Dr. John L. Faessel
ON THE MARKET
Commentary and Insights
Turnaround Stock of the Year Reports 49% Revenue Increase
IceWEB Inc. (OTCPK:IWEB) OTCBB
Turnarounds have to start somewhere - (OTCPK:IWEB)'s is now officially underway
Yesterday one of my "Best Ideas for 2012" and my "Turnaround Stock of the Year" reported their second consecutive double-digit quarterly revenue increase.
I believe that this is just the beginning of the turnabout for IceWEB.
Here is a stock that's been crushed, down from about $70 during the dot com bubble to pennies and amazingly has survived. In fact, the now "new" (OTCPK:IWEB) is on a terrific roll, yet it's not recognized by the market. Obviously, the proof is in the pudding, but a close look will show that "its" happening and I believe that the stated growth is just the beginning. Growth for (OTCPK:IWEB) is in its infancy and these back-to-back quarterly revenue increases are the first official, "in stone" substantiation and attest to what's going on with the now completely reconstituted company. We are indeed at the tipping point for multi-bag returns.
(OTCPK:IWEB)'s quick story suggests a rare coming together of the numerous reasons companies prosper. Certainly first is that there is a backdrop of a 61.4% CAGR data storage explosion. Next, they have an award-winning product* and their product mix sells at a fraction of the cost of the competition at a price point that is consistently 30% lower than the high cost vendors such as EMC and NetApp. Exceptional new management and marketing hires also have brought added quality and dynamism to the storyline.
(OTCPK:IWEB) has another "one and only" feature: the plug-in and play 5-minute set-up time for their IceWEB 2000 appliance. And they include an "all inclusive feature set" - you buy [it] you get it all... unlike any vendors that I know of...
* (OTCPK:IWEB) won the #1 ranking* in the DCIG 2012 Midrange Array Buyer's Guide (a win over EMC, NetApp, IBM, HP, et all. and has been chosen as a Finalist in the Storage Hardware Product of the Year category in the 2012 Data Centre Solutions Awards.
So the reason for the turnaround is best and most simply put; ― its price ― features ― and performance!
It's an unbeatable sales offering that a growing list of premier customers have selected. (OTCPK:IWEB) claims an ever growing list of clientele that speak to the quality of their product line and all-inclusive service: the U.S. Army, The Department of Defense, the US Geological Survey, as well as multiple local and county governments, plus Google, Cisco, and a steady stream of sizeable orders from mid-to-large commercial and public sector customers have selected (OTCPK:IWEB)'s products.
Last month (OTCPK:IWEB) announced that one of the world's largest electronics manufacturers, a Global 50' Enterprise Corporation, has purchased a high performance IceWEB 7000 data storage system to upgrade their supercomputing environment. The IceWEB 7000 scales to a mammoth 1.8 petabytes for use in large data centers, supercomputers and cloud environments.
In my opinion we will shortly see more tier-one names bring exceptionally large orders for (OTCPK:IWEB)'s breakthrough product line. If I am right in my analysis just the name of one (and I believe there are more than one) of these premier players who have mammoth data storage needs that are beta testing (OTCPK:IWEB)'s products would ignite a buying frenzy in the shares.
For (OTCPK:IWEB)'s Q2 Financial Highlights:
An important reason for this order surge; a recent hire brings a great deal to the table. Steven Toole, now (OTCPK:IWEB)'s Chief Marketing Officer was instrumental in driving sales for AppAssure. (Acquired by (DELL) in February.) AppAssure reported 194% sales growth year-over-year in 2011 and 19 consecutive quarters of growth. Toole has said that he sees "at least the same potential growth at (OTCPK:IWEB)", and he came to the company to repeat the impact he made at AppAssure. Toole also says the, "market that's far bigger than AppAssure's a market for Windows-only backup software." The "sell" is easier too as companies only buy backup once every five or so years, contrasted with (OTCPK:IWEB)'s market opportunity for storage that is not only 10x larger than the backup software market, but is growing at a much faster pace.
Prominently, much of Toole's sales force at AppAssure is now at (OTCPK:IWEB) and the industry buzz is that, "more are on the way."
Also notable; recent acquisitions in the data storage sector have been priced at exceptionally high multiples of revenue, some as high as 6 to 8 X revenue; this makes the IceWeb shares even more compelling.
I call (OTCPK:IWEB) my "Turnaround Stock of the Year" and I see multi-bag potential for this little company.