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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
Post by FmrAnalyston Aug 21, 2011 7:57am
533 Views
Post# 18964415

Let's talk about Q2

Let's talk about Q2We've heard lots of opinions on Q2 in reference to good or bad. I thought it would be useful to consider what constitutes good or bad. In terms of revenues the company leveraged much of it's value on the growth of revenues. Consequently I would like to see strong growth in revenues. They don't segment revenues or operations by country so we will be in the dark in terms of where the revenue growth was earned. After backing out the one time sale / licensing of their processing software we would expect growth over Q1, growth over Q2 2010, and an extrapolated growth 2011 over 2010.Gross margin percentage is another key factor in determining good or bad. Once again, after backing out the one time sale of their processing software we would expect similar growth as with the revenues. The growth in gross margin may shed light on the segmentation of revenues between Canada and the USA because USA sales are touted to have higher margins. General and administrative expenses will be interesting to see. Hopefully management has gotten the wake up call and are curbing non essential costs. The fact that management lives in Windsor but head office is in Toronto and USA operations in Florida does not bode well for keeping costs in line. if general and admin expenses are flat or down I would be ecstatic, as this woudl signal that management isn't just revenues focused.Ebitda and net income or net loss is to me less important. Financing costs have been huge and all the employee stock option costs don't help either. Finally, I would like to see more visibility of the company's investments. I'm not saying I question the valuations but with the downturn in the USA economy one has to wonder if there has been an erosion of their value.Anyone else have any constructive comments? It's a flawed argument to say that the company is growing and therefore current analysis doesn't matter. I think the current share price reflects this. I'm hopeful that Q2 lives up to the hype from generated in Q1.
Bullboard Posts