Bishop Research and Analytics
Research analyst, long/short equity, Deep Value, long-term horizon

Points International: Phenomenal Growth, Strong Cash Flow, And Potential Takeover Target

Investment Thesis Summary

Points International (NASDAQ:PCOM) is a loyalty program rewards management company that operates an online platform, which enables consumers and the company's corporate partners to buy, sell, and trade frequent flyer miles, hotel points, and rewards points from credit cards and retailers. The company is growing earnings per share at a phenomenal 104 percent CAGR since 2010 and the consensus EPS estimates of analysts are forecasting 292 percent growth in 2014. Points International's management issued revenue guidance of a $270 million annualized run-rate for Q4 2013, which indicates a 65 percent increase over the comparable quarter, and the company maintains a strong balance sheet with zero long-term debt and $52.49 million in cash and equivalents.2...

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