Revised & expanded list of reasons to buy TROY
TROY
* Has for the past two quarters had earnings per share grow at 30% per
quarter!
* Had last quarter earnings come in 23% higher than ANY analyst
predicted!
* Has revenues per share growing 40% per quarter!
* Is ranked as a strong buy by EVERY one of the few analysts that know
about it.
* Has recently signed a big deal to sell its services to Ameritrade,
and has similar deals in the works with other online companies.
* has a low float (2.5 million shares).
Yet despite all this great news in the last few weeks, this company is
so little known that its stock price has barely budged in months. How
cheap is this stock now?
* The price of this stock is so low, its projected revenues next year
equal its total market capitalization!
* The price of this stock is so low, its current PE (price/earnings
ratio) is only 27, while the average PE for stocks in its industry is
60.
Want more? check this out:
The company recently announced that its last year's earnings per share
is 64 cents (see biz.yahoo.com ),
but big stock data suppliers like Yahoo quotes and CNBC.com have not
yet updated their information, so they still report the old data of 33
cents. That means they are currently reporting TROY's PE as 46, when
the real PE is only 27. This means that casual investors don't yet know
just how cheap TROY is now, relative to earnings.
The company is Troy group, stock ticker TROY
TROY is a real nasdaq stock, not a bulletin board, though it is so
little known that it only trades around 50000 shares per day.
TROY's main engines for growth are print server software for printing
things like checks, and, more excitingly, e-checking.
TROY recently announced "an expanded relationship with HP
(Hewlett-Packard)."
TROY has e-checking deals with retail sites and with Ameritrade AMTD,
and will surely make many more such deals in the near future.
e-checking is a way of paying for online services by an electronic
check instead of credit card. It's useful for folks that don't want to
use credit cards online, and for the growing number of lower middle
income consumers who are coming on line but don't have credit cards.
see echecksecure.com
Why would ANY online retailer not want to increase their potential
market to non credit card users by accepting e-checks with TROY? TROY
handles & guarantees the transaction, for the same fee that credit card
companies charge.
Want still more? How about this:
Yahoo's automated research page,
biz.yahoo.com
ranks TROY as number 1 in its industry (interestingly, this research
page lists TROY's correct current earnings and PE, though yahoo's main
quote page, quote.yahoo.com, does not). This Yahoo
research page also notes that the average PE for stocks in TROY's
industry is 60.
And still more: TROY's fast growing revenues and earnings, far more
than any analyst predicted, do not even include income from the big
Ameritrade deal, because the fourth quarter ended in November, and the
deal was struck in December.
Yet more incredible TROY numbers: 4th quarter revenues per share were
$1.59, up over 120% from a year ago. If we ignore the Ameritrade deal
and just project future revenue growth to match past growth, we'd get
annual revenues per share of approximately $18. Ameritrade alone could
double that number. NEXT YEARS REVENUES PER SHARE, CONSERVATIVELY
PROJECTED, ARE FAR HIGHER THAN THE CURRENT SHARE PRICE!!! In other
words, TROY's income next year will exceed its current market cap.
A similar calculation based on earnings yields a next year PE of under
10.
Even if you ignore TROY's number 1 rating,
and ignore its phenomenal growth rate,
and ignore its e-checking deal with Ameritrade and others,
and ignore the likelihood of future such deals,
and ignore its expanded relationship with HP,
and ignore the strong buy rating from every analyst that covers TROY,
and JUST give TROY the average PE for its industry,
then TROY's price would be 38 dollars per share!!!
Accounting even conservatively for the other factors above makes TROY worth $50 to $100 per share. |
