OTCPK:MECVF - Post by User
Post by
93Darkhorse93on Jun 06, 2016 1:41pm
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Post# 24938503
Interesting Stock on a Quite Board…
Interesting Stock on a Quite Board…This board is nice and quiet; the type of stock that creates opportunity but the valuation that it trades at for a Software IT Services company is too low relative to its peers.
P/S - 3.3x (Industry Average 4.1x)
Forward P/E - 14.0x (Industry Average 30.3x)
Granted its doesn’t have the same growth rate as some of the higher flying software names but the EBITDA and Cash flow generation is impressive. This allowed the company to be able to acquire Advanced Software Concepts in May for 18.5M in cash that should help bolster future growth in its e-commerce platform software business.
Combine this with the fact that insiders from the CEO to Board Members have been aggressively buying in the open market in the past year as they belive in and have a significant vested interest in the future of the company.
The company has a strong capital return policy with a strong stock buyback and a dividend yield of 2.6% with a high to mid-teens return on Equity.
Earnings this week could be a catalyst to get this stock moving again.