Penny Stock Pick - PRTL

Penny Telecom The penny stock of the day is Primus Telecommunications Group Inc. (PRTL), a Mclean, VA based company providing telecommunication service including international and domestic voice, wireless, Internet, voice-over-Internet protocol (VOIP), data, and hosting services to business and residential retail customers. The customer base includes North America, Australia, Europe, and Japan.

On Thursday, February 9, the company announced the fourth quarter result of 2005 with revenue of $287 million, down from prior quarter and same period of 2004. Yet the net loss has reduced to $25 million, down from $51 million in prior quarter but significantly higher from net loss of $2 million in fourth quarater of 2004, which probably explains why the stock hasn't done well for the past year.

Technical
After falling for most of the time in 2005, 50 day and 200 day moving average finally become more flattened and any spike in price would bring the stock above both moving averages, normally a bullish sign. Also from the technical chart both MACD and KD are showing bullish sign as MACD is rising near 0 while KD is beginning to crossing up.

Financial
Total revenue for 2005 is about $1.2 billion, a decline fo more than $150 million of the revenue in 2004. Net loss for 2005 has increased to $150 million, up from net loss of $4 million in the previous year. Hopefully with management team focusing more on high margin service, net loss for this year would improve.

Penny Stock Score (1~5) 5 is highest
1.Technical: 4
2.Financial: 2
3.Market Potential(Voice Over IP): 5
4.News Buzz: 2
Recommendation: Buy