Sasha Cekerevac, editor with Penny Stock Detectives, points out that cloud-based software systems are a hot area in technology stocks, as they offer flexibility to their clients. In a recent Penny Stock Detectives article, Cekerevac shares a technology stock
that he finds interesting: SoundBite Communications. The company provides software that enhances communications with customers, increasing client profitability through a cloud-based system.
“SoundBite Communications’ software handles almost two billion customer interactions per year through use in over 200 companies around the world,” notes Cekerevac. Founded in 2000, the firm is based in the U.S. and has since expanded through a subsidiary in the U.K. to meet European demand. According to Cekerevac, the company estimates the total value of the target market at $1.3 billion, with its estimate of industry growth at 12% per year.
As reported in Cekerevac’s Penny Stock Detectives
article, the stock was recently trading at just over one times book value, with a small market cap of below $50.0 million. Penny stocks with such low valuations can be risky; however, Cekerevac does like that the firm has over $28.0 million in cash, $1.74 per share, and no outstanding debts.
In the first quarter of 2012, SoundBite Communication reported revenue of $11.1 million, which is a 21% increase compared to the first quarter and 2011, according to Penny Stock Detectives. The net loss incurred for the first quarter was $247,000, compared to a net loss of $1.5 million in last year’s quarter, says Cekerevac. Gross margin, an area the analyst says he likes to see growing in technology stocks, was 60.4% for the firm, as compared to 58.9% in the same quarter of 2011. Operating expenses also declined to 71% of revenue in the 2012 first quarter, compared to 75% in the same period last year, according to the article.
When looking at penny stocks from a technical viewpoint, Cekerevac says he likes to see buyers continue to step in and accumulate shares, whether they be for technology stocks or any other industry. The stock is currently holding support, as buyers are accumulating on the recent pullback. This is a positive sign, according to Cekerevac, but we need to see more information before being completely bullish. This is one stock with which patience is needed; however, the analyst believes the potential is there.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
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The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This…which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.