There are just some things the market always responds to. When Execute Sports Inc. (OTCBB: EXCS) announced an initial deal with water sports legend Kawasaki Motors Corp. on January 19th, the market simply went nutty. Shares surged upwards on massive volume - which surpassed 22 million - from an opening price of $.03 to a high of $.10 before settling down at $.08. A 333% jump in one day with a 266% daily gain.

Announcing four new purchase orders from Kawasaki this morning on the heels of a $5 million acquisition just a few weeks ago, EXCS is primed for another explosive day in the market. Execute has a good following and news like this is what really seems to rally the troops.

Kawasaki - Back for Seconds! Execute Sports has an agreement in place with Kawasaki Motors Corp., under which the company is developing and producing a 2007 test line of Jet Ski® products. From where I stand, re-orders from Kawasaki and recent comments made by EXCS management indicate that the deal has been a smashing success and also that future collaboration between the two parties is likely to continue, possibly on a larger scale.

Hindsight is 20/20

As can be seen in the EXCS weekly chart to the right, it is pretty obvious what kind of reaction the market had the week EXCS announced its initial business dealings with Kawasaki.

Kawasaki is not just a big name in this industry, arguably the pioneer of modern day watersports. This increased affiliation with Execute Sports simply put adds to the company's value, credibility and, of course, the stock price.

An announcement of an 'initial test order' produced hundreds of percent in share price gains. I am looking forward to today's trading to see what kind of effect four repeat orders may have on EXCS's share price.

Celeste Berouty, President of Execute Sports comments in the recent press release . . .

"It is both exciting and pleasing to have Execute products selling so well for such a high caliber client like as Kawasaki. We intend to continue providing them with top quality goods."

Partnering with Leaders

Kawasaki is an ideal partner for EXCS due to its unparalleled global brand recognition within both the overall action sports in industry and the personal water craft (PWC) space, which has more than 1.5 million units in use.

With a total market size of nearly $1 billion and a dedicated user base surpassing 20 million, the PWC segment was more or less founded by Kawasaki when it released its Jet Ski® offering, the first commercially successful PWC in the United States. If EXCS can continue to improve sales of their Jet Ski® accessory product line, I think that sales to other industry leaders should grow as the as the world pays witness to their superior quality and competitive pricing. Collaboration with action sports giants can only prove to be extremely lucrative down the road, particularly due to the sheer number of potential customers and the fact that all PWC participants essentially need to use Execute's gear to play.

Sales push is stronger than ever

With management recently indicating that 2008 sales are on target to hit $10 million, Execute Sports now benefits from a more amplified sales presence than ever before in company history. Even prior to the recent Sugar Sands purchase, EXCS was experiencing record sales growth. Online and brick & mortar sales continued to skyrocket as OEM sales thrived - which is always good to see.

Now, with the addition of the Sugar Sands sales network and the Kawasaki seal of approval, Celeste Berouty, Execute's President, who was recently snatched up from one of the company's biggest competitors (she was Director of Sales, Wetsuit Division at Body Glove Wetsuit Co.) is ready to take this company to the next level.

Look for some moving and shaking at EXCS today. The smoke should clear over the next few days but that should be plenty of time to claim your position. Needless to say, I know where my two pennies will be today. However, I can only guess where that two penny investment will be tomorrow.

Labels: Execute Sports, Execute Sports Inc., Kawasaki