Lebed.biz Alert May 10th 2008 Part II
With Visa (V) and MasterCard (MA) flying to new all time highs on a weekly basis... I believe Payment Data Systems, Inc. (PYDS) is well positioned to capitalize on their success and become the next huge play in the industry!
PYDS is one of only a couple hundred companies that is both a Visa Compliant Service Provider and a Mastercard Compliant Service Provider.
PYDS is one of only a few companies certified by both Visa and Mastercard to produce private label debit cards and prepaid gift cards.
The debit card industry is about to EXPLODE!
We are about to see massive amounts of credit card defaults and the market for credit card debt will dry up quickly. It will soon be very difficult to obtain a credit card. Those with credit cards will have much lower limits than they do today.
Everybody will be switching to debit cards!
PYDS makes it possible for "unbanked" consumers to receive their payroll on their own stored value debit card and use the debit card to pay bills and withdraw cash from ATM's.
PYDS also has the ability to create their own "branded" debit cards and recently introduced the Natalie Gulbis Mastercard. Natalie Gulbis was recently named one of the top five most marketable young athletes by Advertising Age!
PYDS has their own online bill payment portal Billx.com which allows you to pay all of your bills online in one convenient place. PYDS will soon be introducing their own branded Billx Prepaid MasterCard for both adults and teens which will be integrated with the Billx bill payment processing system. Consumers will be able to load and unload in real-time their Billx Prepaid MasterCards for both their personal use and their children’s use.
PYDS processed over $100 million worth of credit card transactions in 2007 which was up 65% over 2006!
This growth appears to be continuing in 2008! PYDS announced in March that their January processing dollar-volume increased 61% over a year ago and February continued this trend with credit card processing dollar-volume up 53%.
PYDS's 1Q results are due out next week! Unless March for some reason was a terrible month (which I doubt)... I believe PYDS will report HUGE 1Q results next week! What will especially make the results strong is the $750,000 in cash PYDS just received for the sale of a patent!
PYDS's current market cap of $3.7MM is just about as low as it gets for a revenue producing fully reporting company with NO DEBT!
Considering that PYDS is growing RAPIDLY and in one of the HOTTEST industries right now... I believe PYDS's upside potential at $0.046 is ASTRONOMICAL!
In my opinion, money will soon come out of V and MA and go into undervalued small-cap companies in the industry! I don't think there is a bigger opportunity in this industry right now with greater upside potential than PYDS!
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My firm Lebed Biz LLC has been compensated by PYDS $20,000 cash for a one-month investor relations contract. We were previously compensated by PYDS a total of $50,000 cash for past investor relations contracts which have since expired. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: www.lebed.biz/disclaimer.htm
Jonathan Lebed
Lebed.biz
Staff
