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Is it just me, or has Louis Hoch slowed his selling. Maybe it has something to do with the up listing? Just watching the stars go by:)
GDOT and PLPM both reported good numbers. Which I assume is positive for PYDS. I am guessing someone has been trying to get shares cheap the last week or so. Just my observation.
http://banking.einnews.com/article__detail/259994952?lcode=eqJWh2IpE1jZHFf6fReM2g%3D%3D
Sure I am sure, unless this is a false press release. Why it was not released as a PR news release is beyond me. The 28th should be good.
http://banking.einnews.com/article__detail/259994952?lcode=eqJWh2IpE1jZHFf6fReM2g%3D%3D
Short Numbers are up again!
4/15 number is 13,682,534 up from 12,760,000 that is crazy! In the mean time it seems someone is buying a krap load of $35 June calls. I guess it's a hedge. I think they will beat and raise and with that large short number, mid $30's is not out of the question. Comment TORO?
http://www.nasdaq.com/symbol/vdsi/short-interest
This is nice. Right before earnings. I will say, sometimes I have been burned by companies releasing a nice PR before earnings. But I already bought my May $20 calls before this came out. I think their Q2 guidance will be BIG imo. I could be wrong, but I don't think I am. Either way, I will find out soon. Ian, do you have any shares??
Japan Internet Exchange Co., Ltd. (JPIX) Deploys Infinera Cloud Xpress for Metro Cloud Datacenter Interconnect in Tokyo, JapanMarketwired Infinera
4 hours ago
????
INFN
19.95
+2.31% Infinera Corporation? Watchlist
19.95+0.45(+2.31%)
NASDAQMon, Apr 20, 2015 4:00 PM EDT
Infinera (INFN) Likely to Outshine Q1 Earnings Estimates - Analyst Blog Zacks 10 hrs ago What's in Store for Yahoo! (YHOO) this Earnings Season? - Analyst Blog Zacks 10 hrs ago MoreSUNNYVALE, CA--(Marketwired - Apr 20, 2015) - Infinera, provider of Intelligent Transport Networks, announced that Japan Internet Exchange Co., Ltd. (JPIX), an Internet Exchange (IX) provider in Japan, has deployed the Infinera Cloud Xpress to help accommodate bandwidth growth in its network in the metropolitan Tokyo area in Japan. IX providers are a critical part of Cloud infrastructure, offering high performance connectivity services between providers, wholesalers and their end users. JPIX selected the Cloud Xpress for its hyper-scale density, operational simplicity and low power consumption.
JPIX is Japan's first commercial IX provider, established in 1997, offering a set of neutral locations that allows telecom, Cloud and wholesale service providers to exchange traffic as well as interconnect with enterprise users. The JPIX IX service is a significant exchange point for major service and content providers in Japan and plays an important role in powering the Japanese Internet backbone. With the IX service delivered by JPIX, Internet service providers (ISPs) and content providers are able to respond to continuous increases in Internet traffic as demand increases from their customers.
JPIX chose the Infinera Cloud Xpress for its small form factor, low power consumption and its ability to enable JPIX to easily scale bandwidth in 100 gigabits per second (Gb/s) increments without any changes in hardware. The Cloud Xpress provides JPIX up to one terabit per second (Tb/s) of input and output capacity in just two rack units. Further, the Cloud Xpress simplifies operations with a single fiber to deliver a 500 Gb/s super-channel of line-side capacity, a highly-reliable photonic integrated circuit, the flexibility of 10 gigabit Ethernet (GbE) and 40 GbE today, and 100 GbE client side interfaces with Cloud Xpress product family in the future. The ultra-low power and rack-and-stack form factor of Cloud Xpress enables JPIX to scale while using the least amount of space and power. In addition, the Cloud Xpress is designed with a new software approach that allows it to plug into existing Cloud provisioning systems using open software-defined networking (SDN) application programming interfaces (APIs). Similar to the server and storage infrastructure currently deployed in the Cloud, the Cloud Xpress easily and rapidly integrates into existing operational processes enabling Cloud providers to scale quickly and simplify operations.
"As Japan's fastest growing commercial IX service, we continue to enhance our network to ensure the efficient flow of data in the metro Cloud for Internet users in Japan and globally," said Yoshiki Ishida, JPIX CEO. "The Infinera Cloud Xpress allows us to interconnect all of our sites while only requiring a small amount of space and power. And the platform provides us operational benefits that massively simplify what it takes to deploy the network."
"As a longtime partner of Infinera, we have been on the forefront of demonstrating their innovative networking solutions," said Mr. Toshiaki Kibe, Director and Managing Executive Officer at Nissho. "The Cloud Xpress is a world-class solution that delivers the benefits that Cloud and datacenter operators and IX providers need as they expand to establish locations across metro areas to support closer connections to customers."
"The tremendous demand for bandwidth globally puts immense pressure on the Cloud," said Stu Elby, senior vice president of Cloud network strategy and technology at Infinera. "JPIX's deployment of Cloud Xpress further underscores the need for simple, highly scalable interconnect solutions across a variety of markets."
