No Upgrade on BILL... Better Than An Upgrade...
Here's the story. They finalized a 51% stake in a leading Electronic Billing Payment & Presentation (EBPP) company, Princeton eCom. You can research Princeton at www.billingworld.com--nice recent write-up there. During yesterday's annual meeting, the CEO said that there will be a Princeton IPO "soon." That's going to be a big boost.
Yesterday, they acquired a Customer Relationship Management company that will be "accretive" to earnings, adding something like a projected $4 million to their already stuffed coffers. They couldn't name the big accounts that this OSCTeleservices does CRM for, but, when you go to www.oscteleservices.com, you get the story. This OSC acquisition shores up their "cash cow" LEC billing business and gets them into CLEC, where more folks want to be.
During the annual meeting, they also talked about progress for their Credit Union portal.
Bottom line: BILL is cheap. They are going to be pushing more buttons in the B2B Internet space. They've got cash in the bank and an itch to acquire. They're PROFITABLE.
And, IMHO, this sleeper is wakening. I see $5 as the floor, because they've got a stock buyback plan which I think will serve as a foundation should it ever get that low again... which I don't think it will. And I see $15 as very possible by May... and $25 around the Princeton IPO.
Princeton IS a leader. Sure, Checkfree is the dominant player. But, Princeton is winning more deals... and just did a distribution deal with CyberBills.
FWIW,
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