RDCM

[David Randolph]

RDCM has a market cap of just $36M, so clearly there's potential for fast short term moves on this stock.

We got 3rd quarter results yesterday: RADCOM Reports Financial Results for the Third Quarter of 2005 - Continued Strong Momentum: Sales Reach $5.9M, 3rd Straight Quarter With Above-40% YOY Growth 3rd Consecutive Profitable Quarter With $0.03 EPS

Some highlights:

- Revenues for the nine months ended September 30, 2005 were $15,762,000, an increase of 44% compared to $10,977,000 for the first nine months of 2004. Net income for the first nine months of 2005 was $729,000, or $0.05 per ordinary share (basic and diluted), compared to a net loss of $(1,435,000), or $(0.11) per ordinary share (basic and diluted), for the first nine months of 2004.

- Commenting on the results, Arnon Toussia-Cohen, President and CEO of RADCOM, said, "The momentum of the past two years intensified during the third quarter, delivering 42% revenue growth year-over-year and an 8% net margin, while boosting our cash and securities above $10 million. The pace of our growth has increased during the past three quarters, driven by our success in penetrating major 3G cellular and VoIP service providers worldwide and our rising strength in the U.S., which contributed approximately half of our sales for the third quarter. As such, we are now positioned as a 'player' in the high-potential 3G and VoIP monitoring market segments.

- Revenues for the fourth quarter of 2005 are expected to be between $6.3 million and $6.8 million.

With revenues growing about 11% per quarter and more than 40% year on year, I see profits from this small company rising a lot. The share price still doesn't reflect these changes at RDCM.

Technically volume was very strong yesterday, but the stock has some resistance ahead on the medium term chart. That's probably why it didn't rose more than 15% yesterday.

I think it is just a matter of time for RDCM to kiss the descending trendline goodbye and aim higher. I want to participate, so I'll buy RDCM around today's open for the 3 Stocks on Fire Portfolio.

[Gu$tavo]

There is something about this.... too quite... anyway, I'm in @ 2.35 ..

[stocky]

Just filling the gap. Though I am in too today.

[AussieTrader]

Speaking as someone who has visited Radcom (and other members of the RAD Group) in Israel on many occasions (in my former life in the semiconductor industry I worked closely with their R&D and commercial departments) I am pleased Radcom is finding success especially in the US. They had some outstanding technology in 3G and VOIP, but when I was involved they were always struggling to balance super technology with the right price point to achieve market penetration and profit. By the results posted, look like they have started to get that part right for sure.
Low volume pullback today, not totally surprising, supported by the 50sma at $2.25/$2.26 (daily weekly)
If interested here is a .pdf summary of the RAD Group of companies. I believe others are listed on the Nasdaq as well.
http://www.radvision.com/NR/rdonlyres/2405556B-C458-4AEE-A7BD-6B04B42ED5F8/0/RADgroup.pdfhttp://www.radvision.com/NR/rdonlyres/2405556B-C458-4AEE-A7BD-6B04B42ED5F8/0/RADgroup.pdf

[David Randolph]

There is something about this.... too quite... anyway, I'm in @ 2.35 ..

This stock hasn't got much volume, it is a very small cap. Your price is much better than mine, good luck 

Just filling the gap. Though I am in too today.

I agree stocky, filing the gap.

Speaking as someone who has visited Radcom (and other members of the RAD Group) in Israel on many occasions (in my former life in the semiconductor industry I worked closely with their R&D and commercial departments) I am pleased Radcom is finding success especially in the US. They had some outstanding technology in 3G and VOIP, but when I was involved they were always struggling to balance super technology with the right price point to achieve market penetration and profit. By the results posted, look like they have started to get that part right for sure.
Low volume pullback today, not totally surprising, supported by the 50sma at $2.25/$2.26 (daily weekly)
If interested here is a .pdf summary of the RAD Group of companies. I believe others are listed on the Nasdaq as well.
http://www.radvision.com/NR/rdonlyres/2405556B-C458-4AEE-A7BD-6B04B42ED5F8/0/RADgroup.pdfhttp://www.radvision.com/NR/rdonlyres/2405556B-C458-4AEE-A7BD-6B04B42ED5F8/0/RADgroup.pdf

Thanks a lot for the insight aussietrader, I'll read that document for the next update on RDCM (today I'm short in time, as usual  )

RDCM clashed to that all important descending trendline and couldn't break it at first attempt. People sold out in disappointment. There's a gap to be filled at $2.20, I think the low for this move may be near that level.

Ultimately the stock will probably break the descending trendline and trend higher. I'll give it some room to do that.

[David Randolph]

Pay attention, the gap was closed, the high on the 28th of October was $2.20 and the low yesterday was $2.21, so, by definition of a gap, all prices were traded now, so the gap is closed.

I see RDCM fighting again with its resistance level now, which for today stands at $2.47, and then breaking it on the upside.