VASCO to Showcase Authentication Solutions for Healthcare Providers and Integrators at HIMSS15
VASCO Solutions Help Healthcare Service Providers Secure Access and Comply with Regulatory Requirements
PR Newswire VASCO Data Security International, Inc.
6 hours ago...............Good timing VASCO............
????
CHICAGO, April 14, 2015 /PRNewswire/ -- VASCO Data Security International, Inc. (VDSI), a global leader in authentication, digital signatures and identity management, will showcase its innovative data security solutions that help protect access to patient data and satisfy regulatory compliance at The HIMSS15 Annual Conference.
.VASCO's GO 7 FIPS Certified
VASCO provides hospitals, provider organizations and software integrators with the technology required for data protection and compliance, and the tools needed to integrate and manage these solutions within the complex and highly regulated environment of healthcare.
VASCO will showcase two-factor authentication solutions for EPCS compliance including:
Identity Validation and Protection - Identity proofing and two-factor authentication protects against hackers and supports compliance with Drug Enforcement Agency (DEA), National Institute of Standards and Technology (NIST) and other regulatory guidelines.
FIPS-140-2 Two-factor Authentication [Certification in process] – Supports EPCS Compliance, Electronic Health Record (EHR) Meaningful Use criteria and requirements for federal Medicare/Medicaid incentive programs.
Mobile EHR Support – Provides secure access to patient records and prescription of medications via mobile devices, while meeting the "separate authentication device" rule established by the DEA for EPCS compliance.
Federated Identity Platform – Provides hospital staff and practitioners access to in-house and third-party applications via a single authenticated identity.
"Our healthcare customers are firmly focused on security and compliance, but to deliver optimal patient care, they must also address the integration and management challenges inherent in integrated EHR," stated Benjamin Wyrick, Vice President North American Sales of VASCO. "We help ensure secure and convenient access to patient data and applications, while safeguarding the most important assets – protected health information and public trust."
The HIMSS Annual Conference is being held at McCormick Place Convention Center in Chicago, from April 12-16, 2015. VASCO is located in booth 3708.
Patients' medical records under threat from data breaches
Study: Patients' medical records under threat from increasing hackings & other data breachesAssociated Press By Lindsey Tanner, AP Medical Writer
2 hours ago
ThinkstockCHICAGO (AP) -- Your private medical information is under threat. That's according to a study that found almost 30 million health records nationwide were involved in criminal theft, malicious hacking or other data breaches over four years. The incidents seem to be increasing.
Compromised information included patients' names, home addresses, ages, illnesses, test results or Social Security numbers. Most involved electronic data and theft, including stolen laptops and computer thumb drives.
The study didn't examine motives behind criminal breaches, or how stolen data might have been used, but cyber-security experts say thieves may try to use patients' personal information to fraudulently obtain medical services.
Cases that didn't involve malicious intent included private health information being inadvertently mailed to the wrong patient.
Hackings doubled during the study, from almost 5 percent of incidents in 2010 to almost 9 percent in 2013. Hackings are particularly dangerous because they can involve a high number of records, said Dr. Vincent Liu, the lead author and a scientist at Kaiser Permanente's research division in Oakland, California.
"Our study demonstrates that data breaches have been and will continue to be a persistent threat to patients, clinicians, and health care systems," Liu said.
The study appears in Tuesday's Journal of the American Medical Association.
A JAMA editorial says there's evidence that the incidents are leading some patients to avoid giving doctors sensitive information about their health, including substance abuse, mental health problems, and HIV status.
"Loss of trust in an electronic health information system could seriously undermine efforts to improve health and health care in the United States," the editorial said.
Patients should be alert to cyber threats, including "phishing" emails from hackers posing as doctors, hospitals or health insurance companies, said Lisa Gallagher, a cybersecurity expert at the Healthcare Information and Management Systems Society.
Those messages require clicking on a link to get information, and patients should instead should call the purported sender to verify whether the email is legitimate, she said
Patients should also double check doctor bills and other insurance company information.
"Don't throw away your explanation of benefits. Take a look at them," Gallagher said. "If you see care that wasn't provided to you, or dates and names of providers that don't make sense, go to the provider and report that."
For the study, Liu and colleagues analyzed an online database regulated by the U.S. Department of Health and Human Services and containing mandated reports of breaches in health information protected by federal privacy law.
Over the four years, 949 data breaches were reported across the country. The numbers climbed annually, from 214 in 2010 to 265 in 2013. Nearly 60 percent involved theft.
Prominent cyberattacks affecting two health insurance giants happened after the study. Last May, a data breach hit Premera Blue Cross, affecting about 11 million customers and others. And between last December and late January, hackers accessed an Anthem Inc. database with information on nearly 80 million people.
Authorities believe hackers in China may be behind both attacks, Gallagher said.
She said cybersecurity is among key topics at her nonprofit group's annual meeting this week in Chicago. Members include doctors, hospitals, health plans and sellers of electronic health record products.
