TOP IDEAS: Shares are up 165%, but all indications show that there is still a lot more upside for WANTED Technologies Corp. (TSXV: WAN) – Investorfile target reached.
Note: Investorfile's share price accumulation target of $0.55 for WANTED Technologies Corp. was reached on August 9, 2013. For the record, we do not revise share price targets for our Top Ideas – Small Cap Value Stocks. We have positioned our blog to be one of the first providers for a pragmatic perspective of a small cap company stock's potential worth, where there may be uncovered value that has been largely overlooked by the investment community.
Our share price accumulation target had been appreciably surpassed since our last blog post for WANTED technologies (See: WANTED Technologies' recurring revenues generate recurring profits.)
More so, WANTED Technologies Corp. (TSXV: WAN -$0.82) shares are up 165% since we first recommended the purchase of this stock for small cap investors as one of our Top Ideas, approximately one year ago (See: WANTED Technologies: A small cap that is delivering sales growth, profits and yet is still value priced.)
WANTED Technologies provides real-time business intelligence for the Human Capital (HC) marketplace. Corporate and government clients use WANTED Analytics™ to find sales leads, analyze employment trends, gather competitive intelligence, forecast economic conditions and source hard-to-fill positions.
The Company's products are based on a data warehouse of historical information made up of close to one billion talent records. This repository of human capital "big data”, the Company says, provides the basis for a range of products that are unique and differentiated in the marketplace.
WANTED's business model of providing its products via subscription over the internet for its customers supports an ongoing recurring revenue business. The structure of the recurring revenue business provides a very regular revenue stream.
Despite the exceptional performance of WANTED Technologies stock over the past 12 months, something tells us we are still very much in the early stages of this Company's share price appreciation trend. The principal reason why we make this bold forecast is attributable to predictability of WANTED Technologies' robust financial performance.
Last week, WANTED Technologies announced annual revenues jumped 20% in fiscal 2013. Better yet, 93% of $7.23 million of annual revenues reported are recurring. Also recurring were the Company's ascending profits, in each quarter of fiscal 2013: Q1-$117,000, Q2- $331,000, Q3- $372,000, Q4- $541,000.
Looking forward, the outlook for business intelligence solutions in the human capital marketplace continues to be positive according to the Company. In fact, the "big data” space is considered high-growth market. Therefore it is expected that WANTED Technologies' recurring revenue base will continue to grow and, so too, the Company's profits.
Last quarter, WANTED Technologies reported per share earnings of $0.022. With the high predictably of the Company's revenue streams and profits, new investors can annualize these results to discover that WANTED's stock still trades for less than 10x earnings. This trading multiple is very inexpensive for a profitable small cap growth company and we predict it will not last long. WANTED Technologies will begin to earn the attention of a larger investor audience.
The Company holds $3 million in net cash.
Wanted Technologies has 24 million shares outstanding.
Wanted Technologies website: www.wantedtech.com
Author ownership disclosure: TSXV: WAN - YES
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The author of this article has acquired and may trade shares of Wanted Technologies Corp. through open market transactions and for investment purposes only.