A Sobering Analysis MINT:
Ok, so the EPAY deal gives Mint $160M in telecom value (sinces its unclear at this point if its a resale for profit or commission model) but either way its $1.5M in profit.
Mint is already established in the Prepaid financial and has about 600,000 cards and fell short of EBITDA profitability by just $16,000 on core Payroll only. Mints customers are some of the largest companies in the region. The region is growing and their customers are already where Mint is expanding.
Mint Money launches within days probably, MGP goes full out in about 60 days and has the full force and strenght of Carta behind it. Mint also has an ATM network in place and expanding. Unfortunatly, according to WPS law workers get their $ fee-free from the ATMs.
Mint has grown at a 12x rate since Jan 2010 and continues to grow at an accelerating pace.
Mints management has executed on everything they have announced and continue to surprise.
Selectcore:
$80 Million in total revenue, this includes all telecom, POS terminals, transaction processing Bluetooth Spamming etc... Revenues are down 20% Y/Y from 2010.
Selectcore has been unable to demonstrate any headway into the prepaid financial space.
Selectcore fell short of EBITDA by $1.6M
Selectore has announced a deal that is perhaps worth at maximum 100,000 cards. But the project outlined by the city of Toronto only states less than 40,000 cards. If indeed its the City of Toronto the deal is with (see next point)
Selectcore management is secritive. Does not keep market up-to-date on the progress. Is often accused of fluff NRs.
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SCG Market Cap: $24.78M
Mints Market Cap: $31.09M
So, given telecom revenue alone, Mint should be worth twice as much as Selectcore once the EPAY deal closes.
Mint should be trading, at a minimum of .26 on this EPAY deal alone.
Now, add to Mint the $32M of market cap that is attributed to Mint now, which gives Mint a market cap of $81M. That puts Mints trading at .43
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This is in no way meant to slam or bash Selectcore. Its an honest analysis comparing 2 companies that are in the same space, but at different stages of their development.