Look for JDX's "Elastic Networks" within:
Subject:
(ClearStation) Recommendation : XETA (Long) by kensey , Tue Feb 22
Date:
Tue, 22 Feb 2000 05:26:14 -0500 (EST)
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'kensey' has recommended XETA (Long) at Feb 22 2000 3:18AM
Xeta Corp ( NASDAQ : XETA )
Telecomm Equipment : 9 new highs in group of 140
Symbol Last Time Change High Low Volume
----- ---- ---- ----- ---- --- -----
XETA 39.50 6:37PM -3.50 42.75 37.50 61,000
Community Take
--------------
27 Long / 0 Short
'kensey' said:
XETA.
the existing business is growing at 40 percent and the
additional revenue stream has possibilities.
the existing business is call accounting software to hotels.
the additional revenue stream is offering high speed internet
access for guests at hotels.
technically, MACD is green. so, look to go long. within
the confines of that trend, the stochastic lines are at
relative oversold levels. so, a timely entry is at hand.
additionally, money flow is positive in that volume mirrors
price : volume expands when the stock moves up and contracts
when the stock moves down.
to sum up :
1) stock is in an uptrend
2) stochastic indicates a timely entry into this trend.
3) money flow looks good.
technically speaking.
and in this way, this pick is similar to the long recommendation
made for Open Market which explains this 1-2-3 approach a little
bit more verbously (bulbously?).
clearstation.com
as for the fundamentals, they look good. here is a snippet
from the most recent earnings report :
BROKEN ARROW, Okla.--(BUSINESS WIRE)--Dec. 14, 1999--XETA Corporation
today announced its sixth consecutive year of sales and net income
records. For the fiscal year ending October 31, 1999, the Company
earned net income after-tax of $4,283,000, or $0.93 per share
(diluted), on sales of $37,263,000. These results represent a 46%
increase in sales and a 40% increase in net income compared to fiscal
1998.
The Company also reported that for the fourth quarter ending October
31, 1999, it earned after-tax net income of $1,219,000 or $0.26
(diluted) on sales of $11,187,000. These results represent a 68%
increase in sales and a 58% increase in net income compared to the
fourth quarter of fiscal 1998.
what does XETA do? XETA has 25 percent of the market for call
accounting software to hotels. ooooh! aaaaah! yes, sounds
dull but i like the reported figures. and for a fact, XETA has
been a 30 plus percent grower over the past 5 years. and for
a fact, the growth rate is accelerating.
in addition, XETA is adding high speed internet access to it's
repeatetiore (sp?) :
Company Press Release
SOURCE: XETA Technologies
XETA Technologies Partners With Darwin Networks to Provide High-Speed
Internet Access to the Hospitality Market; Alliance Means Added Value
for Hotel Guests and Increased Revenue For Hoteliers
BROKEN ARROW, Okla., Feb. 15 /PRNewswire/ -- XETA Technologies
(Nasdaq: XETA - news) has announced a strategic partnership with
Louisville-based Darwin Networks to offer high-speed Internet access
to its customers in the lodging industry. XETA Technologies is
currently recognized as the leader in hospitality call accounting
software, boasting a 25% share of the 125-room-and-above market. XETA
is also the leading national supplier of Lucent and Hitachi PBX
systems. Darwin Networks is a recognized, national leader in
providing high-speed Internet access and network services to the
hospitality market. The XETA/Darwin offering will include XETA's
Linux-based Virtual XL call accounting system integrated with
Darwin's Linux-based high- speed DSL Internet access system.
In March, XETA will begin serving as a sales agent for Darwin
Networks. XETA will offer a packaged system that will allow hotel
owners to begin offering the high-speed Internet access being
demanded by today's travelers. Moreover, it will also bring
hoteliers additional revenues from e-commerce fees, meeting room DSL
bandwidth usage and guest room access fees. Hoteliers will also
recognize revenues through the use of XETA's call accounting
software, which frequently increases property revenue per available
room (RevPAR) by 30-50%. Finally, hoteliers will benefit from a
revenue-sharing agreement based on Internet usage.
