Player Avatar TSIF (99.96) Submitted: 10/28/2009 1:11:43 PM : Outperform Start Price: $4.83 AGYS Score: +42.26

Again, not my "normal" call, but I'm looking for some companies that Mr. Market may have smacked a little too hard, as opposed to the ones they are throwing exuberant parties for right now that have no earnings. Agilysys is beaten down and has reduced sales of its computers and software. Of it's three divisions it's hard to believe the hospitality division will be doing much buying anytime soon. The retail division is also questionable. This leaves the TSG segment which works more with the government, educational, healthcare, etc. All in all, while profits are down Agilysys lost $12 Million last quarter, (next release November 4th), which was a vast improvement from the previous quarter. While you can't cut your way to profits in most cases SG&A down 20% shows management is willing to make tough choices. Cash flow was positive and the cash position increased. With the dividend cut and no debt Agilysys is poised to return to profitability soon if the economy cooperates. Gross margins of near 25%. Strong cash position. I believe we are at the point in the recesssion where some deferred puchases will start becoming a necessity. I haven't done the DD to see if Agilysys is on anyone's shopping list, but merger and acquisition time will be in peak season the rest of this year. The Obama healthcare IT stimulas is also not fully in play. Making an uppitch on Agilysys so close to earnings could be high risk, but in this market correction this week Agilysys has already "given back" more than it's "fair share".

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