EGHT - Sector: Technology---Industry: Communication Equipment

[ScottishTrader]

crazy ain't it?  I can't wait for Monday morning!!!!

[ScottishTrader]

One more thing - there should be a MAJOR short squeeze come Monday, as EGHT has over 5 million shares short, as of the end of November.  This represents about 10% of the company's stock, and while some of these may have been covered today and after hours (there was almost 10 million shares traded today)  There are surely going to be shorts in a serious world of pain come Monday.  Will be interesting to see how it all goes off

Here's the short data

[FreeLove]

Great good for a quick scalp at open, should be fun this is being spammed on other boards.
You guys dumping before 10:30 or you gonna ride it out more?

Will have to see open i guess

[setravis]

In relation to the news that came out, EGHT/BELLSOUTH
http://biz.yahoo.com/ap/051209/bellsouth_8x8_agreement.html?.v=2

You might want to check out CTLM, My pick for the up coming Stock Picking Contest.

Go here Contest pick....... http://www.3stocksonfire.org/trading/index.php?topic=3927.15

Or here: CTLM Thread,Started by Fousc.
http://www.3stocksonfire.org/trading/index.php?topic=2726.0

Well guess who provides the chips to EGHT?......You guessed it, CTLM
I don't think the market has connected the dots yet.
I think that will happen over the weekend.

[ScottishTrader]

Yep saw that too - and saw that it hasn't moved yet but the chart is looking very positive - perhaps a good (and less volatile) place to put some money from EGHT in.  I am still confident that whatever happens monday and poss tuesday, EGHT should have a solid run of it this month as more details about the terms of this agreement become available. 

It probably won't affect the bottom line until mid-06 however, but some are speculating that it could mean 500k additional subscribers - more than 5 times as many as they currently have, and the telcos are definitely waking up to the fact that VOIP is a technology they need to embrace and market to their customers before someone else does and they lose them.  The next thing will be VOIP on cell phones too, as WiMax and cell phones that also have 802.11 wireless capability become more popular, and people can opt to make regular cell phone calls or use VOIP to make free calls when they are in a hotspot.

The entire telecoms space is about to make a paradigm shift and the telcos like BLS need VOIP partners like EGHT if they are going to keep customers and continue to generate significant revenues.

Finally, a deal like this clearly demonstrates that EGHT is more than a loss making network communications company - they beat out significant rivals like Vonage for this deal, and it validates their technology as one that can scale to the needs of major partners such as the big telcos.
The fact that they beat Vonage to E911 compliance also looks to be a major feather in their cap, as any telco providing a VOIP service MUST provide an E911 service with it.  Vonage could be playing serious catch-up in the partnering space in the near term.

[setravis]

To futher investagate EGHT/BLS. Take a look at the chart of BELLSOUTH (BLS)
The stock is Breaking out of a long term Symmetrical Triangle (continuation) Pattern,
But Don't stop there pull up a 5 and 10 year chart.
BLS looks good for a play also. IMHO.
And look at a 6 month chart, looks to be forming a Head and Shoulders Bottom (reversal) Pattern.,needs the right shoulder to form.
I will post BLS 3 year chart here, but do look at the others.

[SeeingGreen]

well its getting talked about every where
will see what mon open brings any guesses?

[ScottishTrader]

Some more details from tmc.net "The authority on VOIP, call centres CRM and telecom"

BellSouth, 8x8 launch VoIP service
(ZDNet News)BellSouth is following other large local carriers that have begun offering home services powered by voice over Internet protocol.

As part of a partnership with 8x8, a provider of voice and video broadband phone services, BellSouth announced on Friday that it will, over the next several weeks, offer customers the means to make phone calls via their computers. For $20 a month, BellSouth subscribers can order the new service, which features voice mail, caller ID, unlimited free phone calls to anywhere in the U.S. or Canada, and cheaper overseas calls, said Bryan Martin, chairman and CEO of 8x8.

