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I also like their additional filling that shows: "We expect that each of our independent directors will serve on each least two committees. Following the 2018 Annual Meeting, we expect to form an audit committee, a compensation committee and a nominating and corporate governance committee."
All the right steps are being taken to up-list this Company, I expect them to up-list over the next year, especially with the share price being bolstered by (hopefully) continued increased earnings.
Nasdaq Capital Markets Listing Requirements:
re-posting as someone asked about this.
see the link below p.9 of the actual document under the Nasdaq Capital Market Tier.
https://listingcenter.nasdaq.com/assets/initialguide.pdf
3Pea needs a closing price of between 2$ and 3$ to qualify (depending which qualification standard it uses). Closing price can be used if the Company has (i) average annual revenues of $6 million for three
years, or (ii) net tangible assets of $5 million, or (iii) net tangible assets of $2 million and a 3-year operating history.
TPNL can pretty much qualify for most of them other than closing price. all they need to do now is build out their different committees and get more independent directors (4). I figure they will get to the stock price requirement through traditional means and gradual growth - no need for a reverse split if things are progressing as well as they appear to be.
E.
Shareholder Meeting Announced!
Location:M Resort Spa Casino, at 12300 Las Vegas Blvd. S, Henderson, Nevada 89044
Date/Time: Friday, May 18, 2018 at 2:30 p.m., local time
Great week for $TPNL shareholders I personally didn't think we would rise this fast soo soon. The accumulation seems very well orchestrated (almost institutional like) over the past few days. 3Pea has one of the best looking charts I have seen.
I expect us to trend steadily towards 2$ over the next year and potentially more if we really start running...
I'll be at the meeting, hope to see some of you there.
There is a New Article out on 3Pea:
3Pea: Strong Guidance, Uplisting, Should Propel Shares Higher:
http://www.seekingalpha.com/article/4160694
His Target is consistent with mine at 2$ for this year.
Next 12 Month Target Valuation - March, 2018:
You will find below my forecast for 3Pea's 2018FYE and the assigned valuation over the next 12 months based on 3 different types of multiples.
2018 Financial Forecast:
Revenue: (45% growth) ~22M
Gross margins: 46% ~10.2M
SG&A as a % of revenue 26% ~ 5.75M
D&A and other: ~1M
EBITDA:4.42M
NI: 3.42M
F.d. share Count: ~47M
EPS: 0.073
Cash balance: ~5M (assumes we add another 2.3M this year, very obtainable per cash flow - but depends on capex spend)
LT debt:0$
**all multiples come from S&P capital IQ from companies in a similar industry - excluded larger entities that skew results to remain conservative.
Method 1 - EV/Sales:
EV/Sales Multiple:5.5x
Equity Value of ~126.5M (EV of 121M including 5M of cash) -
Share Value: 2.69$
Method 2 - EV/EBITDA:
EV/EBITDA Multiple:17.1x
Equity Value of 80.5M - Share Value: 1.71$
Method 3 - P/E:
P/E Multiple: 27.9x
Share Value: 2.03$
The average of the above methods gives us 2.14$/share.
Based on my analysis, it is well within reach for the Company to trade upwards of 2$/share. This is especially true as they look to uplist which should attract more investors and increase liquidity. Valuation could increase further if the Company grows even faster than 45% (as they did 46.5% this past year and it appears as they could do more per their press release). There is also significant consolidation in this space and 3Pea's high growth rate could attract a few suitors as they look to uplist (in this case 3-5$ is not an impossibility).
Best of luck!
E.
Nasdaq Capital Markets Listing Requirements:
Hey Mermelstein,
see the link below p.9 of the actual document under the Nasdaq Capital Market Tier.
https://listingcenter.nasdaq.com/assets/initialguide.pdf
3Pea needs a closing price of between 2$ and 3$ to qualify (depending which qualification standard it uses). Closing price can be used if the Company has (i) average annual revenues of $6 million for three
years, or (ii) net tangible assets of $5 million, or (iii) net tangible assets of $2 million and a 3-year operating history.
TPNL can pretty much qualify for most of them other than closing price. all they need to do now is build out their different committees and get more independent directors. I figure they will get to the stock price requirement through traditional means and gradual growth - no need for a reverse split if things are progressing as well as they appear to be.
