Seeking Alpha

Jake Mitchell's  Instablog

Jake Mitchell
Send Message
Micro cap investor interested in value stocks. I prefer to research and write about emerging growth companies that I believe have paradigm shifting technologies or potential near-term catalysts. I tend to avoid Biotech's.
View Jake Mitchell's Instablogs on:
  • Fusion Telecommunications Establishes Strong Revenue Platform

    The Cloud Services industry represents a $109 billion market opportunity. 79% of US businesses will have deployed a cloud-based solution by 2013 and cloud services used by 62% of SMBs, up from 48% in first half of 2012; jumps to 73% in first half of 2013. In fact, Cloud-based unified communications (UC) services alone are forecasted to grow from $12.2 billion in 2011 to $20.8 billion in 2016. Additionally, Cloud Computing fastest growing cloud services segment at 45.4%; forecast to reach $241 billion by 2014. Cloud management and security forecast to grow to $3.3 billion in 2012.* (*Gartner)

    Fusion Telecommunications International, Inc. (OTCQB:FSNN) is currently gaining traction in the Cloud Services industry. The company provides unified communications and cloud services primarily Internet protocol-based digital voice and data communications services to small and medium sized businesses, and other telecommunications carriers in the United States and internationally.

    Management has successfully solidified its revenue platform via the recent acquisition of Network Billing Systems, LLC ("NBS"), a Unified Communications and cloud services provider. Prior to the acquisition, NBS generated $26.5 million annual revenue, more than 95% of which is contracted and monthly recurring, and $4.9 million in adjusted EBITDA. The integrated company is expected to generate approximately $70 million in annual revenue, and achieve positive adjusted EBITDA in the first half of 2013. The acquisition adds over 5,000 small, medium and large business customers to Fusion's Corporate Services business segment, which delivers Unified Communications and cloud service solutions to the business market. Additionally, upon completion of the integration with NBS, Fusion expects to achieve approximately $2 million in annual cost synergies, and additional revenue growth from the cross-sale of the companies' combined products and services.

    Fusion also recently announced a strategic agreement with Unisys (NYSE: UIS) regarding the marketing of a fully integrated suite of secure network and cloud services, with an emphasis on leading-edge Unisys security solutions. Fusion will offer Unisys solutions to enterprises in the U.S., with an initial focus on healthcare.

    Initially, Fusion will focus on the Unisys Stealth Solution Suite of cybersecurity software to help organizations address the growing challenge of cybersecurity attacks and hacker incidents. The NSA-certified solutions use patented pending security techniques designed to cloak data communication end points, such as end user devices, data center servers and applications, to become obscured on the network and therefore concealed as targets for hackers. A staggering 23 million records were exposed to data breaches in 2011*, compromising privacy and undermining customer confidence while costing enterprises millions in operating costs. The Unisys Stealth solutions are intended to help enterprises avoid such attacks. (*Identity Theft Resource Center Breach Report, July, 2012)

    Numerous analysts have predicted vast growth throughout the Cloud computing services industry during 2013. It is true that Fusion must compete with both larger and more established competitors, such as traditional carriers like AT&T or Verizon and cable companies such as Comcast, focused IP Telephony companies; including 8x8, and IP network hardware and software providers such as Cisco and Broadview. However, the market is highly fragmented, with no single market participant having more than 5% of the market. This presents a tremendous opportunity for market penetration for an emerging company such as Fusion Telecommunications.

    In fact, I believe the stock is a microcosm of the company itself. While most investors will continue to bet on blue chip stocks, Fusion continues to present itself as an exciting growth opportunity for micro cap investors seeking the next big thing. With a strong revenue base comprised vastly of reoccurring sales, numerous industry relationships, and an established management team, FSNN is one cloud computing company which all investors should take notice.

    Tags: FSNN
    Apr 30 2:16 PM | Link | 1 Comment
  • Saving The World With BEES

    As an avid micro/small cap investor I have found one of the keys to successfully navigating these traitorous waters is discovering companies with groundbreaking products that will allow the company to grow rapidly based on the worlds' necessity for those products. BeesFree Inc, (OTCQB: BEES) whose mission is to tackle one of the world's greatest issues this 21st century, Colony Collapse Disorder, presents a unique investment opportunity.

    BeesFree has developed and is marketing BeesVita Plus™, a patent pending composite food for honeybees that is the only known product to effectively prevent the occurrence of Colony Collapse Disorder (NASDAQ:CCD). The Company's composite food allows for the healthy nourishment of bees much in the same way that agricultural chemical companies such as, Intrepid Potash, Inc (NYSE:IPI) Ceres, and Inc (NASDAQ: CERE) provide sustenance for the cultivation of plants and crops.

    Colony collapse disorder (CCD) is a phenomenon in which worker bees from a beehive abruptly disappear. While such disappearances have occurred throughout the history of agriculture, the term colony collapse disorder was first applied to a drastic rise in the number of disappearances of Western honey bee colonies in North America in late 2006.

    The Company has recorded over $1 million of orders for BeesVita Plus™ in the European Union (NYSEARCA:EU) with additional orders in South Africa and Argentina. BeesVita Plus™ is the only product proven to prevent the effects of CCD, with test colonies experiencing a 50% increase in the honeybee population compared to a 30%-90% decrease suffered by CCD affected colonies. Additionally, BeesVita Plus™ costs less to use than the currently used pest controls and nutritional supplements.

    BeesFree has also developed the Beespenser™, a patent pending delivery system designed to assist professional beekeepers efficiently delivering BeesVita Plus to their colonies.

    European beekeepers observed similar phenomena in Belgium, France, the Netherlands, Greece, Italy, Portugal, and Spain and initial reports have also come in from Switzerland and Germany, albeit to a lesser degree while the Northern Ireland Assembly received reports of a decline greater than 50%.

    Colony collapse is significant economically because many agricultural crops worldwide are pollinated by bees. Ecologically, the impact can be felt throughout the reproduction of plant communities throughout nature. Recent estimates have stated that the global market for sustaining bee colonies is in excess of $60 billion.

    There are countless factors that determine the success of making investments in the high risk/high reward world of micro/small cap investing. However the most important factor almost always is timing. BeesFree is on the verge of providing a solution to a worldwide epidemic.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Tags: CERE, EU, IPI, long-ideas
    Nov 05 11:53 AM | Link | Comment!
Full index of posts »
Latest Followers

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.