Ltd. (TSX: PAY) turnaround is making way for new sales growth in the USA
and internationally by expanding its product offerings of Point-of-Sale solutions for
the hospitality industry.
acknowledge that 2017 got off to a slow start for Posera Ltd. (TSX: PAY -
C$0.145). The quarterly losses required the Company to raise equity twice this
year (the financing were heavily subscribed to by Management) to fund growth
opportunities going forward. But going forward is what excites us about Posera,
as the Company is on the cusp of realizing major sales growth opportunities for
its Point-of-Sale hardware and software solutions.
Posera Ltd. has been supporting merchant business successes in the hospitality
industry for more than 30 years. The Company’s products and services facilitate
all aspects of the payment transaction between the merchant and the consumer. Posera’s Point-of-Sale (POS) Systems
software solutions, associated enterprise management tools and debit/credit
payment terminals have been deployed in 25 countries in over 30,000 merchant
several of Posera’s POS solutions are on the verge of a significant ramp up in
sales over the next 12 to 18 months. The Company’s marquee product, called
Maitre’D™, expanded its offering with an integrated POS solution targeted for
the international hotel industry which, over the last 9 months, has resulted in
more than 50 new installations in prestigious hotel properties in Paris, Strasburg, Barcelona and more
throughout Europe. Based
on the early sales success, the Company says they are now expanding this hotel
marketing initiative beyond Europe to include North
Posera's Fingerprints™, is a POS
solution specifically designed for the quick-service restaurant industry.
This POS solution offers customizable screens and layouts for greater
efficiency and speed of service for fast food operations. In the Q2 report, the
Company reported it crossed a major milestone with the first installation
outside of Canada of
its Quick Service Restaurant (QSR) POS technology. Posera has begun to deploy
its QSR POS solution in the
the International expansion of its major customer, Tim Hortons. The Company
says the roll out in the Philippines
demonstrates that its POS products are well-suited to benefit from International
growth occurring in the fast-food industry in the economies of Asia, Africa, Central and South America.
biggest catalyst for near-term revenue growth may be derived from Posera’s POS SecureTablePay application,
which enables safe, secure and stable "Pay-at-Table” capabilities for the US hospitality
marketplace. The Company says that SecureTablePay is first-to-market by being
the only semi-integrated EMV (Europay, Mastercard and Visa) and Contactless
application allowing restaurant wait staff to totally manage payments, tips and
tables remotely from a wireless payment terminal, incorporating Chip and
Signature, with end-to-end encryption for the US market.
milestone is that the SecureTablePay (STP) product has been certified, or in final
stages of certification with four major US-based payment processors. The recent completion of certification of STP
with Vantiv, the largest payment processor in
the U.S, has advanced the STP product to the final pilot testing phase, with
the commercialization of this application expected to commence prior to end of
platform in the US
will be commercialized primarily on a recurring revenue model. According
to a recent Company investor presentation, Posera expects a rapid deployment of
2,700 pre-sold licences for STP product, which could yield the Company approximately $4
million in annual recurring revenues for usage of this secure
POS payment solution. As more payment processors in the US certify the
SecureTablePay solution, the Company will earn more revenues.
about a year since we first launched coverage on Posera Ltd. as one of Investorfile’s Top
Ideas (See: Posera shares offer investors both
value and big upside potential). In
hindsight, we might have been a year too early recommending this stock as the
Company shareholders have been diluted from the financings completed this
year. That said, the share price today is still up 30% since our introductory blog
post about the stock.
believe the fore mentioned revenue growth opportunities for Posera’s POS
solutions are on the horizon, the Investorfile blog continues to
recommend that small cap investors should accumulate shares in the Company from
its current trading levels up to a price of C$0.25. Notwithstanding the stock
dilution from the recent equity financings, we still feel that small cap
investors who own shares in Posera with an average cost base under
C$0.25 can realize significant capital gains if the Company’s Management
executes on its growth plans.
The Company has approximately 118.4 million shares
Posera website: www.posera.com
Author's share ownership disclosure: TSX: PAY - Yes
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.
is not engaged in an investor relations agreement with Posera Ltd. nor has it received any compensation from Posera Ltd. the preparation or distribution of this article.
author of this article has acquired and may trade shares of Posera Ltd. through open market transactions and for investment purposes