E.
Very Strong addition to the team! Continued hiring spree of upper management personnel in expectation for the Company's "next level" of growth and professionalization. (they would not be spending money if they didn't know there was a bunch coming in... I expect much bigger things to come this year.
This new hire has "an extraordinary wealth of experience and exceptional insight and knowledge of the pharmaceutical industry" which is another key area of growth for 3Pea. I especially like this part;" DiVenuta joins 3PEA’s leadership team to develop, implement and execute business strategies within the healthcare and biopharmaceutical verticals that increase our client base, maximize shareholder value, and position 3PEA for future expansion."
He is also an attorney with 40 years experience (which is definitely helpful in the long run for 3Pea to add a competent internal lawyer). His upper management/CEO/Founder experience will bring a wealth of experience to the current team, not to mention his large network of potential clients and contacts to leverage.
Mr.D - I actually remember you from that board.
It may have been yahoo message boards? Anyways it may actually be because of you that I found TPNL (it has been so long now 5 years+ that I do not remember if it was from one of my stock screeners or if I saw you post then looked it up to see if there was potential). If my memory serves me correctly you use to post a few of the stocks you use to like (WWAG? and others if I still remember a few I had searched based on your tips).
But yes GURE/GFRE was what allowed me to buy one of my properties, now TPNL is looking like another great winner!
I'm sure we have all had those situations, no one is perfect (neither am I!)
You must make mistakes to learn from them and to prosper as an investor.
I remember many lessons from my early days trading in university.
First mistake was using excessive leverage! (I had taken out a student loan which I then margined to the max in my brokerage account and used it to invest in high dividend stocks to make the spread between yield gained and interest paid... (it worked out relatively well for a year or so)... but I also day traded in the same account and learned my lesson fast after receiving a margin call.
My second biggest mistake was investing in a chinese penny stock called China Clean Energy (CCGY). It was in the year's of the Chinese reverse merger's where lots of these Company's "appeared" better than they actually were as there was lots of fraud in the financials. Little did I know the high growth, high margins, was all "fake". The CFO ended up resigning and the company stopped reporting... lost lots of money in that one. That being said my biggest gain was also about 1-2 years before this happened in another Chinese stock called Gulf Resources (ended up getting nearly a 10 bagger from it)... luckily I sold when I did as all Chinese stocks came crashing down and now I don't trust any Chinese small cap!
Anyways, as you all mentioned, TPNL is different and operates like a much more stable large cap stock. I have lots of trust in the current management team and expect we will see great things in the coming year (s).
E.
Thats another bidder - in addition to the guy at 0.89!
Very positive.
I have a feeling we will see a base formed closer to this level (0.90-1$) while we get rid of weak hands. I expect us to blow past it on stronger volume when earnings are released (less than a month away) and more breakouts to occur as the next earnings show sustained growth.
Good luck to all, this is only the beginning of our run up...
The 1 yr Chart on TPNL looks flawless... really good uptrend with reasonable support being formed with every large rise.
Given the small float, this thing can really shoot up fast when things start rolling (and we are now starting to see this with the thin ask). If the Company continues to perform as planned with strong growth we are in for a nice ride!
We are also likely to get noticed with all of the new 52 week highs continuing to be hit.If this year is the same as the last it will not be long until we see 2$.
Best of Luck - onwards and upwards...
E.
I don't see them giving guidance per se with 2017FY/Q4 results, they may, however, give a "forward-looking statement" for the year ahead (and a hint of how things are going in Q1).
I can see them giving an actual full year guidance closer to mid year or Q2 so that they have some certainty on the full year numbers and have a good portion of the year "in the books".
If I had to guess for the 1$+ mark - I say first to the second week of March as a lead up to the Q4/YE results as most try to get in before.
E.
Great news! They are really gearing up to build a winning team that will help take them from a micro cap to a much larger professionalized business. Compliance is a big thing these days especially with all of the breaches that we see occurring and we need someone that is use to dealing with larger scale compliance issues for our "next phase".
The next thing will be getting a number of high profile independent board members and develop different committees (audit, comp, etc...) to get on to the Nasdaq (the share price will come... at worst we do a 2 to 1 split once we get over 1.50 or maybe just maybe no split will be necessary...).
