July 19, 2005
SpeculatingStocks.com Stock Pick: Global National Communications Corporation (GLNC)
Stock Price: $1.30 (short-term strong buy)
Global National Communications Corporation is based in China operating within three business sectors -- OEM, Name Brand Personal HandyPhone Systems (PHS) cellular phones, and digital satellite receivers. Based on recent order history, the company is expecting to increase sales revenue by 400 percent within the next 12 months.
The company reported sales of $3.67 million for the most recent quarter, an increase of 28.5%. Net income came in at $888,422, an increase of 34.3%. Sales are really going to heat up for the company's as they begin production and delivery of their branded Personal Handy System cell phone products. Contracts are expected to be signed through their PHS brand.
The Chinese cell phone market is expected to increase from 65 million new users in 2004 to 82 million new users in 2005 to 91 million new users in 2006.
GLNC hit bottom last week at $1.01 and has been recovering strongly after dropping from the $2.00 level. The drop is a mystery, and GLNC should be able to recover quickly.
SpeculatingStocks.com Target Price: We expect GLNC to reach $2.00 within the next 2-4 weeks.