TRANSGAMING INC. V.TNG

Global Maxfin

[shavenhead]

 

Forecasts F2012 F2013 F2014E F2015E F2016E Revenue ($M) $6.19 $9.82 $10.20 $14.58 $20.59 EBITDA ($M) ($5.09) ($0.18) ($0.02) $1.13 $3.72 EPS (FD) ($0.13) ($0.05) ($0.02) ($0.00) $0.02 EPS (basic) ($0.13) ($0.05) ($0.02) ($0.00) $0.03 CFPS $0.02 $0.01 $0.00 $0.01 $0.03 P/E NM NM NM NM 14.9x EV/Sales 4.9x 3.1x 3.0x 2.1x 1.5x EV/EBITDA NM NM NM 26.9x 8.2x

TNG-V, $0.34   January 14, 2014
Rating: STRONG BUY Target Price: $0.60 Market Capitalization: $29.0M Risk Profile: SPECULATIVE	TECHNOLOGY – SOFTWARE Ralph Garcea, P.Eng, MBA     – Analyst 647.776.1763 • [e-mail] Anuj Nijhawan     – Associate 647.776.1764 •[e-mail] Chris Stringer     – Associate 647.776.1762 • [e-mail]
Source: Bigcharts.com	CASUAL GAMING FOR NEXT-GEN CONNECTIVITY    INVESTMENT THESIS TransGaming ("TNG" or "the Company") is an emerging technology company that is well positioned to benefit from the worldwide growth occurring in casual gaming for Smart TVs and other connected devices. Building upon existing contracts with operators in the US and Europe, TV manufacturers such as Samsung (005930-KS, Not Rated) and Toshiba (6502-TYO, Not Rated), and further exploiting the Company’s intellectual property (IP) on other platforms and applications will allow TNG to increase revenue and be profitable. Partnerships with Google (GOOG-US, Not Rated) and Adobe (ADBE-US, Not Rated) to utilize TransGaming’s technology provide momentum for the Company’s enterprise IP strategy.    FINANCIAL REVIEW F2013 revenue was $9.82M, up 58.7% yoy. The Company has consistently grown its top line, and with the recent pruning of its fixed operating costs, we forecast that TNG will break even in FQ214. For FQ214, we are looking for $1.97M in revenue and adj. EBITDA of $94K. We expect TNG to report FQ214 results during the last week of January.    VALUATION We value TNG at $0.60/shr using a DCF model in which we forecast F2013-2017E CAGR of 32.5% for revenue.    UPCOMING CATALYSTS NEAR TERM: Partnerships and revenue arrangement with various global managed service operators for GameTree TV™ Opportunities to expand the GameTree brand in various geographies. LONG TERM: Driving revenue growth with increased subscribers and advertising based revenue.    We are initiating coverage on TransGaming with a STRONG BUY rating and a 12-month target price of $0.60, providing an upside of 76.5% to our target. Given the risks associated with an emerging technology company, we rate the risk profile as SPECULATIVE.

[leaf67]

These analysts always low ball there forecast as far as sp prediction goes...makes then look better when it doubles or triples where they set there target price.....crips this thing could jump to 0.60+ this month alone....i think a few dollars per share for 2014 is more realistic given the potential income this company could have....like the movie says.."if you build it,they will come"

[mike270]

Who is coming ? If you build it they will come. There is every reason in the world why they should come to TNG if a company is to Compete and Succeed we should be asking who would want to be left out??

[domdesm]

This post has been removed in accordance with Community Policy

[oneinvestor]

AS  .60 cents is a blip in the rear view mirror! LOL IMO