This is Huge!!......Tuesday, 14 April 2015 Deutsche Bank Selects VASCO CrontoSign Technology to Secure Online Banking Accounts VASCO Data Security International, Inc. (NASDAQ: VDSI), a global leader in authentication, digital signatures, and identity management, announced today that Deutsche Bank has implemented VASCO’s CrontoSign technology to secure online banking accounts. The new offering is part of a major update to Deutsche Bank's online and mobile banking platform which went live in October, 2014. Deutsche Bank, the largest bank in Germany, now offers its customers a more secure, simple and user-friendly way to authenticate and digitally sign online and mobile banking transactions. CrontoSign technology uses a next generation color QR code which contains all of the transaction data. This cryptogram is displayed on thecustomer’s screen after the transaction information has been entered into the banking application. After the customer scans the QR code with either a handheld reader or their smartphone running Deutsche Bank’s mobile application, the user receives confirmation of the transaction details and a one-time signature code. This allows the customer to see the details of what the bank believes the customer has requested, specifically the amount of the transaction and the payee. This information is encrypted in the high definition QR-code and cannot be altered or replicated by a hacker. VASCO’s CrontoSign technology mitigates the increasing risk of banking malware and Man-in-the-Middle attacks, and provides the customer and the bank assurance that the payment instructions have not been changed. This innovative process provides a simple way of providing high-level security to protect online and mobile banking against the most sophisticated new attacks. As an added value, Deutsche Bank also offers its mobile banking customers an innovative, secure and user-friendly means of performing a wire transfer with just three clicks. To achieve this, Deutsche Bank's "Meine Bank" app will automatically connect to and communicate with the CrontoSign app whenever a transaction is requested. The CrontoSign app is available via the different mobile platforms’ app stores. Customers preferring a dedicated hardware authenticator can opt for a VASCO DIGIPASS 760. The backend of the new solution was implemented by means of the VACMAN controller, VASCO's highly scalable authentication platform. "CrontoSign technology is currently the most user friendly authentication procedure on the market," said Michael Koch, Manager Online and Mobile Banking at Deutsche Bank Privat- und Geschäftskunden AG. "The solution attracted us specifically for its innovative character and its versatility. And with VASCO, it is backed by an experienced vendor that has been a leader in online banking security for years.” "We are honored that Deutsche Bank is using our CrontoSign technology and we expect that the new solution will find high acceptance rates in their customer base," said Jan Valcke, President and COO of VASCO Data Security. " We are very happy that another major bank has selected our CrontoSign technology to protect their online and mobile transactions.”. Read more at: http://www.pocketnewsalert.com/2015/04/Deutsche-Bank-Selects-VASCO-CrontoSign-Technology-to-Secure-Online-Banking-Accounts.html. Read more at: http://www.pocketnewsalert.com/2015/04/Deutsche-Bank-Selects-VASCO-CrontoSign-Technology-to-Secure-Online-Banking-Accounts.html
Everything looks good. May 15 Q1 is reported, with the numbers they reported we can figure out the EPS. What did surprise me was they are up listing to the NAZ not the NYSE. Anyone have a comment about that? Overall nice press release. Good luck!
Payment Data Systems Announces Transaction Growth for the First Quarter of 2015Payment Data Systems, Inc.
4 hours ago
GlobeNewswire ????????Content preferences Done SAN ANTONIO, April 14, 2015 (GLOBE NEWSWIRE) -- Payment Data Systems (PYDS), an integrated electronic payments solutions provider, announced today that it achieved record transaction processing in the first quarter of 2015.
Credit card processing volumes first quarter of 2015 were the third highest for any quarter in the history of the company. Credit cards dollars processed during first quarter of 2015 were up 8% over the same time period in 2014. Credit cards transactions processed during first quarter of 2015 were up 3% over the same time period in 2014.
Electronic check transaction volumes in the first quarter of 2015 were the second highest for any quarter in the history of the company. Electronic check transaction volumes during first quarter of 2015 were up 61% over the same time period in 2014. Returned check transactions processed during first quarter of 2015 were up 39% over the same time period in 2014.
Total dollars processed for the first quarter of 2015 exceeded $797,900,000 and is the second highest for any quarter in the history of the company.
Michael Long, Chairman and CEO, said, "The first quarter of a year is typically our slowest quarter of the year due to seasonal trends from charitable giving and other factors, but this quarter turned out to exceed our expectations. We actually processed more billable transactions in the first quarter than we did in the fourth quarter of 2014. The growth was three percent, but it positions us well for the rest of the year to maintain high growth as we enter into the typically stronger quarters in the remainder of our fiscal year."
Long continued, "As of today, we have filed our application for listing with NASDAQ. We have also concluded our search for two additional independent board members and hope to announce approval of the new board members soon. Having a Board with a majority of independent directors is a requirement for listing with NASDAQ. We believe we have satisfied all the financial metrics required for listing with NASDAQ, with the exception of share price. With deliberate and detailed research, we believe NASDAQ is the best opportunity to increase our liquidity and potentially lead to enhanced shareholder value."
