Take a look at IVIAF
I noticed this on White Shoes' 1998 Growth Stocks board:
Message 3062832
It discusses IVIAF, which does a variety of things in
electronic transaction processing. They're the ones
providing the card readers for smart cards, check processing
and the like to implement electronic point of sale
transaction processing.
The industry has some interesting experiments underway,
including a Chase/Citibank/VISA/Mastercard one here in
NYC. Smart cards have taken off in Europe, and the banks
& such seem to feel that it will only be a matter of time
for US implementation. IVIAF makes the only reader (so far)
qualified for both VISA and Mastercard smart card transactions.
Further, until smart cards hit in force, they have other
products that are popping up with greater frequency.
The financials look good, but not great. Sales growing
at a decent clip, margins improving, shares outstanding
holding steady. Of note is that Q4 had a big loss last year
(I think in part due to a write-off), so that true EPS is
not figurable
until after Q4 97 is announced. Hence, IVIAF will not
appear on many screening lists until about a month from now.
No debt, price to sales at only 1.2, price to book at 2.4.
Plus a buck a share in cash. Note that the company is Canadian,
so there seems to be some mix-up of Canadian vs American dollars
in certain numbers I've seen on the net.
EPS run-rate is 0.48, with price at $6.75, P/ERR = 14. With
no growth and a PE of 20, you get your 50% in 2 1/3 quarters.
Add in growth and the scenario looks better.
Float is 7 M, but VERY THINLY TRADED, 30 k shares a day. And
no analysts are following it. I haven't surveyed the
competition yet. Anyone know this industry?
This is a growth industry, but the question is when. However,
due to the loss, it looks like a turnaround in the near term
and perhaps a growth story in the long term.
Other opinions appreciated.
jg |
