TOP IDEAS: Titan Logix's (TSXV: TLA) stock momentum is attracting more investors. Shares up 73% - Investorfile target reached.
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.
What has changed for Titan Logix Corp. (TSXV: TLA -$0.78) in the past 12 months? Yes, stock price has, but that's not all.
Almost one year to the day since we first posted Titan Logix to the list of Investorfile Top Ideas – Small cap Value Stocks (See -Titan Logix: Fluid in value and growing rapidly), the stock has eclipsed our target price, up 73% to date and trading at new highs.
For fiscal 2012, Titan Logix, an advanced technology fluid management solutions provider, had a tremendous year. Titan Logix earned a profit of $3.66 million or $0.14 per share on revenues of $17.9 million. In Q1, the Company earned another $0.03 per share to begin fiscal 2013.
Yes, last year Titan Logix was an incredible small cap value play. Notwithstanding that the Company's shares have almost doubled in price, this blog would say the stock is still a value play but with added long-term growth potential.
From the Company's most recent financial reports, Titan Logix's management has acknowledged that it may be difficult to duplicate its fiscal 2012 results. Why? The growth rate for sales of Company's flagship fluid gauging products used in oilfield tankers maybe less predictable in 2013, but are still being stimulated by the oil and gas rig drilling activity in Canada and even more so in the U.S.
So is Titan Logix's growth potential fading? Read on.
In the same financial reports, the Company implies that its fluid gauging products are gaining key market share due to product technology and customer service superiority. In addition to that, Titan Logix recently announced its re-entry into the Burner Management System market (fluid management products for oil fields and refineries) as a result of new regulations; a long-term growth opportunity and further diversification in a vertical market within the fluid management industry.
To complement the new growth potential, the Company has accumulated about $7 million in cash to deploy with no debt; the financial strength to expand R&D programs and to pursue profitable strategic acquisitions and partnerships.
Our conclusion: The long-term growth potential for Titan Logix is stronger this year than at this same point last year.
The stock may not be trading at the same absolute value as a year ago, but the value of investing in Titan Logix in 2013 may be even stronger than ever and, hence, new investors are taking notice.
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 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. |