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.

8x8 Inc. (EGHT)
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Chart Key[6]

  1. EGHT:
  2. Nov. 17, 2011:
  3. “Top 6 Stocks to Buy for March”:
  4. should be bought under $8 with a target of $10:
  5. lifted my target to $12:
  6. [Image]:

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