Last Friday,Execute Sports Inc. (OTCBB: EXCS) surged on very strong positive sales news. Those of you that traded it, were part of the second best trading day in the company's history. And the timing could not have been better. After all, tis the season to be jolly - especially when you're making money.

Well Execute Sports is back in the news today. This time the announcement is regarding the international sales of 10 Sugar Sand jet boats to a Russian boat dealer in Moscow. Judging by the rapid manner in which things appear to be ramping up, management's goal of $10 million in 2008 is looking more and more achievable (and this is in the 'off season').

Getting a Jump on the Season

With a global network of more than 140 dealer/distributors, the Sugar Sand business segment has a great deal of opportunity at its fingertips. Heading into the New Year, Sugar Sand is laying a strong foundation for 2008. Boat show season kicks off in January and a number of these dealers will be displaying their events around the world. With significant orders placed for 2008 before the year even begins, we really like what we're seeing out of the recently acquired entity.

Don't Forget about Execute's Traditional Water Sports Biz!

Although it is certainly off-season for Execute's water sports business, there is still potential for some action there during the cold winter months. Internet sales surged during the Holidays. Last year and as consumers become more Internet savvy, sales only stand to increase.

The company's biggest trading day ever was in January of 2007 on the news of the Kawasaki deal before announcing record water sports sales for the fourth quarter. Best of all, EXCS has done nothing but improve since then.

Finally, Things are coming together for EXCS. Hold on to Your Hat in '08!

Now, with the addition of the Sugar Sands sales network, the Kawasaki seal of approval, and exposure on major television channels, 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.

If companies such as Kawasaki, ESPN, HBO and MTV (who likely have a lot more business sense than most of us do!) are aligning themselves with Execute Sports; that is reason enough for me!

As we are not likely to be communicating via newsletters over the next few days, we wanted to wish all of our faithful subscribers a wonderful Holiday Season and a joyful and abundant New Year!

2008 stands to be a good one!

The US economy is faced with a magnificent challenge heading into the New Year.

As the struggling dollar, the War in Iraq, the sub-prime crunch, and prices at the pump dominate our airwaves, many Americans tend to forget about the end result of it all. Life is becoming impossible for the average American. Or what I chose to refer to as the fuel of the public enterprise. It has never been so expensive for him to simply maintain a healthy lifestyle and ensure the same for his family.

Costs associated with doing so are growing consistently by almost every conceivable metric. Pick one: airfare, apparel, childcare, college tuition, food, health care, and medication. All are steadily increasing in price and contributing to a rapidly rising cost of living while federal data reveals that income inequality is possibly higher now stateside than it was just before the stock market crash and Great Depression of 1929.

Overall cost of living in the US is reaching paramount heights. This is in turn spreading the paychecks of American consumer thinner than ever before and facilitating an increased reliance on credit to maintain their current lifestyles. Supporting this statement The U.S Department of Commerce, Bureau of Economic Analysis (BEA) announced this year that Americans on average had a negative savings rate for 2006.

The average American now carries four credit cards with access to approximately $19,000 on all cards total. In addition, the Federal Reserve reports that the Median U.S. household income is currently $43,200 and the typical family’s balance is nearly 5% of their total income. As the dollar gets stretched further than ever before, the implications of American consumers using a greater portion of that $19K are enormous. As the percentage rises, so does the possibility of economical turmoil.

Simply put, the American consumer with less dough in his pocket puts a massive strain on every facet of the economy. This obviously includes the stock market. Lack of disposable income and growing consumer debt put negative pressure on virtually every aspect of the public enterprise.

From the retail marketplace (particularly non-essential goods), to the banking/financial sector, the cash-strapped consumer has negative implications all around. This also gives birth to a situation in which the individual American investor can afford to invest less in the equity markets, further hindering stock market growth and overall future investment.

As we move into 2008 with the highest hopes, but yet slightly lower expectations than in years past, one thing is for certain: the cumulative action of the US consumer during '08 will have more influence in the future of our economy than in any year prior.

Labels: Cost of Living, US Economy

After a close to a two-month stretch of dead air and a dwindling price per share, Execute Sports Inc. (OTCBB: EXCS) is back with news this morning that should have investors licking their chops as 2008 rapidly approaches.

