I'm an investor in a company called InteliData (INTD).
INTD has been a 'stealth' company up until now, and is about to have its 'coming out' party.
A New Growth Industry:
There is a sea change going on in the way that consumers will be receiving and paying their bills.
Check writing will decrease as more and more people start receiving and paying their bills electronically. IMO, InteliData is positioned to become the leader in this brand new growth industry.
While other companies have focused their resources on writing the competitive low margin 'front end' software, INTD concentrated on the high margin less competitive growth area at the middle and 'back end' that makes the electronic bill presentment and bill payment (EBPP) solution work. The company believes that it has positioned itself to eventually "be inside every transaction." With 18 billion bills being presented annually, that's not too shabby!
Their management reads like a Who's Who in Banking. Board members include William Gorog (economic advisor to President Ford, and founder of Lexis Nexis); Norm Tice (Chairman emeritus of MasterCard); and Bill Seidman (CNBC chief commentator and host of "Seidman Says.")
InteliData has $23 million in cash, no debt, and will be profitable in mid 2002 or sooner.
Adoption rate of EBPP is expected to increase dramatically, and INTD's business is based on a "per click" recurring revenue model. The industry penetration is around only 1%, so there is nothing but growth ahead.
Their business alliances reads like a "Who's Who" of the Financial Services industry including such names as SPECTRUM, Alltel, Fiserv, First Data, and Princeton eCom. InteliData has a major presence in the brick and mortar banks as well as in the web based portals. They serve the Credit Union industry, and their presence in the Insurance and Brokerage industry is about to expand dramatically.
INTD has never had a major analyst cover them, and as of now, nobody on the Street even has an opinion on them.
There aren't too many pure plays in the EBPP space. Spectrum, and MasterCard are not publicly held, and the upside for CKFR has just been threatened by the alliance between SPECTRUM, Princeton eCom, Metavante, and YourAccounts.com.
InteliData has the ability to channel payments through MasterCard, CheckFree, and SPECTRUM, and is right now in the middle of the Spectrum action.
Due to lack of sponsorship, INTD still trades in the mid 4's with 1.11 million short shares outstanding.
A road show is scheduled for the 12th, and 13th of June at which time INTD will give numerical guidance going forward. This has always been a straight forward conservative company that has to listen and answer to the likes of Bill Seidman who sits on the Board. For the very first time, they are sounding more confident about their numbers going forward. At the last Conference Call, when asked "on a scale of 1-10 how confident are you of profitability by the middle of next year?", the conservative CEO Al Dominick replied: "11"
Please do your own due diligence. A good place to start is at:
www.intelidata.com
To listen to the CEO's most recent interview (approx. 12 minutes):
1) click on "Investor Relations"
2) click on "WALLSTREETREPORTER.COM" at the top of the page.
I think that you'll see the potential that I see.
Good luck.
GM |
