 TOP IDEAS: Titan Logix (TSXV: TLA) has flagship products, new market
opportunities and plenty of cash to deploy to reward small cap investors.
Note: Investorfile’s share price accumulation target of $0.75 for Titan Logix
Corp. was reached on February 5, 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.
Last year we wrote the blog: Titan Logix is building value for the long-term.
Since then, Titan Logix Corp. (TSXV: TLA -$1.28) stock trades 64% higher and we
still like the long-term growth potential for this Company.
Titan Logix is an industrial technology
company focused on manufacturing and marketing advanced fluid management
solutions. The Company's flagship product, Guided Wave Radar (GWR) gauges for
fluid level measurement and overfill prevention (used in crude oil tanker
applications), has been Titan’s main sales growth driver.
For the first six months of fiscal 2014
Titan Logix revenues were $8.23 million (up 2%), EBITDA of $1.99 million and
EPS of $0.05, which is primarily attributable to sales of its fluid management
product offerings for mobile crude oil tanker trucks and trailers in USA and
Canada. Sales to the tanker industry continue to be the backbone for the Company’s
revenues in a market that it now dominates. Over the long-term, Management has stated
that the Company’s top priorities are continued product innovation and establishing partnerships to increase revenue and growth through
diversification into new markets.
Recent developments indicate Titan’s growth
plans are occurring.
First, to further expand Titan’s position
as the leading gauge supplier to the tank and
trailer market, the Company signed
an agreement with UK-based MechTronic Limited to be the sole distributor of its
advanced refined fuels gauging system for the Americas. This strategic
partnership enables Titan to advance into the refined fuels market, which the
Company says has an even larger market potential than the crude oil market that
Titan currently serves. A full commercial sales launch is expected later this
year.
Second, last year the Company invested in
R&D programs to develop new product gauges for fluid level measurement to
serve niche tanker markets including aviation fuel, chemicals and used oil.
Titan Logix has said they are starting to see a growing acceptance of these new
products resulting in orders received from customers in these targeted markets.
The Company says it continues to strengthen its research and development team.
Finally, to complement the organic growth
opportunities is the potential for acquisitions. Titan Logix is flush with cash
($10.6 million) and has no debt.
For small cap investors, Titan Logix has
been strong performer since we first recommended the stock (See: Titan Logix:
Fluid in value and growing rapidly). But we feel this growth story
is not over yet.
Titan Logix has approximately 25
million shares outstanding.
Titan Logix’s website www.titanlogix.com
Author Ownership Disclosure: TSXV: TLA- Yes
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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
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Investorfile.com is not engaged
in an investor relations agreement with Titan Logix Corp. nor has it received
any compensation from Titan Logix Corp. for the preparation or distribution of
this article.
The author of this article has
acquired and may trade shares of Titan Logix Corp. through open market
transactions and for investment purposes only. |
