This Cloud Play Is Reaching New Heights

by Sam Collins | August 5, 2013 4:15 am

8×8 Inc. (EGHT[1]) 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[2], at $3.83, and lately as one of the “Top 6 Stocks to Buy for March”[3] 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[4], then lifted my target to $12[5] 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.

08042013 collins eght buy 300x185 This Cloud Play Is Reaching New Heights
Click to Enlarge

chart key This Cloud Play Is Reaching New Heights[6]

Endnotes:
  1. EGHT: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGHT
  2. Nov. 17, 2011: http://investorplace.com/2011/11/trade-of-the-day-8x8-inc-nasdaq-eght/
  3. “Top 6 Stocks to Buy for March”: http://investorplace.com/2013/02/top-stocks-to-buy-eght-aig-cimt-cpts-len-wprt/view-all/
  4. should be bought under $8 with a target of $10: http://investorplace.com/2013/06/trade-of-the-day-8x8-eght/
  5. lifted my target to $12: http://investorplace.com/2013/07/set-your-sights-higher-for-8x8-inc/
  6. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/08/trade-of-the-day-8x8-eght-2/
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