SSKILLZ1,

I have been holding TPNL for the past few years waiting for this story to come to life. Margins are drastically improving due to the companies in-house integration of pretty much everything from call center, sales, card processing, etc...

Many other companies in the industry outsource some of these functions which erodes margins. On top of this their internal sales team is adding to the new higher margins - the company use to use brokers to obtain some of their corporate card deals (this eroded margins as they had to pay a cut to the third party for getting the deals).

I will give you that the way many of the card programs work is that revenue is realized at the end of the project (they may have had many card programs end in Q4 - some expenses may have been realized earlier on while the main source revenue appears at completion). However, these card programs that only last a certain period of time are making up a much smaller part of their revenue these days. The main growth appears in the plasma industry. They were even in Europe sponsoring the PPTA - (A North America and Europe Plasma Protein Association - see the right hand side - 3Pea Gold Sponsor - if you read the 10k filing 3Pea now has a satellite office in the EU)
http://www.pptaglobal.org/meetings-events/plasma-protein-forum/overview

Anyways, i'm in this for the long term, I see them getting taken over a year or two down the road for a hefty premium. (check out the 3Pea IH page and come ask questions there if you have any - just revamped the page)

E.

Hey Econ Student -

Check out the revamped intro IH board for TPNL - includes financial highlights. (I am the moderator)

I am a financial analyst by day and also included my valuations on the message board. Definitely much more room to run IMO - could be a potential takeover target given how well integrated and managed they are.

E.

~ 3Pea Share Valuation ~

Using S&P Capital IQ's financial database software I was able to get a few things out for you guys. See below the thorough analysis.

Based on the closest industry comparables the software along with some of my own inputs calculated trading multiples, enterprise values, market cap, etc...

You will find below the range of valuations it calculated based on current info (note that the average of Low, Mean, Median, High ranges where all calculated based on industry info - I have included further below only the "Mean" Targets of each valuation method):


Mean Equity Value(MKT CAP.$MM) Across All Multiples -- Price Per Share
High 101.30 ______________________________________ $2.74
Low 31.71 _______________________________________ $0.86
Mean 56.57 ______________________________________ $1.53
Median 46.76 ______________________________________ $1.27

For your own info the trading valuations used are below (Mean Target Value in Brackets):

LTM TEV/Total Revenues (1.50$ based on avg. industry revenue multiplier of 5.1 times)

LTM TEV/EBITDA (1.30$ based on avg. EBITDA multiple of 15.9)

LTM TEV/EBIT (1.60$ based on EBIT multiple of 20.20)

LTM P/Diluted EPS ($2.44 based on a multiple of 36.3 and 0.07 eps - Yes the P/E in the card industry is exceptionally high - for your info Visa valued at a P/e of 47, planet payment 36, etc.. we have much room to go)

LTM P/TangBV (0.81 with 15.2 multiple).

As can be seen, this is just the start for 3Pea. The valuations above are simply as of "right now" meaning any further growth will simply propel the implied value even higher!

Best of Luck,

E.

Its the Biggest Volume day in History.

I looked the furthest back I could and the 2 highest volume days ever (before yesterday) were September 2nd 2014 with 154.6k in volume followed by September 5th,2013 with 109.4k in volume.

A 400k volume day is sure to get this little one on the radar of many,
good things to come...

Intro Updated With Financial Highlights ~

I read through the recent 10k filing, as well as some analysis using S&P capital IQ - Key takeaways are updated on the IH intro page for 3Pea.

E.

Insiders Own 72% - Per Recent OTC Filling

Very low public float - this could run up fast due to very tightly held shares.

This was filled today:

http://www.otcmarkets.com/financialReportViewer?symbol=TPNL&id=134451

(see my last post about current valuation)

Stellar Quarter - Eyes Will be on US - New Valuation

I must first say this press release has re-defined the company, as a financial analyst, I am thoroughly impressed with the numbers.

