June 25, 2004

SpeculatingStocks.com Stock Pick: Z-Tel Technologies, Inc. (ZTEL)

Stock Price: $1.41 (short-term strong buy)

Z-Tel Technologies, Inc. offers consumers and business nationwide wire line and broadband telecommunications using their proprietary services, such as Web-accessible, voice-activated calling and messaging features. Z-Tel's services are available on a wholesale basis to other communications and utility companies.

Z-Tel just launched its new VoIP service into the Tampa and Atlanta markets with plans on expanding into the peripheral markets of Birmingham, Knoxville, and Orlando by August. The company will initially market its service to small businesses, and rental properties such as condominiums and apartments.

The company’s ‘Z-LineBusiness, Your Communications Briefcase’ allows a business to consolidate all their local communications from state to state under one solution creating an average savings of 20%.

AOL has partnered with Z-Tel creating a trial promotion called ‘AOL AnyDistance Calling powered by Z-Tel.’ This offer will be marketed to six states without any direct marketing costs to Z-Tel.

ZTEL’s chart is forming a classic, small double-bottom. The midpoint is at $1.98, while ZTEL is just beginning to rise from its second leg.

SpeculatingStocks.com Target Price: We expect ZTEL to exceed $2.00 where it then could rise to $3.00.