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  • MyECheck, Inc. Is Worth Checking Out

    • MYEC could be the right dose of risk and reward for investors who dabble in OTC.
    • MyECheck is displaying extremely positive fundamental growth in the last years and more recently with the Form 10 Filing from 8/13/14.
    • MYEC's play in marijuana, new client list, mobile services, and fundamental growth will keep the company around for the foreseeable future.

    "MyECheck, Inc. (OTCPK:MYEC) operates as an electronic transaction data processor that provides an alternative payment solution to paper checks, payment cards, and automated clearing house payments in the United States. Its services include electronic check service for businesses and other organizations that accept payments online, over a mobile device, or over a telephone to generate electronic checks by directly integrating with the company’s payment engine; and check authorization service that enables merchants to verify consumer provided data, check the status of customer’s bank account, provide evidence that the consumer has authorized the check, and predict the likelihood of a check being returned unpaid. The company also provides check guarantee service that enables merchants to ship products or provide services immediately since the check guarantee provider partner of the company warranties all approved checks and reimburses the payee (merchant) for financial losses incurred as a result of returned checks. The company serves a variety of customers, including Fortune 100 corporations, governments, Internet retailers, banks, and payment services providers."

    MYEC is, in almost every single capacity, a stand out company for the OTC market. It has positive fundamentals, patents, earnings, a mobile app, and intangibly but perhaps most importantly, potential for future growth. MyECheck is committed to growth, shown in two of their last three press releases being about acquisitions (first GreenPay LLC, and secondly, Simplifile). The other PR involved the company growing into a newly leased office building, hiring new employees, and bringing new patent litigators on board. MYEC provides a platform for small businesses to accept mobile payments and save money, for corporations to process payments and license systems, for electronic government account transfers, and for individual users to pay anyone, anytime, anywhere.

    Fundamentally, MYEC is way above par and way under the radar. During fiscal years 2011 and 2012 no revenue was reported, while in 2013 $439,000 in total revenues were produced. In 2012, MYEC operated at a $52,000 loss, and in a span of one year turned the operating loss into an operating income of $348,000. Net income grew from $-52,000 to $1,019,000 from 2012 to 2013. MyECheck, Inc. also displayed good numbers on its Balance Sheet in the last 3 fiscal years. Assets increased from 0 reported to $350,000 between 2012 and 2013, while liabilities fell in the right direction from $1.2 million to $480,000. Cash flow increased from $-22,000 to $1,151,000 which is an impressively positive statistic for the company.

    Annual trends for MYEC are broadly and overwhelmingly positive harbingers for steady company growth, so why is MYEC a buy right now? On 8/13/14, the company released a Form 10 SEC Filing which touted a positive message "For the three months ended June 30, 2014, total operating expenses for the 2nd quarter were $155,970 and gross profit from operations was $137,754. Cash at June 30 was $1,020,209 and assets including cash, accounts receivable and prepaid expenses were $1,725,335. For the six months ended June 30, 2014, the Company incurred a net profit of $1,356,037, and as of June 30, 2014, had $1,020,209 cash and a working capital of $1,158,559. During the period the Company hired and trained 9 new employees and 3 new independent contractors including an Executive Vice President of Operations and a Vice President of Sales & Marketing. In the second quarter the Company leased a new corporate head office facility. In Q2 2014 MyECheck entered into MyECheck Services Agreements with two important accounts, iCard1 and VX Gateway, both of these partners bring to the Company strategic value in addition to revenue."

    What does the future hold for MYEC? "MyECheck operates under license to US Patent 7,389,913, "Method and Apparatus for Online Check Processing" granted June 2008. The new patented payment method is the fastest, most secure and most cost effective method of processing payments in the US, and it works with the most people, businesses and entities. MyECheck customers include corporations, retailers, governments, payment processors and financial institutions." MYEC is doing what they need to be doing at the current time to keep growing. They are posting good earnings through legitimate audited financials, they are releasing PRs when relevant and avoiding fluff news, they are acquiring new brands, and larger clients, they are hiring employees, they are working off of the patents that they have to make a play into the medical marijuana industry. I do think, however, that an investor is not being fair if they think that MYEC will easily become a multibillion dollar company. I think that an OTC investor needs to realize that MyECheck is fighting some huge names including PayPal, Venmo, Alipay (which will become more of a global factor once Alibaba (Pending:BABA) goes public), and more. Perhaps, the best outcome for MYEC is to be bought out by one of the industry giants. Regardless of the exact path the company takes, I think that we will be hearing the name MyECheck for years to come due to its appetite for growth, strategic positioning in "Apps" and technology, its position in medical marijuana, and the positive fundamental growth that the company is displaying.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Aug 14 9:29 AM | Link | 4 Comments
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