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Technology Stocks : EGLO Executive Telecard -- Ignore unavailable to you. Want to Upgrade?

To: Mike Petriv who wrote (127)	1/10/2000 6:23:00 AM
From: Thu Ra Tin	Read Replies (1) \| Respond to of 300

Trader's Edge: eGlobe (EGLO) 10-Jan-00 00:03 ET [BRIEFING.COM - Robert Walberg] eGlobe (EGLO) 9 1/8 isn't on the radar screen of many daytraders... Or at least it wasn't until Friday, when the stock shot up nearly 45% on a huge spike in volume... EGLO extended its run in after hours trading, climbing all the way to 11 1/2... Though it has enjoyed a tremendous gain in a short time span, Briefing.com contends that this supplier of global enhanced telecomm. and information services (including internet voice and fax, calling card services, and other international intranet and inter-networking services) will extend its rally in the days just ahead... Here's why: Trading Points: Friday's rally prompted by announcement that the company had joined Hsin Yen, the founder of IDX International, in forming a new company, i1.com... The new company will specialize in providing business-to-business eCommerce solutions in Greater China, and other East Asian countries... i1.com plans to launch its services in the second quarter of 2000. We highlighted the two phrases - B2B & China - that jumpstarted the stock... Momentum traders have been hot for both China and B2B plays, and being that EGLO represents a marriage of the two, the stock should remain in play. In December, EGLO agreed to merge with Trans Global Communications, Inc, a leading provider of international voice and data services to carriers in several markets around the world... Trans Global, a private company, anticipated 1999 revenues of more than $100 million... services, and is expected to be accretive for eGlobe stockholders. The new company will have one of the most comprehensive Voice over IP (VoIP) networks available in the Middle East, Asia Pacific and Latin America. Merger will significantly increase the volume of traffic on EGLO's infrastructure and enable it to expand that infrastructure in a more cost-effective manner... Deal, which will be accounted for as a pooling of interests with the Trans Global equity valued at approximately $80 million, to be exchanged for eGlobe stock at closing, also expected to be accretive to EGLO. EGLO's own revenues surged 56% over the first nine months of FY99... More impressively, revenues from its VoIP services grew by 350% since the first quarter of 1999... The company also experienced a 60% rise in minutes carried by the network. When you add EGLO's own growth to the impending merger with Trans Global Communications and Friday's announcement concerning the formation of i1.com, the peices are in place for a big rally... Especially, when you consider that EGLO trades at only 7.4x sales (using the 11 1/2 quote) - very cheap by B2B standards (though company not yet a legit B2B play). Limited float (14.5 mln shares) will also work in company's favor over the short-term. Fundamentally, company still a question mark - long-term... But move to new high, surge in activity, recent merger and the right buzz words in its press release, suggest that stock could run to the 20 area without much effort. Given lack of earnings visibility, limited float and market risks, EGLO is a high-risk investment candidate. Robert Walberg