- The company's short term liquidity, cash on hand have all been bolstered
- Per recent press release (happened after YE) leverage should decrease, share count down due to buyback
- Profitability shows immense improvement (Gross margins up to 54.69% from 34.9% in 2013, operating margins up to 26.7% from 10.62%, Net margins 25.2% from 9.68%)
- From a valuation standpoint we earned 0.06 in EPS pretty much all in one-quarter - albeit it may be an abnormal quarter so ill use 0.15 of EPS as an estimate of what can be expected in a full year - current diluted share count at 42.4M deduct share repurchase of 2.4M would give us approx. 40M fully diluted. The average valuation in the tech industry is typically quite high - ill have to do a more thorough comparison but let's just say we use an average multiple of 15 on the p/e.

- 15*0.15= 2.25$ per share
- I know many of you follow PYDS - very close in revenues to 3Pea - so lets say we trade at the same valuation per today - I'll use yesterday's close of 0.315 (0.315*137.22M shares o/s=43.224M$ market cap --> Then 3Pea should trade at 43.224M/40M= 1.08$/share as of today. (this does not include any future growth!)

Once I have more time on my hands I will make a more thorough analysis but it would not be unreasonable to see 3Pea at $1.50 within the next 6 months. Once of my favorite parts of the press release is them saying they have one of the most robust client prospect pipelines in the company's history - A sweet indication of things to come!

Hold tight my friends - much more to come.

E.

TPNL Breaking Out - Much More Upside to Come!

- Record earnings to be out Tomorrow (already pre-announced to expect a blowout year of profit/revenue with largest Quarter in history)
- Company just repurchased 6% of outstanding shares
- Insiders own 65% of the outstanding shares
- Partnership with Visa
- Revamped Website
- Have a board recently put together of highly recognized industry professionals

This is no pump & dump - (it is a quality long term hold that is flying completely under the radar.

I will not sell a single share under 1$!

TPNL Breaking Out - Much More Upside to Come!

- Record earnings to be out within a week (already pre-announced to expect a blowout year of profit/revenue with largest Quarter in history)
- Company just repurchased 6% of outstanding shares
- Insiders own 65% of the outstanding shares
- Partnership with Visa
- Revamped Website
- Have a board recently put together of highly recognized industry professionals

This is no pump & dump (unlike many that are posted)- it is a quality long term hold that is flying completely under the radar.

I will not sell a single share under 1$!

And We Have Lift Off!!!

Best thing is, this is just the start...

Chart Looking positive... Over the past 2 years the highest close was 0.40 on Nov. 10th 2014, highest intraday high was 0.44 on Oct. 30th 2014. We are coming near these old levels, if we can break and hold above them it will look very positive on a TA perspective (May help us get noticed by Technical programs).

I am not selling any of my shares under 1$, once this one grows some legs it's going to run... Shares are very tightly held. Once it gets discovered by others momentum will grow as the new guys will have to pay up.

Welcome to the board wow23p!

Looks like some good news for our little gem 3pea. 3pea has been gradually picking up a good share of the plasma centers for prepaid cards. It will be extremely well positioned to take advantage of Citi's divesting of their operations. Unlike Citi, 3pea does not outsource their call centers and since their specific focus is on this industry many customers are treated very well compare to simply like "numbers" for large bank operations like Citi. The revamped website also shows the company is taking advances towards making it more marketable and attracting more high profile customers. Lastly, repurchasing shares at these prices speaks volumes about management knowing it's company is worth more than the shares are currently trading for.

Anyways I'm holding tight the share count has dropped thus we now own a bigger percent of profits... as sales and cash flow increase we are sure to see the benefit. The company is only on an infancy stage. There is a world of opportunities with the companies new Pay sign platform... this will likely be well over a buck and most of the long time share holders will be greatly rewarded!

Best of luck to all,

E.

Things are Looking Good, Reduced Share Count by 6%!

Management following through with their word in buying shares that they view as "cheap" to create long term shareholder value! I am sure this little gem will not stay at these levels for too long....

On a second note, I just checked the press release and clicked on the the company website - Did you guys see the new revamped website!!? (www.3pea.com)

Looks really sleek - it seems these guys are really putting in an effort to making this a strong business - enhanced branding, Paysign platform, partnerships with the big guys (Visa), growth in clients, expansion opportunities for new type of services,...