Related Quotes
PYDS
0.369
+8.53% Payment Data Systems, Inc.? Watchlist
0.369+0.029(+8.53%)
OTC Markets11:08 AM EDT
PAYMENT DATA SYSTEMS INC Financials EDGAR Online Financials 10 days ago PAYMENT DATA SYSTEMS INC Files SEC form 10-K, Annual Report EDGAR Online 14 days ago MoreLouis Hoch, President and COO, said, "The transition of Akimbo Financial to our prepaid card processing platform has progressed faster than our expectations. Due to the synergistic cost savings, we expect Akimbo to be cash flow positive and accretive to our earnings by June of this year."
Our quarterly earnings for the first quarter of 2015 are anticipated being released in our 10Q report on or about May 15, 2015.
Thanks TORO, I bought more $25 May calls today. I have to say, if I am wrong with my DD(which I don't think) kids will be going to community college.:):)
Well, my June 25 calls are doing pretty good now. Of course I bought them a little early(story of my life). I picked up some May $25 calls at $1 just in time on 4/2/15. This company is always conservative. Earnings are out 4/28 not the 22nd. Did you see the short interest now? What 40% or so. 12 million short wow. I really think the shorts have this wrong, this can be a very big mover. Maybe not once in a life time, but very big. On any pull backs, I am buying more $25 calls. I will sell only 10-15% if it hits $28+ before Q1. The rest I am holding for the big payday that will happen IMO. Risky, a little, but kids in college are not cheap.
It will be more than a few years, which is great. From Page 33 in the 10-K ............."The Company has net operating loss carryforwards for tax purposes of approximately $40.8 million that begin to expire in the year 2020. Approximately $0.4 million of the total net operating loss is subject to an IRS Section 382 limitation from 1999"...............That BEGIN to expire, not end in 2020.
Let the good times roll!
After reading the 10-K, I just feel real good about PDYS going forward. It seems their huge revenue increase all started in the fourth quarter 2013. That is when .... "we initiated ACH transaction processing for newly acquired customers that led to dramatic increases in ACH transaction volumes".....They went from 735 merchant accounts in 2013 to 795 in 2104. If 60 new accounts can increase their payments processed to almost 3 Billion in 2014 from 630 million in 2013 on 60 new accounts, that is pretty impressive. and I quote... "We believe these trends will continue for the foreseeable future"....PDYS also said ..."We believe the profitability we experienced in 2014 will continue for the foreseeable future"....They also said the Akimbo deal should be cash flow positive by June 30th 2015, that is great. I also like that only one customer is 11% of their revenue. No others are more than 10% which is good. Another good thing to like is they have a processing agreement with Global Payments GPN, which is like a 5 billion market cap company. the iRemote pay, how well will that do? So if they grow revenue another say 40% this year from their 159% growth last year, we are looking at around 18.7 Million in Revenue for 2015. That is being conservative I think. Don't forget the also have loss carry forwards of 40 Million till 2020. I see a penny stock as a long term hold with great upside.
Here were some comments after the SeekingAlpha article. There are Eleven here, but there was at least 29 total. The article was posted on 2/20/15...........Sorry I miss spelled SeekingAlpha in the last post, some good banter here.............
Payment Data Systems: Triple Digit Growth With Multi-Bagger Potential.......................
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User 17190342
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Excellent article. In his previous article from last summer, author discussed Louis Hoch's 10-b-5 plan and its potential impact on the stock price. While it is gratifying that the stock is moving in the right direction, Mr. Hoch's plan is the subject of a lot of internet chatter - many people feel Mr. Hoch's selling activity is holding the price down. Can the author address this issue and give us his opinion as to how the 10-b-5 plan will impact the stock price going forward? Thank you.
20 Feb, 12:58 PMReply! Report AbuseLike0
Inefficient Market
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Author’s reply » Thanks. I think his 10b5-1 plan has definitely been a drag on the stock, but it was also one of the main reasons shares could be acquired so cheaply.
I think the plan has hurt investor confidence more than anything. But based on recent financial results, I think people are starting to figure out his plan has nothing to do with his confidence, or lack thereof, in the future prospects of the company.
If other insiders starting selling, or Mr. Hoch started selling shares outside of the program, that may be cause for concern. It's probably also worth noting he's had the plan in place for many years (since like 2002 if I remember correctly) and those plans cannot be easily canceled.
20 Feb, 01:33 PMReply! Report AbuseLike0
Sensible Investor
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I am curious about how the firm can uplist to the NYSE without a reverse split? There are too many shares outstanding, and anyone who knows about the stringent listing requirements for the NYSE, including:
Minimum Penalty
If a listed stock closes or ends the trading day below $1 for 30 consecutive days, it is a candidate for delisting or removal from NYSE trading. The NYSE typically suspends trading in the stock after the 30th day that it averages below $1 per share. This happened to Eastman Kodak in January 2012, when it fell toward bankruptcy.
How will PYDS possibly list on the NYSE without a 1 for 20 reverse split?? Why isn't the firm being honest about what they need to do to get there? Why doesn't the article mention this?
Just curious...
21 Feb, 12:54 AMReply! Report AbuseLike0
Inefficient Market
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Author’s reply » They need a share price of $3 to get listed, so obviously they will split the stock to obtain the listing. I didn't mention it because it's really not material to the overall story here. What was more important were the financial metric requirements like net income and shareholder's equity.