[Gu$tavo]

Is moving and as David said.. there is a fight!!

the last half hour all are buys in Island...

Time B/S Shares  Price     

14:09:06.874 B 100  2.4000 
14:08:12.849 B 900  2.4000 
14:08:12.849 B 100  2.3900 
13:58:49.342 B 100  2.3700 
13:57:40.766 B 300  2.3500 
13:57:36.134 B 4,800  2.3500 
13:57:36.134 B 200  2.3500 
13:55:56.664 B 300  2.3500 
13:55:54.268 B 400  2.3500 
13:55:54.268 B 200  2.3500 
13:55:12.531 B 300  2.3500 
13:55:09.513 B 4,800  2.3500 
13:55:09.513 B 200  2.3500 
13:54:26.482 B 300  2.3500 
13:54:17.890 B 4,800  2.3500 
13:54:17.890 B 200  2.3500 
13:54:14.059 B 300  2.3500 
13:54:13.069 B 700  2.3500 
13:54:13.069 B 500  2.3500 
13:54:12.128 B 2,200  2.3500 

[David Randolph]

Another hit at the resistance level !

The gap is definitely closed, the stock isn't looking down anymore, I believe. It's looking up to that descending trendline. Bears still have their weapons, but I think they are starting to retreat.

Look at the volume, soon that descending trendline will be below the stock price, not above.

I'll continue holding RDCM.

[422fwhp]

I jumped in yesterday at 2.25 hoping to add some fuel...

Good luck and happy trading.

[David Randolph]

I jumped in yesterday at 2.25 hoping to add some fuel...

Good luck and happy trading.

Good luck 422fwhp 

RDCM is still fighting with that descending trendline that looks like a tough resistance. But acting as support we have a new ascending trendline that may prevail, given the turnaround in fundamentals from this very small cap (just $33M in market cap).

I'll keep on holding RDCM, expecting it to break $2.46 on the upside and on a closing basis. Support stands at $2.20.

[jorgegr]

Seems a lot of people are reportting on this stock today.  Nice price jump at this moment.

RECENT REPORTS

7-Nov-2005 Pechala's Reports Lubomir Pechala RADCOM LTD (RDCM=US) 2-weeks forecast 7-Nov-2005 Pechala's Reports Frantisek Pechala RADCOM LTD (RDCM=US) 12-months forecast 1
7-Nov-2005 EconomicInvestor N/A  "The Economy Matters" report provides short and intermediate term ratings of the appreciation potential of RDCM; analyzes economic climate for stock value and riskiness; and includes industry segment comparisons. 19
7-Nov-2005 Black Box Investing N/A  Black Box Investing Technical Analysis Report of RDCM: An in-depth examination of the current technical condition of RDCM. This report analyzes the major technical indicators including their past performance and profitability. 18
7-Nov-2005 ValuEngine, Inc. N/A  ValuEngine Quantitative Industry Report for OTHER COMPUTERS 18

jorgegr

[Gu$tavo]

Now @2.5200 +12.00% 10:48:04.703
If the daytraders take control of this one today we could see +30%

[Hasadeur]

@ David

1 would like to hear your near term targets on this one.
Is there a possibilty for moving back to the broken trendline ?
May a use a stopp-loss and when, at which price ?

Thnx
Hasadeur

[David Randolph]

@ David

1 would like to hear your near term targets on this one.
Is there a possibility for moving back to the broken trendline ?
May a use a stop-loss and when, at which price ?

Thnx
Hasadeur

Hello Hasadeur

Given the volume and price caracteristics I see Monday's candle as the start of a big move upwards. I think the stock may very well do a new 2005 high this week, above $3.44, which would represent a 27% rise from current levels.

This is clearly turning out to be one of those small cap momentum stocks that can fly a lot, like NVAX, for example. It wouldn't surprise me to see it above $5 before the year end.

Why? Because the market cap is way too low, just $40M, so anything can happen. In fact, I still have to make my exploring and filtering today, but I'm thinking RDCM is a strong candidate for the 3 SOF Fast Portfolio.

So if I were you I would jump in at the open, not waiting for a pullback. But I can be wrong, and a pullback may occur. Either way, I'll continue holding RDCM, just look at the charts below, extremely bullish:

Oh, I just saw you ask for a good stop level if you were to buy this stock ... from the NVAX experience I find it hard to place logical stops in these kind of stocks, I think you just buy it and when you're winning 20% you start thinking where to get out with a profit, not with a loss.

Though you can always check these daily updates for an exit strategy, one thing is for sure, someday I'll sell this stock, and I don't think it will be with a loss.

Good luck for us !

[David Randolph]

Bulls just took a nap on RDCM yesterday. Probably today they will wake up with renewed strength and push this thing to new highs.

Market cap is low and fundamentals saw turnaround. Watch for a NVAX/BCON style mover. I'll try to sell high, not low, not near current levels.