I'm sure we will be rewarded for our faith in this company!

No one knows about it...

The people on this board are pretty much the largest contributors to the daily volume. Once discovered by some bigger guys these prices won't last. We need the company to continue to show growth and acquire new accounts as well as expanding into new segments broadening their footprint in this market. Then... things will get interesting. FY2014 results should be out around the end of March (as they did last year). It will be interesting to see developments that occurred recently.

I would expect the year end news release at mid to end March similar to last year, thats when we will likely get an update.

Agreed, lets hope 2015 will bring some interesting results for the company. It seems like 2014 was a great start to the story... Although the stock has been declining still has done better than some of my oil stocks...

Year end should likely be end of March and we should also have a good idea on Q1 2015.

Good Q Overall - Q4 will be massive $4M+ by extrapolation

Highlights:

- 61% jump in revenue from 1M to 1.7M$
- Gross Margins increased to 36.7%
- The company reported a profit over last years loss
- Plasma centers being serviced as of now includes 78 centers over last years 25.
- They still expect to hit their anticipated sales of 9.25M-9.75M which means revenue in Q4 will likely be 4M$ or more, Also by extrapolation if they indicate record net income it would mean finishing the year with more than 1.8M$ in NI (was recorded in 2012FY) which means also very good earnings to come...

- Other than this they re-iterated the positive developments that we have seen over the past months, many agreements, board members and a very positive outcome for TPNL!

Good job management!

If you take what Visa is trading at and project the value onto 3Pea.
Obviously the growth is very different given the company's stage but to give you an idea of what 3Pea could trade at using similar ratios see below.

Visa trading at 23 times forward P/E
Also trading at 10 times sales

assuming lets say 0.05 of EPS after they repurchase those 2.7M shares, it would place the stock at 1.15$ using the same P/E (23*0.05)

Assuming we use P/S of 10 (note that a ratio of 10 has been seen in many takeovers in this industry and is not that far fetched)
9.75M$ revenue *10= 97.5M/37M shares post repurchase= $2.63

Technical Breakout 0.44 up 33.7%! We have lift off...

Seems IH is not updating correctly, my realtime quote has it at 0.44 cents, we broke the 0.37 past resistance now hitting another 52 week high. Should get some coverage now...

BuyBack Approved up to 7% of Market Cap!

Good job to those who hold shares, they will get more and more valuable. It is quite rare to see a company of this size buyback shares...they know the shares are at an extremely large discount.

And another company signs on with 3Pea...!

Looking like the business is picking up, with the greater recognition and awareness about their brand we should continue to see new clients roll in.

Looking better by the day for TPNL!

Thanks for your interest Mick.

3Pea has recently been ramping up its IR and communications in order to "get their story known".

I'm not going to try to sell the stock to you because I think the PR's from the past month speak volumes. Its an interesting niche play in the prepaid card market which is still quite a hidden gem. It has signed partnerships with some big names in the card payment industry and will only grow from here. I have personally been following this stock for a few years and have picked up shares for my family members and clients. Things are finally starting to unfold...

I'm sure we will look back a year from now and kick ourselves for not buying more at these prices! If you have any questions ask away we have quite an active following on this board.

Cheers,

E

Breakout of major resistance likely to be picked up by many stock trading websites/systems. Not to mention the large upside move and the news release related to a larger NYSE stock... Keep it up 3Pea management!

Big News For Our Little Friend: Integration with HAE Donor Systems!

This is huge news as HAE is a large company on the NYSE(close to 2B$ market cap). I encourage you all to read HAE's investor presentation they have 70% of the plasma market share with immense growth in that industry. News release has appeared on HAE's as well as TPNL's news feed. We are sure to get some eyes looking at 3Pea now.... Not to mention the growth in revenue from such a partnership. As 3Pea continues to integrate itself in the industry and draws revenue streams from partnership we will see more consistent earnings with very large growth as they become re-known for their proprietary product in the plasma industry. This will obviously create a spill over effect into new card sectors...

