Pat McKeough responds to many personal questions on specific stocks and other investing topics from the members of his Inner Circle. Every week, his comments and recommendations on a selection of the most intriguing questions of the past week go out to all Inner Circle members. And every Friday, we offer you one of the highlights from these Q&A sessions. This week, the subject of tech stocks came up as one Inner Circle member asked about a company that makes software that is vitally important for computers and mobile devices, but also faces a highly competitive market. Q: Hi Pat: Pat: What do you think of tech stock CounterPath Corp. Thanks. A: CounterPath Corp., (symbol CCV on Toronto; www.counterpath.com), makes voice-over-internet-protocol (VoIP) software for computers and mobile devices. VoIP technology converts analog signals, mainly voices, to a digital format. This makes it possible for users to make low-cost phone calls over the Internet, as well as share video and instant messaging at the same time. CounterPath has over 250 customers in more than 50 countries. The company’s clients include major telecommunications companies, such as AT&T, Verizon, BT (British Telecommunications plc) and Mobilkom Austria. CounterPath also sells its technology to network equipment makers, such as Avaya, BroadSoft, Cisco Systems, GENBAND, Metaswitch Networks and Mitel. As a member of my Inner Circle, you will get individual answers to your personal investment questions. And you will see my answers to questions other investors like you are asking. In fact, you will get virtually all the investment advice I have to give. You will have access to all of our advisories – The Successful Investor, Wall Street Stock Forecaster, Stock Pickers Digest and Canadian Wealth Advisor – and full access to the members-only, password-protected Inner Circle section of The Successful Investor Network website. Although my team carefully researches all the stocks that members ask about, I personally review each and every recommendation. To ensure this close personal attention, only a limited number of members can be admitted to our Inner Circle. Under the pressure of world events, even more investors are asking for my personal investment advice. We are nearing our membership limit already. Click here to secure your membership in the Inner Circle right away.
Tech stocks: Chairman’s history of success gives CounterPath sound pedigree
In the three months ended October 31, 2011. CounterPath’s revenue rose 35.3%, to a record $3.5 million from $2.6 million a year earlier (all figures expect share price and market cap in U.S. dollars). Revenue from software sales (61% of total revenue) rose 21.5%, to $2.1 million from $1.8 million. Service revenue (39% of total revenue) rose 64.9%, to $1.3 million from $816,346. The company earned $112,049, or nil per share, in the latest quarter. A year earlier, it lost $845,999, or $0.03 a share. CounterPath holds cash of $7.2 million, or $0.18 a share, and has no debt. The shares come with something of a pedigree, because of the involvement of Terrence Matthews as chairman and director. Matthews has founded or funded over 80 companies in the high tech communications field. Several, including Mitel and Newbridge Networks, have gone on to great success. Of course, many companies that Matthews launched failed to thrive, as you’d expect. In the Inner Circle Q&A, Pat looks at whether the company can continue to benefit from accelerating trends that are making VoIP technology more accessible to everyday users of smartphones, tablet computers and other mobile devices. He also analyzes whether its research spending is enough to keep pace with competitors. He sums up with his clear buy-hold-sell advice. Inner Circle members see Pat’s analysis and recommendations on the stocks that other members have asked about in each week’s Inner Circle Q&A. You can view it immediately when you become a member of this special investment group. You will get Pat McKeough’s answers to your personal investment questions, full access to our members-only Inner Circle website, and many other membership privileges. Click here to get started right away. (Note: If you are a current member of the Inner Circle, please click here to view Pat’s recommendation. Be sure to log in first.)
