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Fintech Select Ltd V.FTEC

Alternate Symbol(s):  SLXXF

Fintech Select is a provider of pre-paid card programs, an online payment platform, and a POS cryptocurrency platform that all are in-house developed platforms. The company also operates a multi-lingual call centre that provides services to customers across all its platforms, and to third-party customers. These core assets have been unified and enabled to operate through separate divisions, all harmoniously working together to create a new environment for consumers and businesses alike.


TSXV:FTEC - Post by User

Bullboard Posts
Comment by Bobwinson Aug 31, 2010 12:09pm
705 Views
Post# 17399869

RE: RE: q2 is out - Record Revenus

RE: RE: q2 is out - Record RevenusThe key is gross margins.  They dropped back below 5% again this qtr to 4.81% after improving to 5.2% in Q1.
They need to get back above 5% to get to consistent profitability.  This is an extremely low margin business.  I was hoping that their new products would raise gross margins but so far it hasn't shown up.  They are definitely moving product but need slightly higher margins.  
Here is the last 7 qtrs of gross margin starting Q4 2008:
6.18%  5.8% 5.85% 6.15% 4.8% 5.2% and 4.81% for this qtr.
Don't know if gross margins have suffered due to competition to protect existing accts or if they are reducing margins to get into US markets.  I was worried about two things when they announced the US initiative.  I felt the US market would be more competitive and drive down margins AND the foreign exchange risk.  In a high dollar amt/low gross margin business, there is not a lot of room to have currencies fluctuating.  That's the kind of environment we have now and SCG is probably not big enough to hedge their US$ exposure plus that costs money that they don't have to spare.  
Need higher margins!  Sales are great and new products appear to be addressing the market but need higher margins to provide profits, cashflow and room to maneuver.  
Bullboard Posts