Intouch Insight Ltd (INXSF)

[MikeDDKing]

We had 8 times the average daily volume today.

[Rawnoc]

"Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise"

~~ Peter Lynch

[gistheman]

14.2 million shares is definitely a low enough share count to really make this share price move. What is the effective float? It isn't showing up on a general etrade quote.

[gistheman]

Profits slowed a bit, but the increase in overall revenue is overall better in the long term.

[gistheman]

quite the portfolio of big name customers.

[gistheman]

Usually a good sign that management thinks there is no where but up for the share price.

[MikeDDKing]

Another insider purchase on INX.V / INXSF was made on Friday

Dec 2/11 Dec 2/11 Pretli, George Direct Ownership Common Shares 10 - Acquisition in the public market

http://canadianinsider.com/node/7?ticker=inx

[Rawnoc]

INXSF / INX.V -- looking for a huge upside move. Here's why:

(1) They are profitable and growing and have built a solid business that they keep guiding for increased sales.

(2) Insiders have been buying shares in the open market:

http://canadianinsider.com/coReport/allTransactions.php?ticker=inx

(3) Their customer base includes many multi-billion dollar household name companies:

Sprint, Best Buy, Victoria's Secret, Toyota, GM, Mazda, Ford, Pizza Hut, Staples, and BJ's

http://www.intouchsurvey.com/Customers

(4) The float and share count are rather small -- any serious buying as their success continues to layer up can result in a huge upside move quite easily as history has shown in the chart (from the very low single digits to here) -- it won't take much to move to the $1.00+ range as sales and earnings get even higher.


(It trades in Canada as INX.V and in the US at INXSF)

[MikeDDKing]

In-Touch Survey Systems Ltd. Announces Q3 2011 Financial Results with 63% Increase in Sales

OTTAWA, Nov. 29, 2011 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX.V - News) announces revenues increased 63% to $2,762,963 in Q3 2011 compared to $1,692,155 in Q3 2010. Net earnings for Q3 2011 were $197,281 compared to net earnings of $377,534 in Q3 2010. The Company-defined adjusted EBITDA was $376,000 in Q3 2011, compared to EBITDA of $480,000 in Q3 2010.

On Aug 4, 2011 Global Compliance Services ("GCS") entered into an Agreement with In-Touch whereby GCS outsourced the management of its Service Intelligence ("SI") customers to In-Touch. SI (www.serviceintelligence.com) is a mystery shopping company based in Charlotte, North Carolina. The Agreement included the right for In-Touch to assume direct ownership of these customers at the end of the outsourcing period. As part of the agreement, In-Touch acquired the right to use the Service Intelligence name and will pay GCS a royalty of 10% for the first twelve months and 5% for the second twelve months paid on outsourced customers to a maximum revenue of $3.5 million - a potential cost to In-Touch of $350,000 in the first year and $175,000 in the second year.

The SI customer base uses multiple platform software solutions and under GCS was generating lower gross margin than In-Touch's mystery shopping customer base. In-Touch estimates that it will take between six and twelve months to migrate the SI customers onto In-Touch products and systems. During this six to twelve month period In-Touch will benefit from the increased revenue, especially in the USA, but lower gross margins and will also be faced with increased operational costs as it manages, and migrates, the SI customer base.

"Q3 2011 was our seventh consecutive quarter of revenue growth and profitability, and revenues exceeded both original growth targets and our revised guidance. Revenues for Q4 2011 will also exceed original recent guidance and the Company anticipates significant revenue growth above $10M in 2012 - assuming positive economic externalities," said Michael Gaffney, Chief Executive Officer.

"Our business focus on the data capture market, especially mobile applications, is gaining more and more traction in Fortune 1000 customers. Over three years ago we were one of the first companies to design and deploy enterprise-grade HTML5 solutions for the marketplace and this market leadership is now translating into strong revenue growth. In addition, the newly formed IMS group is very exciting as we are making significant inroads in sales to governments: IMS sales will exceed $1,000,000 in its first full year. To support further growth of our IMS group we intend to implement a branding and marketing strategy for our IMS Service Transformation product line early in 2012. With respect to costs, we will continue to ramp our investment in Marketing and Product Development, which we did in the first three quarters of 2011 as this will maintain and extend our position as a technology leader in our markets and ensure that a growing number of potential customers are aware of our capabilities," said Gaffney.

