News Details – Smallcapnetwork
New Idea Revealed - IRYS... A Groupon Killer?
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February 2, 2024

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PDT

We're just going to dig into today's new trading idea. As a matter of fact, this particular trading idea may end up being an excellent investing idea for the long haul. Time will tell but for now, timing is of the essence. Most all of our winning trading ideas in recent months have incorporated some sort of timing component for one reason or another. Either we had reason to believe the stock was going to start getting a lot of attention or the chart was setting up perfectly for a trade... or both. When we brought you Rite Aid (RAD), it was strictly technical with a potential buyout hunch looming. The stock has yielded a 43% return in a few short months. When we brought you VocalTec (CALL) a short while back, the chart was consolidating sideways and appeared to be setting up for another nice leg up. CALL has since yielded roughly a 42% gain. When we issued a trading alert on U.S. Precious Metals (USPR) at $.16 cents, we had reason to believe the stock was going to start getting a lot of attention. Sure enough, volume piled into the stock taking it to $.36 cents providing over 100% return in less than a month for SCN Members who acted. When we pounded the table on Chromadex (CDXC) in early January at $.60 cents because the chart was setting up and again we believed the stock was going to start getting a lot of attention, shares of CDXC doubled in a few short weeks giving our Network Members another 100% return winner. We have had a number of other winners of late and can only think of one or two small losers in the last three or four months so I'd say we're doing well by picking our spots. I'm convinced today's idea fits the same bill. The chart is reflecting some very positive interest and we believe IRYS is going to start getting a lot of attention. I'll get into what the Company's doing in a bit. The story is very compelling and our long history of working on the Internet tells me their new software as a service technology could be a real winner if they can execute and achieve critical mass in short order. First though, let's take a quick technical look at iTrackr Systems, Inc. (IRYS) because the interest has been increasing of late and I think we've only seen the tip of the iceberg. I've included a daily chart here of IRYS for your review. As you can see, up until earlier this year, the stock had virtually no attention and traded by appointment for a good part of 2011. During the first few months of 2012, shares of IRYS found a base trading around $.50 cents consistently which suggests support there. This is where it really starts to get interesting. On February 17th, just twelve days ago, IRYS had a volume surge of over ½ million shares in a single day. Someone stepped in and bought the heck out of it. Ever since, the stock has managed to quietly creep up the chart with increasing volume ever since. Currently trading at $.68 cents, you can see the stock has got some momentum and I suspect this is only the beginning. You've heard me say on a number of occasions if you're going to trade or invest in penny stocks, you have to pick your spots and its best to be involved when either nobody cares or when things appear to be picking up steam. I think IRYS offers a bit of both right now and it's our goal to get winning ideas out to you asap before the rest of the penny stock world finds out about them. I think you get the picture. Today's Behemoths Aren't Always Tomorrow's Behemoths My colleagues and I have been around the Internet forever and a day so I'd say we have a pretty decent knowledge of Internet technologies and a good understanding of what works and what doesn't when it comes to the Internet. We were there when Yahoo! Was the 100 LB. gorilla in the space, virtually no one thought at the time that Yahoo! Would fall victim to a tiny little search site called Google. Enough said. When MySpace became the first social media phenomenon, millions around the world flocked to MySpace and staked their space claim. The Company was bought out by News Corp. (if I'm not mistaken) for a boat load and thank god for My Space owners they sold out because along came Mark Zuckerberg with his little college dating site called Facebook. The list goes on. Now I'm not saying iTrackr is going to become the next Google or Facebook, but what I am saying is that today's leaders are not always going to be tomorrow's leaders and my best educated guess is that although Groupon was one of the first social commerce phenoms, it's probably not going to be the customer loyalty driver of choice for most small businesses at some point in the future. Amazon and Google, just to name a few, are already in the process of attacking Groupon's model but don't think for a second that they will end up for sure being the new model that steals massive market share from Groupon. It's often the smaller, hungrier and more nimble companies that win when it comes to new Internet business concepts and they are often the ones that provide investors with the biggest returns. We believe iTrackr has the potential to be just that. The Company has a very interesting new product offering in development that we find very compelling and if their technology platform can muster the wherewithal and give business owners and their consumers an opportunity to benefit each other, we may have a real winner on our hands here. And, it is possible their iTrackr.com service platform could end up taking enough market share in the social commerce space to make all of us a lot of money. iTrackr is small, they're hungry and they're nimble. Perfect. IRYS - From Then to Now The Company's primary revenue drivers up to now have been derived through the licensing of their ChatTrackr software to Saveology and RespondQ. These customers use the Company's application service provider ("ASP") system, outsourcing their chat applications for a monthly fee-per-agent, or license fee and in certain cases, an annual enterprise fee. The Company has also recently launched a new product, RQSupport which is an unlimited, all-in-one technical support that's just a phone call away. Most people have so many electronic devices that they need a dedicated technical support team to help keep everything up-to-date and working properly. Now there is a fast, easy and affordable solution to your technical challenges. Members gain direct access to a dedicated team of tech support professionals. Their technical support professionals are available to help you set up new equipment and software or resolve issues with PCs, home networks, scanners, printers, Internet connections, smartphones, digital cameras, digital video recorders, small business networks and much more. An ingenious product offering that we all know we have a need for. You can learn more about the Company's RQSupport by going here: http://www.rqsupport.com/. It's worth a visit. One of iTrackr's primary clients, Saveology, is a deal-of-the-day website based in Ft. Lauderdale, Florida that features discounts, coupons, gift certificates, and gift cards that subscribed members can use at local and national companies. The website is an off-shoot of Saveology Home Services Company, a comparison shopping site focused on cable and satellite television, Internet, telecommunications and home security systems. Participating businesses typically offer discounts from 50% to 90% on services and products, including entertainment, travel, and leisure activities. The Saveology mobile sites' client list is impressive boasting