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Is Epazz Inc (OTCMKTS:EPAZ) Still A Buy After 1,200% Surge?

Is Epazz Inc (OTCMKTS:EPAZ) Still A Buy After 1,200% Surge?
Written by
Jim Bloom
Published on
December 18, 2017
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Epazz Inc (OTCMKTS:EPAZ) has been on a tear over the past few weeks. The stock is already up by more than 1,200% for the month. The rally, which has come on huge volume, has to do with the announcement of a new provisional patent that is set to expand the company’s footprint in the booming blockchain smart contract space. EPAZ Daily ChartGiven what is at stake with the new patent, the stock continues to be in the spotlight as investors look for ways to gain exposure in the blockchain space. The stock is currently trading in a steep uptrend, amidst growing investor’s confidence about Epazz long-term prospects.Epazz is currently trading in a $0.291-052 range, with an average trading volume of 9.5 million. Given the strength of the upward momentum, the stock looks set to rise to its 52-week high from the current $0.36 handle.While the company has no virtual cash on the books, it boasts of a market cap of $11.3 million. Total current liabilities stand at $3.4 million with 12-month trailing revenues of $1.4 million.The stock is currently at a critical point given the strength of the upward momentum. Before we look at the potential impact of the new patent, let us look at what the company really does.Epazz Business OverviewEpazz specializes in the business of designing and selling various software programs to businesses, enterprises, hospitals and government inspirations. The company’s web portal infrastructure operating system, BoxesOS V3.0, integrates with organizations back-end systems to provide customizable personal information system.The company also provides AutoHire software, an online screening and ranking system that allows employees to access workstation tools from various areas in and outside an office.In addition, Epazz has been expanding its footprint in the blockchain space as it seeks to generate significant returns from the booming sector. The company has already unveiled a new Bitcoin mobile app that allows consumers to acquire bitcoin at the point of sale. Consumers can in return use their bitcoins to make purchases in various online stores.However, it is the latest announcement that seems to have got investors excited fuelling the recent buying spree.Stock Catalyst The patent filing that has propelled Epazz to the spotlight on Wall Street, details a new blockchain smart legal contract technology that will help reduce fraud in business transactional contracts. According to the company, the proposed technology when implemented will allow transactional contracts to be living contracts that can be tracked and traced.The patent filing details an interesting application of the blockchain concept. The fact that it has the potential to curb fraud in business transactions all but explains why the stock is the subject of renewed investor interest on Wall Street.

“Blockchain-based technology is the future of the Internet. Epazz will add blockchain technology to all of our products in the coming months using our blockchain cloud platform, BoxesOS. The company has been working with customers to understand the best uses of the blockchain, and we are excited about filing the first of many blockchain patents, with many more to come,” said CEO Shaun Passley.

Cannabis Payments Opportunity Growing investor interest in Epazz also follows the unveiling of ZenaPay, a new payment system that targets businesses in the legal cannabis space. The system seeks to solve one of the biggest problems in the sector.Traditional banking systems are not allowed by law to handle proceeds from the cannabis space. However, with ZenaPay, consumers will now be able to buy cannabis products online or in-store using bitcoin.

“We are filling a large need in the cannabis community for a payment system for merchants due to the stringent limitations of the standard banking systems. ZenaPay is our solution, and we expect to start realizing revenues from it later this year. We have the ability to license the software to numerous merchants in many states,” said Mr. Passley.

The system has the potential to be a success given that all transactions will be encrypted, which means buyers will not have to share their personal details.Cloud OpportunityIn addition to the blockchain technology push, Epazz is also making a name for itself in the cloud business. The company has acquired eleven software companies that are in the process of converting legacy software products to cloud software using Epazz’s technology.The acquisitions should expand and cement the company’s position in the multi-billion cloud business, which is one of the fastest growing with unique opportunities for growth. Bottom LineEpazz is destined for robust growth as it moves to pursue opportunities in the blockchain space, unlike other companies that are currently trading mostly on speculation. The fact that the proposed new technology has the potential to curb fraud on transactions should see the company’s solutions eliciting strong demand, consequently generate significant value.Pursuing opportunities in the cloud business as well as in the legal cannabis business further affirms the company’s growth prospects given the diversification strategy in play.We will be updating our subscribers as soon as we know more. For the latest updates on EPAZ, sign up below!Disclosure: We have no position in EPAZ and have not been compensated for this article.

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