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deleted post- i did it--lol
positive reaction to report resumes-----------------broke 2.00's
we need just one new buyer to push us permanently over 2.00...this is still one fine and sound forward-thinking investment.
Insiders still own 39% of PaySign, Inc. (NASDAQ:PAYS) despite recent sales
Simply Wall St
Thu, August 10, 2023 at 5:31 AM CDT
In this article:
PAYS
+7.5676%
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Key Insights
PaySign's significant insider ownership suggests inherent interests in company's expansion
The top 7 shareholders own 50% of the company
Insiders have been selling lately
Every investor in PaySign, Inc. (NASDAQ:PAYS) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Insiders own the top position in the company’s share registry despite recent sales and as a result, were the biggest beneficiaries of last week’s 11% gain.
In the chart below, we zoom in on the different ownership groups of PaySign.
Check out our latest analysis for PaySign
ownership-breakdown
ownership-breakdown
What Does The Institutional Ownership Tell Us About PaySign?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that PaySign does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at PaySign's earnings history below. Of course, the future is what really matters.
earnings-and-revenue-growth
earnings-and-revenue-growth
It looks like hedge funds own 6.3% of PaySign shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. With a 18% stake, CEO Mark Newcomer is the largest shareholder. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 6.3% by the third-largest shareholder.
We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of PaySign
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of PaySign, Inc.. Insiders have a US$40m stake in this US$104m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over PaySign. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that PaySign is showing 2 warning signs in our investment analysis , you should know about...
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
12%+ on some volume
up 5%---+
2023 marks the continuation of what has been and should continue to be an accelerated growth phase for this division. Given the current state of our pipeline, we’re optimistic our shareholders will share our excitement. It’s worth pausing to consider the human impact of our work. We’re part of a mission that provides extended life possibilities to cancer patients and offers financial access to critical therapies for patients with rare diseases. Each patient reenrollment signifies that our efforts may have helped extend their lives. We are proud to support these patients and look forward to helping many more. With that, I’ll turn it over to Jeff
Paysign Q2 2023 Earnings Preview
Aug. 07, 2023 5:35 PM ETPaySign, Inc. (PAYS)By: Arundhati Sarkar, SA News Editor
Paysign (NASDAQ:PAYS) is scheduled to announce Q2 earnings results on Tuesday, August 8th, after market close.
Over the last 1 year, PAYS has beaten EPS estimates 50% of the time and has beaten revenue estimates 75% of the time.
YOU AND ME BOTH!-------------i'm thoroughly disgusted. Until this year, mgmt APPRECIATED its long investors.------------I was a believer for the longest. Looks like mark newcomer is a tax loss for me only now. Signed, JUST TURNED MIGHTY CYNICAL ABOUT PAYS VALUING THEIR LONG INVESTORS.-------------And all of the friends i turned on to PAYS stock who i disappointed- as i blindly believed in mark newcomer mgmt.------------------------------Foolish me. How are we at 1.79 pps???????????????????????????????
sounds slimy-------increasing by selling? i don't get that.
this is sickening..............i'm losing faith.
That's a math word problem. Hmmmmmm, yeah i got it! lol----God bless.
all these years i never asked you how old you are, chilar. i'm 68- i think. I need an intervention here, too. PAYS has encouraged my alcohol imbibing! lol
old age ain't for sissies--but i'm ok-----------nuff said: LONG AND STRONG HERE DO OR DIE. Yahoooooooooooooo, for the long awaited surprise....
ok so far---thanks..........fingers crossed.........11 appt today has me nervous-----------still holding here...hoping...
had many a hospital visit in last few weeks---------------NOT ONE MASK TO BE SEEN ANYMORE!----Fear all done and gone.------------Not even the doctor's or nurses!------Bullish for plasma.
present---represent---do something pps-aiding.............
if mgmt few would step up to the plate and INVEST in their company now buying OPEN ON THE MARKET- proudly proclaiming some significantly consecutive purchases, they would stop this pps blood-letting. Not that any peon like me matters. But i'm thoroughly pizzed. God bless.-------------This can become a damn penny stock, mark newcomer. Signaling otherwise is important. ASAP.-------------------
back then he was key for pays in his way-------i merely used his history as example---years ago what he did is what i described----i hope he didn't mind me bringing him up here. I always respected his instincts. I haven't talked to him in the longest, however.
