Buy 8×8 Under $8 for 25% Potential Returns

by Sam Collins | June 10, 2013 1:40 am

Buy 8×8 Under $8 for 25% Potential Returns

8×8 (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.

I first recommended EGHT on Nov. 17, 2011[2], at $3.85, and most recently in the Top Stocks to Buy for March[3] at $6.17 for a trade to $8 or “as a key cloud computing holding.”

On May 22, the company announced full fiscal year 2013 earnings of $0.20, up 42% from last year, and total revenues of $107.6 million, the first time that it has exceeded $100 million in annual revenues.

Traders who bought in March may want to nail down a profit. However, the stock is trading in a well-defined bull channel and our new target is $10-plus. New purchases should be entered under $8.

06 10 13 eght1 300x187 Buy 8x8 Under $8 for 25% Potential Returns
Click to Enlarge

chart key 300x84 Buy 8x8 Under $8 for 25% Potential Returns[4]

Endnotes:
  1. EGHT: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGHT
  2. on Nov. 17, 2011: http://investorplace.com/2011/11/trade-of-the-day-8x8-inc-nasdaq-eght/
  3. Top Stocks to Buy for March: http://investorplace.com/2013/02/top-stocks-to-buy-eght-aig-cimt-cpts-len-wprt/view-all/
  4. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

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