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Michael Kudrna
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"The market can remain irrational longer than you can remain solvent.” John Maynard Keynes In an industry which caters to the greedy and already wealthy, it has become increasingly complex for the individual investor to find a path to success. “Buy and hold” is an inadequate investing... More
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  • 2-3-10 Are you a Texting Machine? Here is a Company that Capitalizes on it.  2 comments
    Feb 3, 2010 1:32 PM | about stocks: CTIC

    12:20pm  (originally posted on Kudrna's Stock Market Blog)

    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 (NYSE: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 (NASDAQ:CTIC) as I said I would earlier today. 

     



    Disclosure: Long GOIG and CTIC
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Comments (2)
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  • bluesky123
    , contributor
    Comments (300) | Send Message
     
    You say GoIP Global has a patented system and you say you did much due diligence.

     

    I can find no listing for GoIP Global Corp or Go800 LLC at the US Patent and Trademark Office.

     

    GoIP Global Corp has no issued patents at the USPTO
    GoIP Global Corp has no patents pending at the USPTO
    Go800 LLC has no issued patents at the USPTO
    Go800 LLC has no patents pending at the USPTO

     

    The company's website has a warning from the OTC.
    15 Feb 2010, 04:51 AM Reply Like
  • Michael Kudrna
    , contributor
    Comments (226) | Send Message
     
    Author’s reply » I thought I linked the article but I guess I did not on the patent. Pitcock Law Group filed the paperwork on behalf of the company. finance.yahoo.com/news...

     

    In regards to the OTC, I brought that up briefly in a more recent article when I received an emailed question on it. The reasoning for it does not seem to be the company but rather the companies that "pump" the stock. If you want to invest, you should personally contact the TA for an explanation as to why the warning was placed and when it will be removed rather than taking my word for it. However, I have done my research on it and my catalyst remains intact. The rules for placing that warning are very wide ranged let alone the fact that they are very opinionated which you should also look into yourself to understand how a company can receive such a warning. That is why I make sure to contact the TA with questions and file the responses away. In this case, my research indicates GOIG is not the problem but rather other companies issuing valuations ("pumps") which can cause a warning like such. My research also indicates GOIG is working to remove that warning.

     

    www.otcmarkets.com/pin...
    Mina Mar Group is the TA you should contact

     

    My bigger concern is if the CEO has made the company out to have more buyers from day 1 than will happen which would change my catalyst immediately. While I actually believe he does have many buyers lined up, he wouldn't be the first or the last CEO to make the future sound like Paradise. To me, I think the system concept is great so I could easily see why many buyers for only $500 per keyword, per month would want to buy up as many as possible. Good luck out there.
    15 Feb 2010, 12:58 PM Reply Like
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