Project Hunt: Interface Systems, Inc. (INTF)
Well, the report is finally complete. Due to thoroughness demanded by Interface's size and situation, the report is unusual in its length and format. I therefore decided to allow it to be posted on beg1's site as a PDF rather than posting directly to the group. The URL for the site is members.xoom.com and the URL for the actual report is members.xoom.com Anyone who desires a different format should contact me via PM or email and I will gladly oblige. (Text only will be awkward, though.)
The short, short summary is that INTF is the leader in the Electronic Statement Presentment (ESP) market, an application software royalty game whose tornado is near if not already here. INTF has a fully formed value chain with several prominent partners (including MSFT's Transpoint, IBM, ORCL) and a compelling whole product. They have been successfully pursuing a bowling alley strategy and are transitioning to a tornado strategy.
INTF is a severely undervalued company, trading at 7 times revenue, due primarily to a shift of focus. Interface was formerly a mainframe printer hardware oriented company. They are in the latter stages of completely eliminating this area of their business with the exception of one line of mature, steadily profitable products (CLEO), for which they have just announced a Linux version. This transition has obscured the hypergrowth in their key market.
For the purposes of this group INTF is properly labeled a shiny pebble, due to its tiny size ($150m). However, this should not discourage you from reading the full report in order to understand the full potential of this company and its position in the TALC.
For the record, I have decided to take a position in INTF as a direct result of facts learned through this investigation.
Enjoy!
M |
