Folks, Don't Know If This Fits Or Not...
While certainly not new to SI--long-time WAVX holder and poster--this is my first time over here. I've found what I think is a pretty strong value play with a twist. The company is Billing Concepts (BILL).
Here's all I know. BILL is a profitable company with money in the bank that happens to be the biggest brand name in a mature industry, Local Exchange Carrier billing and transaction processing. Last year, they got into some trouble with FTC "slamming and cramming" charges that have since been resolved. Such penalties have haunted the LEC business for several years. But, this created some downwards earnings surprises... which, of course, isn't good. In addition to these woes, the company made some missteps, trying to spin out their Aptis Software division which has 125 customers nationwide including IBM Global Services and contemplating taking their holding in another company public. Neither of these two events occurred.
So much for the bad news. Beyond profitability and cash in the bank, what's the good news? They've taken a 51% stake in a leading Electronic Billing Payment and Presentment company called Princeton eCom. CKFR is the leader, by far, in the EBPP space. But, Princeton was the original pioneer of e-billing and has been gaining momentum through alliances with MasterCard and CyberBills, etc. To learn about Princeton eCom, one need go no further than www.billingworld.com and do a keyword search for "Princeton." This company IS an industry leader. And at BILL's recent shareholder meeting, the CEO made it plain that they would be IPO-ing Princeton sometime later this year. This IPO will be a success... given the space.
BILL has also just completed an "accretive to earnings" purchase of OSC Teleservices, a company that specializes in customer relationship management and directory assistance for CLEC and car-rental and other firms. This acquisition will shore up their core "transaction processing" holdings and will add something like $4 million to their coffers for acquisitions.
Last year, BILL acquired an online instant-loan approval engine called "FiData" and is rolling that into a portal for the credit union industry called, I think, www.good2CU.com. I suspect more developments along these lines in the near future.
Bottom line: profitable company with a goodly amount of cash.Kaffman Fund is one of its largest holders. An acquisitions plan that is taking the company squarely into The New Economy. And a Princeton eCom IPO on the horizon.
At around $6.40--with a floor, I think, at $5--this looks like a good, interesting, long-term hold.
Like I said earlier, I don't know if this fits the profile of the kinds of stuff you folks invest in. But, I think it definitely qualifies as a value stock.
Best Regards,
c m |
