IDEAS: WANTED Technologies Corp.'s (TSXV: WAN) big data business is in high
demand and the stock should be, too. Shares are up 298%.
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.
much has changed at WANTED Technologies Corp. (TSXV: WAN - $1.23). That's good,
because revenues, earnings and cash just keep on building.
was about 5 months ago when we predicted it would not last long, that is WANTED
Technologies low stock price (See: WANTED Technologies' financial results are
predictably strong and the stock is still inexpensive.) Then WANTED's stock was
trading for less than 10 times earnings if you annualized the Company's latest
quarterly results. In our opinion it was a very low trading multiple for a
profitable small cap growth company. Since that blog post WANTED's stock price
is 50% higher.
quarters have past and the same argument holds true. Despite that WANTED's
stock price is significantly higher today, if we annualize the Company's latest
quarterly results (Q2 EPS: $0.041), the shares still trade for less than 10
times earnings. It is our opinion again, that WANTED's stock is still an
attractive buy for small cap growth investors.
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.
Company's business model of providing its cloud-based tools via subscriptions
to its customers supports its recurring revenue business. WANTED's recurring
revenue base has increased by 34% over the last 12 months to C$8.6 million
Company's proprietary analytical processes can convert WANTED's sizeable data
warehouse of information into compelling products. Recently a financial
services company entered into a 12-month data license agreement with WANTED
worth over $1 million. This type of application of large data assets is an
example of how "big data" is beginning to transform business
decision-making. WANTED's repository of human capital big data is generating a
pipeline of one-time data license revenue opportunities for growth
over-and-above the Company's annual subscriptions sales.
management says the Company has benefited from the continued improvement in the
economy and, in particular, from growth in the employment sector to achieve
all-time highs in revenues and profitability. The profits are generating a load
of cash for the Company.
reported the Company held C$3.65 million in cash and had no debt. WANTED says
it will invest its cash to continue to increase the size of its research and
development team to accelerate its development and release of new products. It
also expects to increase investments in sales and marketing to increase awareness
of the Company's products and to maintain consistent levels of revenue growth.
This is good news for shareholders.
Technologies has been a great story since we first introduced it to small cap
investors as one of our Top Ideas about 18 months ago (See: WANTED Technologies:
A small cap that is delivering sales growth, profits and yet is still value
priced.) Since then the share price is up 298%. But don't let the stock's phenomenal
rise discourage interest in WANTED shares. There is still plenty of upside
Technologies has 24 million shares outstanding.
Technologies website: www.wantedtech.com
ownership disclosure: TSXV: WAN - YES
This article is for informational purposes only. This article is based on the
author's independent analysis and judgement and does not guarantee the
information's accuracy or completeness. The information contained in this
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Investorfile.com is not engaged in an investor relations agreement with Wanted
Technologies Corp. nor has it received any compensation from Wanted
Technologies Corp. for the preparation or distribution of this article.
The author of this article has acquired and may trade shares of Wanted
Technologies Corp. through open market transactions and for investment purposes