Benjamin Sinclair
Value, contrarian, long-term horizon, long only

Points International: A Great Company, A Wide Moat, And An Undervalued Stock

Points International (NASDAQ:PCOM) is an e-commerce company dedicated to serving loyalty programs worldwide. It's best-known for the website Points.com, which allows members of loyalty programs to buy, sell, and trade loyalty points. These members must pay a premium price per point, typically 2.5 cents, which PCOM shares with its loyalty program operators. Last year PCOM made about $200 million in revenue, exiting the year at a $270 million run rate.

Points International Select Figures (2013)

Total (M)

% of Revenue

Per Share

Revenue

$202.4

100%

$13.14

Gross Profit

$33.1

16%

$2.15

EBITDA

$7.4

4%

$0.48

Net Income

$3.6

2%

$0.23

CFFO

$23.3

12%

$1.51

Free Cash Flow

$22.3

11%

$1.45

Cash (Q1/2014)

$66.2

$4.30

Debt

$0.0

$0.00

(source:...

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