8×8 Inc. (EGHT) is a telecommunications company that develops services for Internet protocol (IP), telephony and video applications. It also offers web-based conferencing and cloud computing services.
We first recommended EGHT as a trade on Nov. 17, 2011, at $3.83, and lately as one of the “Top 6 Stocks to Buy for March” at $6.37 for a trade to $8.00. The company announced full fiscal-year 2013 earnings on May 22 of $0.20, up 42% from last year, and total revenues of $107.6 million — the first time that metric has exceeded $100 million.
On June 10, I suggested that should be bought under $8 with a target of $10, then lifted my target to $12 on July 8. The bull channel formed following the breakout in late May provides added technical support for the trade.
On July 31 the company was granted a new patent related to its conferencing technologies that reduces “crashes” during calls. This stock is firing on all cylinders — increase the purchase price to under $9.50. The trading target remains at $12.