Telecom Communications, Inc (TCOM) AT 0.21

Fundamental: 7
Chart: 7

Nov 20, 2006

Telecom Communications, Inc. (TCOM) is a Total Solutions Provider that offers Integrated Communications Network Solutions and Internet Content Service in universal voice, video, data web and mobile communications for interactive media applications, technology and content leaders in interactive multimedia communications. It develops, markets and sells a universal media software solution for enterprise-wide deployment of integrated voice, video, data web and mobile communications and media applications.

In November 1, TCOM announced that its subsidiary, Subaye.com corporate video sharing channel launched in October, has generated more than 10,000 enterprise video users to uploads, storage, sharing and publishing 20 day period. It is currently averaging over 500 new users each day. The Subaye.com enterprise video service revenue generating monthly fee of $60 for each business user starts on November 1. This will be one revenue generating division for TCOM.

The 10Q report for TCOM is overlooked for most people. For Q3, 2006, TCOM had generated $2.78 million in revenues and net income of $0.022 for a 21 cents stock. The 9 months revenue is $10.88 million with $.052 net income. For the nine months along, the trailing P/E is 4. The fully diluted outstanding shares are 88.92 million, which gives a market cap of $18.65 million currently.

Here is the direct quote from its 10Q BUSINESS PARTNERSHIP DEVELOPMENTS.

"The Company has moved forward to develop and implement agreements with business partners through its subsidiaries' operations. 3G Dynasty has finished the integration of all business units of IC Star MMS Limited through Aixi Software Limited into cooperation with Baidu.com (Nasdaq: BIDU); Shanghai Linktone Information Limited (Nasdaq: LTON); the wireless business division of Beijing eLong Information Technology Limited, a company of eLong Inc. (Nasdaq: LONG); 3721 Inter China Network Software Co. Ltd (www.3721.com); a Yahoo!, Inc. Company (Nasdaq:YHOO); Tencent Company Limited (www.qq.com); Kongzhong Corporation (Nasdaq: KONG); Guangdong Mobile Communication Co., Limited , a China Mobile Communications Corporation; and China Mobile (Hong Kong) Ltd. (NYSE: CHL) to develop entertainment SMS, MMS, WAP portal and other wireless contents such as artist profiles, gaming and an SEO4Mobile SMS search engine. " The partnership looks impressive to me.

The downtrend should be finally over for TCOM. It maybe overvalued at $0.50, but it's undervalued at $.21 here. MACD had been improving, and it just challenged the 50 MA today and closing right at $0.21. The next resistance is at $0.24 and $0.30. The 3 months target is $0.30 for TCOM. Since it's a penny stock, the risk is high here and not for everyone.

Fair Disclosure: Do not hold position.