3SOF

very disappointed to see the close below $1.41

Unfortunately EGHT broke three supports today and, according to plan, I had to sell it for a 19.9% loss:

QuoteSo, the trading plan for EGHT is: HOLD for as long as the stock is set to close above $1.44 (it may go to that point on an intraday basis, to close the micro-gap, but then claw back up to close above $1.50 - that would be an extremely bullish candlestick). SELL if the stock is set to close below $1.44.

I still don't know what went wrong on the fundamentals, perhaps it was this on my initial analysis:

QuoteSince these are quarterly numbers, I can't call the increase in the number of outstanding shares "moderate". Unfortunately the company is issuing shares, and the market cap is growing faster than the share price advance implies.

Probably the company used the advance phase from August to mid November to issue and sell some more shares, as it has been its practice for years. I need to be more careful with stocks showing operating losses and a weak balance sheet, because the risk of dilution is always considerable in those cases.

Anyway, I was wrong and paid the price with dollars, as it should be. Learned my lesson. Now I'll just move on.

anyone watching this one? it may have stopped falling. i'm watching it.  soxguy

eght up this morning on new product news. off the lows of 1.12. soxguy

up over 25%... could be another run at 2 bucks. soxguy

i noticed on the diet thread that david alluded to eght.on this one i sold when david did and took my loss.unlike a lot of other sells i continued to monitor it closely and bought it when it seemed to find a bottom at 1.15 last week. though it did dip to 1.12,it recovered and took off today. i sold at 1.62. i will keep watching it.by the way,i think that 1.15 level was roughly a 61% retracement. i'm not good at figuring those things. anyway,my point is that if i can make an ocasional buck,then there's hope for us all.  soxguy

earnings out in the morning
WWW.EGHT.NET Info Sheet   

Next Conference Call 9:00 a.m. Feb 1, 2007
Over 6,000 US Businesses (over 44,000 business lines) using Packet8 Virtual Office.
Packet8 TANGO - World's First Video Terminal Adapter!
Zero Corporate Debt.
Office Depot granted Exclusive Nationwide Retail rights for Virtual Office.
EGHT states: "Monthly cashflow positive will be achieved during Q1 2007"
Latest VOIP Patent "Click on Image" awarded Oct 2006
VOIP Patent Portfolio 65 Patents and growing!
Approx 9,000 New Virtual Office lines last quarter.
52% Gross Margin! Improving every quarter.
Revenues Up 86% over same qtr last year.
Net Loss Down 52%
$14.5M Cash Reserve
Cash reserve expected to bottom at approximately $10M
EGHT is NOT seeking additional capital.
EGHT is NOT seeking or planning a reverse stock split.
$99 Customer acquisition cost (lowest in industry).
Largest Installation so far... 240 Extensions
Multinational companies like UNISYS are choosing EGHT
EGHT Leads the market in VoIP features & performance.
Business and Residential FAX over IP.
INTEL teams up with EGHT for new Desktop PC VoIP with SOFTALK!!!!
ELEVENTH consecutive quarterly increase in Packet8 sales revenues!!!
Operating expenses are continuing to decline.
REDUCING operating expenses per line each month.
Virtual Office comprised 25% of total revenues qtr ending SEPT 2006. 
Softalk Premium and Softalk Office released - World beating technology.
Nationwide Installation of Virtual Office now available through CompUSA.
6 party video conferencing on Softalk for Virtual Office.

With the recent upswing in the price of this stock, I assume the news coming out tomorrow has taken this into account? I had owned this once and made money on it and want to again but I am undecided if the share price has the earnings coming out tomorrow. Any opinions?

I plan to hold through earnings, as I think that EGHT could have some significant upside potential, but I will probably take a bit off the table today to give me a bit of a cushion on my buy in of 1.58.  Have to look a bit more at what thinsg look like through the course of the day.

They are in a good space have been growing subscribers and we should start seeing soe fruits of the BellSouth deal, so I'm optimistic.

