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  • Upcoming Catalysts Should Push Payment Data Systems Higher [View article]
    Appears there were several one-time charges related to the Nasdaq listing, and some one-time stock-based compensation expenses. I'm kind of surprised they didn't break it out on a non-GAAP basis to better show what was really going on.

    Revenue came in about $150,000 lower than I estimated, but still grew from the year ago period.

    July processing numbers were the highest in company history, so I'd expect Q3 and Q4 to be very good. Surprised the stock got clipped 15-20%, but that's life with micro-caps.
    Aug 17, 2015. 04:23 PM | Likes Like |Link to Comment
  • Upcoming Catalysts Should Push Payment Data Systems Higher [View article]
    I can't ever recall investing in one undervalued company where somebody wasn't griping about management. Fact is, the management here has created a lot of shareholder value over the last 2 years. On the surface their stock awards may look excessive, until you realize they don't vest until 2025. And if any executive leaves the company before that, he forfeits his shares.

    My suspicion is they are positioning the company to be sold, in which case the stock awards vest immediately and will reduce the premium shareholders would have normally received. So that is the drawback.
    Aug 16, 2015. 01:25 PM | Likes Like |Link to Comment
  • Upcoming Catalysts Should Push Payment Data Systems Higher [View article]
    Those figures are entirely misleading. The majority of that compensation was stock awards that have a vesting period of 10 years.
    Aug 13, 2015. 08:44 AM | 1 Like Like |Link to Comment
  • Upcoming Catalysts Should Push Payment Data Systems Higher [View article]
    Shareholder lawsuits for fiduciary breaches are common, and typically end up getting thrown out in court. I didn't mention it because there's nothing to mention. It's a non-event.
    Aug 13, 2015. 12:03 AM | Likes Like |Link to Comment
  • Why I'm Buying Planet Payment Hand Over Fist [View article]
    Update:

    Q2 numbers released last week continue to demonstrate the company is on a path of increasing revenue and profitability. I still believe management is being too conservative with 2015 guidance as the company is already at $3.6m in net income for the first half of the year, but is only guiding for $6-7m for the entire year. The second half of the year is traditionally the strongest. I'm estimating net income of more like $8-9m for 2015. Further, I continue to see considerable tailwinds into 2016 as new initiatives in new markets take hold. The company continues to generate impressive free cash flow, and as a result, increased its share buyback program by over $5m. Additionally, M&A in the payments space continues to expand, and I wouldn't be surprised if the company is taken out by a larger player in the industry.
    Aug 11, 2015. 12:29 PM | Likes Like |Link to Comment
  • Upcoming Catalysts Should Push Payment Data Systems Higher [View article]
    Since I've followed the company, I've been happy with management. I can't really speak to their tenure previous to early 2014. But as long as I've followed the company, they've done what they said they would do.
    Aug 11, 2015. 10:20 AM | 1 Like Like |Link to Comment
  • Upcoming Catalysts Should Push Payment Data Systems Higher [View article]
    No, and the COO's 10b5-1 plan was discussed in previous articles.
    Aug 11, 2015. 08:33 AM | Likes Like |Link to Comment
  • Upcoming Catalysts Should Push Payment Data Systems Higher [View article]
    I wasn't a shareholder in 2013 so I don't have first-hand specifics, but I did ask the company about it several months ago and they said the downturn was due to lower transaction volumes in echeck processing in the first three Q's of 2013. The volume was replaced in late Q3 of 2013.

    In terms of 2015 EBITDA, I'd say ~$4m. 2nd half of the year is definitely the strongest, but that estimate is not factoring in a lot of contribution from the Akimbo acquisition...because I have no clue how profitable that will be.
    Aug 11, 2015. 12:09 AM | Likes Like |Link to Comment
  • Planet Payment: Achieving Strong Growth And Superior Margins [View article]
    Nice write-up. Carl has really done a great job here and I feel confident with him behind the controls. They report earnings next week and I'm looking for a raise in full-year guidance.
    Jul 30, 2015. 02:11 PM | 1 Like Like |Link to Comment
  • Why Payment Data Systems Still Has Triple Digit Upside [View article]
    I would guess pretty soon. I was told by the company a few weeks ago they would do the reverse split once they had verbal approval from the Nasdaq. The r/s was done last week, so the listing has to be close.
    Jul 29, 2015. 07:41 PM | Likes Like |Link to Comment
  • Magnetek: Shares Compelling At 7x EPS With 14% Unlevered FCF Yield [View article]
    Nicely done!
    Jul 27, 2015. 04:42 PM | Likes Like |Link to Comment
  • Why I'm Buying Planet Payment Hand Over Fist [View article]
    Possibly. However, I think PLPM would be a better fit for a company like Global Payments (GPN).

    I'm surprised this company has remained independent for as long as it has, to be honest. There's been heavy consolidation in the payments space for the last 5 years.
    Jul 20, 2015. 05:37 PM | Likes Like |Link to Comment
  • Scott's Liquid Gold's Remarkable Recovery [View article]
    I recently took a position here. Probably one of the better risk/rewards in the nano space right now.

    Based on your conversations with management, do you feel Q2 will follow the trend of Q1? Or could there be some negative lagging effects of the new contract that didn't show up in Q1? Thanks.
    Jul 14, 2015. 10:45 PM | Likes Like |Link to Comment
  • inTest: Grow With This Undervalued Cash-Rich Company [View article]
    With semis falling off a cliff lately, I'm not sure now would be good time to buy INTT. If those guys sneeze, INTT is going to get the flu.

    Management has also been pretty clueless in regards to capital allocation. They should have been buying back stock for years, and/or paying a dividend. Instead, they want to try to "grow" the business through inherently risky acquisitions.

    Good detail in the article though. With a different management team this stock should have been trading a lot higher. Problem is they're entrenched by owning nearly 30% of the stock and are more concerned with empire building than increasing shareholder value. And now, they've got headwinds from a semi slowdown.
    Jul 8, 2015. 10:16 PM | Likes Like |Link to Comment
  • Why I'm Buying Planet Payment Hand Over Fist [View article]
    That DCF forecast also gave no terminal value to the business after 10 years. So $87m is just the NPV of estimated cash flows over the next 10 years.

    The terminal value at the end of 10 years, assuming they're doing $20m in free cash flow at the end of 2025, would be north of $450m. Add that to the $87m.

    But again, there are way too many assumptions being made to rely on this model.
    Jun 10, 2015. 04:23 PM | 1 Like Like |Link to Comment
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