Consolidated Statements of Operations 	  	  	  	  	  	  	  	  	Q3 2011 	  	  	Q3 2010 
   	  	  	  	  	  	  	  	  	  	  	  	        
 Revenue     	  	  	  	  	  	  	  	  	 $ 2,762,963 	  	  	 $ 1,692,155 
   	  	  	  	  	  	  	  	  	  	  	  	        
 Cost of services and goods sold 	  	  	  	  	  	  	  	  	1,431,422 	  	  	571,959 
   	  	  	  	  	  	  	  	  	  	  	  	        
 Gross profit     	  	  	  	  	  	  	  	  	1,331,541 	  	  	1,120,196 
   	  	  	  	  	  	  	  	  	  	  	        	  
 Total operating expenses   	  	  	  	  	  	  	  	  	(1,034,277) 	  	  	(679,226) 
   	  	  	  	  	  	  	  	  	  	  	        	  
 Results from operating activities 	  	  	  	  	  	  	  	  	297,264 	  	  	440,970 
   	  	  	  	  	  	  	  	  	  	  	  	        
 Interest expense     	  	  	  	  	  	  	  	  	(19,947) 	  	  	(28,156) 
 Loss on fair value of derivative 	  	  	  	  	  	  	  	  	(80,398) 	  	  	(6,000) 
 Gain on foreign exchange  	  	  	  	  	  	  	  	  	362 	  	  	(26,324) 
 Gain on disposal of property and equipment 	  	  	  	  	  	  	  	  	- 	  	  	(2,956) 
 Net earnings     	  	  	  	  	  	  	  	  	 $ 197,281 	  	  	 $ 377,534

Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.

The TSX Venture Exchange has not reviewed the foregoing and has neither approved or disapproved the contents of this press release.

Contacts

[e-mail]
Controller and Corporate Secretary
613-270-7916

@yahoofinance on Twitter, become a f

[MikeDDKing]

INXSF.PK / INX.V is a rapidly growing marketing data collection company and is my second largest holding. I think it has excellent odds to be a multi-bagger over the next year and a 10 bagger over the next 2.5 years. It trades in Canada as INX.V and in the US at INXSF. Here are some reasons why I am very bullish:

1. Revenue has been growing rapidly over many years:
2005 $1,684,290
2006 $3,632,304
2007 $5,060,576
2008 $5,914,814
2009 $5,479,081
2010 $5,893,125
2011 $8,840,000 (Estimate based upon co. guidance)

2. I predict that 2012 will be a breakout year. My estimate is for revenue of $12.7M and diluted EPS of $0.14! That gives it a forward PE of a mere 2.4 based upon a share price of C$0.34.

3. They are expanding into mobile apps which is a big part of their growth initiative.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63379561

4. While my estimate is based purely on organic growth, they have a history of successful acquisitions which provides significant upside potential.

5. Insiders have been buying:
Nov 10/11 Nov 8/11 Watt, Cameron James Direct Ownership Common Shares 10 - Acquisition in the public market 3,000 $0.340
Nov 10/11 Nov 8/11 Watt, Cameron James Direct Ownership Common Shares 10 - Acquisition in the public market 36,000 $0.340
Nov 10/11 Nov 8/11 Watt, Cameron James Direct Ownership Common Shares 10 - Acquisition in the public market 10,000 $0.335
Nov 10/11 Nov 8/11 Watt, Cameron James Direct Ownership Common Shares 10 - Acquisition in the public market 8,000 $0.330

6. Their customers include a large number of blue chip companies some of which include the following:
Sprint, Best Buy, Victoria's Secret, Toyota, GM, Mazda, Ford, Pizza Hut, Staples, and BJ's
http://www.intouchsurvey.com/Customers/

In-Touch provides integrated solutions for custom data capture and mobile marketing solutions for global enterprise customers. You can learn more about In-Touch Survey Systems here:
http://www.intouchsurvey.com/Company/

[btmfdr]

Thanks!

[MikeDDKing]

I thought the report was good too and added shares. I think what people are missing is that GM is just temporarily lower. IMO buying here is a gift. I think there are good odds of a 10 bagger over the next two years.

They did just open up the NC office. It is staffed at least in-part with people that came from Service Intelligence. In-Touch operated SI for only the last two months out of the quarter.