The Elastic Networks technology offered by Darwin Networks allows
hotel guests to access the Internet at speeds up to 50 times faster
than on a 28.8K dial-up modem. Through a simple plug and play
connection in each hotel room, guests can use their laptops to tap
into the Internet, while simultaneously using the same telephone
line for voice conversations.
The partnership with XETA Technologies, a reputable leader in the
lodging industry, solidifies Darwin Networks' position in the
hospitality market. ``This market is eager for high-speed Internet
access in guest and meeting rooms, as well as e-commerce web sites
for the properties themselves,' said David Wigglesworth, president
of Darwin Networks' Hospitality Division. ``XETA is a well-known and
highly respected telecommunications supplier to the lodging
industry. Partnering with XETA to offer such an excellent solution
is a very important step for Darwin Networks towards our goal of
being a leader in this industry.'
High-speed Internet access is a logical offering for XETA. ``Our
lodging customers were demanding the ability to offer this service
to their guests. We believe it's also a natural fit with our popular
Linux-based call accounting software,' said Don Reigel, president
of XETA Technologies' Lodging Division. ``Darwin is our best option
as a partner -- they offer cutting-edge DSL technology from Elastic
Networks and they have strong financial backing from investors such
as Paul Allen's Vulcan Ventures.'
Elastic Network's core suite of high-speed copper access solutions
are based on EtherLoop burst-mode DSL technology, which provides
multi-megabit access over regular copper phone lines up to 21,000
feet. Elastic Networks portfolio also includes the YesWare software
suite, which provides integrated services management including plug
and play connectivity -- without end user laptop reconfiguration --
as well as billing, service branding, and system management for both
EtherLoop and Ethernet networks.
To see a flowchart of the high-speed Internet access offering in
hotels, please visit the XETA website at www.xeta.com.
About Darwin Networks
Darwin Networks provides high speed data communications solutions
and Internet access to small and medium-sized businesses, office
buildings, apartment complexes, hotels and telephone companies,
using wireless and Digital Subscriber Line (DSL) technologies. The
company offers a full complement of marketing and support services,
including training, to assist business owners, property managers and
their staffs in marketing and implementing the new services. Darwin
Networks has corporate offices in Louisville, KY; San Diego, CA; and
Seattle, WA; and Walnut Creek, CA. The company has agreements in
place and in progress to launch services in more than 400 locations
in over 20 states. Darwin Networks' investors include Broadband
Solutions, LLC (led by Chrysalis Ventures, LLC), Paul Allen's Vulcan
Ventures, Richland Ventures, River Cities Capital and associates of
Moore Capital. For more information about Darwin Networks, please
visit www.darwin.net.
About XETA Technologies
Headquartered in Broken Arrow, Oklahoma, XETA Technologies is a
premier voice and data integrator with 16 sales offices and 28
service centers. Embarking on a strategy to be recognized as the
leading provider of equipment and after-market service for both
voice and data applications, XETA Technologies is continuing to
build upon its success as the largest dealer of Lucent and Hitachi
voice systems. The Lodging Division of XETA Technologies is the
leader in the sales and service of call accounting systems to the
lodging industry, boasting about a 25% share of the market. Further,
this division is the leading re-seller of Hitachi and Lucent PBX
systems in the market at 15% market share. The Commercial Division
of XETA Technologies, formerly St. Louis-based US Technologies, is
the largest dealer of Lucent Technologies' systems and was
recognized by Lucent as BusinessPartner of the Year in 1994, 1998
and 1999.
In 1999, XETA Technologies was selected by Forbes Magazine as one of
the Best 200 Small Companies in America for the fourth time in five
years. Business Week also selected XETA Technologies as one of its
Top 100 Hot Growth Companies for 1999. XETA Technologies has
generated six years of record financial results, with sales and EPS
growing at five-year annual compound rates of 38% and 29%.
disclosure : I DO NOT have a position in this stock. i INTEND
to establish a position in this stock nEAR tERM bUT oNLY
after this email has been dissinseminated (sp? 'spit out'?)
and disgusted.
kensey
See the annotated graph of this recommendation at:
clearstation.com
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