I have a feeling 2018 will be a stellar year!
yep some nice Strength today pushing past the 0.75 barrier.
Happy to be heavily invested in TPNL on a day like today! Nice to see us holding up while everything else crashes.
Interestingly enough I was doing research and Planet Payment (just a little bigger than 3pea) was acquired a few months back at 4x revenue by Fintrax.
Also pegs a value of over 1.40$ to 3Pea (given a 15.25M forecast for 2017FY).
Another comp I had used Vantiv merged with Worldplay (USD 10.4 billion merger to create one of the largest credit and debit card processors).
lots of acquisitions in this space...
Based on the same takeout multiple of 20x ebitda, 3pea should be worth closer to ~1.50$ (per my 2017 ebitda forecast). That being said 3pea is growing faster than Blackhawk so people are likely to pay up for this, especially if 2018 shows a similar growth rate as 2017...than we could easily see a fair value of over 2$!
Great news! The Company is adding executives with very strong backgrounds.
They are really setting themselves up for some robust growth over the next few years. I can see this stock gearing up very nicely over the next 12 months especially with the shares held so tightly it will really start to fly...
A Massive 50,000 shares wanted on the Bid at 0.68 (He/she may have to move up to get all those shares..) Nevertheless, a good sign and as Mr. D said this thing can very easily start moving up fast due to the low float...
I've seen it happen years back when it shot over 1$ (but the Company is now in much better shape - Fair value closer to 1.40-1.50 with potential to go over 2$ (per fair value metrics in 2018FY)).
E.
I like the following:
"Al is responsible for managing and developing new products and revenue streams for 3PEA’s Healthcare vertical with special focus on Bio/Pharma copay offset and reimbursement products in support of pharmaceutical copay marketing organizations."
Hiring new competent senior level management shows that 3Pea is gearing up to enter into the "Big Leagues". Seems like more growth opportunities to come... this is only the start.
E.
New Article-> 3Pea International: Undervalued And Undercovered Turnaround Story
https://seekingalpha.com/article/4126470-3pea-international-undervalued-undercovered-turnaround-story
Was able to get it done over the weekend.
Enjoy and share the link!
E
I'll see if I can squeeze it in over the weekend.
E.
New Article on 3Pea:
I guess someone beat me to the punch...
Nice coverage by an author with over 1200+ followers
Why I'm Accumulating 3PEA International:
https://seekingalpha.com/article/4125110-accumulating-3pea-international?auth_param=q6sq:1d0oklb:355b2fa3a75c927100beb6c564bbbabc&uprof=22
12 month Target 1.50$ guess this guy thinks like me....
E.
I tend to agree with the no pumping, but there is a way of doing to simply share the story and let others make their own opinions. The story speaks for itself... It just needs more eyes on it. It's a long-term growth story, not a one trick pony - hold on for the ride.
E.
Hey Mermelstein,
Load up while you can I don't think these low prices will last for too much longer especially with the projected earnings growth going forward....
I think any coverage would be good especially if well written, it will likely get a little bit more traction from new investors/the general investment community (and may spur others to write about it).
I have written a few articles for SA a few years back... i'll see if I can put something together in my spare time.
With this low float the stock can easily fly....
Thanks Value,
I'll see what I can do. I know SA has gotten stricter for micro-caps but i'm sure if it is a good quality report they would be more willing to accept it.
E.
For those interested in TPNL I have provided my analysis below (I provide this info every quarter on the 3Pea board) but thought I would share it in case others are interested in this undervalued stock.
_______________________________________________________________
Q3-2017 Updated - Valuation & Quarterly Thoughts:
The Company & Management continues to demonstrate promising results.
Overall;
- Top-line results were very impressive with 42%+ growth over last year (even with lower volumes due to hurricanes!)
