magicjack CALL

Investment Analysis Clubs Saul’s Investing Discussions
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Hi,

Have you seen this?

Written by Whitney Tilson billionaire fund manager.

http://ify.valuewalk.com/wp-content/uploads/2014/02/MagicJac…

…In summary, I estimate that magicJack is getting an incredible 8:1 return on its investment in new customer acquisition…

…I didn’t fully appreciate this when I first analyzed Netflix – and paid a terrible price because I was short the stock as it more than doubled against me in 2010-11. My short thesis was based in part on Netflix’s limited selection of streaming content, but what I failed to grasp was that the average user was watching more than one hour of content every day yet was paying a mere 26c/day ($7.99/month) – a truly extraordinary value proposition that reminds me of magicJack’s.

1 Like
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And this:

But they’re moving fast – and the results are already visible – so I think when magicJack reports Q4 earnings in mid-March we’re likely to see the beginnings of an enormous marketing push, which will result in rapid subscriber growth for the foreseeable future.
I think the sky is the limit for the company – and the stock. This is the kind of growth story that investors could really fall in love with, so I wouldn’t be surprised if magicJack has a $2.5 billion market cap in a few years – which would make the stock a 10-bagger from here.

R

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ER today at 4:30 stock is up 24% afterhours to 21.87