|Written by GSCR Staff|
|Tuesday, 08 October 2013 09:29|
In yesterday’s Goldman Guide we outlined top ten investing list for the market right now. With the government shut-down and the debt default circus in the U.S., playing stocks based in Europe and Israel listed on U.S. exchanges may provide a nice alternative for some short-term gains.
There is no doubt you have seen commercials for magicJack on TV. (NASDAQ - magicJack VocalTec, Ltd. - $13.31). The Israel based company has had an aggressive marketing campaign in the U.S. over the past several years. The Company offers magicJacks VoIP device that provides users with phone service for home, enterprise, and while traveling; and magicJack PLUS, a standalone magicJack, which has its own CPU and can connect a regular phone directly to the users broadband modem/router and function as a standalone phone without using a computer.
By utilizing our current recipe, CALL certainly presents a great buying opportunity. First, the charts indicate a short term bullish signal related to DMA. Second, forward earnings per share for 2014 are forecast to increase 10% over 2013 EPS, which puts the FY P/E at just over 6. Finally, CALL may have reached a bottom of $12.96 about a month ago and appears to have entered an accumulation phase since that time trading over 200,000 shares in several trading sessions where share price has risen.
magicJack continues to innovate as demonstrated by its long list of patents. Good 3Q13 financial results could help CALL take off later on this quarter.
Look for a nice bump up to $16.00 by the end of Q4 2013.
Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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