i have been urging them (mgmt) to do that for months here-----on the great run way back, "brian" buys were catalyst for pps going 15.00+ inevitably. It was his timing- and his timed buying perfectly set up the run because he bought on open market.------------This pps reversal from the past could so easily be repeated- if mgmt believes. Open mkt buys. Pr'ed if necessary. This would favor POSITIVE psychology for investors once more.
will mgmt send us into penny stock land? Their silence is suicide.
i cannot be intellectually disingenuous- this looks grim. Without mgmt interference for pps, this sucker may dive.----------------------My assumption all these years that mgmt was/is/will be supportive when they should be i now am beginning to doubt. I pray it's not fat bellies and lack of ambition. God forbid. Mark, you need to pay attention please- to pps. It's time.
NEEDED @ PAYS! "catalyst for pps"
i remember college students who read "Steal This Book" by abbie hoffman----------they got free food stamps and proudly bought lobster and steak. 3 months emergency free food for anyone back then no matter who.
so here's a mind-boggler- since 2019, food stamp participation has DOUBLED as of this year (fox bus this morning): so plasma should remain relevant. (food for thought)
"E" has indeed remained mighty silent--he may have exited judging by his silence.
mgmt needs to boost confidence......they near a tipping point in pps......
God bless.------------------"Critters" do bring out the best in humans!
we got this-------------music, food, and a sense of humor makes one immortal.....(famous last words-lol)
i play blues/boogie woogie piano and blues guitar------------invited on stage for one song with them at the Cellar Door in dc.. Quite a thrill. Quite the memory for this 68 year old dude now, too. I play my blues guitar to my 30 chickens outside my window every day while watching/trading my stocks. Most worthy groupies an old man could ever ask for. And they LOVE the blues! Some sing along with me even! If i was a techy, i'd do a utube show for them all singing along. I have one hudan hen who can really hit her marks. Too funny. (i call her my hippie chick because hudan's have "beaufont" hairdo's. She's quite the star of the show.
i once played on stage with them back in the day
google "utube Room Full of Blues "Take it like a man"
i might write a blues song for us soon (sigh)
i share your feelings---------mgmt needs to tend to pps for once. We longs cannot wait forever. Just saying---------i had dubbed june as turnaround surety- but paint is drying only. Holding still for now.
pays +2.5% incremental vol
no collapse after MEGA VOLUME day...........read as you will-------fwiw
agreed----------mgmt might add some kind of pr fun ___________, too- whatever that might be. At this point, some catalyst might help. I'm falling asleep here.
fingers crossed- volumes before spikes............well done. longs- holding
Financials
PaySign Is Finally Getting Promising Traction In Its Pharma Business
Jun. 22, 2023 10:09 AM ETPaySign, Inc. (PAYS)
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Shareholders Unite
Investing Group Leader
Summary
The company has steadily amassed a dominant position in plasma centers and is set for further steady growth.
Despite the loss of its prepaid pharma business, it's the pharma segment, still tiny, where additional growth seems now likely.
The company has had some recent wins and is in talks with a number of big pharma companies.
There is considerable operating leverage in the model, and the shares, while not cheap, have fallen back to more reasonable levels.
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Payment terminal in the office.
nataistock
PaySign (NASDAQ:PAYS) is a prepaid card processor that mostly supplies to plasma centers, accounting for 90%+ of revenues where the cards are used for donors.
This segment suffered during the pandemic, but it's now well on the way to recovery. The company also suffered from aggressive accounting for spoilage in its other segment, pharma, but that too is now behind us.
So we notified our members of the recovery in PaySign a year ago and that recovery is still in progress (despite the recent fallback in the shares) and has legs to run:
Adding plasma centers
Growth at existing plasma centers
Mexicans returning
Patient affordability business
Prepaid disbursement programs
From the Q3 earnings deck:
Growth strategy
PAYS IR presentation
Plasma centers recovery
Worldwide, the plasma market is set to grow at a CAGR of 6.9% to $54.37B by 2031 with the US providing roughly two-thirds of this, so there is a tailwind for the company here.
