Huge Subscriber Growth to Drive This Stock Higher

Investment and Company Research
Opportunity Research
COMPANY UPDATE

Some monthly subscriber growth figures are impressive and others are downright ridiculous. Count ChitrChatr Communications (OTC – CHICF) in the latter category. As of the end of March, the Company reported over 55,000 founding subscribers to its service which is a 388% monthly increase.

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CHITRCHATR COMMUNICATIONS, INC.

Company Executes Impressive Initiatives

Rob Goldman
rob@goldmanresearch.com

April 25, 2014
 

CHITRCHATR COMMUNICATIONS, INC.
(OTC:PK – CHICF - $1.47, CNSX:CHA, FRANKFURT FRA:CA9 WKN)

Price Target: $3.75 Rating: Speculative Buy
 

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

ChitrChatr is a technology company that developing a proprietary Internet-based communications platform, the Comprehensive Universal Unified Communications Platform ("CUUCP"), which will offer communications services to users delivered through a fully integrated global communications platform and user friendly interface. Based on VOIP technology, the CUUCP will be a common unified application that integrates virtually all methods of communication, including audio, video, conference calling, messaging, chat room, texting, facsimile, email and social networking services, into one easy to use platform. The CUUCP will be made available to end users as an app that can be accessed using a web browser, and can be installed on multiple mobile and other devices.

 

 

KEY STATISTICS

 
Price as of 4/24/14 $1.47  
52 Wk High - Low $1.30 – $0.4836  
Est. Shares Outstanding 31.5M  
Market Capitalization $46.3M  
3 Mo Avg Vol 10,000  
Exchange: NASDAQ  
 

COMPANY INFORMATION

ChitrChatr Communications, Inc.
76 Marlyn Court NE
Calgary Alberta  T2A 7H5
CANADA
702.475.5636
http://ChitrChatr.com
info@Chitrchatr.com

Conclusion: Since our update 6 weeks ago, CHICF has executed a series of initiatives that serve as a major positive for the Company and should drive broad interest in these shares going forward.

Major Infrastructure Steps: CHICF announced it filed a U.S. Patent application for the ChitrChatr CUUCP, a groundbreaking technology that sets a new standard in the way people communicate.  The unique features of the ChitrChatr CUUCP and the advanced technology provides for scalability unlike other services.  The ChitrChatr infrastructure will be spread across 1000s of server nodes across the globe with each user automatically connected to the nearest server.  Plus, CHICF has set up a R&D subsidiary in Quebec that could enable it to qualify for incentives that reimburse up to 90% of R&D costs.

Huge Increase in Subscribers: As of March 31, CHICF reported a huge 388% monthly increase in founding subscribers to over 55,000. This bodes extremely well for the Company’s efforts and valuation.

Critical Technology Innovation: CHICF has a new process to combat users’ mobile data limits and associated overage charges by consolidating multiple connections of numerous types of services into one connection using a highly optimized and lightweight protocol. This process’ load reduction also allows for battery ranges to be extended between charges.

Stock Up 20% Since our Initiation in Jan: Available as an app for use on multiple devices, the CUUCP integrates virtually all methods of communication, including audio, video, conference calling, messaging, chat, texting, fax, email and social networking, into one easy to use platform. On the heels of the recent news and additional upcoming milestones, we believe the stock will be driven toward our $3.75 price target. We continue to rate these shares Speculative Buy.

 

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Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

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I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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