$2.4 Million in New Sales

The company announced today that its marketing agent, Challenger Powerboats Inc., has received orders for Execute's recently acquired Sugar Sand boat line totaling 114 boats or $2.4 million. Based on the company's press release issued on 9/04/07 entitled "Execute Sports Purchases Sugar Sand Jet Boat Division From Subsidiary of Challenger Powerboats" the deal works like this:

1. Challenger Powerboat Inc. (OTCBB: CPWB) manufactures and sells Sugar Sand boats to Execute Sports Inc. at wholesale price. CPWB is also responsible for marketing the boats on behalf of Execute.

2. Execute Sports Inc. rakes in the retail markup on the boats which provides diversification to the company's revenue streams and also a nice boost to current sales levels.

From a September press release:

"In conjunction with the transaction, Execute and Challenger entered into an Agreement for Exclusive Right of Supply, through which Challenger will manufacture and sell (at wholesale) Sugar Sand boats to Execute, and an Exclusive Sales and Marketing Agreement through which Challenger will market Sugar Sand boats on behalf of Execute. These agreements are for periods of ten years each, with similar renewal terms. Sugar Sand generated $7.7 million in revenue on net sales of 381 boats in 2006."

This Deal is a Plus by any Metric

Today's release explicitly states that the order resulting from the annual dealer show totaled 114 boats and that these meetings typically deliver between 30%-35% of annual sales.

For the sake of today's discussion, let's use 15% and 30% as arbitrary, yet somewhat verified, estimates of the typical retail markup on powerboats that a company such as Execute could potentially charge a customer. Allow me to also hypothesize that the 114 boats mentioned in today's announcement account for one third of total Sugar Sand sales in 2008. Please keep in mind that this would represent zero growth over 2006.

At a 30% markup, unit sales of 342 boats would yield incremental revenue of approximately $2.2 Million. 15% would yield about $1.1. For a company that logged just over $2M in 2006 revenues and has not surpassed that level yet in 2007, this type of incremental inflow would be quite positive for the company's health and future growth.

Don't Forget Water Sports

Remember, Execute's product placement & brand recognition have never been better for its watersports offering. For starters, Kawasaki has recently re-ordered and Execute products have been prominently featured on major television outlets including MTV, ESPN, and the E channel.

In addition, the company now sells products online with leading retailers including: The Sports Authority, Dick's Sporting Goods, Joe's Outdoors, Sport Chalet, Modell's and MC Sports. This bodes extremely well for future growth as the world is just getting their first taste of Execute Sports products.

With an all-star cast of sales executives including President Celeste Berouty, who spent 20 years as sales director at industry leader Body Glove Wetsuits (in its prime), shopping the new-look brand around the world, I like the chances of this business segment bringing in some serious revenue during 2008 and beyond.

Today's news should come as a breath of fresh air to the hoards of investors waiting anxiously to hear what has been developing over the past few months. Only time well tell how the market will react, but a potential 50%-100% incremental revenue increase for EXCS sure sounds positive to us

Rapid Growth at ATSI Communications Inc. Attracts $3 Million in Financing from Wells Fargo

In a move that validates exactly what we’ve been saying all long, ATSI Communications Inc. (OTCBB: ATSX) announced yesterday that they have entered into a $3 million accounts receivable financing agreement with Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A. (NYSE:WFC - News).

What we’ve been saying all along is that ATSI is one of the most promising emerging players in the VoIP industry and a company worthy of being on your watch list.

ATSI Is Growing like Gangbusters, but the Best May be Yet to Come

Labels: ATSI, ATSI Communications Inc., OTCBB: ATSX

Marmion Industries Corporation (OTCBB: MMIO) graced the investment community today with an update on their purchase order transactions for the month of November. According to the news release issued pre-market today, MMIO logged $328,105.44 for the month.

242,102.31 of the total was attributable to the sales of general purpose units, while the remaining $86,003.13 was attributable to sales of modified equipment.

Today's News: http://biz.yahoo.com/prnews/071213/lath026.html?.v=101

Commercial HVAC Sector, Education Segment, Poised for Growth

Did you know that schools represent both the largest and fastest growing construction sector in the United States? Apparently, Marmion Industries brass did. The company recently diversified its focus into the commercial sector and is already making money with schools. According to the Council of Educational Facility Planners International, $53 billion was spent within the burgeoning sector as of the end of August. So clearly, a huge opportunity is present for capable construction-related organizations.

