EGHT

[ScottishTrader]

I sold half of my EGHT yesterday at 1.50, to lessen the risk with the rest of my position.  Lost about 5% on that portion.  Whichever way you slice it, yesterdays response to earnings was pretty bearish, and the results were a miss across the board, although mangements comments were pretty upbeat (I didn't listen to the CC, did anyone else?).  We could see a bit of a reound today, but I think EGHT may get a bit stuck in the 1.50 range.  I'm hopeing that 1.50 will hold for now though.  I think it needs to get back above 1.60 to demonstrate that this isn't a trend change.

[lancefur]

Management has to be upbeat. That's there only mission in life when a stock tanks on a day like yesterday. 

I hope the stock doesn't turn bearish as a result of the news. Maybe it was a good thing I couldn't trade on it yesterday but all seems well now as I made a trade on something else this morning. So are you saying for a trend reversal, hitting around 1.60 would be a good sign to get back in for a break out run?

I ask because it tanked quite a bit back starting in November and bottoming out in the beginning of January and had a nice rise. It now seems to be on a run down again. Again still being new to trying and trying to understand technical analysis, if it gets to around 1.20, are we looking at a double bottom and then in for a bull run? It looked like it hit around that same mark back in early January.

[rud56789]

Good early morning activity and an upgraded Buy signal from Merriman Curhan Ford.  They are also speaking at the Roth Capital Partners 19th Annual OC Conference on Thursday, February 22, 2007 at 11:30 a.m  (CPNE is giving their guidance at this Conference too)

[akclide]

With WMT starting to sell SKYPE in it's store. It will hard on the sales of othe companies in this relm,so caution is the word.

[m2machine]

Update:

The Wall Street Journal this weekend states.."Internet-phone company 8x8 (EGHT) even offers futuristic video phones." This is in reference to EGHT's recently released Tango Videophone which has been featured in Montel's TV show and it is now traveling all over the net on YouTube. More on Tango later.

Here is the link for this weekend's  WSJ story on Internet Calling:

http://online.wsj.com/article/SB118074663033822198.html?mod=yahoo_hs&ru=yahoo

The article also mentions that one of the limitations of VoIP providers is that they are not capable of offering 911 service. EGHT offers 911 and many other features that competitors don't or can not offer. EGHT's technology is protected by 68 patents.

Technically, EGHT's chart shows that a breakout can now occur any day after basing at $1.4 for almost a month:

http://stockcharts.com/charts/gallery.html?eght

EGHT has over $11M cash and no debt. There are only 64M O/S shares and 40M shares on the float.

EGHT is the fastest growing VoIP phone/video/fax provider to small and medium businesses (SMBs) according to a recent report.

http://biz.yahoo.com/prnews/070517/sfth028.html?.v=101

The report says that EGHT is ahead of XO Communications, Cbeyond and Covad in this sector. The hosted-VoIP market for SMBs is expected to grow from $410M in 2007 to $1.5B in 2010. EFHT's recent growth from 5000 customers in October 2006 to 7000 SMB customers in March 2007 suggests that EGHT might be growing at a faster rate than the entire sector.

SMB customers produce higher margins and also stay longer with a provider than residential customers.

Most of EGHT's residential customers come for Vonage and because they are lured by EGHT's superior technology like its newly introduced Tango Videophone (shipments started at the end of March of 2007)

The link below shows the Montel show featuring the Tango Videophone and many other Tango-related YouTube videos from users ranging from residential to commercial:

http://www.youtube.com/profile?user=bmartin8x8com


EGHT's 4Q and FY 2006 results reported on May 7 show the company's significant improvement in all metrics:

- Beat analysts 4Q revenue estimate of $13.5M with $14.4M for 4Q 2006

- Yearly revenues grew by 67%!! going from $31.9M in 2005 to $53.1M in 2006.

- 4Q 2005 revenue grew by 39% going from $10.3M to $14.4M

- Gross margins have increased every quarter to over 50%.

- 4Q cash burn of little over $400K has been reduced significantly every quarter.

- EGHT has $11M in cash and no long term debt.

The following webpage contains the latest company presentation. Starting on Page 13 you can see graphically EGHT remarkable improvenet in all financial metrics in the last few quarters:

http://www.8x8.com/index.php?s=awards

DO YOUR OWN DD BEFORE YOU INVEST

[setravis]

The EGHT Threads in Previous 3SOF Picks
Have been merged.
Got the go ahead to do so from Ramsburg.
I will be working here on this board to merge other threads also.

I will leave you Friday's closing chart while I'm in this thread....... 

Good trading to all ! 

Regards,
Your fellow trader @3SOF
setravis