 TOP IDEAS: Titan Logix (TSXV: TLA) proves that revenues and earnings are on a strong growth trajectory in 2012.
It doesn't get much better when your value-focused investment in a small cap company reports that its quarterly revenues rose 72% and its earnings grew by almost $1 million. Oh yes, the stock price is up 54% too!
Thank you, Titan Logix (TSXV: TLA - $0.69) and thank you oil.
No, Titan Logix Corp. is not a junior oil stock. However, sales of its advanced technology fluid management solutions with Guided Wave Radar (GWR) gauging systems used in oilfield tankers are booming in the North American oil patch. The Company says the good times are continuing as its customers, new tanker fabricators, are backlogged for the next 6-12 months but probably for a lot longer if oil prices remain strong. Another market metric for Titan Logix's growth is on-land oil and gas rig drilling activity in Canada and the U.S., which continues to be very robust.
The market trends support the healthy demand for the Company's products. For the first six months of fiscal 2012, Titan Logix revenues were up 65% to $7.63 million with a material increase in net earnings to $1.61 million or $0.06 per share.
The Company's goal is to diversify into additional mobile transportation fluid management markets. In March of this year, it launched new fluid gauging products (Av-Stik), new technology suited for a variety of industrial markets (including non-oil related). Titan Logix's objective is to be a market-focused Company.
Titan Logix is in a strong financial position to continue with its new technology initiatives and to pursue its diversification strategy. The Company maintains a very strong balance sheet; approximately $3 million in cash and it is completely free of any debt.
The Company's shares were trading steadily at $0.45 when we posted Titan Logix to the list of Investorfile Top Ideas back on February 6th. In our first blog post: Titan Logix: Fluid in value and growing rapidly, we suggested for value-driven small cap investors that shares of the Company should be accumulated to a high of $0.75.
Today Titan Logix shares trade at $0.69. Admittedly we are conservative and given the Company's outlook the shares may be able to support trading prices a lot higher than $0.75.
Titan Logix has approximately 25 million shares outstanding.
Titan Logix's website www.titanlogix.com
Author Disclosure: TSXV: TLA- Long
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This article is for informational purposes only. This article is based on the author's independent analysis and judgment and does not guarantee the information's accuracy or completeness. The information contained in this article is subject to change without notice, and the author assumes no responsibility to update the information contained in this article. The information contained within this article should not be construed as offering of investment advice. Those seeking direct investment advice, should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock.
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The author of this article has acquired and may trade shares of Titan Logix Corp. through open market transactions and for investment purposes only.
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