Huge Pre-Release Subscriber Figures to Drive Stock Value

Investment and Company Research
Opportunity Research
COMPANY UPDATE

It should be noted CHICF recently reached a peak price of $1.64, which is 34% higher than our initiation price in January of this year. Clearly, despite the difficult environment for technology stocks, CHICF is not correlated to these issues and the strength of the relative stock performance should prove to be a precursor for future, outsized gains.

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CHITRCHATR COMMUNICATIONS, INC.

Huge Pre-Release Subscriber Figures to Drive Stock Value

Rob Goldman
rob@goldmanresearch.com

May 22, 2014
 

CHITRCHATR COMMUNICATIONS, INC.
OTC:PK – CHICF - $1.33, CNSX:CHA
FRANKFURT: WKN:A1W6GD, ISIN:CA1701771091, CA9

Price Target: $3.75 Rating: Speculative Buy
 

COMPANY SNAPSHOT

KEY TAKEAWAYS

ChitrChatr is a technology company that developed a proprietary Internet-based communications platform, the Comprehensive Universal Unified Communications Platform ("CUUCP"), which will offer communications services to users delivered through an 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, texting, facsimile, email and social networking services, into one easy to use platform. The CUUCP will be made available 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 5/20/14 $1.47  
52 Wk High - Low $1.64 – $0.4836  
Est. Shares Outstanding 31.5M  
Market Capitalization $42M  
3 Mo Avg Vol 20,000  
Exchange: OTC:PK  
 

COMPANY INFORMATION

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

Huge Increase in Founding Subscribers

As of May 16, ChitrChatr Communications announced that it has signed up over 262,000 pre-release founding subscribers for Comprehensive Universal Unified Communications Platform ("CUUCP"), which will offer communications services to users delivered through an integrated global communications platform and user friendly interface.

This is an incredible increase over the 55,000 count as of 6 weeks ago.  Moreover, it bodes extremely well for future success of the Company’s initiatives as well as the future valuation of the Company. We expect to get more clarity on the launch timing in the near future.

Infrastructure in Good Shape

With the recent U.S. patent application for the flagship technology and the new subsidiary project in Quebec, management appears to have laid the proper foundation for the Company. The Quebec domicile for the R&D subsidiary is a clever strategic move by management as it could enable ChitrChatr to qualify for incentives that reimburse up to 90% of R&D costs.

Stock Up Sharply Despite Tough Market

It should be noted CHICF recently reached a peak price of $1.64, which is 34% higher than our initiation price in January of this year. Clearly, despite the difficult environment for technology stocks, CHICF is not correlated to these issues and the strength of the relative stock performance should prove to be a precursor for future, outsized gains. The CUUCP is launched we believe the stock will be driven toward our $3.75 price target. We continue to rate these shares Speculative Buy.

 

 

RECENT TRADING HISTORY FOR CHICF

(Source: BarChart.com)

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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.

Analyst Certification

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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