Seekingalpha..comment by Bret Kenwell..10 Dec
Have you ever heard of Network-1 Technologies (NYSEMKT:NTIP)? Many are not likely familiar with the $77 million market cap company.
It should be known that investing in or trading sub-$100 million market cap companies is generally a risky proposition. But should investors be looking at Network-1 as a possible longer term investment opportunity?
The stock has actually been on quite the little tear this year, up over 100%. Still, the stock price is just a few bucks, currently trading around $3.20 per share, down about 3% on the day. But given its ~25% rally since mid-November, perhaps the pullback is justified.
In any regard, the company just gave investors one more reason to buy into its story: management is instituting a semiannual 5-cent-per-share dividend. The annual yield works out to a little over 3% and the company expects that dividend to be paid out "through March 2020."
A closer look at the company's financials shows other positives, like positive net income for at least four straight years, fiscal 2015 revenue that doubled its 2013 results and EPS growth of 85% and 30% in 2014 and 2015, respectively.
The stock trades at just 3 times its trailing twelve months of earnings and 2016 is setting up to be a big year, largely thanks to licensing revenue from companies like Apple (NASDAQ:AAPL) and Dell.
Through three quarters, the company has earned about $60 million in revenues, compared to just $10.4 million in the same period last year. For the first nine months of the year, the company has earned 98 cents per share.
However, without any analyst estimates, conference call transcripts or Seeking Alpha analysis in quite some time, it's hard to pin down where exactly Network-1 is headed over the next 12 months and beyond. With that said, a 3% yielder with growing earnings, seemingly dependable revenue and zero debt, is worth mentioning as a speculative stock to research.
