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A pioneer in the fax business, Brooktrout (BRKT
) could be a rich dish for investors, says Greg MacArthur, president of tech consultants Viewpoint2000, who sees it as an emerging player in the growing market for voice over Internet protocol (VOIP). This business is igniting fresh interest in the stock, he says. As its core fax servers continue to sell, Brooktrout's prospects with its "SnowShore" media server technology, which offers Internet capability for video messaging and streaming, opens up other opportunities, says MacArthur. In 6 to 12 months he sees the stock, now at 11.81, hitting 18. Mike Latimore of Raymond James & Associates (RJF
), who rates the stock outperform, expects earnings of 23 cents a share in 2005 and 49 cents in 2006, vs. an estimated loss of 13 cents in 2004. He says the rise in info tech spending is helping boost the fax business, which brings in 60% of Brooktrout's sales. And as the Web phone market grows, Brooktrout could materially increase its sales.Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them. By Gene G. Marcial