Improve Website Speed

I have been analyzing competitors and noticed there sites load 20 times faster than ours. I ran a few tests and these were the results:

http://www.selfseo.com/website_speed_test.php
1 www.competitor1.com/ 43.79 KB 1.31 seconds 0.03 seconds
2 www.oursite.com/ 28.92 KB 5.38 seconds 0.19 seconds
3 www.competitor2.com/ 29.52 KB 0.83 seconds 0.03 seconds

I also tested here:
http://www.websitegoodies.com/tools/speed-test.php

Competitor site:
URL: http://www.competitor1.com
Load Time: 0.9361 seconds
Page Size: 26.5 kb

My site:
URL: http://www.oursite.com
Load Time: 7.8241 seconds
Page Size: 24.8 kb

We need an expert to optimize or Joomla 1.01 based website and Virtual Hosting server , plus check the following:

1) Make sure that the server our website is hosted has low ping values & it is not over-loaded.
2) Compress our CSS files
3) Merge & Compress JavaScript Files
4) Check to see if our web server supports HTTP compression and use it or Gzip.
5) Check if our server is using caching, if not implement it

Please send any questions to PM.

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