some major household names like Charter, Time Warner Cable, ATT and Verizon. Learn more about Saveology here: http://corporate.saveology.com/about-us.aspx. iTrackr's RespondQ is leading the global chat technologies arena by creating the largest array of solutions for both the enterprise level and single site users online. Through their online chat communications, RespondQ is the first in its class to offer a full service and pay for performance model to qualifying site owners. RespondQ is a new channel for companies to interact with their customers in a real-time online chat environment the minute someone shows up at a site. RespondQ proactively approaches visitors on a site to assist them with their product search and purchase at the time it matters the most - when they are actively looking at the site. It's more than just simple chat support for help issues. They offer agents who are experienced in chat sales and trained on the businesses products and/or services to engage prospective customers into a meaningful dialogue that will increase a business' sales online. RespondQ's unique engagement model charges the business not by the hour, FTE or even by the chat session. The business only pays when a sale is closed. If you wish to learn more about RespondQ, go here: http://www.respondq.com/. Now that you have a backdrop of what the Company has been doing over the last year or so, let's take a serious look at why shares of IRYS may be perking up so nicely of late and why I believe iTrackr may be on the verge of something very big. It's not to say I don't believe the above product offerings don't have the legs to be excellent revenue generators for the Company, it's just that we've been around the Internet space for quite some time now and we believe their new iTrackr.com platform and service has all of the right ingredients and concept to dwarf anything else the Company may be doing... in a very big way. Understanding The "Now" - The iTrackr.com Model The Company's newly launched iTrackr.com, puts the consumer in charge of saving through an easy to use Direct Deals Platform to meet the needs and interests of each unique individual. iTrackr.com introduces a revolutionary way to put the consumer in complete control of lowering their cost of living. In the age of Daily deals, the iTrackr.com platform carves a unique path, combining both the ability by both the local business owner and the consumer to create and request personalized discounts on the fly. Business owners can deploy deals to all consumer profiles based on identified interest within a 25 mile radius of their operation. The consumer can request a specific and personalized deal directly via any business with a iTrackr.com profile also located within a 25 mile radius of the consumer's home address. iTrackr.com is creating local business loyalty, saving patrons money and eliminating the need to join daily deal email lists' that do not cater to individual needs and wants. The future of savings is based on the wants, needs and defining characteristics of each consumer, and iTrackr caters to this. The iTrackr.com revenue model is a SAS model (software as a service model), they charge the business owner a nominal monthly fee for the ability to participate on the platform. It's free to consumers. With their potential target market being in the multi-millions of businesses around the country, the revenue projections become staggering if they can execute. Furthermore, the Company is definitely not new to the highly profitable world of data. iTrackr Systems owns and maintains several of the largest 'breathing" consumer and business data files ever created for actionable use both online and offline. Within its repository of data there are over 207 Million American consumers, 87 Million Foreign consumers and 16 Million U.S. based businesses all of which are cross connected and constantly enhanced at the individual consumer and business levels. The iTrackr System data files start as static profiles of each individual consumer's demographic, lifestyle, legal listings and personal interest as well as property and business ownership and are transformed with hundreds of overlays and injected "live" feeds from both online and offline activities and behaviors. Over time and through intense analytic models and profile processing they are able to provide the most detailed and accurate 'digital' character of each individual within the databases with a 'consumer purchase score'. Understanding the consumers individual and personal propensity for behavior online and offline is one of the key ingredients' utilized by iTrackr Systems for developing new technology. Bottom line? Take their data expertise and couple it with their new iTrackr.com Direct Deals Platform and you have the potential makings of a service for businesses and consumers that may no longer need the daily deal type models that Groupon has so proudly built an enormous profit center around. No more stupid deals in your inbox, no longer will a small business get gouged to use a daily deal type service and now consumers can get what they want when they want and ask for the discounts they want. Conversely, business owners will now have the ability to control the discounts they offer on the fly, they won't have to share the revenue the generate as a result of their offerings and they get their money when they should, at the point of sale. Maybe now you see why we believe iTrackr could be the next generation for social merchandising and commerce. I strongly suggest you check it out when you have some time: http://www.itrackr.com/. The potential is mind blowing. Wrapping it All Up When you catch a penny stock with legit potential early enough, it can provide returns that many investors only dream about. VirnetX Holdings (VHC) and Elephant Talk (ETAK) are just a few stocks in the technology space that we've covered here at the SmallCap Network before and both of them were just little penny stocks at one point in the past. VHC currently trades above $20 per share and ETAK has gone from $.50 cents to well over $4 bucks (although it has pulled back some since) so it does happen and it happens more often than you might think. Based on IRYS' most recent 10Q, the Company has 26,452,360 shares out and trades at $.68 cents as of yesterday's close which equates to a market cap of just over $17M. That lends itself to plenty of room for growth if their iTrackr.com platform and service can find its way into the mainstream world of social merchandising and commerce. Believe it or not, the social commerce space is very new by Internet standards so I believe there is plenty of room for the right players to jump out and grab a ton of market share in a very short amount of time. However, let's circle back for a second and remember... the chart is revealing something definitive to us and we believe IRYS is going to start getting a lot of attention. If you were paying attention to yesterday's edition, you'll know that the basis for most of our biggest winners of late have fit into this equation: chart + attention = winning and we don't expect anything different with IRYS. However, like I said at the very beginning, it is possible IRYS could become quite the long-term investing story. Like always, be prudent and use a protective stop and trailing stops along the way up but if you think IRYS can trade up as nicely as we think so, you might want to give it a little breathing room. It's up to you. We're not interested in micro-managing the way you trade or invest your own money but there's a reason we invested our own capital into this one and I can assure you we're not hoping for minimal returns.