December 22, 2005
SpeculatingStocks.com Stock Pick: Zones, Inc. (ZONS)
Stock Price: $4.91 (long-term strong buy)
Zones, Inc. is a single-source direct marketing reseller of name-brand information technology products to the small to medium-sized business market, enterprise and public sector accounts. Zones sells these products through outbound and inbound account executives, specialty print and e-catalogs and the Internet.
ZONS is undervalued at a current market cap of only $65.7 million and a P/E of 13.13. ZONS has a book value of $2.97 and had revenue of $152.76 million for the latest quarter with net income of $1.69 million. The company is also cash flow positive.
ZONS was a $3.00 stock back in late April and early May. ZONS has since slowly edged higher moving sideways at times. ZONS has yet to have that huge move higher that is expected with an undervalued stock like ZONS.
SpeculatingStocks.com Target Price: We expect ZONS to reach $7.50 within the next 3 - 6 months.