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TMCNet:  EmergingGrowth.com Report on MagicJack Vocal Tech (NASDAQ: CALL) Looking at a Positive 2013

[November 21, 2012]

EmergingGrowth.com Report on MagicJack Vocal Tech (NASDAQ: CALL) Looking at a Positive 2013

Miami, FL, Nov 21, 2012 (eTeligis.com via COMTEX) EmergingGrowth.com, a leading digital financial media company, Comments on MagicJack Vocal Tech (NASDAQ: CALL). Visit EmergingGrowth.com for other related stories concerning Telecom and discussions on Lumos (NASDAQ: LMOS), Clearwire Corporation (NASDAQ: CLWR), Sprint Nextel (NYSE: S) and Nokia (NYSE: NOK).



In today's market, it can be hard to find new buying opportunities as most stocks have seen a nice run up in share price and look ready to correct. Today's pick is a small cap telecom from Israel, Magicjack (NASDAQ: CALL). Magicjack has had a very good year so far as shares are up 29% year to and analysts' are forecasting an 81% gain for 2013.

Magicjack has a market cap of $336 million and currently holds a "buy" rating from analysts. Currently, the company has a price to earnings ratio of 14 and a forward price to earnings of 9. Additionally, the stock is trading at a 20% discount to price earnings growth (PEG). Earnings are expected to grow 3% next year and 18% over the next five years. Meanwhile, Magicjack's margins are decent with a gross margin of 56%, operating margin of 11% and profit margin of 17%. Currently 47% of Magicjack's outstanding shares are short. However, with continued growth we suspect a short squeeze in the intermediate term will give Magicjack the big gains that analysts' are looking for.

Magicjack recently got some great news back in October. The company announced they had received US Patent No. 8,306,201, which CEO Dan Borislow says will "make communications easier, more convenient and much less costly". This is a huge deal for the company that has sold over ten million Magicjack phone systems. The company recently announced that they had earned earnings per share of $0.78, on revenue of $15.1 million. This is a big improvement from last third quarter's report which showed a loss. Additionally, revenue saw a 64% jump from last year. Investors that are interested and have not gotten in yet should be surprised to know that operating costs dropped 16% during the last quarter.

From here we suspect that we could continue to see a depressed stock price as the bears control much of the stock and the overall market appears to be in correction mode. Currently, the price is trading at $16.47 but analysts' full year forecast for 2013 comes in at $30.50, that is an 81% rise in price! I noticed that the price action has broken down from its support trend but the RSI shows that the stock is oversold. Savvy traders could look for a possible short-term bounce. The bottom line here is that Magicjack is a company that is run very well. The stock is under pressure from the bears and the overall market but 2013 should be a bullish year for this name as it continues to cut costs and maximize earnings.

About EmergingGrowth.com By offering 100% original and unmatched content by the best financial reporters, writers and bloggers in the business, EmergingGrowth.com is emerging a leading digital financial media portal. Its services provide users, subscribers and advertisers with a variety of content and tools through a range of online, social media, mobile and other mobile outlets.

Since its inception, EmergingGrowth.com has distinguished itself from other financial media companies with its sly approach to reading between the lines in order to locate that needle in the haystack. Subscribe today to see what EmergingGrowth.com has to offer.

NEW: Feature your company on EmergingGrowth.com. Find out how by filling out our form at http://emerginggrowth.com/recommend-a-company-to-feature-on-emerging-growth Contact: EmergingGrowth.com info@EmergingGrowth.com 305-323-5687 Join our Linked in Group Like us on Facebook Disclosure All information contained herein as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. All material is for informational purposes only, is only the opinion of EmergingGrowth.com and should not be construed as an offer or solicitation to buy or sell securities. From time to time, EmergingGrowth.com receives compensation by the companies profiled in its emails or on its website. If any compensation is received it appears fully detailed in the disclosure on our website as well as on any pages or emails where that company is located under a "Special Disclosure" link. Before investing please make sure you read and understand the Terms of Use, Privacy Policy and the Disclosure posted on the EmergingGrowth.com website. Always remember that investing in any securities such as the ones listed within are for high-risk tolerant individuals only and not the general public. Whether you are an experienced investor or not, you should always consult with a stockbroker financial advisor, or similar before purchasing or selling any securities viewed on any emails sent from EmergingGrowth.com or its website.

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