Interesting new article on MagicJack Vocaltec

SteveHC · Post by **SteveHC** » Thu Jan 31, 2013 8:05 am

Here's a brand new article on MagicJack commenting on its positive financial situation, market strategies, upcoming products (including its new Wi-Fi hardware product), and future prospects:

http://seekingalpha.com/article/1145901 ... e_readmore

Los Angeles jack · Post by **Los Angeles jack** » Thu Jan 31, 2013 8:55 pm

Interesting article but not sure I'd invest in CALL. The price point for the upcoming Wi-Fi Magicjack at $99 seems reasonable and the anticipated yearly subscription would remain unchanged at $30. I noticed the lack of information on texting capabilities. I think Nettalk offers texting for an additional $30 a year, and it would be great of Magicjack offers something similar.

SteveHC · Post by **SteveHC** » Thu Jan 31, 2013 9:17 pm

Los Angeles jack wrote:Interesting article but not sure I'd invest in CALL. The price point for the upcoming Wi-Fi Magicjack at $99 seems reasonable and the anticipated yearly subscription would remain unchanged at $30. I noticed the lack of information on texting capabilities. I think Nettalk offers texting for an additional $30 a year, and it would be great of Magicjack offers something similar.

Actually, the article did make brief mention of the new device's ability to handle texting - and other data transmission capabilities - but did not mention whether or not there would be additional fee(s) involved. MagicJack itself HAS previously announced that it is going to be adding such texting capabilities to its system, as well as many other new features, and also did not mention any fees to consumers for SMS or other new services/features in its announcements.

Apparently this new Wi-Fi device is not just going to connect with routers via Wi-Fi, but is also going to have the capability of serving as a full-featured Wi-Fi "hot spot" as well. Also, it looks like the company has decided to incorporate additional features - such as video-streaming and video calling; the new device's more powerful procressor and increased memory supposedly will allow for these additional features and services, as well as allow for the connection of iOS and Android devices to it - which means that if the device is connected to a traveler's laptop, one's nearby iOS or Android installed MJ app would be able to be used for calls, texting, etc. via that Wi-Fi hotspot connection. So the new device will have far more capabilities than NetTalk's wi-fi enabled device, and may very well turn out to be worth the $99 price tag. We'll have to wait and see.

At any rate, when I look at all of the data, I find myself tempted to say that investing in the stock makes sense if/when it falls below $13/share if not right now at its current price of between $13 and $14/share. I'm not so sure that I'd agree with the author's $30+ price target though... $25 seems to make more sense to me.

conniemadagain · Post by **conniemadagain** » Thu Jan 31, 2013 10:57 pm

DOWN 35.5 JUST in the last 3 months ... look to the right of that article ...

SteveHC · Post by **SteveHC** » Fri Feb 01, 2013 12:12 am

conniemadagain wrote:DOWN 35.5 JUST in the last 3 months ... look to the right of that article ...

- Don't know what you're talking about; the stock was NEVER up to $35 to begin with... regardless, CALL is a very small cap stock and as such it's subject to both cyclical activity (check out price charts on it for a 1-2 year period and you'll see what I mean) and wide price swings, as it doesn't take a lot of activity to get it moving in either direction. Also, when it comes to such stocks, when their EPS stays decent (as CALL's is) and then rises even further, share price tends to rise and can do so rather quickly. And when the company either buys back shares or is sold to an acquiring company, a LOT of money can be made off of the shares sold.

I'm not saying that I agree with every little thing the author said, but the potential to make a lot of money off of CALL is *definitely* there. Many others already have, and I believe the opportunity to do so will arise once again especially if the company can a) produce and sell the new device, services and features on time (debatable), and b) accurately document its true market share and/or market penetration.

Los Angeles jack · Post by **Los Angeles jack** » Fri Feb 01, 2013 12:29 am

I just noticed from the Nettalk website that the Nettalk Duo Wi-Fi device sells for only $69 which includes the 1st year of service. Magicjack's Wi-Fi device anticipated price point at $99 may drive away its new customer base to the cheaper Nettalk Duo Wi-Fi device at $69. We will have to wait and see. Maybe Magicjack might include additional services such as certain International calling plans or including SMS/texting to justify the higher price point.

SteveHC · Post by **SteveHC** » Fri Feb 01, 2013 12:35 am

Los Angeles jack wrote:I just noticed from the Nettalk website that the Nettalk Duo Wi-Fi device sells for only $69 which includes the 1st year of service. Magicjack's Wi-Fi device anticipated price point at $99 may drive away its new customer base to the cheaper Nettalk Duo Wi-Fi device at $69. We will have to wait and see. Maybe Magicjack might include additional services such as certain International calling plans or including SMS/texting to justify the higher price point.

- See my post above for some of the additional features and services that the new MJ device will be sporting - FAR more robust, and truly no comparison to the current NetTalk device. The new device will be sold alongside the cheaper MJ+ and will target people who want more services/features than just cheap VOIP, while the MJ+ will continue to be aimed at those wanting only cheap VOIP.

SteveHC · Post by **SteveHC** » Fri Feb 01, 2013 1:08 am

For those who are interested:

Traders Insight also seems to think that the company's shares will do well, at least keeping up with the its general market sector. But its evaluation and conclusion(s) appear to be based solely on technical analysis and does not take into account the company's specific products/product development, and also appears to be based at least in part on financial and VOIP sector data that might not be most current (if it did, I think it might have rated the stock "Market Outperform" rather than "Market Perform").

Trader Insights' just-released report on CALL can be obtained via this link:

http://www.tradersinsight.net/r/2013-01-30/4aa3_CALL

wgnweb · Post by **wgnweb** » Wed Mar 13, 2013 10:55 am

I laugh at Dan and magicjack. How do you brag about your upcoming new feature when your competitor (netTALK) has had a wifi device for over a year now? Way to stay "ahead" of your competition Dan. I have been with MagicJack since the beginning until November. Dan's lack of ethical business practices has really turned me off. This website was created was created back in 2007 because of Dan's arrogance about customer service to his customers. I finally had it in 2012 because of Dan's arrogance about the lack of customer service and taking away of features.