March 17, 2005
SpeculatingStocks.com Stock Pick: Global National Communications Corporation (GLOW)
Stock Price: $1.43 (short-term strong buy)
GlobalGlowpoint, Inc. is the world's leading broadcast-quality IP-based video communications service provider. This is done through their Glowpoint network including 14 points of presence, across three continents, enabling users to connect across the United States, as well as to virtually any business center around the world.
GLOW was dropped today on average volume after earnings were released yesterday. Revenue for the fourth quarter was $4.3 million up 51% from the same period last year and was in line with the $4.4 million generated during the fourth quarter. Net loss for the quarter was $0.07 an improvement from $0.18 over the same period last year.
The company recently issued warrants with an exercise price of $2.40. This was part of an overall $10 million financing round to be used as working capital.
GLOW has a strong balance sheet with assets exceeding liabilities at a ratio of close to 5:1. There is $4.9 million in cash and stockholders equity of over $21 million with 38 million shares outstanding.
We believe GLOW is undervalued at a market cap of $54 million in an industry that is still coming to the forefront. Their network alone is a powerful asset and should continue to expand acrossed the globe.
SpeculatingStocks.com Target Price: We expect GLOW to hit $2.00 within the next month.