Labels: Marmion Industries, Marmion Industries Corp., MMIO, OTCBB:MMIO

Now powered by a restructured management team employing a strong and scalable business model designed to capitalize on an enormous market opportunity (Forrester projects online retail sales to reach $350 billion by 2011) Commerce Planet Inc. shares should have indeed seen their bottom.

Labels: Commerce Planet, Commerce Planet Inc., CPNE, OTCBB: CPNE

Although I can't speculate directly on Marmion Industries' future growth and earnings outlook from a numerical standpoint at this point in time, the company appears to be hitting on, or making a valiant effort to hit on, all of the strategic initiatives outlined in their October 11 press release:

http://biz.yahoo.com/prnews/071011/lath046.html?.v=101.

Since these initiatives are very crucial to future growth, I'd say that their dedication to meeting them is a bullish indication of what the future holds. In my opinion, the company has expanded from a local "mom & pop" player to more of a regional, lower-tiered player over the past 4 years. This is evidenced by their growing revenues and expansion into new market segments (commercial HVAC, green buildings, etc.).

Although the move from $1 million in annual revenues to $5 million is likely easier than the move from the $5-7M range to the $15 million range, Marmion Industries is making what appears to be a stronger effort than ever before (strengthening its sales force, evaluating acquisition targets, announcing increasingly larger contracts, etc.) to bring their business to the next level.

My conversations with Bill (the ceo) and others in the industry lead me to estimate that the $15-20 million range in regards to annual revenue is where things become very interesting and the company becomes increasingly attractive as a buyout candidate. If the company's recently revised growth plan works to perfection, we could be seeing this level within another two or three years.

The way that I understand the situation, the company has relied on more or less word of mouth from a handful of historical customers in order to drive growth to current levels. With a more aggressive sales/marketing program in place and brand recognition improving through installs with end-users like ConocoPhillips and Lucite International, I like the company's chances for significant sales growth in both 2008 and 2009.

On another note, since the company may or may not hire additional personnel, expend cash and/or corporate shares on a future acquisition target, expand production capabilities, or spend on marketing awareness efforts, future expenses and share dilution should be watched with a careful eye. However, if MMIO can keep costs in check while growing revenues steadily over the next few years, which I think they have a great chance of doing, the company's could demand a premium from an acquisition standpoint. The way that I see it, a favorable acquisition is one of the best possible outcomes for the company and investors.

We will be issuing a research report on Marmion Industries over roughly the next month. The report will likely contain sales and revenue growth forecasts for at least the next three years (2008, 2009, and 2010) and I will be happy to share it with you upon its completion. In addition, the Blog sections of our www.microstockprofit.com and outcasttrader.com websites have a good deal of commentary on MMIO’s recent developments. This info may also provide a clearer view of where the company is going and where it has been.

I hope this provides a decent synopsis of the company’s future direction without putting my neck out on the chopping block by furnishing you with any not yet public information or earnings estimates that have not yet been approved for press.

Good morning!

The following release went out this morning an announces that we have received our largest single order for CEO700 whole house remote disconnect devices in our history! Back in May, we received our largest initial order ever from the Town of Smyrna, Delaware, and then in August we received our (then) largest single order from Avista Utilities.

Now the Town of Smyrna has topped that with an order for 500 units. So every few months we have been setting a record for the size of an order of CEO700’s, and I think there is a good chance that this trend will continue in early 2008 as new budget money becomes available. Smyrna has become a very good customer in a very short timeframe.

A new city ordinance goes into effect today that requires many customers and all new apartment/rental developments to install remote disconnect devices. That is GREAT news as I believe this most recent order is just part of a much larger overall need that Smyrna will have, as it is a growing area experiencing some rapid development.

They have told us that, based on their experience so far, they believe they can save substantial dollars using our devices that would otherwise be spent on additional personnel because of their growing customer base and customer service obligations.

This will serve as a fantastic case study for Nighthawk to use, and we certainly hope other municipalities will adopt similar ordinances. A precedent has certainly been set! For a look at a draft of the ordinance, you can go to:

http://www.smyrnadelaware.com/gov_notices/watsewelec.pdf.


Have a great day!

H. Douglas Saathoff

Chief Executive Officer

Nighthawk Systems, Inc.