A reverse split does nothing to change your ownership percentage in a company. It has a bad stigma because it usually involves bad companies that are falling out of compliance and are trying to maintain their listing...which is not the case here.
I think a smaller float here may actually be a positive in getting the company the valuation it deserves.
21 Feb, 01:11 AMReply! Report AbuseLike0
mlantho
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any concern with Apple Pay ?
21 Feb, 07:38 PMReply! Report AbuseLike0
Inefficient Market
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Author’s reply » PYDS doesn't really compete in the retail POS (point of sale) card present market, which is where Apple Pay is going to be mostly used.
Akimbo already has an iPhone app for transferring money, so I'm sure that will be integrated with Apple Pay.
22 Feb, 11:43 AMReply! Report AbuseLike0
drlwlee
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Doing a reverse split will achieve a number of things, all positive - (1) implies increase shareholder equity, (2) decrease the outstanding shares to 10 million (assuming current fully outstanding shares = 150 million, and a 1:15 reverse split) to get us minimum $3 NYSE listing requirement, (3) get interest of investors other than microcap investors (in other words, broaden the spectrum of investors), and (4) give the company a good looking earnings per share (e.g. a net income of $1 million would translate to eps = 0.10).
If all this plays out and people use PEG to determine a valuation of the stock, the share price could move to 5 times its current value. Here is the argument. Let us conservatively assume an eps of 0.10 per quarter in 2015, which gives us an annual eps of 0.40. Based on that assumption the PE would be (.23 x 15)/0.40 = 8.625. Further, let us assume a growth rate of 40% over the next 2 years, then the PEG = PE/growth rate = 8.625/40 = 0.216. Most people consider a PEG = 1 to be reasonable, which implies that share price could be 5 times current value = 0.23 x 5 = $1.15. If you use an even more conservative growth rate of 25%, then PEG = 8.625/25 = 0.345 ---> share price is still undervalued by about 3 times its current value. So, depending on the assumption of growth rate one can argue that the stock is undervalued between 3 to 5 times its current price.
Keep in mind they recently were able to increase the charge to vendors and so 2015 should see increases over 2014, and hence growth in income will surely continue. Once the Akimbo acquisition is fully integrated, revenues and income will also increase as a result of this. Therefore, there are 2 sources for continued top and bottom line increases. 2015 should mark another year of great growth.
22 Feb, 08:34 AMReply! Report AbuseLike0
Saj Karsan
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Thanks for the article. What are your thoughts on the recent share handouts to management? It appears the handouts that took place in 2014 represent several years worth of the company's earnings.
23 Feb, 03:03 PMReply! Report AbuseLike0
Inefficient Market
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Author’s reply » Not really sure I'd call them handouts. They were given options at $0.17 that vest in 2024. Management has done a good job here so I don't really have a problem with it.
However, I think this company will ultimately get bought out which means those options will then vest immediately, thus reducing the share price common holders get. Obviously, if they get a nice premium for the stock I'm not going to complain over a nickle or two, but it is something to factor in.
23 Feb, 04:11 PMReply! Report AbuseLike0
mlantho
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looked at the Akimbo iphone app but didnt see any reviews . Is it farily new? Any idea on the expected growth of that app with so many other choices available?
23 Feb, 04:25 PMReply! Report AbuseLike0
Inefficient Market
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Author’s reply » There's some reviews for it on itunes.
http://bit.ly/1zAAyQU
I really don't know what the potential is for Akimbo's mobile applications. I think most people primarily use it as just a regular debit card. But it seems like it has a pretty good following with about 11,000 likes on facebook.
23 Feb, 04:34 PMReply! Report AbuseLike0
This was a article from Seekalpha. This was written on 2/20/15 I believe that is the right date?? This is a good read if you never read it......
Despite triple digit revenue and profit growth, Payment Data Systems trades for about half of industry multiples.
The company has met all financial metrics required for an up-listing to the NYSE, and will apply for the listing shortly after reporting fourth quarter results in late March.
An attractive acquisition in December with some high profile investors may yield big returns.
Based on expectations for 2015, the stock may have in excess of 200% upside.
In June of last year, I first wrote about why I thought Payment Data Systems (OTCQB:PYDS) had multibagger potential. And just like a broken clock is right twice a day, the stock is up about 120% subsequent to my analysis. Normally, when I am staring at triple digit gains in such a short period of time, I would consider taking some profits, or selling the position altogether. But because I know what Payment Data is really worth, I have actually continued to add to my position.
At the time of my original article in June, I proposed the stock was likely worth 300% more than its current trading price. That would have valued the stock at about $0.40 a share. But based on strong operational and financial performance from the company over the last year, that target looks far too conservative now. In fact, based on my projections for 2015 results, I believe the stock is easily worth upwards of $0.70 a share, roughly 225% higher than current prices.
Since my last update in October, the company has continued to execute at a high level. Revenues for the third quarter of 2014 grew to $3,596,004 as compared to $962,633 for the same period in 2013, an increase of 273%. Gross profit for the quarter grew 739% to $1,155,594 from $137,776 for the same period in 2013. The company reported net income in the third quarter of $688,560 as compared to a net loss of $339,825 for the same period in the prior year.
