The online gold rush is still in full swing and CYBS is selling the pans. The recent market implosion has produced dramatic buying opportunities for best of breed stocks and as you may have noticed, I believe CYBS is such a stock. CYBS recently announced yet another positive earnings surprise in the face of financial armageddon. Several days later they announced a stock buyback program authorizing them to purchase up to $15 million in common stock through March 2009. This represents a significant portion of CYBS cash on hand and is a very strong bullish signal. Management clearly believes in the guidance they have provided to the market, which indicates only a marginal slow down in their overall growth. All indications suggest that 4th quarter earnings will be at record levels again, even if growth is slowed to a meager 15%. Any growth in this market is a sign of a fundamentally strong underlying business model. CYBS growth is fueled entirely by the trend of businesses doing more sales online. Even if businesses have decreasing sales, the overall number of new businesses selling things online is increasing fast enough to keep CYBS growing during an economic slowdown. The metrics are a known quantity -- online sales are definitely still increasing and most of the growth is coming from small businesses that want to sell their products and services online. This trend will only increase as people continue to look for ways to avoid the expenses of running a physical business and opt for starting online businesses instead. [more]
CYBS bears continue to look foolish while CYBS continues to protect my portfolio from the criminal cabal of Wall Street and Washington. This stock will continue to make real investors lots of money in the coming months. Ecommerce transaction processing will once again emerge at the end of the year as one of the very few industries experiencing meaningful growth, even in times of extreme economic contraction of the broader market. If you look at the long term charts on CYBS, it has nearly doubled in price every year for the past 5 years while largely ignoring the market turmoil of late. CYBS consumed ANET a little over a year ago and gained enormous traction in the small and mid sized business transaction processing market which is the fastest growing segment of online transaction processing. There is no way this company can fail to grow significantly, despite the economic problems in the US. Much of their growth is coming from overseas and their growth will mirror any overall increases in the gross amount of online transactions taking place worldwide. This number will absolutely, definitely increase for the forseeable future, every year. I do not see any way CYBS can do anything but increase in price over the next 12-24 months. Beyond that, we may have to look at competition from Google, but so far Google has not addressed the same market as CYBS and people who integrate web sites with payment processors will tell you there are big differences in they way payment processors such as Google and PayPal work, compared to processors like Authorize.net (the small-med sized business branch of CYBS). Integrating Google payments into an ecommerce system can be a difficult task compared to a traditional processor like Authorize.net, simply because coders who actually have to do the integration are more familiar with traditional payment processors and Google has their own ideas on how payment processing should work. Businesses are also more comfortable using a traditional payment processor which connects to their merchant account and allows them to have money directly deposited into their business checking account. Apparently dealing with PayPal and Google in addition to a standard merchant account makes bookeeping an even bigger nightmare. So for many businesses, Google and PayPal are not attractive alternatives simply due to the increased integration and/or bookeeping implications. Only people who actually do business online would know this. In most cases, where businesses do choose to implement PayPal and/or Google Payments, they usually also offer traditional payment solutions through a processor such as Authorize.net. The naysayers on CYBS simply don't understand the industry or the technical side of payment processing. Those of us who do are making a bundle on CYBS. [more]
I've been using the DivX codec for well over 7 years now...since the days when it was just a hacked version of the Microsoft MPEG4 codec. Since then, though I love the technology, I've struggled to find a reason why DivX has a chance of being a legitimate player in the video codec battle that has ensued over the past few years. Sure, DivX and XviD both rock the funky chicken from a technical standpoint, but being based on open-source technology, I've wondered how they will monetize all their hard work. I've also been worried that Stage 6 would be a flop and that as soon as Adobe finds a way to do MPEG4 right with Flash, DivX's chances to be a major player in streaming video would suddenly be very limited. [more]
On 5/10/07 I made an outperform call on Rogers Communications (RG), which was trading at $39.80, and did great until late in June when CAPS stopped updating the price. It has since gone up to over $50.00 and I'm still waiting for CAPS to update the price and give me credit for my gains. I would have already closed this pick if the price data were accurate. Anyone else out there having this problem?
I have been telling people about ANET (formerly LTBG) for over a year now and it appears that my ship finally came in. As an ANET customer, I've had a chance to compare some of the major payment gateway providers over the past few years and have come to believe that not only is ANET one of the best processors, but they have the best name recognition and the widest variety of compatible shopping carts of all the major providers. Being supported as the default provider by most shopping cart software is the single biggest factor in the growth rate for any online payment gateway. Most web developers will not waste the effort to do a custom integration with an unsupported payment gateway if their shopping cart software already supports another major gateway. No matter how many gateways a shopping cart supports, it has been my experience that ANET is always one of the supported gateways. Therefore, they seemed like a pretty safe bet for my high-growth portfolio. [more]