Value Microcaps Motherboard

[Knowledge is King]

PYDS($.095) showing very strong growth; todays PR...


http://finance.yahoo.com/news/payment-data-systems-ceo-expects-113000391.html


A poster over on Yahoo by the name of brodheadite posted this today. Don't know if I agree with his price target, but it nicely summarizes the trends PYDS is currently enjoying:

Dollar volume trends beginning Oct. 2013 and ending May 2014 ($M); 125, 146, 154, 180, 176, 194, 242, 288. If June remains at 288M and gross margin compresses to 0.48% from 0.50%, revenue should be over $3.9M for the 2nd quarter and net income over $425k. Annualized income over $1.6M puts the P/E at 8.1 ($13M market cap / 1.6M earnings). At a 30 P/E, the shares are worth over $0.35 at the end of the 2nd Quarter. I estimate YTD 2014 net income to be just over $450k through May 31 and of over $600k through June 30. There is an interesting relationship between compressing gross margins and what appears to be compressing COGS. My model assumes modestly compressing gross margins but stable COGS. If COGS compresses as well, performance could well be better than my model. I also observe that at $288M in May, the company is now processing almost $3.5B annualized ($288x12). This compares to $280M annualized based on 3rd Quarter ($70M) dollar volumes. This, my fellow shareholders, is a different company than what we owned last year.