TPNL Key Growth Opportunities:
As we may have all realized TPNL is a diamond in the rough and sooner or later more and more people will hear about it until it gets fully uncovered and converges towards its fair value. We are fortunate to be able to pick it up before the mass market finds out about it.
For the new comers to our board here are some key take-aways that make TPNL a very interesting opportunity:
* They are becoming a fully integrated payment solutions company. Today's news is yet another move by the company demonstrating this aspect. Many prepaid card company's outsource multiple aspects of their business to third parties. TPNL is reducing its cost, increasing the control it has over its operations and thus increasing its value as a whole by streamlining its operations.
* The recent Platform shows great versatility for the company to expand its accessible market size through both geographical growth (by accessing new markets as the platform even offers Europay) and potential product offering expansion (as the platform is very versatile for many different types of prepaid cards).
* The company is setting itself up for growth. First a state of the art call center, now a globally certified payments platform, in my opinion big things are to come.
* The company continues to grow at an impressive rate with almost every quarter growing net income by triple digit percentages over the last year.
* The company is undervalued on the basis of multiple metrics, P/E of 5. By annualizing the current quarters revenue of 2.1M*4=8.4M/42,388,040 (shares fully diluted) = 0.1981 sales per share.
Therefore P/S=0.29/0.1982= 1.46. If you look at some of the acquisitions in the industry coming in over 10 times sales, just imagine what that would mean for 3PEA.
* Debt holders are willing to convert debt to shares and warrants, what do you believe this means? They definitely do not believe the shares will be going down too much if they took that deal. Along with warrants exercisable at $0.50.
These are just some of the highlights of this company. Not to mention a great management team which appears to be pushing the IR these days with great transparency towards investors and a well executed business plan.
