Seeking Alpha
Editor's notes: A very attractive balance sheet, high composition of recurring revenue, and market potential make AGYS very appealing at these levels. Look for 30% appreciation.

Since James Dennedy took over as CEO in 2009, Agilysys (AGYS) has undergone a major transformation to right-size its cost structure and sharpen its focus on the Hospitality industry. Now, considering the fact that most of the transformation is complete, the company should see above-average earnings growth that should last throughout the rest of the decade. Even without considering this inflection point, the company has some very interesting attributes including:

  1. $100MM of cash on the balance sheet (1/3 of the market capitalization) and no debt.
  2. Net operating losses ((NOLs)) that are valued at $160MM (over half of the company's market cap and 80% of the company's enterprise value). The company has just recently reached profitability (after selling its

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