DeltaThree: Two Votes for VoIP

01/16/2004 12:00 am EST

Focus:

Vivian Lewis

Editor and Publisher, Global Investing

"Voice over Internet Protocol is a system enabling PCs to transmit phone calls over the Internet," explains Vivian Lewis in her Minutewoman,who picks DeltaThree to play this trend. The stock is also a favorite from Kevin Kennedy, editor of The Coolcat Explosive Small Cap Growth Stock Report.

"The best performing stocks in 2003 were microcap tech companies with fairly low price-to-sales ratios and market caps that fell below $1 and bounced back strong," says Kevin Kennedy, editor of The Coolcat Explosive Small Cap Growth Report.  " DeltaThree (DDDC NASDAQ), a hot play in the Internet phone sector, fits that mold. Founded in 1996, DeltaThree provides private-label products, including PC-to-Phone, Phone-to-Phone, and Broadband Phone, as well as back-office services such as billing, operations management, marketing support, and network management to service providers worldwide. Its consumer division, iConnectHere, provides award-winning VoIP products directly to consumers. Its high-quality Internet telephony solutions are viable and cost-effective alternatives to traditional telephone services."

Vivian Lewis adds, "Under programs now being sold mainly to businesses-but also penetrating consumer markets- telephones using the Internet can replace wireless and land lines, and save money for users. Although it is hardly the only competitor, or even the best-known, we suggest adding DeltaThree to your stock holdings. This is an Israeli firm, but run from downtown New York. The technology is not new but there had been a lull in sign-ups during the dotcom bust. Now Microsoft's XP operating system is easily configured to allow VoIP. And makers of pipes for the process, like DDDC, are likely to see a strong pickup in business. This is a mini-company with sales in the first nine months of this year of $13 million, and losses of 32 cents per share."

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