What is the next step for SVC to propel share price growth?Hello All,
I am a long term investor with SVC. I have made money over the last 5 years trading SVC and I am holding on to a healthy accrued gain on my current position, hoping it will grow even more after Q4.
I regularly stop in to check out others comments and on occasion post a comment.
Recently I have looked at a couple of other Cdn tech companies and the SP, namely RKN and WIN. I realize that these companies specialize in different areas than SVC but what interested me is the SP of these two companies as compared to SVC and how they got there. I am not an expert on either of these companies, however this is what I view as the stimulus that caused the share price of each of these companies to rise.
RKN - within the last year I read that RKN made a strategic acquisition from Nokia Siemens which has significantly bolstered its revenues and its share price has soared to nearly $6 per share from trading at a low of $1.27 within the last year. The current company market cap is $545 million
WIN - after looking through the last three years of financials of this company, it has posted an overall net loss during that time (profit 2011, losses in 2012 and 2010) with a very healthy cash position. The stock has traded as high as $9 per share in the last three years. In mid 2011 the shares were trading at approx. $6 and then jumped to $9. 2011 ended up being a good year for sales and profit for the corp. but perhaps more importantly it listed its shares on the NASDAQ. The company SP is currently down due to some court rulings but the point is the share price soared. The current company market cap is $400 million.
SVC's current market cap is $366 million. Over the last few years, compared to the companies above SVC has had better revenues with better profits all the while maintaining a very healthy cash position. It has increasing revenues and profit every quarter. It is a market leader with best in breed products and services in its market segment. The market segment itself is growing and is estimated to be into the billions of dollars by 2015. It has key partnerships with some of the largest players in the tech space. There is a lot of positive momentum here. and it appears that SVC has all of the ingredients needed to provide us as shareholders with the explosive share price growth we would all love to see. At least similar growth in the SP as compared to RKN or WIN. But we seem to be missing the key stimulus to get the fuse lit on this stick of TNT.
So my question is what will that key stimulus be?
Will it be a record Q4? I have no doubt that come January 2014 when SVC reports its Q4 earnings it will be a great report. Hopefully with record revenue along with a record net profit. But will it be enough to get the SP to $4 and beyond?
Is a NASDAQ listing in order to get the company noticed by the big money thus propelling the SP?
Or maybe a key strategic acquisition? (any ideas on which company would be a good fit?)
Or perhaps both?
Would Dave & Co. even be considering such options?
I'd be interested in hearing others thoughts. Am I on the right track here or in left field?
GLTA and have a great weekend.
B.