Big News - Visa Agreement shows strength in 3 Peas Pay sign brand.

This will definitely give them a very big edge when it comes to showcasing 3peas reputation, boosting the value of the brand and will likely help them easily grow into new markets.

Let the good news keep on coming...

3PEa's Market Cap (8.5M) is Currently below 2014FY Revenue Guidance of 9.25-9.75M$...a rare opportunity.

Huge Growth - Company Poised For Continued Success - Stock Should move Accordingly.

Based on revenue projections of 9.25-9.75M$, this would mean they need to do between 5.62M- 5.87M$ in the next 2 quarters showing much larger growth than the projections are demonstrating. 5.87M$ in the 6 month period of Q3-Q42014 in comparison to 2013's same 6 month period (2.992M$) would represent nearly 100% growth over the prior period.

Once the stock starts getting noticed it will surely start to jump in line with the revenue growth we are seeing...

Agreed Mr. D.

We appear to have the makings of something really good here. All of the stars are aligning.I know the seller has no basis behind the selling. I am sure this year will be a stellar year for earnings and we are sure to see this come to fruition in Q3/Q4.

If this fool wants to sell I will see If I can pick up some more at these lower prices...While I still can...

Developments Keep on coming...

Good to see the increased transparency to investors of ongoing developments, the IR firm is sure going to help the PPS as more and more updates get made and the story unfolds itself...

The advisory board is a great thing and its nice to see 3 Pea using this type of avenue to work on their strategic decisions by consulting with some top professionals which can give great insight and may be able to leverage their connections to help 3 Pea grow.

Glad to see the shares are in some strong hands!

Meager TPNL Valuation in Comparison to Peers.

Thanks for the acquisition updates Chilar. I have seen a lot of news lately highlighting the Payment Processing Industry. Cramer is quite a fanatic of the industry showing the large investment potential that exist and some large consolidators such as the one's previously mentioned taking out the small niche players (such as TPNL).

TPNL is very particular as it is in a very small niche and in my opinion is gradually monopolizing the payment processing business for plasma centers. As it becomes more recognized through growth in this niche as well as its intention to expand into new types of payment processing markets it will start to get noticed by the big guys. This could likely spur some takeover interest for our little friend...

Based on my analysis, this industry trades at some much higher multiples than TPNL's meager valuation.

I did some digging and Parago, inc.'s latest FY revenue was around 38.5M$, the 290M$ takeover puts it at a price to sales ratio of 7.53.

If we were to assume a $8M 2014FYE revenue figure for 3 Pea a similar ratio would mean a stock price of $1.54 (8*7.53/39M shares o/s).

If you take a look at FleetCor Technologies (FLT) it currently trades at a price to sales ratio of 11.4 not to mention a P/E of 38.6.
Blackhawk (Hawk)'s P/e is also quite high at 31.43.

Obviously 3 Pea has been experiencing large operating expenses through its expansion phase but will likely end the year with a few cents EPS, especially with its larger margins in its new proprietary card products.

Let's say 3Pea has a 3 cent eps for the FYE2014, using the average of the top 2 players mentioned, a price of 1.05$ could very well be justified with a P/e of 35.

Once I see the actual FYE for 3Pea I will draft up a thorough analysis including my projections and peer comparables, and will share with the board.

Insiders already own 61.35% of the shares outstanding.
Its obviously in their own interest for the stock to go up.

The company should be starting to ramp up investor transparency and initiatives that are sure to increase the overall stock performance and improve the general perception of the company.

I have done about as much accumulating as I can for the moment, others will have to step up and the company itself should show its true colors soon...

The fact is, its a good Q if you read between the lines and know the story. I can see a few people getting spooked by the negative earnings/CF, small cash on hand and tepid growth.

However I was expecting this of the first half. Great time to accumulate for the second half which is usually much stronger. The company/sector moves in large waves due to the way contracts are recorded and revenue is recognized. The next wave will likely show shortly....