EGHT getting crushed after earnings. I am glad I decided to stay out until earnings.

yeah, I thought earnings were AFTER HOURS, and didn't set my stop.  Ugh 

Totally creamed and underwater now.  what to do what to do....

This thing is tanking big time. I guess we now know the upswing didn't have this news in mind. But...was it this much of a surprise that it would bring tankers into this thing?

Maybe a great time to buy now!


Revenues for the third quarter of fiscal 2007 were $13.2 million, compared with $13.2 million for the second quarter of fiscal 2007 and $8.5 million for the same period of the prior year, an annual increase of 56%. The net loss for the quarter was $3.1 million or $0.05 per share, compared with a net loss of $2.7 million, or $0.04 per share for the second quarter of fiscal 2007 and a net loss of $6.8 million or $0.12 per share for the same period last year, a decrease in net loss of 55% over the prior year period. Total revenues for the nine-month periods ended December 31, 2006 and 2005, were $38.7 million and $21.6 million, respectively. Net losses for the nine month periods ended December 31, 2006 and 2005, were $11.5 million, or $0.19 per share, and $17.5 million, or $0.32 per share, respectively.

At the end of the third quarter of fiscal 2007, cash and cash equivalents, short-term investments, and restricted cash totaled $12.4 million, and the company generated approximately $373,000 in cash during the month of December, three months ahead of the Company's previously stated forecast. The Company burned approximately $2.1M of cash in the third fiscal quarter, compared to $3.3M in the prior quarter and $5.2M in the June quarter.

The net loss in the third fiscal quarter was impacted by aggressive discounting and promotions, as well as $428,000 of employee stock-based compensation expense due to the adoption of Statement of Financial Account Standards No.123®, not present in the year-ago period. Excluding the impact of stock option expenses, the third quarter non-GAAP net loss was approximately $2.6 million. Gross margin for the December quarter was 52% compared to 21% for the same period last year.

"The monthly cash growth is a first and a huge milestone for 8x8 as a service provider, and we believe we are the first publicly traded, pure play Voice over IP service provider to achieve this accomplishment," said 8x8 Chairman and CEO Bryan Martin. "While our cash growth during the month of December was largely the result of limited inventory purchases, our cash flow on a steady state basis is now very close to break even, and within the range of our monthly discretionary spending on advertising and other marketing-related functions. We are very pleased that our diversified strategy of focusing on higher margin business service customers with our unique and patent-protected Packet8 Virtual Office technologies and video communication technologies are yielding these landmark results."

"By focusing on Packet8 Virtual Office sales, which have significantly higher margins and lower churn rates than residential services, we are capitalizing on the unique solutions that our Virtual Office services afford small and medium sized businesses. Due to this transition, total sequential quarterly revenue growth slowed, though quarterly revenue from both Virtual Office and video services increased sequentially by 30% and 22%, respectively, on target with our business model. In response to the increased interest in our business services, we more than doubled our direct sales force focused on these channels during the month of December," concluded Mr. Martin.

Early last month, the Company announced that over 6,000 U.S. based companies, ranging in size from three to 250 employees, now subscribe to the Packet8 Virtual Office suite of business services.

I know, I decided to hold on to my shares, would have actually been nice to pick some up right when I was panicking around 1.37.  Must remeber that, usually in a panic sell situation, when you're really sweating it, is the time to BUY more shares as opposed to sell your shares, as so often it is good for a bounce and you may well get some profit back to cover your losses.

EGHT has been steadily stepping up through the rest of the day.  Currently 1.50/1.51.

Unfortunately I've also been caught in this one and
decided  to hold as 1.50 seems to be an acceptable support

Regret I could have had a 20 cents profit instead of the
current 9 cents loss

Good luck

For whatever reason my trade button didn't want to work so I couldn't even get into this stock today and ride the dip up from the low today. Maybe my button and I were a little scared of a further drop but not anymore.  My plan is to try and get into this thing shortly after open and ride it tomorrow since all the long that couldn't stomach this got out. As you said scottishtrader, when it's' low buy low and try to recapture a loss into a gain or not as much of a loss. Makes good sense to me.