Q: Since you commented on NCi's earnings about 5 weeks ago, the SP has risen 60%, largely due to two announced purchase orders totalling more than $22M, not bad for a company whose market cap has only recently surpassed $100M. Good to see that trading volume has appreciated noticeably and Canaccord has initiated coverage although they may soon have to increase their price target. Have we got a winner here?
5i Research Answer:
There has been minimal news since our last comment, though NTG did announce a couple of nice contracts ($23.6M total), worth about 33% of a year's sales. Canaccord also lowered its target price from $3.25 to $3.00. But the stock has noted has been very strong. Canaccord remains the only broker following it. Market cap is now $116M, and with 100%+ growth it is certainly starting to get attention. Recent growth may not be sustainable at that high rate, but at 14X earnings it looks good for small cap investors with strong momentum overall.