The company is well on its way with all of the initiatives its implementing. The new card products will spur new revenue segments and the company's increased network will continue to grow existing card programs. With the talks of international opportunities potentially on the way...this could act as a very large catapult for this little gem (on top of all the existing growth prospects).

Best of luck & happy accumulation!

E.

I have tried to pick up some cheap shares here. Only have limited amount of cash on hand, but good cheap shares! people getting rid of them will be sorry by year end!

The Biggest Point I see is the forward outlook:

-this is just the tip of the Iceberg... Q3 and Q4 are likely to show the companies true colors....

As we continue to build the infrastructure and processes to be able to scale the business successfully, the company has begun to see positive results from these efforts. The company expects to launch several large scale corporate incentive prepaid card programs for new customers in the third quarter of 2014. The company will continue to devote resources to sales and marketing activities in order to increase its presence in the markets it currently competes and to enter new, high growth markets in the future. This includes the development of a new corporate website, attending and presenting at industry specific conferences and trade shows and adding sales and marketing personnel.

We sell our products directly to customers in the U.S. but may work with a small number of resellers and third parties in international markets to identify, sell and support targeted opportunities. We have also identified large scale opportunities in the European Union and are aggressively pursuing those opportunities.

Earnings to be out next week i'd say around August 14-15th.

Smart Operator indeed ;)

The ask is now jumping to 0.25, some of the bigger orders that i've seen appear to be taking out the blocks at 0.22... this may start to run upwards soon...

With the next press release i'm sure we will see this ship set sail...

Good luck to all longs, I have great faith in management i'm sure we will see great developments coming our way in the near future.

Chillar Does not work for the company.

I can tell you that. Many of us on this board have been long time shareholders.

I can say with great certainty that management is taking great strides in making this company into something much more than it is.

They started out small, are now fully integrating there operations from software to call centre to sales force.

I can easily see them getting a larger and larger share of these plasma centres. This is a niche that I believe can be easily accomplished, their new VP o sales is top notch (Ruben Corona) go ahead and look him up on LinkedIn quite the accomplished individual.

The plasma centres are just the tip of the iceberg as their platform is universal to many other sectors in their industry.

Regardless, volume may be small but by looking at the trailing 30 day volume it is drastically up from last year. Don't want the shares? fine! more for me... I will eventually be back when this has tripled to say I told you so.

As per S&P Capital IQ insiders already own over 61% of shares. I think that speaks volumes. (see below top 5 insider holders)

Name/# of shares owned/ % of shares owned/market value/as of date
Newcomer, Mark R. 7,010,000 18.00% $1.4M Mar-04-2014
Spence, Daniel H. 6,510,000 16.72% $1.3M Mar-04-2014
Weiler, David R. 3,689,950 9.48$ $0.7M Mar-04-2014
Korte, Cynthia 2,442,000 6.27% $0.5M Mar-04-2014
DePrima J.D., Esq., Anthony E. 2,245,163 5.77% 0.4M Mar-04-2014

Chilar, you going to visit the HQ's soon?

Let us know how it goes, I heard there is lots of progress being made.

10K is Out! Huge Jump in Q4 Margins!

Highlights:

- Hired Key personnel to head our Operations, Sales & Marketing and Customer Service departments. In total, we filled 10 new positions increasing our count from fourteen in 2012 to twenty-four in 2013.

- Increased the number of higher margin corporate incentive reward card programs we manage, having added 29 new corporate incentive reward programs in 2013,the majority of which were added in the fourth quarter. We expect the revenues from each of these programs to increase as they mature.

- Increased our gross profit margins from 21% in 2012 to 35% in 2013.

- Began providing additional card fulfillment services to our customers.

- Identified, researched and targeted large scale business opportunities in the European Union.

** Overall year was a little weak, but Q4 has shown drastic improvements with large margin increases and higher operating income. Many of the aspects mentioned show the company is in preparation for a large growth phase (hiring new personnel,call centre integration, potential business in the European Union, better economies of scale with higher margins,new card services....)

My thoughts are that 2014 will be a very interesting year for this little company.