Dr. John Faessel's  Instablog

Dr. John Faessel
Send Message
Dr. John L. Faessel is a seasoned and respected Wall Street professional with industry-wide recognition for expertise in market strategy and analysis. He is widely recognized for his insights in public companies. For over 20-years Dr. Faessel’s ON THE MARKET reports have been widely distributed... More
  • More On The: Turnaround Stock Of The Year - The IceWEB Story Becomes Ever More Compelling 0 comments
    Mar 9, 2012 8:51 AM | about stocks: IWEB

    Dr. John L. Faessel


    Commentary and Insights

    The wave builds / The IceWEB story becomes ever more compelling

    More on the: Turnaround Stock of the Year


    The drivers -

    For one... 5.9 billion mobile subscribers creating a scalding hot data storage market driven by video on smart phones.

    According to a recent research report from Berg Insight, the number of mobile application downloads worldwide will grow at a compound annual growth rate of 56.6% between 2010 and 2015 .

    Apple's (OTC:APPL) App Store just reported that there have been 25 billion apps downloaded.

    Investor's Business Daily reported on Monday that the sector of "Data Storage" stocks has risen to No. 22 from No. 139 (of 179 sectors) since the start of February.

    And for (OTCPK:IWEB):

    Surging orders and extremely high inquiry demand that has produced significant increases in top line quarter over quarter growth, "That trend will continue through the end of the year" says (OTCPK:IWEB) management.

    (OTCPK:IWEB) wins #1 ranking in the DCIG 2012 Midrange Array Buyer's Guide over EMC, NetApp, IBM, HP, et al* Unparalleled performance metrics with over 71,000 IOps.

    Product line sold at a fraction of the cost of the competition. A price point that's consistently 30% lower than the high cost vendors such as EMC and NetApp. And, the sale of the award winning product carries more lucrative commissions.

    In late January (OTCPK:IWEB) announced its new "IceTIME™ Guarantee"; promising a setup time of five-minutes or less for any of its unified storage appliances, compared to hours required by complicated systems manufactured by larger vendors.

    Channel partners are now experiencing wins in multiple accounts. Strategic OEM relationships, combined with additional marketing and financial resources, have dramatically impacted the fundamentals of the company.

    (OTCPK:IWEB)'s Quarterly Highlights and Recent Developments

    Revenue increased 12% year-over-year.

    Revenue increased 362% in successive quarters.

    Operating expenses decreased 50% for the quarter compared to same quarter in FY 2011.

    Loss from operations decreased 61% in Q1 2012 vs. Q1 2011 and 73% less in successive quarters.

    Storage sector M&A activity boils at big revenue multiples

    Looming in the background and favoring (OTCPK:IWEB) is the booming M&A activity in the storage industry. Acquisition multiples are running from 7 to 10 X revenue. Rumors of a Fusion-io (NYSE:FIO) take- out by Intel (NASDAQ:INTC) fired a 13% jump in (FIO) shares a few weeks ago. (FIO) shares trade at over 9 X revenues (their biggest customer is Facebook).

    In addition, Dell (NASDAQ:DELL) announced recently it acquired AppAssure, Software Inc. (a private company) to expand their storage portfolio. AppAssure's leading backup solutions that seamlessly move and replicate data across their existing platforms enhance Dell's existing storage capabilities.

    The trend over the last 4-years has been when the big companies validate the advancement in technology and software of the smaller companies the big guys follow with original equipment manufacturing licensing agreements and buyouts. When revenues ramp quickly in these small co's the larger companies look to acquire them as the recent and numerous deals by Dell, HP, IBM, Oracle, NTAP, EMC and Intel attest.

    The eventual exit-strategy for (OTCPK:IWEB) will be a takeout by a major... Bet on it!

    The Chart and On Balance Volume

    On Balance Volume* is saying, "Buy me!"

    Note the long erosion in "price" and the sustained move higher and breakout in On Balance Volume

    Rising OBV warns of an upward breakout.

    Bullish divergence between OBV and price warns of market bottoms.

    It's a classic accumulation picture...

    The Narrative:

    (OTCPK:IWEB) has built an award-winning, family of high performance data storage array products with enterprise-class features and performance capabilities at a fraction of the price of traditional providers. And now the market is discovering it and new orders are pouring in as the recent press releases demonstrate.

    * (OTCPK:IWEB) won the distinction of DCIG "Best in Class" in the Replication Software category as noted in the Industry Replication Software Award for 2012 competing against all the big guys, EMC, NetApp - et al.* their #1 ranking in the Replication Software category shows that IceWEB is currently better positioned than its competitors to meet this specific organizational need.


    Incorporated in 1994, (OTCPK:IWEB) was twice named Inc. Magazine's 500 Fastest Growing private US corporations and was recognized as Deloitte & Touche Technology "Fast 500" North American public or private technology companies.

    Visit (OTCPK:IWEB)'s exceptional website: http://www.iceweb.com

    Stocks: IWEB
Back To Dr. John Faessel's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
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.