GM was lower this quarter because the SI business has temporarily poor margins. The SI margins should return to normal levels for the mystery shopping business in 6 to 12 months. I think that they will be cutting customers over one at a time so we should slowly see margins improve. Gross margin historically has averaged 63% overall. Because there was a big chunk of low margin business from SI added this quarter, GM came in at only 48.2%. I'm guessing that GM will improve something like this over time:

Quarter   GM 
 Q4'11   48.5% 
 Q1'11   53.0% 
 Q2'11   58.0% 
 Q3'11   63.0% 

I wouldn't be surprised if they get back to historical GM levels by Q2 of next year but I'm assuming Q3 to be conservative.

[btmfdr]

I dont follow the company too closely, but the report seemed really good to me. Really surprised the stock sold off. Of course the bottom line numbers are going to lag the top line. Didnt they just open a new office in NC? I'm sure there alot of expense folded into that as well as for growing the new business.

Any thoughts as to where gross margins are headed? I was under the impression the new mobile data capture business has better margins than some of the legacy stuff.

At any rate that lame research report from the summer is no longer up to date. 2012 revenues were projected to be 8MM.

[MikeDDKing]

From the Q3'11 MD&A: "In the third quarter 2011, the Company entered an outsourcing agreement with a major US company that will cause In-Touch to grow faster – and significantly beyond the 25% growth target for the year. The Company now expects FY 2011 revenue growth to be close to 50%."

If revenue growth is 50% for the year, I calculate Q4 revenue would be $2.925M which would be a sequential increase from $2.763M. They only had two months or so of revenue from CGS so a sequential growth in revenue makes sense.

[MikeDDKing]

At one point I had thought they would make $0.04 but have since had lower expectations. If GM had been 63.1% which is their average GM over the prior 8 quarters, they would have made almost $0.05/share. I believe that eventually GM should get back to roughly that level although it sounds like it will take many quarters to get there.

[John Bates]

You predicted .05 though, right? It actually looks better now, seeing the continuity of things. It's starting to look more like a growth stock than value pump/dump.

[Rawnoc]

Annualized EPS = .08, so PE around 4. Nice.

[MikeDDKing]

Actually, Q3 earnings are better than I stated. They are $0.020 after removing the $80K loss on fair value of derivative.

[MikeDDKing]

It looks like they are going to grow INX.V / INXSF into a much bigger company as they said: "the Company anticipates significant revenue growth above $10M in 2012 - assuming positive economic externalities." Also, their guidance implies Q4 revenue greater than $2.6M which was their original Q4 guidance.

Earnings for the quarter were $0.014/share which is very nice for a $0.33/share stock. With the guidance it sounds like Q4 should be similar to Q3.

Eventually the bottom line will improve significantly as they get margins back to their normal rate for the GCS revenue. Plus the continuing increase in revenue will also help the bottom line.

[John Bates]

On one hand, the revenue growth and guidance look great. On the other, they aren't too concerned about the "PE cult" for now.
We'll see how it plays out.

[Hairy Calls]

In-Touch Survey Systems Ltd. Announces Q3 2011 Financial Results with 63% Increase in Sales

http://finance.yahoo.com/news/In-Touch-Survey-Systems-Ltd-cnw-3536416877.html?x=0

[John Bates]

Well, it's about time these guys report.

[Hairy Calls]

.322 x .353

[Rawnoc]

That's quite unusual for a company to give such firm guidance. I like!

[John Bates]

From the ER (Doesn't say "should", "may" or "is forecast to").

"Looking forward, revenues for Q3 & Q4 2011 will exceed revenues for the same period of 2010 by more than 40%. I am very excited about our revenue growth and our increased capabilities due to our investment in mobile software technology. There is no doubt that we are a leader in the field of managed mobile data capture applications," said Gaffney.

[MikeDDKing]

LOLO

[Rawnoc]

Do you think they'll hit their guidance? It's not like they gave it with the quarter 2/3rds already done.

Oh wait...

[MikeDDKing]

I imagine so! :)

Of course their guidance is outstanding. He probably sees that it is happening.

[Rawnoc]

I take it the buying volume we saw truly was from "somebody knowing something". :)

[MikeDDKing]

More INX.V / INXSF insider purchases!

57K were purchased by Cameron James Watt in the past few days!

http://canadianinsider.com/node/7?ticker=inx

[Hairy Calls]

INX.V .31 x .39 last .34 on 73.3k vol

[Hairy Calls]

Nice move here today. Maybe a little run into earnings in a few weeks.

