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Penny Stock Fortunes -- January 2007 International Expansion and Insider Buying: Two More Reasons to Bank on Intervoice Intervoice sells its products in more than 75 countries, and international sales were 45% of total sales last year. International revenues were 45% in 2006, versus 41% in 2005 and 2004 — this shows that the company is expanding its international presence. So it’s no wonder that the company is planning to expand in one of the world’s fastest developing countries. In October, Intervoice announced it would be establishing sales and support staff in China. Intervoice has been selling its products in China since 2001 by partnering with Alliance Digital and ITApps. And as China’s economy develops and a focus on better customer service becomes more important, Intervoice will be there to win more customers. The company has already been successful in courting several businesses in the financial services sector, including the Industrial and Commercial Bank of China and Bank of China. With overseas prospects like these firmly within reach, it’s no wonder some of Intervoice’s top executives are buying shares of their own stock. Two company directors and the chief operating officer have recently bought shares of Intervoice. One director, Gerald Montry, bought 30,000 shares of his company’s stock in May between $6.45–6.60 per share. That’s more than $194,000 of his own money. The only reason an insider would throw down that kind of cash on his own company would be if he knew it was the best investment around. The last time Montry bought shares of Intervoice was in 2003, when he scooped up 122,000 shares between $2.40–2.98 per share. If he sold those shares at today’s prices, he would more than double his money. Not too shabby:
A Great Forecast for Profits Despite some bumps in the road over the past year due to the integration of new acquisitions and transitions in its products, Intervoice is poised to make a comeback. Insiders have taken note and are grabbing shares, the company’s list of orders is growing and its international presence is expanding. When third- and fourth-quarter results are announced, it will be too late for the rest of the investment world to get in on this deal. Action to take: Buy shares of Intervoice (INTV: NASDAQ) under $7.05. Do not chase the price. If the stock drops below $5.05 per share, sell your shares.
Final Thoughts As I wrote earlier, Intervoice does business with some important companies. Since industry leaders like Citibank, Wal-Mart and Sony have put something as important as customer service solutions in Intervoice’s control, it’s safe to say that this company has solidified its reputation in its industry. The same holds true for Monogram. Its partnerships with major drug firms are lucrative and a first step toward profitability and industry recognition. As the CXS System stipulates, partnerships like these create a profit fortress that helps protect the company from competition. And it can do wonders for the bottom line. Next month, I’ll be writing to you about another potentially profitable play that helps its many clients sell more products and keep customers happy. Stay tuned to be the first to read all about it… Best, Gunner Click here to read another special report: The Alternative Energy Journal |
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