TOP
IDEAS: WANTED Technologies (TSXV: WAN) had a record-breaking year in 2014 and
international expansion sets the agenda for future growth and stock price
appreciation.
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.
Fiscal
2014 was a very big year for WANTED Technologies Corp. (TSXV: WAN - $1.13).
For
fiscal year period ending June 30th, the Company reported that revenues grew by
39% to $10.1 million. With the revenue growth, WANTED generated record earnings
of $2.63 million, about $0.11 per share for the year. As a result, the
Company's cash holdings increased to $6.27 million ($0.26 per share). The
Company remains debt-free.
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
provides its cloud-based information tools via subscriptions to its customers
in North America, supporting its recurring
revenue business model.
WANTED
is clearly a leader in the field of human capital management big data
analytics. In its most recent Management Discussion & Information
(MD&A) public filing, the Company states it expects to see growth in demand
for its information services for the foreseeable future and that the
marketplace is just in the beginning phases of putting such analytic tools and
assets to work on a daily basis.
A
major catalyst for future growth is the Company's International version of its
product platform launched in October 2014. This product platform includes data
and analytics describing the talent marketplace in 20 additional countries.
With the addition of these 20 countries, and including the current coverage of
the United States and Canada, WANTED
now offers human capital analytics for the 22 largest economies in the world to
maintain its position as the leading supplier of data analytics, now on a
global basis.
The
Company expects over the next few years that the introduction of its
international data platform will significantly increase its direct sales
opportunities by marketing the new offerings to existing multinational clients
with insights into labour supply and demand around the world. WANTED will also
be able to secure new clients with headquarters outside the US and Canada.
The
share price of WANTED Technologies has more than tripled since we first
introduced this Company to small cap investors as one of our Top Ideas exactly
two years ago (See: WANTED Technologies: A small cap that is delivering sales
growth, profits and yet is still value priced.) Based on the Company's fiscal
2014 results the shares trade still for value, under six times Enterprise Value
(EV) to EBITDA. Therefore, there is still significant upside potential for the
stock price as WANTED continues to expand its market reach.
Further,
shareholders could also gain returns with the deployment of the Company's cash
for potential acquisitions, stock buy backs or dividends.
WANTED Technologies has 24.4 million shares outstanding.
WANTED Technologies website: www.wantedtech.com
Author
ownership disclosure: TSXV: WAN - YES
Read Disclaimer:
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 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
only. |