Nighthawk Systems Receives Largest

Remote Disconnect Order in Company History

-- Newly Adopted Ordinance Expected to Spur Additional Orders--

SAN ANTONIO, TX – 12/5/07 – Nighthawk Systems, Inc. (OTC BB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions, announced today that it has received the largest single order for its CEO700 remote disconnect devices in its history from the Town of Smyrna, Delaware. Smyrna first ordered units from Nighthawk in May of this year, and has recently adopted an ordinance which will require certain customers and any newly constructed rental properties to install remote disconnect collars on meters. This latest order of 500 units represents the third order placed by Smyrna for remote disconnect units in 2007.

The CEO700 gives electric utilities the ability to remotely connect and disconnect power to residential electric meters on a moment’s notice, improving customer service response times and saving the utilities significant time and money compared to the traditional manual method that requires truck rolls and field personnel. By utilizing Nighthawk’s remote disconnect solution, Smyrna can avoid additional personnel costs typically associated with a growing utility customer base without sacrificing customer service.

H. Douglas Saathoff, Nighthawk’s Chief Executive Officer, commented, “Each successive quarter we’re getting larger orders from customers, which is obviously fantastic. I’m excited that use of our equipment over the past six months has proven to be sufficiently effective to support a new ordinance in Smyrna requiring use of remote disconnect collars. With the delivery of this order, Smyrna will now have in excess of 1,000 devices available for use, and we look forward to providing them with units going forward as their own customer base and service needs continue to grow.”

About Nighthawk Systems, Inc.

Nighthawk is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet service providers and fire departments in over 40 states. Nighthawk also designs and manufactures an advanced line of set-top boxes that are utilized to deliver high-definition multi-media content and applications to the hospitality industry.

Individuals interested in Nighthawk Systems can sign up to receive email alerts by visiting the Company’s website at www.nighthawksystems.com.

Forward-looking statements
Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

CONTACT:

Doug Saathoff

dsaathoff@nighthawksystems.com

(877) 7-NIGHTHAWK, Ext 701

Labels: Nighthawk, Nighthawk Systems, Nighthawk Systems Inc., NIHK, NIHK.ob, OTCBB: NIHK

Nighthawk Systems Inc. (OTCBB: NIHK) may be my favorite small-cap pick for 2008. NIHK announced a major milestone today with a contract for the sale of a record number of their “bread and butter” CEO700 product.

With recent news indicating that NIHK is already shipping product to meet more than $800,000 worth of orders for its newly acquired IPTV set-top box business, record sales in from the traditional business have me quite bullish on the company’s future.

Labels: Nighthawk, Nighthawk Systems, Nighthawk Systems Inc., NIHK, OTCBB: NIHK

Marmion Industries Corp. (OTCBB: MMIO) is back on our radar screen this week.

Announcing a purchase order valued in excess of $100,000 recently, MMIO logged more revenues during the first nine month of the year than it did in all of 2006.

But what does the future hold? That seems to be the question that everyone is asking these days.

I believe that things are destined to continue improving from an operational perspective. The company is simply playing in too hot of a market and making too many of the right moves in order to establish itself as a larger competitor not to perform well right now.

From a market perspective on a long-term basis, your guess is probabbly as good as mine. The next few years are certainly a "make or break" period for the company in my opinion as far as share performance is concerned.

The way that I see it, the company's ability to bring annual revenue into the $10 million range over the next two years would be a very bullish sign of what's to come. With plans to break ground on a new facility designed to meet increased demand for Marmion products and sales efforts ramping up to unprecedented levels, the company has a very legitimate shot at expanding.

For a unique play like this - unique in the fact that there aren't too many publicly traded HVAC companies on the OTC Bulletin Board - buyout potential is always a huge upside. I'd guess that the $20-30 million sales range is where an HVAC player such as MMIO begins to become more attractive from an acquisition standpoint.

Although that range is my estimate only, a few more years of steady revenue growth and a strategic acquistion of their own that makes sense could propel Marmion's revenues to the next level.

Obviously there is downside here too. The share price being one. MMIO's small size and a number of other factors that are conveniently outlined in their quarterly filings also create a substantial amount of risk. But we're all here because we have at least a portion of our portfolio dedicated to speculative, high-risk investments.

With the stock now priced in the sub-penny range, current levels could represent a very attractive entry point for those that believe in the business model here and look forward to a bright future for the company. Even if your not 100% convinced yet in the longer term value here, the stock has made some happy subscribers due to its volatility on news days.

Either way, we suggest putting MMIO on your radar screen for the next 6 to 12 months.

Labels: Marmion Industries, Marmion Industries Corp., MMIO, OTCBB:MMIO