[Rosterman]

Thanks for sharing that history.

[Rawnoc]

Nice summary. Can you expand on that?

[10 bagger]

INXSF.. If History is any guide this is a good indication because the last time it happened when I was in the stock and Mod on this board it was worth sticking around..

INXSF.. $0.0977 INX.V $0.10

VIn-Touch Survey Systems Ltd. grants stock options....

Looks like all that held have a winner here.. No reason to have insiders buying and offering stock options if we were not on the right track to earnings.. A true hold and mold,, My purchases are below... Hank

INX.V 0.10 0.00

Press Release Source: IN-TOUCH SURVEY SYSTEMS LTD. On Wednesday March 10, 2010, 6:18 pm EST

OTTAWA, March 10 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX.V) Michael J. Gaffney, CEO of In-Touch Survey Systems Ltd. reports that the Company's board of directors has approved the grant of options to purchase up to 725,000 common shares at an exercise price of C $0.06 per share to employees and officers of the Company. The options granted are valid until February 15, 2013. The current stock option plan expires August 31, 2010 and is subject to regulatory approval.

The TSX Venture Exchange has not reviewed the foregoing and has neither approved or disapproved the contents of this press release.

========================================================
10 bagger Share Tuesday, February 08, 2011 11:07:50 PM
Re: None Post # of 188

INXSF Cross Post.. hank

KIK.. You would be pissing on my parade except I sold the rest of my position today.. I tried to sell some the other day but only got off about 1/3 of the position.. It was my first use of E-Trade Foreign so I had a communication problem at first.. I hope all the BIG boys make a bunch as,, I'm moving on ....

That position was sold for an ave. of $0.286 Cdn. over a 4 trading days

Too bad Glead isn't around to thank him.. I'll resign soon as the mod of the INXSF board.. hank
-----
This the posting I made on the INXSF Board in Nov when the first big release came out..

10 bagger Share Wednesday, November 17, 2010 12:55:38 PM
Re: MikeDDKing post# 101 Post # of 126

Good luck as I still own 132776..

I bought them from $0.2488 down to $0.0328 and got my Ave. Down to $0.0637 on the whole.. I have been waiting it seems like 3 years ever since Glead got me into the stock.. I have spoken to George at the Company 3 or 4 times each year and had a hunch That these earnings were coming.. But I have been there before on this stock so I wanted to sell at least half and thats what I've done..

Below are the shares along with purchase prices that I had in IRA's which were sold after I sold my trading account positions around $0.15.. hank

01/18/2008 25,000 $0.2386 -$3,532.50 -59.12% $2,442.50 Edit
03/26/2008 4,500 $0.3045 -$940.60 -68.15% $439.65 Edit
03/26/2008 388 $0.305 -$80.43 -67.97% $37.91 Edit
12/12/2008 1,000 $0.0373 $50.40 106.55% $97.70 Edit
12/12/2008 4,000 $0.0372 $242.00 162.63% $390.80 Edit
12/15/2008 15,000 $0.0375 $893.00 155.98% $1,465.50 Edit
12/30/2008 12,000 $0.0377 $710.00 153.55% $1,172.40 Edit
02/06/2009 2,000 $0.052 $81.40 71.40% $195.40 Edit
05/04/2009 12,000 $0.056 $490.40 71.91% $1,172.40 Edit
06/29/2009 23,000 $0.038 $1,363.09 154.20% $2,247.10 Edit

02/15/2008 1,000 $0.2875 -$199.80 -67.16% $97.70 Edit
02/29/2008 3,500 $0.2705 -$614.80 -64.26% $341.95 Edit
02/29/2008 388 $0.274 -$68.40 -64.34% $37.91 Edit
02/11/2009 2,000 $0.052 $81.40 71.40% $195.40 Edit
03/24/2009 6,000 $0.0578 $229.40 64.29% $586.20 Edit
04/01/2009 3,000 $0.06 $103.10 54.26% $293.10 Edit
02/11/2009 2,000 $0.052 $81.40 71.40% $195.40 Edit
04/20/2009 1,000 $0.0536 $34.10 53.62% $97.70 Edit
03/08/2010 15,000 $0.078 $290.50 24.72% $1,465.50 Edit

=================================================
This the posting I made on the INXSF Board in Nov when the first big release came out.. I do believe that Mike bought them all...

