March 15, 2005
SpeculatingStocks.com Stock Pick: Interchange Corp (INCX)
Stock Price: $11.60 (long-term strong buy)
Interchange Corporation is a leading provider of local and national paid-search services. Their Local Direct(TM) search and advertising platform delivers geographically targeted search results to consumers.
The company expects to earn 2 to 3 cents per share on revenue of $6.3 to $6.5 million during the first quarter of this year. Full year guidance is 9 to 17 cents per share on revenue of between $31 and $33 million. This was a disappointment to the street which dropped INCX heavily from the $20 level.
We still believe in their local and national paid-search technology and expect INCX to become a play once again. Interchange has a great future ahead of it in its niche local search market. This is the perfect time to accumulate as it bases at current levels. Interchange also recently completed its acquisition of Inspire Infrastructure 2i AB, a Swedish provider of Internet and wireless local-search technology.
A major, exciting event in the future will be the launch of Interchage Corp's Local.com search engine. They recently paid $700,000 for the domain.
We believe shorts are getting greedy and will have to cover in the near future. Over 20% of the 3.3 million float is still being shorted.
SpeculatingStocks.com Target Price: We believe INCX will hit $20.00 within the next 3-6 months.