There are many reasons why Red Chip is featuring IT Group Holdings. Their total assets have grown 86% in less then a year, they have completed an installation of a large capacity public switch and network, their core wholesale line of rental and airtime products are making the company the fastest growing company in the UK, plus they have established a UK-wide access and support infrastructure.
IT Group Holdings holds a key contract with British Telecom with indefinite length that allows the company to sell line-rental and airtime at highly competitive prices. It is currently trading at a P/S of 0.68 in an industry that regularly trades at 2 to 4 times its sales.
The company is currently very strong and is expecting much for the future. In 2007 they are predicting to be profitable with a 200% increase in revenue. At a current price of $0.31 cents, IT Group Holdings is considerably undervalued.
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