May 12, 2004
SpeculatingStocks.com Stock Pick: IPVoice Communications, Inc. (IPVO)
Stock Price: $0.93 (long-term strong buy)
IPVoice is in the telecommunication sector involving IP telephony. The IP services they offer span several industries including Voice-over-Internet Protocol (VoIP), Homeland Security, Healthcare, and wireless IP. Underlying these services is a state-of-the-art systems integration capability, which was established to expand into emerging technologies.
The leadership consists of CEO and President Phillip Verges, founder of VergeTech Inc., which merged into IPVoice Communications Inc.during mid-2002 and has since entered a period of unbridled growth. Phillip Verges was a 1988 graduate of the United States Military Academy, West Point, and was a decorated U.S. Army officer advanced for early promotion. The rest of their management team consists of individuals with proven track records in emerging technologies. In fact, their superior management team has grown through several recent acquisitions.
IPVoice has acquired five companies in the sectors mentioned above to establish themselves in different aspects of the telecommunications industry. These acquistions have built the company's presence in Latin America, Asia, specifically China and Singapore, and the United States. Their future acquisitions (LOIs) include Wireless Frontier (WFRI.pk), and NETSCO Services Inc., and Sensitron Inc. Combining the forecasted revenues from these LOIs equates to $23 million.
IPVoice Communications, Inc. has recently announced a $50 Million revenue run rate by the end of 2004. This is a significant improvement from their recent Q1 $15 million revenue run rate. IPVO has enjoyed six straight profitable quarters most recently with $2.3 milllion in revenue for the most recent quarter. They concluded their fiscal year with $1.6 million in cash on the balance sheet and 145% year-to-year revenue growth.
IPVoice Communications is planning to change their name to NewMarket Technologies.
SpeculatingStocks.com Target Price: We expect IPVO shares to reach $3-$5 by the end of 2004, with possible strong upside surprises.