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Issuer Direct Is A Cheap, Profitable Business

Mar. 11, 2020 9:00 AM ETIssuer Direct Corporation (ISDR)
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  • Issuer Direct (ISDR) is an illiquid micro-cap company trading under the radar and going through a business model transformation.
  • Led by a management team that owns 26% of the company with an excellent owner and CEO.
  • Issuer Direct is selling for only 8.3x EV/FCF or a FCF yield of 12%.

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Here is a company managed by an owner/operator, transitioning to a recurring revenue model while being profitable, trading at a FCF yield of 12%.

Issuer Direct (NYSE:ISDR) is an illiquid micro-cap company trading under the radar. The company have grown revenues from $12M in 2015 to $16M in 2019. In each year, they had positive net income and operating profits, an uncommon characteristic for a high growth company transforming its business model into SaaS.

Recent market volatility is providing a good entry point to own an excellent business, led by a management team that owns 26% of the company with an excellent owner and CEO.

Business Overview:

Issuer Direct is a company going through a business model transformation. The company went public in 2007 and has since been led by the company’s founder and CEO Brian Balbirnie.

The mission of Issuer Direct is simply to enhance the communication of corporations with their shareholder base. They do this via their Accesswire press release news distribution offering or by webcasts during which corporations can reach shareholders by virtual presentations. If you have attended a webcast from LD Micro, in which different companies do presentations about their future plans, then you have used an Issuer Direct product.

As you can expect, the company has been transforming itself from literally printing annual and proxy reports and mailing them to their customers shareholders, to developing their main digital product called Platform ID:

Source: LD Micro Presentation

With Platform ID, the company is going into the SaaS business model. They want to provide companies with a one-stop solution for their communication needs and give them tools to analyze the data gather from

This article was written by

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My goal is for you to get a quick idea of what the stock is worth. I like for you to see me as the extended version of a ValueLine Tear Sheet. I go deeply into the financial statements in search for value. Sometimes I find it, sometimes not. But knowledge is cumulative in this business which is why I enjoy reading about companies. Lets work together. I am hoping that by reaching a wide audience I could learn from great investors. I am not here to convince you about my ideas. As always do your own due diligence.

Analyst’s Disclosure: I am/we are long ISDR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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