"This validates our technology," Martin said. "We're a small, 200-person company, and to have BellSouth endorse us says a lot."

Financial terms of the deal were not disclosed. Atlanta-based BellSouth chose 8x8 after testing other VoIP providers, Martin said. BellSouth continues to work on creating its own VoIP technology, according to news reports.

In the United States, VoIP has yet to catch on with a broad audience even while its adoption expands quickly in many other countries. Analysts, however, expect rapid growth in the U.S., and some experts have predicted that traditional phone companies could lose a third of their business by 2008. SBC, Verizon Communications and Qwest have either launched or said they intend to launch a residential home phone service using VoIP.

The news sent shares of 8x8, headquartered in Santa Clara, Calif., climbing sharply. After rising 52 cents to close at $1.74 in regular trading, they surged another $1.31 in after-hours trading to end the day at $3.05. However, they are still about half their value from two years ago, when the company was considered one of the major VoIP services players.

BellSouth has already rolled out the 8x8 service in Florida, and in coming weeks the company will begin to release it to the other areas it serves. To set up 8x8's service, a BellSouth subscriber must order the equipment needed that enables the service to work on whatever high-speed connection the user has. Under the agreement, BellSouth will handle marketing while 8x8 will oversee customer service, fulfillment and billing.

[ScottishTrader]

Well this morning was probably what most expected - Big gap up, very quick peak and then profit taking dragging the price down and down.  But technically it seems to be acting very well once again. 
The low was just below the 50% fib retracement from yesterday's close, which also corresponded exactly to the 38.2% retracement from the beginning of the move on Friday, as can be seen in the chart below.  I consider this to be a bullish sign that profit taking for the morning is done.  It is currently ranging around 2.70, but we will see what the afternoon brings....

[ScottishTrader]

woo hoo, I'm last in the stock picking competition

You always have to root for the underdog, but this was probably to be expected, was very unlikely that it would breakaway today.  A little disappointed with the close as it broke through the 50% fib retracement and previous low of the day.  Hmmm...  It is likely that EGHT will see more of a push down tomorrow as the gradual grind and shorts step it down.  But I do expect it to level and turnaround this week, at levels significantly higher than it was at previously.  I still think that this could be a very strong play over the next month as more details about the deal come out and EGHT gets mor coverage.  Still,  a bit ugly to see that much of a gain ground down Still, is double where it opened Friday am.

[ScottishTrader]

Well as expected, today was a repeat of yesterday, a gradual step down to close around 2.12.  In fact it is interesting that if you look at the intraday chart, today's pattern was almost exactly identical to yesterdays - including the small mid-day upwward trend - perhaps this pattern is fairly common???

Anyway, I think that we will see further downward movement tomorrow, but things should start levelling off.  I'm looking for 2 things for re-entry-
1) a retracement to the 61.8% fib level for the whole move, which I see at about 2.04, and movement off of this level, which also corresponds to a support zone
2) if this level is broken, a sharp fill of the gap down to 1.98, hopefully followed by a solid bounce as buyers waiting for the gap fill come back in.

It could break below Friday's high this week, but there is strong support at 1.85, and I think that this level would be a very attractive entry point. 

I'm still quite confident that EGHT has further upward momentum here.

[setravis]

active in the pre-market
+14.59%.....Volume @......208,450

[fig]

The volume indicates accumulation, open mind

[Buyhigh?]

I am hoping this sleeper gets some caffeine in the system

[setravis]

Moving...microcap with huge insider purchases.....

52wk Range: 0.65 - 3.39

Volume: 2,986,815
Avg Vol (3m): 395,943

Technicals
Percentage Gainer

Last Price Quote is:
21.50%above 13-day EMA
25.04%above 50-day EMA
RS Rating: 98 

Fundamentals
Analyst Upgrade to Buy

Key Data:
Market Cap (M): $60.06 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: Buy