Stocks left to rot are usually the ones that come back to life with reckless abandon and it looks like that is the case with MagicJack Vocaltec Ltd (CALL) . The company reported earnings this morning that smashed estimates while also raising guidance. The CEO spoke about some great innovative products on the way in 2013 which is a very good sign as well. MagicJack is one of those products everyone wonders how they make it happen, and how they can offer for such a great price for the features. It sure looks like they know what they are doing and the prospect of more "Magic" is enough for me to look at some long term leap calls to go along with my short term call options on the stock.
It looks to me like folks are ditching the old pre-paid phone for magic jack as they go abroad. I guess the fears of a product becoming obsolete are off base.
Either way, like i said before, i think this stock was left to rot and will now come back to life in furious fashion as folks try chase performance(an adage we use alot here).
MagicJack Vocaltec Ltd (CALL) is currently trading at $22.50 and we think she goes over $23 sometime today.