Lares Capital
Hedge fund manager, small-cap, long/short equity

Top Image Systems - It Can Be Bought For A Song

Summary:

A great four year turn-around story of Top Image Systems has been disrupted by several headwinds this year. It's likely that these problems are temporary: the company is transitioning to a subscription model which may result in more revenue long-term. With no debt and minimal off-balance sheet obligations, TISA is a great acquisition target as its intellectual property, blue-chip customer base, and well-differentiated comprehensive product offering makes it a great acquisition target. Today, the company trades for less than its yearly revenue whereas its unprofitable competitors were acquired for multiples of that.

Chart 1: Top Image Systems price has been steadily declining for a year (TISA is blue, NASDAQ is green)

(click to enlarge)

What does Top Image Systems...

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