Traders Get Another Chance to Ride This Cloud Stock Up

by Sam Collins | February 1, 2013 1:02 am

8×8 Inc. (NASDAQ:EGHT[1]) — This telecommunications company develops services for Internet protocol (IP), telephony and video applications. It also offers Web-based conferencing and cloud-based computing services.

Gross profits margins, at 72.1%, are very high, cash flow in the last quarter has increased, and its return on equity far surpasses that of the industry average and the S&P 500. On Jan. 24, the company reported fiscal Q3 earnings of $0.05, which was in line with analysts’ estimates and 25% higher than the same quarter last year. Consensus earnings estimates are for $0.19 in fiscal year 2013 and $0.28 in fiscal year 2014.

The Trade of the Day[2] first recommended EGHT on Nov. 15, 2011, at $3.84. Following the recent quarterly report, it appears many stockholders decided to cash in profits, which drove the stock down to the bullish support line at just under $6.50.

Buy EGHT for a trade to $8 or as a key “cloud” holding.

02 01 13 eght 300x206 Traders Get Another Chance to Ride This Cloud Stock Up
Click to Enlarge

chart key 300x84 Traders Get Another Chance to Ride This Cloud Stock Up

Endnotes:
  1. EGHT: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGHT
  2. Trade of the Day: http://www.investorplace.com/2011/11/trade-of-the-day-8x8-inc-nasdaq-eght/

Source URL: http://investorplace.com/2013/02/trade-of-the-day-8x8-inc-nasdaq-eght-2/
Short URL: http://invstplc.com/1nKgNmF