Pretty exciting but now we must wait until June/July for the new rollout in order to coordinate with retailer’s timing.…

Feel free to comment. If anyone thinks this will raise the ship off the bottom, please let us all know the good and bad of it.

Well I read the transcript for the CALL conference call. These guys are pretty impressive with their planning, well coordinated and seemingly hitting all the bases.

Since their GAAP revenue declined, (predictably due to winding down the Magic Jack Plus and rollin out the magic jack GO) I’m afraid their next quarter guidance will not help the stock. YOY 3Q revenues will be slightly less than 2013 but they are gaining significant APP customers (21% per quarter with no ads).

Our activist was not in the Q&A queue which was populated by only one guy.

I’d love someone else’s take on this but here’s my summary:
Still on track to get bought out
Still on track for a low stock price
Still an impressive management team
Still big money in the bank (with no debt)
Still gaining more APP customers than losing Device customers

Que mas?

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and then this:…

Pretty interesting story and worth holding. I might even buy one of these calls they talk about in the above URL. At this price and with lots of cash in the bank and no debt, where can they go but up?

Mykie; a few things from my memory, so I may not be completely accurate. 1) They are going to LatinAmerica. It makes a lot sense. I was afraid that in U.S. cell minutes are cheap and getting cheaper, why would people care for their service. But places like LatinAmerica would be different. There could be a big market for them, also places like India. 2) they mentioned they will sell package overseas with dedicated phone number for U.S. and Canada. I think that would be a great idea. A lot immigrants in North America with families in their old countries and international call minutes to North America from those countries could be expensive. 3) most of their app users are outside the U.S.

I think this may be a better player in the overseas markets than in the U.S. Market.

They guided their q2 lower and that may be the reason behind the drop in addition to execution risk. But mainly, this may be a very misunderstood company, just as I didn’t quite understand it.



Thanks for your thoughts, M,

I am actually getting more psyched about the job they APPEAR to be doing. I mean, if all gets executed as well as it has been planned, I can’t see a failure. Lots of cash, good cash flow, an acceptable product and a rapidly growing mobile product that will carry them into the future…it just looks better now than before to me.

It’s a turnaround and it hasn’t been that long ago that they began so I intend to give them sufficient time and try not to buy anymore.
PS even The Street thinks they are a buy (but that is pandering for acceptance so disregard I even said that). Also, unusually high call volume.

“We rate MAGICJACK VOCALTEC LTD (CALL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company’s strengths can be seen in multiple areas, such as its notable return on equity, compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.”

This is shaping up into a great battle between the shorts and the newly arrived high call volume as of today. (I saw CALL on the list of high short interest yesterday. SZYM and INVN and a host of other stocks I own are also on there.)

Ever seen one of these battles before?


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