You are correct. Anemic growth generally means anemic returns. However, the Planet model is different. True they cut SG&A over the past two years but they leveraged their business by collaborating with different partners. Planet is basically waiting for these partnerships to take off. And we heard on the CC that some of these ventures are starting to move in the right direction.
In the meantime, Planet is collecting free cash flow estimated between $6 m to $8 m in 2015.
Add that number to the $14 m they already have, and you can see that Planet becomes a value play.
The problem that I foresee trading wise is that a number of funds had piled in originally on the assumption that Planet was a growth story. Of course it did not turn out that way. So the shares have to move from the growth pockets to the value pockets. Planet will buy some of those shares. But one can see that the process might take time and will create some disturbance in the price of the shares.
However, I feel that by 2016 Planet will have matured and will be ready to be sold (if not sooner).
Planet is now a value play. Growth is minimal but they can generate cash. Either Planet will deploy their cash by buying shares OR they put themselves up for sale. I favor the latter
The Q4 results should reflect the following:
Revenues between $13.6 m and $14.6 m
Net income between $1.2 m and $2.2 m
Ebitda between $3.2 m and $4.2 m
Anything above those numbers would be most assuring for a decent turnaround of Planet business
I believe this constant decline in the stock price is indicative either of malaise or something wrong is brewing. As I mentioned before, the lows will be tested and soon
No pop with Beck leaving. Why the hell doesn't Planet announce the date of their release of the latest quarter, We all know it is year end stuff but surely they do have a date in mind. At least it will stop the rot.
If the numbers alternatively prove bad, may the heavens help us
Planet Payment Inc (NASDAQ:PLPM) shares are expected to touch $3.83 in the short term. This short term price target has been shared by 3 analysts. However, the standard deviation of short term price estimate has been valued at 1.44. The target price could hit $6 on the higher end and $3 on the lower end.The information is based on average recommendation on company rating and price target for short term (6 to 12 months) .Lake Street Capital initiates coverage on Planet Payment Inc (NASDAQ:PLPM) . The global brokerage major announces a current price target of $3 per share. Analysts at the Lake Street Capital have a current rating of Buy on the shares.
Planet Payment Inc (NASDAQ:PLPM) faced a 1.25% cut in its share price in the most recent trading session. Bearish sentiments were clearly visible in the counter as the shares, which had opened at $1.61, failed to make any significant gains due to the relentless selling pressure, which saw the share price drop to $1.58. The last trade was registered at $1.58, down 0.02 points, and the volume was measured at 497,031 shares. The shares had closed the previous day trading session at $1.6. The company has a market cap of $88 million and the 52-week high of the share price is $3.75.
The short interest in Planet Payment Inc (NASDAQ:PLPM) has increased from 146,395 on December 31,2014 to 161,738 on January 15,2015. The change was measured at 15,343 shares or 10.5%. The leftover shorts were 0.3% of the floated shares. The days to cover are 2, given the average daily volume of 97,014 shares.
Planet Group, Inc., also known as Planet Payment, is a United States-based company that provides currency conversion and multi-currency processing services. The Company offers banks and processors secure and scalable processing platform that helps them increase margins on their portfolio and offer services to their merchants. It facilitates international commerce, helping retailers, hoteliers, restaurateurs and online shops process payments and manage their businesses. It enables banks and their merchants to accept and process credit card transactions in multiple currencies, thereby providing localized pricing to international customers.