Optimal Group, Inc. (NASDAQ:OPMR)
CAPS Rating:
The Company is a payments company with operations throughout North America, the United Kingdom and Ireland. It currently operates in three segments.
The Company is a payments company with operations throughout North America, the United Kingdom and Ireland. It currently operates in three segments.
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Recs
They are sitting on a TON of cash, Canadian Interest Rates are about to go up, and the Canadian dollar is at a 30 year high.
This company is at risk of losing $20 million in cash (ONLY a risk, not a guarantee) and still, in that case, it will have a Price/Book less than 1. This company would have to lose twice as much cash just to even out at Price/Book = 1.
On top of that, it is trading at a low because of depression from this news and an analyst downgrade. I'm not saying it's bottommed out, but it's got lot's of room to top out. Maybe not so much because of the potential for a buyout. Any larger competitor would be HAPPY to swallow this for a 10-30% premium.