Q1/22 Q2 Q3 Q4 Q1/23
Centers 375 437 450 444 439
Rev/Centers 6.67K 6.62 7.38K 7.29K 7.06K
Revenue 7.4M 7.8M 9.8M 9.7M 9.4M
Revenue from plasma centers increased 27% from Q1/22 to $9.4M, both on organic growth at existing customers as well as adding new centers:
The average revenue per month, per plasma center was $7,066 versus $6,672 in Q1/22.
The company added 10 new plasma centers in Q1 for a total of 439 centers, up from 359 a year ago.
11 centers closed as a result of non-performance and 4 centers were sold to a non-client, so there was actually a net loss of centers.
Mexican blood donors returned to Southern plasma centers after a court injunction allowed that at the end of Q3/22. While too late for Q3, in Q4 management noticed that donations were increasing from 40 to 1200 a day in these Southern centers. We know from the Q2CC that this affected about 7% of locations but 12-15% of their market because these tended to be bigger.
A large Q2/22 win (with 100+ centers) is slow with onboarding, management expects 20 centers to be onboarded in early 2023 from this large customer.
PaySign is in negotiations with one of the four largest plasma collection companies and won two contracts with new entrants with onboarding of patients beginning in Q3/23.
The company has achieved a viable niche for itself that seems to be too small for big competitors to bother with. There was Germany's Wirecard, but they famously got into trouble and got out.
PaySign manages a diet of steady customer wins which should give investors a considerable deal of comfort, the company, already well entrenched in the segment, is increasing its position.
While we're not there yet, growth opportunities will start to taper off after becoming dominant and the core processing technology can be leveraged in multiple other segments.
The company has tried this for years with only fleeting success, but it seems they finally have a real shot.
Pharma
The company's prepaid pharma business was that fleeting success, but the last two programs closed in November 2022. However, the company has embarked on pharma copay (or customer affordability) programs, and while it's early days for definite conclusions, they seem to have established a beachhead.
These copay programs are producing somewhat smaller gross margins compared to the previous prepaid ones, but in the greater scheme of things, this isn't all that important as:
Revenues from this segment are tiny ($590K in Q1).
The company is gaining traction, raking in 7 new programs in Q1, the company has 26 programs running, and their programs tend to replace those of competitors, a very promising sign.
Three of the programs that launched in Q1 were from a top 25 pharma company.
They had meetings with 10 of the top 20 pharma companies, another promising sign.
Margins are still quite a bit higher than in the plasma segment, in the upper 70s-80s for their pharma copay programs while plasma generates gross margins in the upper 40s-low 50s.
With the patient affordability program, it looks like the company has hit on a new growth vector to blow new life into its pharma segment. Why is it off to such a promising start? From the Q1CC:
Our success in winning new business is directly related to our innovative products addressing critical industry issues such as copay accumulators and maximizers. We are expanding the therapeutic classes addressed by our services, which is crucial for winning new business and larger programs this year.
As we argued above, the jury is still out, but at least the company is off to a promising start. This matters as the pharma segment is much larger than the plasma segment, so there are reasons for optimism about the company.
Other programs
The company has a small third segment, payroll solutions, which was on a roll in Q1, increasing revenues by 883% to $194K in Q1, so it's still tiny.
GPR and Payroll solutions
PAYS IR presentation
Management was very excited with their Q1/22 signing of a processing deal with Spentra as a partner as it opened the payroll segment, as well as a Mastercard connection that (Q2/22CC):
Our Mastercard connection allows us to offer greater choice to our clients by adding an additional payments network to our offerings. Additionally, with this connection, we are now enabled to support not only payroll but gift, general purpose reloadable, corporate incentive and debit on the Mastercard brand. The Mastercard connection also enables EMV, contactless and tokenization support for our products. We are very excited by the opportunities that this new connection with Mastercard will bring.
The companies recently announced a partnership enabling payroll card issuing utilizing the Mastercard network:
This partnership allows PaySign to provide a full-featured payroll debit card program that seamlessly integrates with Spentra's Money Earned® pay access system, enhancing the cardholder experience and delivering essential money management tools.
