Worst Software stock of 2010 now a strong buy
I have blogged before about TeleCommunication Systems, Inc. (TSYS) and was disappointed with the stock's performance last year. The stock lost over 50% of its value and made the list of worst performing software stocks for 2010. However, towards the end of 2010 they landed several very large contracts. Now they are beginning to realize some of the revenues from those sales.
They just reported earnings for Q4 2010 and the market is taking notice. The stock is up more than 10% so far today. My belief is that by the end of 2011 this stock will again be trading in the $8-10 range.
For all of 2010, TCS posted a record $388.8 million in revenue, a 30 percent increase from revenue of $300.1 million in 2009, which was also a record. The company won a number of contracts with the U.S. military in 2010, including a contract with the U.S. Navy, worth as much as $315 million.