ORLANDO, Fla., Oct. 14, 2008 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., today announced it has issued a second quarter 2008 research update on Elephant Talk Communications, Inc. (OTCBB:ETAK), an international telecom and multimedia content distributor.
Vivek Srivastava, MBA, RedChip Research Analyst, reported:
"As a result of ETAK's international expansion strategy and the deployment of the mobile core network, the Company has become a viable systems integrator for carriers and front-end companies globally offering mobility to their customers."
"We continue to believe in ETAK's growth story as an accelerated growth opportunity with exciting prospects. Additions to the high-margin, premium rate services contracts, rollout of MVNE/MVNO services, expanding product and services range as well as customer base, we believe, will translate into long-term business and revenue growth for ETAK. Larger concentration in non-U.S. markets amidst current turbulence in the U.S. economy is also an added advantage for ETAK," Srivastava continued.
"We believe that the current contraction in ETAK's multiples is temporary and will rebound over the next few quarters as we tide over the current turbulence in the markets. We reiterate our 'Speculative Buy' rating on ETAK stock, and have revised our 12-month target price to $1.90 to reflect the impact of lower revenue estimates for 2008 as well as dilution due to an increase in number of shares outstanding due to a fresh round of financing during 3Q08," he concluded.
To receive a complimentary copy of the RedChip Visibility Initial Research Report for ETAK, please visit: http://www.redchip.com/visibility/about.asp?page=vreport&reportid=141&from=10142008pr
For more information about Elephant Talk, visit: http://www.redchip.com/visibility/investor.asp?symbol=ETAK
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm with offices in Orlando, Florida; Shanghai; and Paris, with affiliates in Atlanta and New York. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research(tm), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Internet TV(tm), and RedChip Radio(tm). To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.
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Disclosure
None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Elephant Talk Communications, Inc. (ETAK) paid RedChip Visibility, a division of RedChip Companies, Inc., $50,000 for RedChip Visibility Program services, which included the preparation of this equity research report. RedChip Companies, Inc., is currently engaged by this company to provide investor relations services. ETAK agreed to pay RedChip Companies, Inc., a fee of $23,000 in cash per month and $45,000 in total value of equivalent shares of common stock under Rule 144 for four months of these services. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. This report is not a recommendation of a solicitation to purchase or sell any security, nor does it constitute investment advice. To the fullest extent permissible under applicable law, RedChip Companies, Inc. will not be liable to you or anyone else for the quality, accuracy, completeness, reliability, or timeliness of this information.