Payment Data will report fourth quarter earnings at the end of March and the results are expected to be impressive yet again. In January, the company stated that the total dollars processed for the fourth quarter of 2014 set a new record exceeding $833,000,000 and breaking the previous record that was achieved in third quarter of 2014 of $796,000,000. Couple this with the increase in profit margins announced in October, and there is little doubt it will be another record setting quarter.
The good times have apparently kept rolling right into 2015, as the company announced total dollars processed for January 2015 set a new record for the company, exceeding $302,000,000 and breaking the previous record that was achieved in December 2014. The company's CEO, Michael Long, commented:
We are excited about the early results for the first quarter of 2015. If the trend continues, we should be able to extend the dramatic growth we experienced in the fourth quarter of 2014 into the first quarter of 2015. Also, we believe that we will continue to experience high growth in transactions processed and associated revenues and income for the current year. 2015 should be an exciting year for our company.
I am pleased to announce that we have already achieved all the financial metrics required for an up-listing to NYSE market. We will file our application for listing with the NYSE, shortly after filing our 2014 10K annual report. We will file the annual report on or before March 30th, 2015. We continue to believe our stock is undervalued and is trading below valuation multiples that our industry receives.
As a point of illustration, Payment Data's fiscal 2014 can be summed up with the following chart.
2014
Q1
Q2
Q3
Q4
Revenue
$2.73m
$3.30m
$3.60m
$4.00m*
Qtrly Rev Growth (yoy)
158%
255%
273%
79%*
Total Dollars Processed
$550m
$790m
$796m
$833m
Net Income
$162,000
$487,000
$689,000
$900,000*
*Estimates; yoy= year over year
So, effectively, Payment Data will do around $13.6m in revenue in fy2014 and produce net income of around $2.2m. Using a diluted share count of 134m shares would yield earnings per share of $0.0164. At a current share price of $0.22, the stock is trading for just 13x 2014 earnings, despite growing revenue and profits at a triple digit pace. The payment processing industry is currently trading for an average of 27x trailing earnings with an average of 15% top line growth. Applying this multiple to Payment Data would yield a price per share of $0.44, basically double what the stock is trading for. And considering many competitors the size of Payment Data don't even turn a profit, the company finds itself in an enviable position.
Payment Industry < $100m
PYDS
PLPM
MOLG
JTPY
NETE
Revenue ttm
$11.86m
$46.61m
$52.25m
$31.74m
$21.54m
Qtrly Rev Growth (yoy)
273%
8%
5.6%
(1%)
(7.6%)
Net Income ttm
$1.39m
$1.22m
$3.89m
$(8.47m)
$(32.28m)
P/E ttm
22
72
40
n/a
n/a
ttm= trailing twelve months; yoy= year over year
The purpose of comparing Payment Data to these other companies is not to say its competitors are overvalued, but rather Payment Data is significantly undervalued. Further, Payments Data's yearly financial metrics will rapidly improve after the company reports record fourth quarter results in about a month.
However, the market is forward looking. It doesn't necessarily care about where a company has been, but rather where it's going. And the future is looking very bright for Payment Data. January already set records for the company and the rest of 2015 looks to improve on a record setting 2014. Conservatively, if we merely apply the industry average of 15% top line growth to Payment Data, fy2015 revenue will be in the $16m range. Due to strong operating leverage and the previously announced margin increase late last year, I believe 2015 net income will be around $4m.
Additionally, in late December, Payment Data acquired Akimbo Financial, a social payments provider and prepaid card program manager. Under the terms of the transaction, the agreed purchase price was a total of three million dollars which was paid primarily in common stock in two tranches. Payment Data believes that the transaction will be accretive for 2015. Louis Hoch, President and CEO of FiCentive, a Payment Data Systems subsidiary, commented:
The acquisition is strategic for FiCentive and represents a major milestone in our Company's future success. The Akimbo team has developed a highly innovative cardholder service platform to deliver innovative features and functionality that we believe are necessary to gain market share in the general purpose reloadable prepaid card industry segment. Not only will FiCentive have access to new and significant prepaid card front-end technology including mobile applications, but will also be acquiring significant human capital with deep prepaid card industry knowledge. The Akimbo card program will be transitioned to FiCentive's back-end prepaid card processing platform over the next few months and future general purpose card programs will be delivered utilizing the Akimbo platform on top of the FiCentive prepaid card processing engine. We are thrilled that Houston Frost, CEO of Akimbo, and his team will be joining FiCentive.
Akimbo was able to attract some heavy hitters in its initial funding rounds like Rackspace (NYSE:RAX) co-founder Graham Weston and former chairman and CEO of CNN and Managing Editor of Time Magazine, Walter Isaacson. In fact, Isaacson went on CNBC last year and talked about why he thought the Akimbo card was a disruptive innovation. Additionally, he wrote about Akimbo in a recent article, stating:
Likewise, instantly transferring money to friends, even those who have PayPal (NASDAQ:EBAY) or Popmoney accounts, is more difficult than it should be. That's why I have become addicted to my Akimbo card, which makes instant money transfers from my phone to friends and workers simple, and why I have invested in it and other disruptive money-transfer mechanisms.
