Bought the 5th stock for the small cap portfolio yesterday:
CSI Credit System Inc (CSU/VSE) $1.17
The company manufactures point-of-sale terminals, and sells/leases the terminals to retailers. Its customers' list includes Intrawest, Best Western, Levi Srauss, Parkland Industries, chains of restaurants... and quickly growing. The terminals are linked to CSI's computer, as well as, to the banks for Interac processing. The CSI's computer processes loyalty points, and customer database profiles. The loyalty points bring customers back again and again (just like Second Cup loyalty system where you get the 10th cup of coffee free). The customer database allows retailers to target market effectively.
So for instance, when you go skiing on Intrawest Blackcomb ski resort, not only can you pay by debit/credit card, but also accumulate bonus points which can be used as discounts for future ski tickets. It keeps you coming back. Then, when there are special deals, through the marketing database, the ski resort would have the capability to know that you'd be interested, and mail you the information.
The beautiful part about the system is that it is very versatile, and the loyal points system can be quickly re-designed at the request of the retailers. CSI makes a transaction fee for each transaction.
CSI also manufactures automated parking equipment. You may have see the equipment at unattended parking lots.
CSI was introduced on this thread by Keith Schaefer. There is also a thread on SI. I did my due diligence and am very excited over the company's prospects.
CSI is a small company so the financial indicators are not as comparable in the usual sense, but here they are:
- Sales projected at $2.3 million this fiscal year, and $4 next fiscal year. Breakeven expected for next fiscal year. Small loss this year.
- revenue growth 52.9%
- expense ratio 48.7%
- earning to sales ratio 4.2%
- price to sales 3.4
- price to book 12.4
- book val $.10
- # shares o/s = 10.5 mill
- capitalization (at $1.20) = 12.6 mill
- return on equity 13.4%
- no debt
- positive cash value added (CAV) at 14% (quite good)
Note: indicators above are based on Forward Year (next 4 quarters) estimates.
Take a look on this company, and feel free to offer me all your views, dissents, opinions, etc. |
