Archives

• November 2009
• October 2009
• September 2009
• August 2009
• July 2009
• June 2009
• May 2009
• April 2009
• March 2009
• February 2009
• January 2009
• December 2008
• November 2008
• October 2008
• September 2008
• August 2008
• July 2008
• June 2008
• May 2008
• April 2008
• February 2008
• January 2008
• December 2007
• November 2007
• October 2007
• September 2007
• August 2007
• July 2007
• June 2007
• May 2007
• April 2007
• March 2007
• February 2007
• January 2007
• December 2006
• November 2006
• October 2006
• September 2006
• August 2006
• July 2006
• June 2006

Blog : Cash Rich, Debt Free Penny Stock

September 30th, 2008

Jacada Ltd.
JCDA (Nasdaq)
Industry: Business Support Services

One month ago we profiled JCDA to subscribers of Peter Leeds Penny Stocks. Since then, the price has remained relatively flat, which might not peek your interest at first glance.

However, given the dramatic downdraft in prices in both the overall and penny stock markets in the last four weeks, which was capped off by a big 8% one day drop, JCDA's shares are resilient.

When a stock price remains unchanged while the markets drop, that can be considered a gain. In fact, history has proven that the stocks that hold up best in down markets are out-performers once we return to a bull market.

Taking Jacada's price strength, coupled with their debt-free, $26 million in cash, rock-solid financials, as well as their recent contract wins and upbeat guidance, we think JCDA might be getting ready to run.

We got in touch with Jacada to give us their take on the industry, their competition, and what sets them apart. Here are their answers.

1. Competitive Landscape (who else is going for the same customers, and where does your company fit in?)

The competition is primarily coming from internal IT departments who believe they can replicate Jacada's offering. There is an offering by MicroSoft called CCF, that is sold through distribution, and there is also the potential for the large CRM companies to promise they can provide as well, such as Siebel. Problem with those is that nobody (except MS) has a product that was SPECFICALLY designed for the call center. The company's founder and former-CEO, Gidddy Hollander actually went to work in a call center to see how the solution could conceivably play out in the market. Jacada beats the MS offering in most instances. Other players in the call center space, peripherally, include Aspect Communications, Kana, Nice/Witness Systems, RightNow Tech, Avaya, Genesys, and InterActive Intelligence.

2. Competitive Advantages (what factors give you a leg up on your competition?)

Already out in the market selling a specifically designed product for call centers to call centers, and already entrenched in large integrators' offerings (via partnerships with IBM, Accenture, and Avaya); well funded-with $50 million in cash, it's easy for customers and partners to see they are not going bankrupt.

3. Barriers to Entry (what makes it difficult for new competition to emerge in your space?)

Technology development and head start by Jacada.

4. Threats to Success (what are the issues you are most concerned with, and how are you addressing them?)

Complete drop-off in global IT Spending; keeping expenses in line.

5. Industry Outlook (what are the expectations for your industry over the next five years?)

The call center business is growing nicely, as enterprises are using customer service to keep their customers and in certain industries, like utility, also keep regulators amenable to price increases.

6. Company Outlook (what do you expect your company to look like five years from now?)

Likely that the company is bought by a larger entity that wants a growth engine. Management estimates that we're far from a mature market.