Commercial Launch to Drive Stock Price and Valuation |
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Today we are issuing a research update on a company that has achieved impressive developmental and financial milestones. In just a matter of months, this company has improved its balance sheet, completed the early stages of testing, and has set itself up for a successful beta test phase and future commercial launch via a just announced $2M credit line. Clearly, these moves reduce the risk in these shares and dramatically enhance the stock's value as the company progresses along the product developmental chain. It has a patent-pending, feature rich, innovative unified personal communications that is on the cusp of a commercial launch with the major potential market share success. Once the beta testing is completed and the platform is launched we believe that the stock could more than double from current levels.
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The ChitrChatr technology is based on VoIP (Voice over IP) and uses internet services and data transmission, rather than the public circuit-switched telephone networks (PSTN), cellular networks and satellite service. ChitrChatr subscribers can obtain telephone numbers from approximately 65 different countries, making the CUUCP an enviable universal communications solution. CHICF Has Also Achieved Major Financial Milestones In the fourth quarter of 2014, the Company executed two transactions which clearly improved the balance sheet. These deals included a small private placement and the settlement of $300,000 in debt. In both instances, the Company completed unit offerings that consisted of one share of stock and a one warrant. It should be noted that our estimated shares outstanding figure in the table above includes the shares issued in these offerings as well as the warrants. In our view, these transactions could prove to be critical as the Company reduced its debt and also paved the way for meaningful future fundraising without additional dilution via warrant exercise. Separately, CHICF recently secured a line of credit for $2,000,000 to be used to complete the final development after testing and for marketing efforts of the widely anticipated market release of the platform. The line of credit will facilitate and streamline necessary actions for the completion of the final development phase and should serve as a major boost that ensures a successful future commercial release. Moreover, this access to capital dramatically reduces the Company's risk profile. Shares Offer Big Upside and Good Value In just a matter of months, CHICF has improved its balance sheet, completed the early stages of testing, and has set itself up for a successful beta test phase and future commercial launch via the just announced $2M credit line. Clearly, these moves reduce the risk in these shares and dramatically enhance the stock's value as CHICF progresses along the product developmental chain, prior to its commercial launch and potential market share success. Once the beta testing is completed and the CUUCP is launched we believe that 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: www.Stockta.com) 
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SENIOR ANALYST: ROB GOLDMANRob 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 CERTIFICATIONI, 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. DISCLAIMERThis Opportunity Research report was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm's internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored micro cap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile, and may offer greater upside. Goldman Small Cap Research was compensated by a third party in the amount of $8500 for a research report and three research updates. All information contained in this report was provided by the Company via filings, press releases or its website, or through our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations. Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co. The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. This report does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor's decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority. ALL INFORMATION IN THIS REPORT IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION. For more information, visit our Disclaimer: www.goldmanresearch.com |
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