilitate major growth.
As mentioned in previous editions, Management in both companies have EXTENSIVE experience in running much larger public organizations. More importantly, they have taken on their current assignments because they believe in their business plans as well as their ability to build leading brands and meet enormous demand in a number of under served markets - just one more reason we believe in them!
Labels: DineWise Inc., DineWise., DWIS, DWIS.ob, Nighthawk Systems, Nighthawk Systems Inc., NIHK, NIHK.ob, OTC BB: DWIS, OTCBB: NIHK

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