So, at a price of just $3m, Akimbo looks like it could be a bet that pays off big time. It may take a few quarters to become integrated and profitable, but the potential is quite attractive.
As a result of paying for the Akimbo deal mostly in stock, the diluted share count for 2015 will be around 150m shares. If the company can hit my $4m net income target for 2015, it would yield earnings per share of $0.0267. At the industry multiple of 27x earnings, the share price would be about $0.72 a share, or about 225% higher than current prices. Obviously, one might think Payment Data could demand a higher multiple given its growth rate, but for the purposes of being conservative I'll keep it at the industry average.
It appears to me the dramatic mispricing between what Payment Data is actually worth and what it's trading for, is a direct result of market inefficiencies. I believe this could potentially be cured after the company receives its NYSE listing within the next few months. While the stock has doubled in price over the last 9 months or so, it was apparent to me at the time of writing my original article that the stock was trading for a fraction of what it was worth. Since that time, the company has posted financial results that have exceeded my initial expectations, and I have adjusted my price expectations accordingly.
Obviously, no one can know what the future holds and investing in tiny companies is inherently risky. But the payment processing industry has historically been that of a recurring revenue model, where typically once you have established a client base, revenue does not become cyclical. This, combined with recent monthly processing numbers and management commentary, make me believe 2015 will be another record setting year for Payment Data, and quite possibly the year the company gets the valuation it deserves.
I feel bad for Louis H he sold 20,000 shares on 3/26 at .28 cents. I think I will offer him some of my shares to him, he could of sold some today for a lot more.(I am kidding folks). Great day today, back to reading the 10K............It's like 30 pages! Up listing next step. .04 EPS a share was great for Q4!
Not 100% sure, but seen this many times before where the MM's try and make it look like something is wrong with a company. They use fear on you. They want cheap shares because they know PYDS will be higher in a week, month from now. Everything is fine with PYDS.
With cash on-hand and contracts in the pipe-line, a PYDS share buyback, in-lieu of a reverse stock split, could be in the cards
Never crossed my mind. I think that would be Great. Hmmm
I bought more June Calls at the close. I really feel I am and anyone who is holding the June $25 calls will clean up after Q1 April 22. We shall see in a month or so. Good Luck!
Belgian Government Certifies VASCO as an Authentication Provider for eGovernment Applications
For sure they will raise Full year Revenue guidance in their Q1 CC in April.
Hello all, I see 2015 shaping up how 2014 did. They went from like $7 to $30+ in 2014 because they kept raising their 2014 revenue guidance. The only reason VDSI went down after Q4 2014 was their always and I mean ALWAYS conservative revenue guidance. This is from the last Q4......................Third, as you all -- [Technical Difficulty] the annual guidance for the current year. You also know that our business is project based and influence by the timing of our large customers rollout. We anticipate that large orders including those in the yearend backlog will have a positive influence on our year-over-year comparisons for the first half of 2015, but our strong performance in the second half of 2014 may result in potentially lower comparisons during the second half of 2015. This picture may CHANGE as the year progresses however as it DID in 2014. We have a VERY active pipeline and large potential opportunities that may positively impact the second half of 2015. Finally, I wish to share you with you that my close friend and VASCO CFO Cliff Brown have informed me of his intention to retire within the next 15 months....................Since then, as you know they have announced 2 nice big deals. So IMO it will be a slam dunk they will now raise full year revenue guidance in the April Q1. Go back and look at last year how they raise full year revenue guidance in Q1 Q2 and Q3. They are always conservative in their guidance. Cliff Brown retiring is a 100% good thing. I have listen to many CC's with this guy. He is a wet rag that talks and talks and talks. Anyway, I have the June 17th $25 calls that I am 98% sure will be worth a lot more after the April Q1. Good luck! The only reason I didn't go with the April Call's is they might have expired before the report.
Just for the heck of it the short position in PYDS is only 38,000 shares. I like that,it's very low. Nice volume today. I will say it again, best Penny stock I have seen in years. Will see you all higher little by little.
The "home" will be worth $10 soon. .........................
But being serious, $2 dollars is true market value. looking at the last 8-k, I like what I see. This is a fast growing company in the right field at the right time. When we get up listed and we will, a lot more
eyeballs will see the diamond they could have bought lower. I have seen a small buy like Akimbo pay off in spades for a company like PYDS. They were in the penny's like PYDS, but are now worth way more. I have looked for years for a good penny. I have been lucky and found PYDS.
That is great news. I would think they needed a CFO for an up listing to the NYSE. Another step forward is good. I am feeling real good about this penny. Best Penny I have come across in years. Looking forward how things unfold in the next 10-12 months. Let the good times roll.
I agree, the potential for PDYS is fantastic. I also agree with it being low risk. Sure any penny stock has risk, but as I said before the risk/reward for PDYS is very good. As for the "flippers" we can't control that. I see more volatility in the coming weeks in anticipation of their Q4 filing. The flippers will want to get in and out with their .05-.10 move, I for one unless something changes with the PDYS story I am waiting for the $ dollars $.
