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Nov
30
Pay attention to Titan Logix: Its growth prospects and its value price
Posted by: Gerry Wimmer
11/30/2014
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TOP IDEAS: Despite trading 200% higher, Titan Logix (TSXV: TLA) stock provides value and opportunity for 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.


Once a value stock buy, still a value stock buy: This despite the fact that Titan Logix Corp. (TSXV: TLA - $1.35) shares trade 200% higher today.

It is almost 3 years ago since we published our first blog post on Titan Logix (See: Titan Logix: Fluid in value and growing rapidly) for Investorfile’s Top Ideas – Small Cap Value Stocks. At that time the Company’s shares were trading at $0.45. Today at $1.35, the same arguments from that blog post hold true for buying this stock: Titan Logix’s growth prospects are strong and the share price is inexpensive.

Titan Logix is an industrial technology company focused on manufacturing and marketing of advanced fluid management solutions. The Company's flagship product, Guided Wave Radar (GWR) gauges for fluid level measurement and overfill prevention, are traditionally used by crude oil tanker trucks but are also emerging in other fluid transport markets.

For fiscal 2014 the Company reported annual revenues of $17.4 million, EBITDA of approximately $4 million and earnings per share of $0.11. Titian Logix holds about $12 million in cash and is debt-free. On a trailing twelve-month basis (TTM) the Company’s stock currently trades about 5 times Enterprise Value (EV) to EBITDA. For a growth company this is a low valuation multiple.

The Company prepared for its next stage of growth by restructuring its management team in 2014 to facilitate new product launches and to pursue strategic partnerships and acquisitions in 2015.

Organically, growth has been driven by increasing market penetration of the Company’s products. Full commercial production has commenced for new products such as the Finch II™ display/controller, designed for use with the Titan TD80™ gauge for mobile crude oil tankers. This new product has received very favourable customer reviews and therefore sales are growing.

The Company’s products are also experiencing increasing demand in new markets. Aviation, used oil and chemical mobile tankers have started to show acceptance of Titan’s new fluid level measurement products ("Stiks”). In 2015, the Company plans to commercially launch its new and advanced fluid gauging and control system for refined fuel tankers, a significantly large and new market opportunity.

With all that said above, for those small cap investors who do not own stock in Titan Logix, the opportunity to invest is not lost just yet. Fortunately the Company shares are still value-priced, but not for long if Titan Logix realizes on its outlook of growing revenues and a potential acquisition in 2015.

Titan Logix has approximately 25 million shares outstanding.

Titan Logix’s website www.titanlogix.com

Author Ownership Disclosure: TSXV: TLA- 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 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.

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Hi Gerry, Your philosophy is focused on principles that have been shown to produce above average results over time and your record has clearly proven that. Congratulations on a great blog and thank you for the hard work that you do in sharing and updating your ideas; it is much appreciated.