June 27, 2006
SpeculatingStocks.com Stock Pick: iMergent, Inc. (IIG)
Stock Price: $12.79 (long-term strong buy)
We first released IIG as a stock pick on October 11th, 2004 at $8.78. Within four months IIG reached a high of $26.50 for a total gain of 201%. IIG is an attractive buy at its current price for another significant move higher.
iMergent, Inc. is an Internet services company. They provide eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business product or idea via the Internet.
Income for the company's latest quarter (Q3) was $2.8 million, up from a loss of $6.4 million in the same period last year. Revenue rose 142% to $25 million, up from $10.3 million. It is shocking that IIG is trading at a market cap of only $155.36 million with total revenue last year of $81.02 million and profit of $21.89. iMergent has consistently grown revenue and net income the past three years.
IIG is trading at a PE of only 1.60 with the industry average at 60.7 million. Price to sales is at 0.9 with the industry average at 12.1. IIG is even significantly undervalued on a price to cash flows basis.
Over 35% of the 11.37 million IIG float is being shorted. Investors shorting this stock will have to make the right move and cover sending IIG much higher.
SpeculatingStocks.com Target Price: We expect IIG to reach $24.00 within the next 2 - 4 months.