By Hassan
Malik @hmalik21
Bigger isn’t
always better for investors. In the technology software market, investing in a
bigger company like Apple may guarantee investors security but this will come
at a price. In Apple’s case, about $110 a share. This is good for investors who
already have a stake in the company but bad for those willing to purchase a lot
of shares at once. The trick to a good investment is not to go by what a
company is trading at right now but its potential valuation in the future.
Unfortunately, pinpointing these companies by name is a near impossible task.
However, assessing factors like a company’s finance, management and future
prospects can tell investors which company is a relatively safer bet. That
being said, one company that may be interesting is Interactive Intelligence Group Inc. (NASDAQ: ININ),
which currently has a share price of $43.11. Here’s why the stock may be worth
a look:
Cost: Interactive makes
business communications software that manages customer service calls,
tech-support emails and email marketing campaigns. The company competes
head-to-head with tech giants like Cisco. However, what gives Interactive an
advantage over bigger companies is its ability to offer its services at a lower
cost. Interactive’s code integrates with existing software platforms. This
eliminates the need for companies to purchase any additional software and also
decreases the overall cost of using Interactive’s product. A lot of companies
have already switched over to using Interactive’s product. Recently, Yellow
Radio Service of San Diego reported that it has increased its customer service
base as a result of deploying the all-in-one IP communications software suite
by Interactive.
Management: The company recently
announced that it has hired Jeff Platon as Chief Marketing Officer. Platon has
more than 20 years of experience in the marketing and product management field.
He has mostly specialized in IT security, networking, cloud, and communications
technologies, making him an ideal candidate needed to move the ambitions of the
company forward.
Finance: Earlier this month,
the company beat analyst estimates with its Q3 earnings. Revenue also grew to
$89.5 million from $78 million a year earlier. The company reported third
quarter adjusted EPS of $0.01, compared to $0.20 in the previous year. Analysts
expected a loss of $0.19.
Sentiments
associated with the company are generally positive. Experts at Zacks have
ranked the company at a #3 hold position. In the past 3 weeks the stock has
shown strong growth, with prices soaring over the last 10 trading days.
Although no one can say for sure when the trend will end, the stock could be
pricier in the weeks ahead.
To
see more of Hassan’s small cap stock ideas, visit the archive here: www.smallcappower.com/experts/products/hassan-malik
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