SmartCard Marketing Systems Inc.(PINKSHEETS: SMKG) announced today that their Prepaid Card loading, Pin Debit and Payment processing volume increased in triple digits to $367,000 USD for the month of September 2008 over September 2007 and over last month, August 2008. The company posted a gain in card loading and payment processing for August upto 10 times larger than last year’s August total and 226% greater than even last month, setting a new payment processing record for the company.
(PINKSHEETS: SMKG) President Bruce Baillio said, “This striking growth is the result of continuing to fill our backlog of prepaid card orders and the launch of our VelocityMoney.com Online Bill Pay service both in Canada and the US. The Canadian market for Online Bill Pay is much less crowded than the US market. The company expects to see exceptional growth in this segment during the next 12 months.
The current uncertainty in the worldwide credit markets is actually stimulating demand for our prepaid products and services. When consumers’ credit lines are decreased, they turn to prepaid cards to maintain the convenience of using a branded card to make purchases, because their credit cards are topped out. (PINKSHEETS: SMKG) is seeking to capitalize on the move from credit to debit transactions at the point of sale and capture a share of the 26.5+ billion (as of 2006) consumer debit transactions.”
We seek safe harbor
Management is determined to become the leader in Online Money Remittance, Prepaid cards and Pin Debit online processing and to set the standard for a secure funds transfer platform with multi-currency settlement capabilities worldwide.”
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TRMP at low of .64 52 week high 8.60 2yr high 19.00
SMKG junior with great upside potential 006
EKOJ new shell enviro deal - pending
The stock rallied recently to the $12 level when the company announced close to $1 billion in contracts through 2013. This is a big jump from the $78-$79 million posted over the past 12 months which is the number supporting the 14x multiple. The company has intimated that deliveries for the contracts will start this year, so if we factor a contribution of 5% of the recently announced contracts into our forecasts for 2008, then our P/S (2008) multiple comes in at 7.62x, and we come up with a price target at $16.94, a premium of 85% from current levels. The current market cap is only about 1.11x the contracts that ESLR just announced.
We think the stock should move higher from here and would be accumulating at the current $9.38 level.
Disclosure Note: SCPEditor has no position in ESLR.
]]>What other analysts are saying:
• September 2 – Janco Partners rates ENER at MARKET PERFORM with price target of $72.
• August 29 – Credit Suisse rates ENER at OUTPERFORM with price target of $86
• August 29 – Ardour Capital rates ENER at HOLD with price target of $68
• August 29 – Jeffries rates ENER at BUY with price target of $98
• August 29 – Piper Jaffray rates ENER at HOLD with price target of $73
Important Disclosure Note: SCPEditor has no position in ENER. The information and trades provided here and in the comments are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance.
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