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Vol. 6, Issue 243 - August 2002 The Wall Street Bulletin Your
First Source For News From "The Street"
Symbol: IGTT Our last pick Symphony Telecom (OTCBB: SYPY) went UP 100% in just one week!!! InDigiNet Identifies Acquisition Targets with Combined Revenues of $35 Million...
Telecom Consolidation Begins to Accelerate The Wall Street Bulletin believes that the recent investment of capital into Level 3, lead by Warren Buffett, is further proof of the continued validity of the telecommunication market when looked at from the perspective of the small to mid-sized enterprises. After the boom and bust comes the revival. For some carriers drowning in debt, such as Global Crossing and WorldCom, the future may be dim. But for those survivors of the industry that have managed to remain on their feet, other companies' problems mean opportunity. "Every major industry in the history of the United States has experienced a similar transformation, from the railroads in the late 1800s to the automakers in the mid-1900s to the Dot-Coms at the end of the 20th century," says Robert Saunders, director of the Eastern Management Group market research firm. Christopher Dean, CTO of OSS company Eftia, says "We are seeing all the people that are the survivors. There's all this pent-up money and for the surviving carriers out there, they can get what used to cost a few billion for a few millions." Read the full story from Telecommunications Magazine - See the link at the end of this newsletter. As we write this report, our New Recommendation InDigiNet, Inc. (OTCBB: IGTT) has only been trading on the OTC Bulletin Board since late May of 2002. As InDigiNet, Inc. continues to implement its business plan, we believe this company will help lead the way up for the resurgence of the Telecom Sector. This could be our strongest recommendation of the year. We are giving IGTT our Highest Rating of STRONG BUY/AGGRESSIVE GROWTH.
Ground Floor Opportunity / Tremendous Growth Potential We believe IGTT will perform equally to, if not greater than its competition. A similar telecommunications company, Talk America Holdings (Nasdaq: TALK), share price began to explode in April of this year moving from just over $0.40/share to over $4.00/share in late June. Talk America Holdings previously had a market cap of only $24.51 million, but today has a market cap of $267 million. IGTT curently has a market cap of $22.42 million. Using the TALK model for potential growth, IGTT could very well be trading in the .60 range in only a few months, with a market cap in excess of $250 million. This would be an increase of 1000%. So you see why IGTT has such great potential and the time is right for investors to get in on the ground floor.
The InDigNet Strategy InDigiNet, Inc. is an integrated solutions company that provides small to mid-sized enterprises (SMEs) with an integrated communication solution. InDigiNet is a prestigious "Diamond" level partner of Avaya, as well as a reseller for Cisco and Compaq. The Company will offer data, local, long distance and wireless services to SMEs over third party networks enabling the Company to offer a comprehensive suite of services without the capital burden of building a communication network. The Company’s strategy is to acquire the customer bases of smaller, single market communication companies and attractively priced Internet Service Providers (ISPs). The Company recently completed its acquisitions of Fox Telecommunications and WBConnect. InDigiNet will then expand the breadth of their services to grow revenue and enhance profitability. SMEs account for $120 billion in commercial telephony, data services and technology spending, or 33% of the country’s total market, and this spending is expected to grow at above average rates over the next ten years. Source: Morgan Stanley Dean Witter. The IGTT web site: www.indiginet.com
The IT Market Based on recent studies, the country’s 7.4 million SMEs currently lag significantly in the utilization of IT and data communications, including Internet access, web services, business software and e-commerce. Worldwide IT spending increased to $981 billion US for the year, an overall increase of 3.7 percent over 2001, according to a study released 7/24/2002 by market researcher IDC. IT spending in 2003 is expected to reach record heights, growing by 9 percent worldwide to top the $1 trillion mark for the first time. In IDC's revised forecasts for IT spending in 2002 and 2003, IT spending in the US is expected to increase by 3 percent this year over 2001 to $436 billion, with further growth of 9 percent in 2003. Western Europe can expect growth of 4 percent in 2002 and 6 percent in 2003. Though Japan will experience flat growth levels this year, by next year growth in the market will return to the tune of 7 percent with particular strength shown in China, India, Korea, Russia, the Philippines, South Africa and Poland. Source: IDC
Particulars The Wall Street Bulletin is putting IGTT on our Strong Buy/Aggressive Growth recommendation list for the following reasons: 1. The Company's strategy is to acquire the customer bases of smaller, single-market communication companies and attractively priced Internet Service Providers (ISPs). The Company will sell its bundled service package to the acquired customer base that will form a direct and immediate distribution channel for all types of communication services - local, long distance, wireless, and data.
Investment Consideration InDigiNet Inc recently filed its 10QSB, for the three months ended March 31, 2002. IGTT reported Revenues of $339,694 in Q1 2002 vs. Revenues of $0 in Q1 2001. At this current growth rate, revenues should grow above $1.3 million for their first year of production with no increases in acquisitions. As more and more large corporations come under government scrutiny, investors will turn to small to mid-sized companies with their investment dollars.
NEWS - InDigiNet, Inc. Completes Acquisition of Fox Telecommunications, Inc. - PRNewswire - CLICK HERE NEWS - InDigiNet, Inc. Completes Acquisition of WBConnect - PRNewswire - CLICK HERE
NEWS - Telecom Consolidation Begins to Accelerate - from Telecommunications Magazine - CLICK HERE
Industry Interests - Telecommunications Websites: TIA Online - Telecommunications Magazine - IT World
The Wall Street Bulletin is an independent newsletter and is not affiliated with InDigiNet, Inc.
The Wall Street Bulletin is an independent research firm. This report is based on The Wall Street Bulletin’s independent analysis but also relies on information supplied by sources believed to be reliable. This report may not be the opinion of IGTT management. The Wall Street Bulletin has also been retained to research and issue reports on IGTT and was paid ten thousand dollars by a shareholder of the company. The Wall Street Bulletin may from time to time buy or sell IGTT common shares in the open market without notice. The information contained in this report is not intended to be, and shall not constitute, an offer to sell or solicitation of any offer to buy any security. It is intended for information only. Some statements may contain so-called “forward-looking statements”. Many factors could cause actual results to differ. Investors should consult with their Investment Advisor concerning IGTT. Copyright 2002 © The Wall Street Bulletin - All Rights Reserved I no longer wish to receive your newsletter CLICK HERE |