- Gross margins increased from Q2-17 from 45.7% to 46.4% in Q3-17 (albeit lower than last year)
- SG&A did increase but is fairly in line on a proportionate basis to last Q at 27.5% of revenue vs. 27.2% in Q2 (reasonable given they are ramping up so many programs - many of which will hopefully be one-time cost as part of set-up)
- By my own EBITDA calculations (which is how I like to look at things) EBITDA was 752k this Quarter vs. 630k in the same quarter last year
-To obtain between 15-15.5M over the whole year the Company would need to have a Q4 of 4.4M to 4.9M which means the growth has to be between 44% to 60% over Q4-16. Not to mention the Company must have fairly good certainty on these numbers as we only have a month and a half left to the 2017FY
- Impressive program growth- currently at 202 programs and 1.5M+ cardholders up from 120 and 1M as of the 2016 year end. 2018 should be a spectacular year as the cardholder base has grown substantially which means a much larger client base generating higher overall revenues.
- Given the currently available information, my "reasonable targets" for the stock based on industry multiples are 1.42$ based on the 2017FYE and 2.08$ for 2018FYE.
_____________________________________________________________________
Valuation (including next FY estimates)
Current Fiscal Year Revenue: (46.5% growth) ~15.25M in 2017 (mid-point of guidance) / 2018FY estimate:21.3M (assume 40% growth)
Gross margins: 47% ~7.1M for 2017 / 10M for 2018
SG&A as a % of revenue 26.50% ~ 4.041M for 2017 / 5.55M for 2018
D&A and other: ~984k for 2017 / 1.2M for 2018
EBITDA:3.1M for 2017 / 4.4M for 2018
NI:2.1M for 2017 / 3.2M for 2018
F.d. share Count: 44.5M
Cash balance: 1.9M
LT debt:0$
**all multiples come from S&P capitalIQ from companies in a similar industry.
All methods use Median multiples to be more conservative (I have removed Visa and MC from the comps to not skew it to the upside).
Method 1 - EV/Sales:
EV/Sales Multiple:4.4x
15.25M*4.4=EV of 67.1M add back cash less debt=equity value of 69M/44.5M shares gives a share value of 1.55$/share
Method 2 - EV/EBITDA:
EV/EBITDA Multiple:16.5x
3.1M*16.5x=EV of 51.5M add back cash less debt=53.45M/44.5M= 1.20$/share
Method 3 - P/E:
P/E Multiple: 32.3x
NI of 2.1M/44.5M shares= 0.0472*32.3x=1.52$/share
Based on the above calculations an average target of ~1.42$/share is within reach if the company trades towards its fair value and hits its guidance. Using the same metrics, and continued top-line growth of 35-40% growth, a 2.08$ target would not be out of reach in the following fiscal year. (and if they got bought out - I could easily see someone taking them out at 3$+/share)
Best of luck!
E.
Q3-2017 Updated - Valuation & Quarterly Thoughts:
The Company & Management continues to demonstrate promising results.
Overall;
- Top-line results were very impressive with 42%+ growth over last year (even with lower volumes due to hurricanes!)
- Gross margins increased from Q2-17 from 45.7% to 46.4% in Q3-17 (albeit lower than last year)
- SG&A did increase but is fairly in line on a proportionate basis to last Q at 27.5% of revenue vs. 27.2% in Q2 (reasonable given they are ramping up so many programs - many of which will hopefully be one-time cost as part of set-up)
- By my own EBITDA calculations (which is how I like to look at things) EBITDA was 752k this Quarter vs. 630k in the same quarter last year
-To obtain between 15-15.5M over the whole year the Company would need to have a Q4 of 4.4M to 4.9M which means the growth has to be between 44% to 60% over Q4-16. Not to mention the Company must have fairly good certainty on these numbers as we only have a month and a half left to the 2017FY
- Impressive program growth- currently at 202 programs and 1.5M+ cardholders up from 120 and 1M as of the 2016 year end. 2018 should be a spectacular year as the cardholder base has grown substantially which means a much larger client base generating higher overall revenues.
- Given the currently available information, my "reasonable targets" for the stock based on industry multiples are 1.42$ based on the 2017FYE and 2.08$ for 2018FYE.
