You know those cheap internet phones MagicJack? Well we are not only saving money on phone bills but now have an opportunity to own some of the Company ourselves.  If you look at the hard numbers, this is a cash heavy, innovative Company that has limitless potential.  We are loading the boat on this stock and expect it to perform well above $17 and maybe even move toward $30-35 pps as the market finds out about this reverse merger.

VocalTec Communications Ltd (Nasdaq: VOCL | PowerRating) and YMAX Corp, the creator of magicJack and other products and services, on Friday announced the successful merger of the two companies.

The new combined entity will be traded on the Nasdaq under the symbol (NasdaqGM: CALL).

VocalTec stock will seize to trade using the symbol (NasdaqCM: VOCL) after close of business on 16 July 2010. It will commence trading using the symbol (Nasdaq:CALL), effective today.

The companies believe that the combined entity has an enterprise value of USD245m and a per share value of at least USD17.50, as of 19 July 2010, on a stock split adjusted basis.

The previous holders of VocalTec will have 1,173,294 shares of common stock following the merger.

VocalTec now expects revenues of USD110m to USD125m during the current year. Also, with over USD40m in cash/securities on hand and no debt, VocalTec expects to show a profit in the current quarter.

The combined companies have the use of over 30 patents, some dating to when VocalTec invented VOIP. The combination of patents and softphone/softswitch technology were reportedly the primary drivers for this merger.

Ido Gur will remain in charge of VocalTec’s Israeli operations.

VocalTec is the inventor of VOIP and the softphone.

We expect this company to outperform in the coming months with the ability to grow and bring new products to market this Company could easily be the play of the year.  Stay tuned for more due diligence as we get it.