March 28, 2005

SpeculatingStocks.com Stock Pick: iParty Corp. (IPT)

Stock Price: $0.64 (long-term strong buy)

iParty Corp. is a party goods retailer owning 45 stores spread through Massachusetts, Connecticut, New Hampshire, Rhode Island, Maine, and Florida. The company also licenses its goods to a third-party through iparty.com. iParty can outfit a number of different parties from graduation to halloween.

The company reported net income of $2.6 million for the most recent quarter on revenues of $23.7 million. Same store sales increased 4.6% and six new stores were opened in 2004, up from three new stores in 2003.

Strong earnings should propel this stock higher in 2005 as they continue to take advantage of their high gross profit margin of 47.8%. This is a fundamentally sound investment that appears to be undervalued at current levels.

IPT has a market cap of $14.1 million with 22.1 million shares outstanding and 9.0 million in the float.

IPT has strong support at this level.

SpeculatingStocks.com Target Price: We expect IPT to hit $1.00 within the next 3-6 months. There is little downside risk from this price.