_____________________________________________________________________
Valuation (including next FY estimates)
Current Fiscal Year Revenue: (46.5% growth) ~15.25M in 2017 (mid-point of guidance) / 2018FY estimate:21.3M (assume 40% growth)
Gross margins: 47% ~7.1M for 2017 / 10M for 2018
SG&A as a % of revenue 26.50% ~ 4.041M for 2017 / 5.55M for 2018
D&A and other: ~984k for 2017 / 1.2M for 2018
EBITDA:3.1M for 2017 / 4.4M for 2018
NI:2.1M for 2017 / 3.2M for 2018
F.d. share Count: 44.5M
Cash balance: 1.9M
LT debt:0$
**all multiples come from S&P capitalIQ from companies in a similar industry.
All methods use Median multiples to be more conservative (I have removed Visa and MC from the comps to not skew it to the upside).
Method 1 - EV/Sales:
EV/Sales Multiple:4.4x
15.25M*4.4=EV of 67.1M add back cash less debt=equity value of 69M/44.5M shares gives a share value of 1.55$/share
Method 2 - EV/EBITDA:
EV/EBITDA Multiple:16.5x
3.1M*16.5x=EV of 51.5M add back cash less debt=53.45M/44.5M= 1.20$/share
Method 3 - P/E:
P/E Multiple: 32.3x
NI of 2.1M/44.5M shares= 0.0472*32.3x=1.52$/share
Based on the above calculations an average target of ~1.42$/share is within reach if the company trades towards its fair value and hits its guidance. Using the same metrics, and continued top-line growth of 35-40% growth, a 2.08$ target would not be out of reach in the following fiscal year. (and if they got bought out - I could easily see someone taking them out between 3-5$/share)
Best of luck!
E.
thanks for the tip, i'll see what I can do to help tell "our story" over the coming weeks.
Q2-2017 Updated - Valuation & Quarterly Thoughts:
The Company & Management continues to demonstrate promising results.
I especially like the fact that they took the time to put together a shareholder update and guidance section in their press release.
Overall;
- Top line results were very impressive with 44%+ growth over last year
- Gross margins increased from Q1-17 (42.7% to 45.7% - more in line with historical norms but still slightly lower than 47% in the same quarter last year)
- SG&A did increase on a dollar amount basis but proportionately to the revenue it actually decreased to 27.2% of revenue vs. 28.7% of revenue in the same quarter last year.(reasonable given they are ramping up so many programs) Depreciation was up by 100k over last year which is a non-cash item anyway (and simply means they added more infrastructure/bought more equipment to help them grow)
- By my own EBITDA calculations (which is how I like to look at things) EBITDA was 634k this Quarter vs. 448k in the same quarter last year (EBITDA margins were 18.5% vs 18.9% last year simply due to slightly lower GM%)
-Overall very good performance, but what I like most is the update/guidance. To obtain between 15-15.5M over the whole year the Company would need to have Q3-Q4 make up between 8.3-8.8M which means the growth in the second half of this year over the same period last year has to be between 42% to 51%. Not to mention the Company must have fairly good certainty on these numbers as we are already partly through Q3 and they have already shown they have grown from the current 139 programs to 160 (15% growth in programs - the same growth that was seen in the current Q's program growth 120-->139). Adding another 60+ programs by year end would mean an over 44% growth in number of programs within less than 6 months).
- Given the currently available information, my "reasonable Targets for the stock are 1.50$ for 2017FYE and 2.10$+ for 2018FYE.
_____________________________________________________________________
Valuation (including next FY estimates)
Current Fiscal Year Revenue: (46.5% growth) ~15.25M in 2017 (mid-point of guidance) / 2018FY estimate:21.3M (assume 40% growth)
Gross margins: 46% ~7.015M for 2017 / 9.8M for 2018
SG&A as a % of revenue 26% ~ 3.96M for 2017 / 5.5M for 2018
D&A and other: ~900k (First Half*2) / 1.2M for 2018
EBITDA:3.05M for 2017 / 4.3M for 2018
NI:2.15M for 2017 / 3.1M for 2018
F.d. share Count: 44.1M
Assumed cash balance in 12 months:~2M$ for 2017 (1.4M currently plus a conservative additive cash flow of 300k/Q)
Assumed LT debt:0$
**all multiples come from S&P capitalIQ from companies in a similar industry.
All methods use Median multiples to be more conservative.