10 bagger Share Wednesday, November 17, 2010 12:38:32 PM
Re: MikeDDKing post# 99 Post # of 188

INXSF.pk,, INV.v $0.1514..

There is a God.. I sold half my position..

11/17/10 12:42 PM EST Sell 776 INXSF Executed @ $0.1514 Details | Edit
11/17/10 12:42 PM EST Sell 17000 INXSF Executed @ $0.1514 Details| Edit
11/17/10 12:36 PM EST Sell 5000 INXSF Executed @ $0.1515 Details | Edit
11/17/10 12:35 PM EST Sell 10000 INXSF Executed @ $0.1514 Details| Edit
11/17/10 12:35 PM EST Sell 28000 INXSF Executed @ $0.1514 Details Edit
11/17/10 12:31 PM EST Sell 72000 INXSF Executed @ $0.1514 Details Edit

[Rawnoc]

Ah, good point. If they were expecting the price to go lower they'd likely wait to issue the options.

[Knowledge is King]

Thanks. From my experience, this is actually a positive development because managements attempt to "call the bottom" with their options pricing/issuance...and I've seen them get it about right more often than not.

[MikeDDKing]

They had a basic share count of 13,897,979 and a diluted share count of 14,146,313 as of June 30, 2011. Using the diluted share count as a base, the options represent 3.6% dilution if they are all exercised.

[Rawnoc]

3.5% based on yahoo stats

[Knowledge is King]

INXSF prints up 510,000 options @ C$.28/share


Anybody have any idea how much dilution this would represent?



(COMTEX) B: In-Touch Survey Systems Ltd. grants stock options ( CNW Group
)

OTTAWA, Oct. 28, 2011, 2011 (Canada NewsWire via COMTEX) --
In-Touch Survey Systems Ltd. ("In-Touch"
TSX-Venture: INX.V) Michael J. Gaffney, CEO of In-Touch Survey Systems
Ltd. reports that the Company's board of directors has approved the
grant of options to purchase up to 510,000 common shares at an exercise
price of C $0.28 per share to employees and officers of the Company.
The options were granted October 4, 2011 and are valid until October 3,
2014. The current stock option plan expires August 31, 2013 and is
subject to regulatory approval.

The TSX Venture Exchange has not reviewed the foregoing and has neither
approved or disapproved the contents of this press release.

To view this news release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/October2011/28/c8462.html

SOURCE: In-Touch Insight Systems Inc.
Michael Gaffney [phone] [e-mail]
www.intouchsurvey.com
Copyright (C) 2011 CNW Group. All rights reserved.
*** end of story ***

[MikeDDKing]

I would expect the Q3 report to come out some time near the end of November.

[Traderfan]

Does anyone by chance know when INX will bring out it's next earnings report? TIA.

[MikeDDKing]

Cameron is the VP of Business Development

http://www.linkedin.com/profile/view?id=30716693&authType=NAME_SEARCH&authToken=F1qs&locale=en_US&srchid=944420e0-cd5f-4eb1-966d-6c6edd67f338-0&srchindex=11&srchtotal=21&goback=.fps_PBCK_*1_cameron_watt_*1_*1_*1_*1_*2_*1_Y_*1_*1_*1_false_2_R_true_CC%2CN%2CG%2CI%2CPC%2CED%2CL%2CFG%2CTE%2CFA%2CSE%2CP%2CCS%2CF%2CDR_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2_*2&pvs=ps&trk=pp_profile_name_link

[Rawnoc]

Awesome! Locked and loaded on INXSF.

[MikeDDKing]

18,000 shares of INX.V / INXSF were purchased in the open market at $0.35 by insider Cameron Watt!

http://canadianinsider.com/coReport/allTransactions.php?ticker=inx

[MikeDDKing]

There will be some impact. I expect that some of the employee cost will fall under COGS and therefore is already built into GM. Also, sales people tend to have low initial costs because they generally have a large commission component in their compensation and there is a little lag in that hitting the P&L. I've built increased Op. Ex. into my model.

[John Bates]

Do you think the 8 new employees affect near term EPS results?

[MikeDDKing]

In-Touch Apps should be a 2012 growth item. From the Q2'11 Sedar filings:

"The Company expects that In-Touch Apps will be in beta until the end of the year and then launch as a standalone product for wide distribution early in 2012."

[Knowledge is King]

Got it.

[MikeDDKing]

We didn't know it was from outsourcing.