canada-invest.com
GURU PICKS
Bearish Isn’t
Tue, Nov. 21, 2000 07:10
By Maria Babbage, Canada-iNvest.com
Looking for some small-cap stocks? David Berish of Small Caps Online is
bullish on three Canadian plays.
Berish’s final pick is InfoCast Corporation (IFCC), a Toronto-based
“e-enabler” that currently trades on the bulletin boards. With a market cap of
$30.7 million, he says the company is focused on the application service
provider industry. It provides server-based information technology outsourcing
solutions; designs applications for distance learning, virtual call centers and
tele-work and telecommuting. With some big-name partnerships on the verge
of being announced, he says it’s a great buy.
InfoCast provides virtual call centers and virtual community systems—bringing
customers a full complement of Internet and communication solutions to their
customers. They can set up chat boards and news centers dedicated to one
particular niche or industry. Shares have traded at 52-week high of $10.25 and
a low of $1.15.
Berish likes the stock because it’s in the ASP market, but it also announced
in September that Sun Microsystems had expanded its existing relationship
by committing up to $10 million to InfoCast—giving them a $1 million equity
investment, contingent on the company achieving certain milestones. Sun had
already invested $1 million in the firm.
“They’ve extended lease agreements under extremely favourable terms to
InfoCast totaling the other $8 million. In our view, that is a strong validation of
InfoCast technology as well as their corporate strategy, and by announcing
this relationship with Sun, we think its’ going to help the company raise its
profile with both potential customers as well as potential investors, both retail
as well as institutional.” |
