PYDS
I brought a small position of PYDS at .094 range. here is what I like.
1) PYDS has had record transaction growth in dollar amounts. The trend here is outstanding.
OCT 13 125M
NOV 13 146M
DEC 13 154M
JAN 14 180M
FEB 14 176M
MAR 14 194M
APR 14 242M
MAY 14 288M
2) So outside of a great trend how is that important? Well I would expect 0.475% of APR to June to turn into revs. About .00525 of revs in q4 13 and 0.50% in q1 of 14. Assuming the trend stays the same 0.475% is a good guess. Given the fact if june stays where may was, we would be look at roughly 3.8-3.9 million in revenues. I think about .005 EPS for the quarter would be coming up. Even annualizing that would put us at a PE under 5 for this growth, which is outstanding value. Also keep in mind the second half is generally stronger period for transaction growth, so I would expect number to even get better going foward.
3) Management has predicted sales to at least double in 2014. I wouldn't be shocked if the tripled when it is all said and done.
Conclusion: I believe PYDS is a great growth story, and after next quarter will also be very cheap as well in my opinion. I plan to keep this position small, because (a) Management gets paid a little more then I would like. (b) The one guy keeps selling shares, nothing to be alarmed about he has been doing this as part of a plan and has been doing it for what seems like years, but it does make it more difficult to move the stock up. But under .10 I like the risk/reward potential for possible multi bagger status over the long run, and a great return in the short run. All is just my opinion, and I could always be wrong though.
