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Author: Counterattack Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27  
Subject: Nice reference in Multex Date: 3/18/2002 8:56 PM
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Here's a excerpt of an article about telcom in which ECTX is mentioned. Hopefully thi is a diamond in thr rough. Heck, even the Yahoo board is as dead as a doornail.

http://www.multexinvestor.com/article.asp?docid=7755&nd=0315

ECtel Ltd.

Fraud is unfortunate fact of life. In the telecom sector, fraud is $6 to 10 billion problem in the United States alone. That's how much phone service is used but nor paid for every year, according to Investec's Matthew Pearson. To help combat fraud, little-known ECtel (ECTX) has developed software that helps weed out the deadbeats.

Fraud detection software was a hard sell five years ago, when ECtel had just $20 million in sales. But phone companies around the world have been realizing the potential benefits and are now signing up for ECtel's software. The company has 170 global customers and is on track to bag more than $100 million in sales this year.

ECtel's shares have languished as Israel's ECI Telecom (ECIL) has held onto more than 70 percent of the company's stock. Few floating shares limit the ability of institutional investors to acquire a meaningful position. "We believe ECtel is an underappreciated story penalized largely by limited liquidity," says CIBC's Shaul Eyal.

Just last month, ECI sold a 1.6 million block of stock to other investors, which helps to expand the free-trading float. Eyal now thinks the shares can rise to their intrinsic value. He notes that while other stocks in the sector trade for 35 times projected profits, ECTel's multiple has been stuck at around 15.

Investec's Pearson also figures the stock to be quite undervalued in light of the fact that the company has boosted earnings at a 124 percent compound annual growth rate (CAGR) since 1998. He adds that the stock is just 10 percent of its 1998 IPO price, despite the fact that the company has consistently met or topped earnings estimates.
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