Intouch Insight Ltd (INXSF)

[littlefish]

SSK- have you picked up any yet? Looks pretty good to me- improving margins, improving revs, and a nice Q just reported, good YOY growth, looks like decent integration of acquisition (SI customers). I am a little curious why the prelim revs #s were highly accurate but the EPS #s were off (in a good way). I bought a little yesterday adding to an old position.

Trades thin so would be a bit cautious on going gungho but looks attractive and seems there are a few shares available here around low-mid $0.3s area. Actually debating adding just a bit more here.

They did get rid of that royalty payment language tied to market cap that bugged me in the past and replaced it with this-

"During the fourth quarter of 2011, the Company and BDC have agreed to a final bonus payment amount of
$398,243 based on a market capitalization of $4,978,043. The final bonus amount has been converted to a
four-year loan bearing interest at 13.5% repayable by monthly payments of $5,100 for 47 months and one
final payment of $158,543 at the end of the term. The loan is subject to a cash flow sweep based on excess
available funds up to a maximum of $50,000 per year. The Company made a final adjustment to the bonus
interest amount in the fourth quarter and recorded a loss on extinguishment of long-term debt of $147,748
along with a loss on fair value for 2011 totalling $104,128 ($97,109 – 2010)"

Not great at 13.5% but hoping they can pay it down fairly quickly with cash generation and/or LOC.

Good luck