$TCX is about to remove about 800000 shares from the float. I like it.
"All shares purchased by Tucows under the stock buyback program will be retired and returned to treasury."
Tucows Announces $40 Million Stock Buyback Program - NASDAQ.com
TORONTO, March 01, 2017-- Tucows Inc. today announced that its Board of Directors has approved a stock buyback program to repurchase from time to.
Thanks for the tip, I did some research and found more information about $TCX on http://monstastocks.com/?s=TCX Trading stocks making money. Wilkinson's corollary: the minimum time needed to complete any project is exactly equal to the maximum time available to
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During the conference call the company guided to $50M EBITA for 2017. At their present tax rate this equates to $31.688 million in income for 2017 (assuming the exact same tax rate or 36.62% taken from the TCX annual financials). Now $31.68 Net income equates to an EPS of $2.98 using their Q4 diluted average shares of 10.62 million shares outstanding. So a P/E of 20 yields a price target of $59.67 and a P/E of 25 yield a price of $74.59. As a frame of reference, the SP500 P/ E is 26.76 on February 8, 2017, yielding a price of $79.84.
The company spoke about revenue, and confirmed in a conference call that the annual run rate for enom was about $155 million. However, GAP accounting rules for deferred revenue (subscription services) states that deferred revenue must be written down to fair market value, which means basically, the acquiring compny won’t be able to have the $155 million on its income statement…..until….those customer’s re-up their domain names / contracts. When that happens, the revenue will flow to the income statement (probably 1/12 of the sale per month)t. So if most customers have 1 year registrations …..we could expect $155 million in addition to the $200 million for a total of $355 million for say 2018. Until then, revenue from the acquisition will be tough to predict.
So basically we are looking at a $355m revenue and $50 million EBITA with $31 million in net income and $3 EPS. All of this ignores the Ting mobile customer acquisitionsfrom RingPlus and normal revenue growth of the core business. which has been growing steadily.
All of these figures can be confirmed by listening to the conference call posted on their website.
Valuation vs GDDY
Interestingly GDDY is trading at 3.61 price / sale (market cap / annual revenue). At this same ratio, TCX using the post acquisition revenue of $355 million would trade at about $120. Seems like alot of upside runway at least compared to the valuation GDDY is enjoying
Anyone want to suggest how high this will go. Since I made near 100% on this, I am tempted to sell, but it just keeps going up. I really do not know this company very well, my son suggested it, and it seems the fundamentals are good and earning are improving, but this is nuts. Anyone???
I just cashed out. Stock price has gone parabolic and is pricey to me. It's still on my watchlist and I'll get back in if reasonable again.
Good luck all!
Buying eNOM at about 0.5 times sales, debt free, immediately accretive. Sounds good to me.
why the big jump?
Momentum can easily build because of its very small supply of less than 10 million shares in the public float. Poised today near a new high close and almost everyone who owns it is happy. Strongest possible EPS rank of 99 from the IBD system too.