12:20pm
I’m playing some catch-up today and offering you two potentially bullish speculative stocks with tremendous upside but some definite risks. Please perform your due diligence on these before you decide to invest to make sure you agree with me and not follow my beliefs blindly. I’ve spent a significant amount of time studying these stocks to make sure I’m a believer in them before I posted so I hope you appreciate these lengthy articles. Here is stock 2 of 2.
This morning I’ve initiated a position in a speculative play, GoIP Global, Inc (GOIG). After much due diligence, I feel GOIG is a favorable risk/reward play with long term potential. GOIG, though its subsidiary Go800, LLC, capitalizes on the text messaging sensation with a patent pending system that will allow customers to connect to desired companies with a simple text message. For example, you need to call a cab in a town you are not familiar with. All you need to do is text message GOIG’s service with the keyword “taxi” and you will receive a phone call within seconds from a local taxi company based on your cell phone geographic location. GOIG is paid $500 per month for a company to use that one keyword and I’d imagine in time, they would use it similar to a Google Adwords where some keywords cost more than others because of their demand. Speaking of demand, Ike Hutton (CEO) states that he is already in contact with numerous companies that are ready to purchase at the launch of this application later this quarter. That is good news as the company is hurting financially. They need a strong source of revenue to build off of and this application should do the trick if the demand is as strong as he says it is…and I believe the demand is high. As the younger generation continues to develop into the next working class generation, text messaging usage will only increase as that generation was raised on it more so than the previous one. That means GOIG’s target consumer will only expand over the years as more and more kids are raised with texting messaging as second nature. Frankly, I’m a bit disappointed I didn’t think of this as it is not some concept that would be hard to imagine. Don’t wait, read this bullish interview with Ike posted yesterday before you continue further.
Outside of the financial problems the company has, you have to take into consideration the amount of authorized shares, float, and outstanding shares. GOIG has about 1.2 billion outstanding shares out of 2.4 billion authorized shares and a float of over 700 million shares. That float will make this progression upwards a little slower than many investors probably expect to see. 700 million free shares is a lot of supply so we need to be realistic on short term expectations.
Another concern is the authorized shares at 2.4 billion. That basically means GOIG can dilute more shares up to 2.4 billion which is one way to increase their capital when they are financially pinched, which they are.
Without making this article too long that your ADD starts to kick in, I’m gambling that GOIG and Ike Hutton have enough capital to get them far along enough that the revenue machine they are about to launch will fix their money issues and make them a profitable monopoly in time. I will be adding to this position immediately as I would like a solid position size before the application launches and others start to hear about this company and get interested in it. A stock like this tends to trade under the radar of the overall market so the negative sentiment I’ve been discussing shouldn’t really be a concern here for the meantime.
The company is valued at about $1.2 million market cap right now which is VERY undervalued once they launch this application and generate some revenue. Assuming Ike hasn’t being blowing any smoke at us and there are serious buyers lined up, I don’t see why this stock shouldn’t be valued near term upwards of $50 million short term, at least. That would mean at current prices…I might be taking a few weeks off if we see 4 cents soon but let’s be realistic and double/triple our money first. Do your due diligence to see if you agree with my gamble but make sure you don’t put it off as this application is lined up to launch soon. Good luck out there.
Mike
Random News: I initiated a position in Cell Therapeutics, Inc (CTIC) as I said I would earlier today.
At the time of publication, Mike was Long GOIG and CTIC
Similar Posts:
- None Found
Tags: Cell Therapeutics (CTIC), go800, GoIP Global (GOIG), Inc CTIC, interview, micro cap, patent, penny stock, small cap, speculation, speculative, Stock Ideas, Stock Picks, Trader, Trading