Thanks for the response.
This is from their 11/24/14 10-Q
It was from new customers. MER, how do feel on the up listing. What does your gut tell you. 50% chance 90% chance of up listing?
Have a good one.
*************Results of Operations
Our revenues are principally derived from providing integrated electronic payment services to merchants and businesses, including credit and debit card-based processing services and transaction processing via the Automated Clearing House, or ACH, network and the program management and processing of prepaid debit cards. We also operate an online payment processing service for consumers under the domain name www.billx.com and sell this service as a private-label application to resellers. Revenues for the quarter ended September 30, 2014 increased 274% to $3,596,004, as compared to $962,633 for the quarter ended September 30, 2013. Revenues for the nine months ended September 30, 2014 increased 226% to $9,631,000, as compared to $2,952,966 for the nine months ended September 30, 2013. The increases for the quarter and nine months ended September 30, 2014, as compared to the same periods in the prior year, were due to the increases in the volume of credit card and debit card processing transactions, ACH processing transactions, and return transactions processed for our newly acquired customers.*****
Cost of services includes the cost of personnel dedicated to the creation and maintenance of connections to third-party payment processors and the fees paid to such third-party providers for electronic payment processing services. Through our contractual relationships with our payment processors and sponsoring banks, we are able to process ACH and debit, credit or prepaid card transactions on behalf of our customers and their consumers. We pay volume-based fees for debit, credit, ACH and prepaid transactions initiated through these processors or sponsoring banks, and pay fees for other transactions such as returns, notices of change to bank accounts and file transmission. Cost of services increased 196% to $2,440,410 for the quarter ended September 30, 2014, as compared to $824,857 for the same period in the prior year. Cost of services increased 178% to $6,881,704 for the nine months ended September 30, 2014, as compared to $2,474,945 for the same period in the prior year. The increases for the quarter and nine months ended September 30, 2014, as compared to the same periods in the prior year, were due to the increases in the volume of credit card and debit card processing transactions, ACH processing transactions, and return transactions processed for our newly acquired customers********
Dave, see post #1294. MERMELSTEIN is the go to man if you have a question. From reading his past posts, I am 100% certain he knows this company better than I do.
Since were on the topic, MERMELSTEIN I have a question myself.
***************ACH (electronic check) 2014 processing volumes were the highest in the history of the company. The year's ACH transaction volumes were up more than 522% as compared to 2013.
Overall credit card processing volumes for all of 2014 were also the highest in the history of the company. Credit cards dollars processed during 2014 were up 14% over 2013 and credit cards transactions processed during the fourth quarter were up 43% over 2013.
Nearly three billion dollars of payments were processed by the company in 2014. The total of $2.978B greatly exceeded last year's amount of $630MM and set a record for dollars processed in a year for the company.*************
How did PYDS go from $630 million to 2.97Billion in one year? PYDS obviously had to sign up new customers? Or was it all their current accounts just expanding. If it was from new accounts, I can't seem to find information on them. Thanks MERMELSTEIN.
Hi Dave. First post here. Hello everyone.
Dave, IMO it will be $1 but it will take time. Patient is needed with PYDS. But with patient will come great reward. Everyday I get e-mails from SeekingAlpha (SA). I happen to see and read the article about PYDS. I have researched many penny stocks(over 20 years of investing). 99.9% of the time the risk/reward is totally out of whack, or it was a pump and dump. With PYDS I really believe we found a diamond that is just starting to shine. The risk/reward IMO with PYDS is fantastic for a penny stock.
Why is not a $1, well first and for most it trades on OTC. Not many people know about it. Second, investors may be turned off by Hoch's 10b51 trading plan. I believe this is totally a nonissue. He signed up for it in 2002 and he has no control over it.
I believe they will up list after the 2014 Q4 report at the end of March. They have the equity and revenue with the Akimbo deal. All they have to do is a reverse split. But once they get on the NYSE they will have much better exposer and investors will see the numbers and come to the same conclusion you have. It is very undervalued compared to their peers. The key is the up list so other investors can see the numbers we see. Good luck!
*******Total dollars processed for January 2015 set a new record for the company exceeding $302,000,000 and breaking the previous record that was achieved in December 2014.
Credit cards dollars processed during January 2015 were up 9% over the same time period in 2014. Credit cards transactions processed during January 2015 were up 5% over the same time period in 2014.
Michael Long, CEO, said, "We are excited about the early results for the first quarter of 2015.If the trend continues, we should be able to extend the dramatic growth we experienced in the fourth quarter of 2014 into the first quarter of 2015. Also, we believe that we will continue to experience high growth in transactions processed and associated revenues and income for current year. 2015 should be an exciting year for our company."
Mr. Long continued, "I am pleased to announce that we have already achieved all the financial metrics required for an up-listing to NYSE market. We will file our application for listing with the NYSE shortly after filing our 2014 10K annual report. We will file the annual report on or before March 30th, 2015. We continue to believe our stock is undervalued and is trading below valuation multiples that our industry receives."*****