Method 1 - EV/Sales:
Mean EV/Sales Multiple:4.3x
15.25M*4.3=EV of 65.5MM add back cash less debt=equity value of 67.7M/44M shares gives a share value of 1.53$/share
Method 2 - EV/EBITDA:
Mean EV/EBITDA Multiple:15.3x
3.05M*15.3=EV of 46.6M add back cash less debt=48.7M/44M= 1.10$ per share
Method 3 - EV/Earnings (or P/E):
Believe it or not the average P/E in this sector is 40.5x - I'll be using the median of 33.9x.
NI of 2.15M*x33.9=72.88M EV add cash = 74.8M/44M shares= 1.70$/share
Based on the above calculations a 1.50$/share target is within reach if the company trades towards its fair value and hits its guidance. Using the same metrics 2.10$ or more would not be out of reach in the following fiscal year. (and if they got bought out - I could easily see someone taking them out between 3-5$/share)
Best of luck!
E.
Sometimes hitting the snooze button is the best thing to do as when you wake up you may find yourself pleasantly surprised by the outcome.
The stock has been steadily trending upwards over the past year. I believe there are much better things to come... (by much better I mean I believe this thing can likely trade well over 1$ in the next 12 months) Wait for the next few earnings releases I'm hopeful that we will be quite happy with the outcome.
This is the kind of stock that you put away for a year (or two) and then wake up at that time to find it much higher.... The trend is your friend, keep riding the wave.. sooner or later once more people uncover it this will become a title wave and all of us will be quite happy.
e.
Historical Number of Centers under Management For 3Pea
For those interested, I was recently doing some digging through the annual SEC filings and compiled the data of 3Pea's Plasma centers under management (in 2016 they started counting "programs" instead of "centers" but based on the data I found they appear to be the same - or likely very close to amount of centers they are managing.
Historical Data:
2013: 46
2014: 78
2015: 91
2016: 120
Q1-2017: 126
2017FYE*estimate per Q1 Update: ~200 (something big is in the cards if this forward guidance is met)
We have a break out! New 52 week high 0.58.
This should put us on the radar of a few technical sites...not to mention we have not even had the earnings release which should help propel it higher.
Janey,
Patience will pay off.
We need to keep seeing a few more great earnings reports and i'm sure it will start attracting other investors. It really won't take much to move this stock (ie; look at last time how fast it rose to 1$+ in very little time after only a few articles...) With the low float on the stock a little bit of volume will go a long way.
And 3Pea is in a much better position now than it was last time it was over 1$. Hold on tight because I think this could be a big winner if you just give it time.
E.
Whoever it is must be selling out of desperate measures without any rationality to it. However, its nice to see that there has been demand for 200k+ shares on the buyer side... shares will be put into stronger hands and will set us up better for a future run up. I would assume they must be getting close to being done with the selling...
yep.. i'm buying, spread is still large right now 0.41 to 0.448. Someone put up a large chunk at 0.40 for sale and it sold really fast.... I put in an order at 0.40 but only got a partial buy filled...
Hey Janey,
I partially agree but think this is secondary, I leverage LinkedIn for jobs, I think mgmt is mainly focused on 3Pea and running/growing the day to day business.
As for the website, they have updated it. Trust me it use to be a lot worse! I think their website is pretty decent at the moment but agree with you the investor section needs updating and I have proposed that mgmt put together an investor slide deck and boost shareholder transparency.
I think these things will come over time as mgmt aims at telling their story. Right now there are lots of resources on deck at managing growth, new products, etc.. and having a better story to tell. Give it a few quarters of good growth and i'm sure mgmt will start wanting to boost shareholder value - especially as they are 50+% shareholders and an increase in value would benefit them.
E.
Thats funny...
That was one of the Chinese stocks I actually made a killing on. (got in when it was at 0.20...way back and got out for the most part before the major drop)
I do think that TPNL is a much more trust worthy company (given there was so many scandles from those Chinese reverse merger entities)... I have lots of trust in TPNL's management team and think this will be one hell of a LT success story.
E.
I don't think so lots of people are holding till much higher.
We are only starting to gain momentum and earnings are projected to continue to grow at a fast pace - no reason to sell anytime soon. This is a long term growth story and will be a multi-bagger... that in my opinion, in the long term will either up-list resulting in increased valuation/liquidity or get bought out.
I don't think 3-5$/share is out of reach over the next 3 years.