John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Transition To Mobile Provides Opportunity In XRS Corp.

(Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)

Key takeaways

    XRS Corp. (NASDAQ:XRSC) trades at a discount to its closest competitor as the transition to mobile results in temporarily lower revenue. However, investors are "missing the forest for the trees" given that the new mobile, SaaS model should provide a high-margin, recurring revenue stream and significant free cash flow. The recent reversal of five years of net losses is an encouraging sign, especially as it means the ~$40 million of NOLs should no longer be valued at zero. The combination of upcoming federal ...
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