The Mastercard connection was recently finalized.
The company won an RFP from a nationwide membership organization with 440+ shops for a corporate payout program in Q3 and this is expected to launch in Q4. They won another corporate payout program from one of their plasma customers as well, so the payroll segment is coming alive.
Their cash-back award program (which all PaySign cardholders can benefit from, irrespective of the program they're in) received a major boost through the recent partnership with fintech company EvoShare.
There are some other services here, most notably Paysign Premier:
Digital banking solutions
PAYS IR presentation
But there wasn't any additional information about progress. Again, promising green shoots but too early for investors to rejoice.
Finances
After having suffered from the pandemic effect on their plasma business and the aggressive spoilage accounting in their pharma business, the company is almost back to its former glory, and this time on a much sounder footing:
Chart
Data by YCharts
Plasma revenues increased 27% to $9.4M. Pharma revenues declined 27% to $590K and other revenue increased 883% to $194K. Adj. EBITDA was $720K and the net loss was $160K.
Operational leverage
Gross margins took a considerable dip to 49.8% (from 60.8% a year ago) but that's mainly the result of the disappearance of the pharma-prepaid business, which tends to have the highest gross margins, a one-time benefit in Q1/22 producing difficult comps and some wage and price pressures.
OpEx only grew by 8.8% to $5.8M, so there is considerable operational leverage as revenues grew considerably faster at 23% to $10.1M.
Chart
Data by YCharts
The company announced a $5M share buyback program, of which, it used $666K in Q1 already. There was $6.4M unrestricted cash at the end of Q1 (-$3.3M for the quarter), and the company has no debt.
Apart from the odd quarter, the company isn't bleeding cash, given the pandemic headwinds blowing for a couple of years that's fairly remarkable:
Chart
Data by YCharts
Outlook
Revenue +16%-21% to $44M-$46M
Plasma 90% of revenue and 45-55 new centers added
Pharma +30% despite the $1.5M loss of pharma prepaid in FY22
Gross margin 52.5%-55% on lower pharma copay (versus higher prepay margins)
OpEx $23M-$25M
Net income $2.5M-$3.5M or an EPS of $0.05-$0.06
AEBITDA $6M-$7.5M
Risk
The company is still very dependent on the plasma segment and although its customer win rate suggests they have no immediate serious competitive threat, such a situation can change.
The company has dealt with its exit from Pharma prepaid and is off to a promising start in Pharma copay, as well as in payroll. But it's early days, and we remind readers that their Pharma prepaid once looked similarly promising.
The company has enough cash (and no debt) to even start a share buyback program, so it's not in any immediate cash crunch, but the $6M or so on the balance sheet isn't a huge buffer should things get worse.
Valuation
FY23 revenue at the midpoint at $45M and earnings at $0.06 per share. There are 52.4M shares outstanding and (10-Q):
For the three months ended March 31, 2023, the amount of potential common share equivalents excluded were 1,839,500 for stock options and 3,698,000 for unvested restricted stock awards.
So that's 57.9M shares fully diluted for a market cap (at $2.5 per share) of $145M and an EV of $139M, which produces an EV/S of 3.1x.
On an earnings basis, the shares are actually still quite pricey, but there is a good deal of revenue growth and operational leverage, so we expect that to come down (indeed, the single analyst has the FY24 EPS at $0.09).
Conclusion
The company is making steady progress:
It's becoming dominant in the plasma center market, which has gotten a boost from the recovery from the pandemic and a court injunction allowing the return of Mexican donors.
The company keeps winning new customers both in plasma as well as in its pharma business, but it's the pharma business that could provide considerable upside as the TAM is large, and the company starts from a very small base but has made some impressive progress lately.
There is considerable operational leverage already and this will increase if pharma becomes bigger due to the considerably higher margins in that segment.
The stock is not a real bargain at these levels but offers a nice risk/reward ratio here.
i can't rebut your cynicism- but here's mine about our pps: zzzzzzzzzzzzzzzzzzzzzzz. Fair enough?
that would be a tiny part of my thinking-----------i more am looking for a breakout eps qtr i still speculate should come. There is History of that here in pays past.