TOP IDEAS: Titan Logix (TSXV: TLA) EPS of $0.11 to date tells a very good story. So what's next?
Titan Logix Corp.'s (TSXV: TLA - $0.71) stock price is one of the few bright spots amongst the junior companies listed on the TSX Venture Exchange to date this year.
Since we first posted Titan Logix to the list of Investorfile Top Ideas (See -Titan Logix: Fluid in value and growing rapidly) the stock price is up about 60% and deservedly so. Titan Logix's quarterly revenues were up 72% to $5.2 million with a material increase in net earnings to $1.2 million or $0.05 per share in fiscal Q3. For the first nine months of fiscal 2012, the Company's revenues are up 68% to $12.8 million. So far, Titan Logix has already earned $0.11 per share this fiscal year.
So what's next?
Fiscal Q4 should see more of the same type of results, which is very good for us shareholders in the short term. This is driven by sales of Titan Logix's advanced technology fluid management solutions with Guided Wave Radar (GWR) gauging systems. These products are used in oilfield tankers and demand is being stimulated by the oil and gas rig drilling activity in Canada and even more so in the U.S. These markets have been very robust in the past year.
Though Titan Logix has acknowledged that volatile oil prices can make the demand for its products less predictable. Therefore in 2012 the Company embarked on program to broaden its product offering by launching new fluid gauging products called the "Av-Stik”. Titan Logix has recently added management depth to its engineering and sales teams to support its new fluid gauging products which are earmarked for a variety of industrial markets, mostly non-oil related.
The Company has stated it is in a strong financial position to continue on R&D initiatives in fluid management technology and to proceed with a diversification strategy. We agree. Titan Logix maintains a very strong balance sheet; approximately $3.8 million in cash and no debt. Fiscal Q4 should see more cash generated and added to the balance sheet.
Diversification aside, the North American oil industry is still a very good market for Titan Logix's fluid management products and it is this market which continues to fuel the Company's stock to trade near its 52-week highs.
Titan Logix has approximately 25 million shares outstanding.
Titan Logix's website www.titanlogix.com
Author Disclosure: TSXV: TLA- Long
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.
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.